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PAYMENTS IN POLAND, 2016

Selected pages from the original report

by Inteliace Research
December 2016

Version: 16.3

Table of contents

Executive Summary

Slide 23: Online merchants & payment methods case (1/3): Allegro
Slide 24: Online merchants & payment methods case (2/3): RTVEuroAGD
Slide 25: Online merchants & payment methods case (3/3): empik.com

1. Payments and payment infrastructure

3. Key players by segment


Slide 26: Mobile payment schemes (1/2): BLIK
Slide 27: Mobile payment schemes (2/2): PeoPay
Slide 28: Digital wallets (1/3): MasterPass
Slide 29: Digital wallets (2/3): VISA Checkout
Slide 30: Digital wallets (3/3): Android Pay
Slide 31: Payment aggregators (1/3): PayU
Slide 32: Payment aggregators (2/3): Przelewy 24
Slide 33: Payment aggregators (3/3): Dotpay
Slide 34: Digital wallet with hybrid funding: PayPal

Payments in Poland, 2016

Slide 1: Consumer markets in Europe, 2014


Slide 2: Card payment volumes in Europe & in Poland (1/2), 2010-2014
Slide 3: Card payment volumes in Europe & in Poland (2/2), 2014
Slide 4: POS infrastructure evolution in Poland, 2010-2016
Slide 5: Card payments evolution in Poland, 2010-2016
Slide 6: Cards/terminals in Poland by functionality, H1 2016
Slide 7: ATM networks in Poland, 2010-2016
Slide 8: ATM cash withdrawals in Poland, 2010-2016
Slide 9: Cash in circulation and interest rates in Poland, 2009-2016
Slide 10: Cards issued in Poland, 2010-2016, split by technology & brand, 2016
Slide 11: Top payment card issuers in Poland, H1 2016
Slide 12: Automated Clearing House (ACH) systems in Poland, 2011-2015
Slide 13: Key mobile payment schemes in Poland by origin of funds, 2016
Slide 14: Key players in payment applications/wallets in Poland, 2016
Slide 15: Poland - retail payment services landscape, 2016
Slide 16: HCE-NFC users evolution, key banks in HCE NFC, 2015-2016
Slide 17: Key players in specialized mobile payments (parking, public /municipal
transportation, regional railways), 2016

Appendix: Directory of firms mentioned in the report

2. Retail landscape (merchants) and payment methods


Slide 18: Brick&mortar (b&m) vs. online retail landscape, 2015-2016
Slide 19: Key payments methods available in b&m and online retail, 2016
Slide 20: Survey on payment methods in 50 large online stores, 2016
Slide 21: Online POS loans providers in online stores, 2016
Slide 22: Blockchain technology & bitcoin in Poland: Exchanges, bitcoin
acquirers, merchants, 2016

2
Inteliace Research

The volume of card payments in Poland is expected to exceed 3 billion in 2016


Card payments landscape in Europe, 2014

Advanced

Average annual card


payments per capita, 2014

360

Most advanced markets

340
320

xx

300

1.54

Norway

Denmark

280

1.57

Finland

260

1.37

UK

13.52

Netherlands

200

Poland

3.21 0.25

180

Estonia

Ireland

160

France

140

0.66

8.93

1.48

Early stage

80

0.69

Slovenia

0.65

0.18

2.56
1.87

0.50

Spain

20

0.11

Italy

Greece

0
0

10

0.23

0.37

2.11

12

Czech Rep.
Hungary
14

16

18

Poland 2015

3.16

Poland 2014

Lithuania

4.44

40

-2

Poland 2016 F

Latvia
0.19

Austria

0.15
2.80

Portugal 60

-4

Germany

Switzerland

100

Fast growing CEE markets

Belgium

120

-6

Payments in Poland, 2016

220

Developed

Sweden

2.42

240

0.99

Total annual card


payments volume,
2014, in billion

Romania

Slovakia

0.21
20

22

24

26

28

30

32

34

36

Average annual growth in number of card payments (CAGR), 20102014, in %

Source: ECB, SNB, NB, Eurostat, NBP, Inteliace Research


Inteliace Research

ATM withdrawals increase despite growing role of cashless payments


ATM withdrawals*: Value
in PLN billion
Total
Foreign
transactions

284
3

291
4

300
4

306
5

261

280

287

295

301

2010

2011

2012

2013

2014

264
3

323
5

330
5

318

325

2015

Foreign
transactions
Domestic
transactions

Average transaction
value(PLN)

+11

+4

The value of cash


withdrawals continues to
increase, however, at a
decelerating rate.

