HUNGARY

Hungary's robust market's arms are wide open to e-commerce

E-commerce booms through Hungarian government's priority of e-commerce and e-payments.

10 Million 

91 World Rank 

72% Bank Account 

13% Credit Card 

$1.7 Billion E-commerce Market 

3 Million Internet Shoppers 

50% Penetration 

6% M-commerce Share 

Hungary, a largely upper-middle income Central European country comprises of an impressive internet user base of 6.17 million which accounts for 62% of the entire population. Similarly, it has a remarkably high bank account penetration of 72% in comparison to the region’s average of 58%. E-commerce progressed slowly in its initial stages, however, considering the Hungarian government’s prioritization of e-commerce and e-payments, the market has experienced booming growth in the recent past.

E-commerce is witnessing a whopping annual average growth rate of 11%. Simultaneously, in light of a rapid smarphone uptake in the recent past, m-commerce has grown by 42% between 2013 and 2016. The Hungarian e-commerce market holds vast potential and is foreseen to grow profusely in the coming years.

The entire concept of e-commerce is still on the rise in Hungary, and therefore, despite massive bank account penetration, customers largely prefer paying for their online purchase with either cash or card upon delivery. Only one-third of bank account holders use online banking when transacting online.

On the other hand, credit card penetration is relatively low where credit and debit card payments make up 11% of e-commerce payments in Hungary. Instalment based payments on credit card transactions are becoming strikingly common and are a driving force for the usage of credit cards, reducing the financial burden by spreading the amount into monthly instalments over a pre-defined period of time.

Online banking is gaining steady traction due to the significant nation-wide bank account possession along with the Central Bank’s efforts to promote electronic transactions. Similarly, digital wallets like MasterCard’s Masterpass, too, are proving highly beneficial for Hungarian shoppers. The ultimate ease and convenience through registering all their payment cards on their mobile devices greatly facilitate simplified and quick payments, both online and offline.

With PayU ‘s seven years of local experience in Hungary provides a widespread in-depth understanding of the local market, its intricacies in terms e-commerce trends and favoured ways to pay online greatly aiding merchants in their expansion.

 

Payment Methods Available in Hungary With PayU

Credit and Debit Cards

Alternatives