Budapest Sees Surge in Banking and Mobile Payments Among Hungarians

Published: December 15 2023

Banking and mobile payments have seen a surge in popularity among Hungarians, with the number of bank accounts and mobile payment users reaching record highs. This article explores the reasons behind this trend and the impact it has on the use of cash in Hungary.

The number of bank accounts in Hungary has reached an all-time high, with nearly 11 million payment accounts, of which almost 9.9 million are held by individuals. This increase is attributed to various factors, including the need for young people to have their own bank accounts and the impact of high inflation, which has led more people to entrust their savings to financial institutions.

Mobile payments have gained popularity in Hungary, with a growing number of individuals opting to pay with their phones instead of their physical cards. The number of registered bank cards in mobile wallets has exceeded 2.3 million, accounting for nearly a quarter of all bank cards in the country. Mobile payments offer not only convenience but also enhanced security, as sensitive card information is not exposed during transactions.

Both bank card usage and mobile payments have seen significant growth in Hungary. In terms of transaction volume, over 22.3% of all transactions were made using mobile wallets, while the value of mobile purchases surpassed 16%. However, traditional bank cards are still preferred for larger transactions, such as buying government bonds. In the third quarter of this year, there were over 470 million transactions made with Hungarian bank cards, amounting to a 12% increase compared to the previous year.

As the popularity of card payments and mobile wallets rises, the use of cash has been declining in Hungary. The number of cash withdrawals has decreased by 2% compared to the previous year, with around 22.84 million cash withdrawals made using Hungarian bank cards in the third quarter. The total amount of cash withdrawn also decreased by 2% in annual comparison. The average Hungarian cardholder now withdraws cash less frequently, with an average amount of 105,000 forints per transaction.

The number of card acceptance locations in Hungary continues to grow, with over 204,000 establishments accepting card payments. This includes physical retailers, online stores, and postal acceptance points. The majority of point-of-sale terminals also enable contactless payments, further enhancing the convenience of card transactions. Additionally, the number of ATMs in Hungary has increased since last year, with 4,860 ATMs available for cash withdrawals.

Overall, the surge in banking and mobile payments in Hungary reflects a shift towards digital financial transactions and a decreasing reliance on cash. As more individuals embrace the convenience and security of card and mobile payments, the Hungarian financial landscape continues to evolve.

How many bank accounts are there in Hungary? As of September, there were a record number of bank accounts in Hungary, reaching nearly 11 million. The number of personal accounts is close to 9.9 million.

What contributed to the increase in bank accounts in Hungary? There are several factors contributing to the increase in bank accounts in Hungary. One reason is that more young people have a need for a bank account. Additionally, the high inflation rate has prompted more people to entrust their savings to a financial institution rather than keeping cash.

What is the current number of debit cards in Hungary? The number of debit cards in Hungary has reached a historic high, surpassing 10 million 40 thousand.

Are there more mobile payment options in Hungary? Yes, there has been a surge in mobile payments in Hungary. The number of bank cards registered in mobile wallets has exceeded 2.3 million, meaning that almost every fourth bank card is included in a smartphone or other smart device wallet.

What is the advantage of using mobile wallets for card transactions in Hungary? Using mobile wallets for card transactions in Hungary provides not only a more convenient usage but also a higher level of security. With mobile wallets, the card number, expiration date, and CVC code are not visible, unlike when using traditional plastic cards.

What percentage of total card transactions in Hungary are conducted through mobile wallets? In terms of the number of transactions, mobile wallets account for more than 22.3% of the total card transaction volume, while in terms of value, mobile purchases account for over 16%.

Are cash withdrawals decreasing in Hungary? Yes, the number and value of cash withdrawals in Hungary are decreasing. In the third quarter, there were 22.84 million instances of cash withdrawals using Hungarian bank cards, which is a 2% decrease compared to the previous year. The total amount of cash withdrawn was just under 2,400 billion Hungarian forints, also a 2% decrease year-on-year.

How many acceptance points are there for card payments in Hungary? The number of acceptance points for card payments in Hungary has exceeded 204,000. This includes over 151,000 physical merchants and more than 48,000 online stores, in addition to nearly 4,300 postal acceptance points.

How many ATMs are there in Hungary? As of September, there were 4,860 ATMs in Hungary, 122 more than in December of the previous year. The increase in ATMs is partly due to a regulation introduced by the Hungarian National Bank, which required banks to expand their network.

How frequently do the Hungarians use ATMs? On average, Hungarians with bank cards withdraw cash less than once a month. Each time, they withdraw an average of approximately 105,000 Hungarian forints, which means that an average cardholder does not fully utilize the free withdrawal limit of 150,000 forints.

How much is the average value of card transactions in Hungary? The average value of card transactions in Hungary has increased slightly since 2022 and ranges between 9,300 and 9,800 Hungarian forints per quarter.