2016F

CAGR (%)
2010-2016F

ATM withdrawals*: Volume


in billion transactions
Total

+4

0.71
0.01

0.75
0.01

0.77
0.01

0.79
0.01

0.78
0.01

0.75
0.01

0.76
0.01

+1
+9

0.70

0.74

0.76

0.78

0.77

0.74

0.75

+1

2010

2011

2012

2013

2014

2015

2016F

374

380

379

379

391

431

436

* Card withdrawals with cards issued in Poland. Domestic and foreign transactions included
Source: NBP, Inteliace Research

Payments in Poland, 2016

Domestic
transactions

CAGR (%)
2010-2016F

At the same time, the


volume of cash
transactions has
stabilized.
The average value of cash
withdrawals is growing

Number of
transactions
has stabilized

4
Inteliace Research

Competition in retail payments in Poland has intensified

Poland - retail payment services landscape, 2016


PayPal
Visa Checkout*

Many

Likely future
positions

Few

mPay
Merchant-sponsored
solutions
iKasa

Specialized, sectororiented services

SkyCash
moBilet
BLIK
MasterPass
Android Pay

Single

Issuer-sponsored
solutions

Multiple bank proprietary


HCE solutions: PKO, BZ WBK,
Eurobank, Getin

There is already a
significant number of
payment applications
competing for clients in
Poland.
The key battle that will
decide the future shape of
Poland`s payment market
will likely play out between
BLIK (ACH-based model)
and various digital wallets
(payment cards-based
models).
Specialized and
merchant/issuer
sponsored services are
likely to occupy market
niches.

PeoPay
Ukash
paysafecard

Single
* For the moment no merchants in Poland accept Visa Checkout.
Source: Inteliace Research

Few

Merchants

Many

5
Inteliace Research

Payments in Poland, 2016

Sources of money / banks

PayU

While blockchain technology is slowly getting foothold in Poland, payment &


merchant applications are still quite rare.
Bitcoin exchanges
Banner

Bitcoin acquirers
ACH transaction volumes (in million tx)
Company name Remarks

Company name

Transaction size

Remarks

BitBay.net

Big >1000tx per day

Attracting by innovations /
flexibility and strong
authentication

InPay.pl

InPay is a local BTC acquirer.


Company offers BTC trading, ATM
cash out and mobile top-up.

bitmarket.pl

Big >1000tx per day

Service with the highest number


of bid/ask quotes

Bitbe.co

A new service to the market,


planning to be the leading
processor for merchants in Poland.

bitcurex.com

Suspended operations

Suspended operations

bitmarket24.pl

Mid size >100tx per day

Fast cash out/cash in

Mid size >100tx per day

Offering trading in BTC and LTC.


Exclusive graphical interface

Banner

Other foreign processors


Payments in Poland, 2016

Merchants
Bitmaszyna.pl
dgtmarket.com

Mid size >100tx per day

New entrant, promotional rates


for BTC trading

nevbit.com

Small <10tx per day

Smaller player

Small

Smaller, specialized players

Other: bitfox.pl, btcduke.com, flyingatom.com,


simplecoin.pl, Cryptoins.com, Bitstar, 4coins, etc.

ACH transaction volumes (in million tx)


Bitcoin acceptance in Poland is still on a very early stage. It
is a niche for passionate rather than an important source of
new revenues/clients.
It can be estimated that there are ca. hundred merchants
openly accepting bitcoin in Poland.
Merchants accepting bitcoin are mostly small, local service
businesses, including: catering, transportation, IT/
hardware/ software stores, educational and other services.
Lack of accepting, settlement and security standards as
well as still limited number of clients willing to pay with
bitcoins prevent a wider application of bitcoin.

Bitcoin trading is well developed in Poland with multiple exchanges competing for investors.
However, unexpected exchanges failures and suspension of operations is still a threat to bitcoin traders.
There are few dedicated bitcoin processors / merchant acquirers operating in the country.
The number of merchants accepting bitcoin is still very limited.

Source: Polskie Forum Bitcoin, Service providers, Inteliace Research


Inteliace Research

Mobile payment schemes (1/2): BLIK


Overview

Description

Company name: Polski Standard Patnoci Sp. z o.o.


Headquarters: ul. Cypryjska 72, 02-761 Warszawa, Poland
Scheme name: BLIK
Main site: http://blikmobile.pl/
Start date: 2014
Founding partners: PKO + other 5 banks + ACH (KIR)
Current Partners: Alior bank, Bank Millennium, BZ WBK, ING bank,
mBank, PKO Bank Polski, Getin Bank, Orange Finanse
General type: Universal mobile payment scheme

Background & operations:


BLIK is a mobile payment scheme developed by the largest bank in Poland PKO Bank Polski. Scheme has been
initially offered to own clients within the IKO mobile app. However, from the beginning, PKO has been looking for
other partners to join the system in order to grow beyond own client base.

