Market Trends of Hungary POS Terminal Industry
This section covers the major market trends shaping the Hungary POS Terminal Market according to our research experts:
The Rise in the Total Number of Payment Transactions in Hungary
- The digitalization of payments has accelerated the move to cashless transactions. Even before COVID-19, contactless payments were on an upwards trajectory, facilitating a shift toward cashless countries. Although cash is still a popular means of payment in Hungary, the data for the previous year shows that debit cards are playing an increasingly major role in the lives of Hungarians when they decide to spend their money. This significant change is mainly due to the Covid-19 pandemic.
- In the previous year, Hungarians started to gravitate toward debit card purchases a lot more; never before have so many card purchases been made in Hungary than in the third quarter of the same year. Between July and September, 322 million transactions were made with domestically issued debit cards. This is 40 million or almost 15% more than in the previous quarter, which saw the highest number of card purchases in Hungary, based on data from the National Bank of Hungary (MNB).
- According to GKI digital, in the previous year, one-third of online orders were paid using a card upon delivery. Another 31% of the packages were paid for through electronic payment methods. This shows that the people in Hungary are very likely to pay through cards or by electronic payment methods, which is a positive indication of the market's growth in the region.
- Moreover, the rise in the number of e-commerce transactions in Hungary is vital in augmenting market growth. According to GKI digital data, in the last year, the total number of e-commerce transactions reached nearly 69 million in Hungary. The most online purchases were made in the apparel, fashion, and sports products categories totaling over 14 million.
- As per Hungarian Central Statistical Office, in the last year, the share of online shopping grew to 74.3%, whereas it was only 70.6% the year before that. This rise in online shopping will enhance the market growth exponentially.
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Rise of Retail Trade in Hungary
- An increase in the total percentage of enterprises that sell online in the country is acting as a catalyst for market growth.
- In addition, the online share of the retail trade turnover in Hungary is in the rising phase. The share of the total retail trade revenue increased considerably in Hungary due to the COVID-19 outbreak. Based on the data from GKI digital, in 2021, e-commerce accounted for over 10% of online retail turnover. This rise in Hungary's total retail trade revenue is a positive indication of market growth.
- Moreover, per the data from Eurostat, the total percentage of e-commerce as a proportion of the total turnover of enterprises in Hungary in the last decade has risen. Last year, the turnover share from e-commerce for business enterprises totaled 21% in Hungary. Additionally, the turnover share from e-commerce for business enterprises is expected to grow primarily due to the rising trend of payment transactions prevailing in the country.
- Also, as per GKI digital, Hungary's total number of online orders followed an increasing trend over time. Last year, domestic online orders peaked at almost 70 million. This rise in domestic online orders will significantly boost the market's growth.
- Furthermore, with the growing popularity of e-commerce, online retail trade revenue has increased year over year in Hungary. In 2021, revenues from online retail totaled USD 3.2 Billion, per GKI digital data.