Shortly after the launch, five other major banks as well as the incumbent ACH - KIR joined the project. In order to
make the project universal and accessible to every interested party, an independent company and system operator
PSP was created and a new name BLIK was announced in 2015. In 2016, BLIK was accessed by another partner
Getin Noble Bank.
Since 2016, a significant acceleration in BLIK transactions could be observed, which has been an effect of
promotional activities and growing awareness of clients.
Payment mechanics:

Functionalities:

Payments in online stores

Payments in B&M stores

P2P mobile payments

ATM cardless cash withdrawals

GSM top-up

Other (virtual checks, merchant services)

Users: ~2 million users (registered apps as of H1 2016)


Merchants: ~157k B&M* stores, 36k online merchants, 14k ATMs,
as of H1 2016

The key feature of BLIK system are six-digit, single transaction codes
generated in the mobile app.

Codes are entered manually by the client in either: POS terminal, ATM
or at online checkout.

After the code has been entered in terminal, the mobile app asks for
transaction confirmation. Transaction gets executed if the client
confirms it. Alternatively, a one-click process has been developed
where client does not have to confirm every transaction, This however
requires adding the merchant by the client to a white list prior to the
transaction.

Although BLIK transactions have been growing fast, the current


transaction process, with the need of manually entering the six-digit
code, and confirming it with a mobile app, working in an online mode,
prevents a wider adoption of BLIK in traditional stores. Contactless
payment cards and HCE NFC payments are far more convenient from
the perspective of the client.

Transactions (TTM ending Q2 2016):

TX Volume: 2.87 million transactions

TX Value: PLN 710 million

TX volume by type: (Q2 16): 65% ATM withdrawals, 25% online


store payments, 8% b&m store payments, 3% P2P payments.

Payments in Poland, 2016

Funding source: Bank account via ACH KIR (real time settlements)

Recent events and future plans:

The current BLIK scheme mechanics favours ATM withdrawals and online payments.

Since 2016, PSP has been rumoured to work on contactless BLIK payments in POS terminals. However, property
rights/patents used in POS terminal prevent 3rd party access eliminating card organizations.

Since Nov. 2016, one-click payment option in online stores has been introduced by BLIK and Bank Millennium.

BLIK payment option was adopted by PayU and Allegro in Dec. 2016.

*B&M brick and mortar


Source: Company, industry press, interviews, NBP, Inteliace Research

7
Inteliace Research

Firms mentioned in the report

Company name

Type

Address

Blue Media
KIR
Elavon
ePAY Card
eService
Espago
IT Card
PaySquare
PayTel
Pekao CK
PEP
Planet Pay
Polcard
REVO Raiffeisen
SIX Pay
SumUp
Topcard
Dotpay
eCard
PayU
Przelewy24
tpay
Bitbe.co Ltd
InPay
4coins.pl
BitBay.net
bitcurex.com
bitfox.pl
bitmarket.pl
bitmarket24.pl
Bitmaszyna.pl
Bitstar
btcduke.com
Cryptoins.com
dgtmarket.com
flyingatom.com
nevbit.com
simplecoin.pl
PaySafeCard, Ukash
BZ WBK
eurobank
Getin bank
Millennium HCE
Pekao HCE
PKO HCE
SGB HCE
BLIK
CallPay
iKasa
moBilet
mPay
PeoPay
SkyCash
FerPay
Homepay
HotPay
JustPay.pl
SimPay.pl
uPaid wallet
Android Pay
MasterPass
PayPal
Skrill
Visa Checkout

Blue Media S.A.


Krajowa Izba Rozliczeniowa S.A.
Elavon Financial Services
ePay Card Sp. z o.o.
eservice Sp. z o.o.
PSP Polska Sp. z o.o.
IT Card CTP S.A.
PaySquare SE Spka Europejska Oddzia w Polsce
PayTel SA
Centrum Kart S.A
CRE Polskie ePatnoci S.A.
Planet Pay Sp. z o.o.
First Data Polska S.A.
EVO Payments International Sp. z o.o.
SIX Payment Services (Europe) S.A.
SumUp Payments Limited
TopCard Sp. z o. o.
Dotpay S.A.
eCard S.A.
PayU S.A.
PayPro SA, DialCom24 Sp. z o.o.
Krajowy Integrator Patnoci S.A.
Bitbe.co Ltd
InPay S.A.
12 M sp. z o.o.
BitBay Sp. z o.o.
Digital Future LLC Sp. z O.O.
Bitfox sp. z o.o.
Michau Enterprises Limited
BitMarket24 Sp. z o.o.
Androbayt Sp. z o.o.
bitstar sp. z o. o.
BTCDuke sp. z o.o.
Cryptoins.com Ltd
Digital Market Sp. z o.o.
FlyingAtom Sp. z.o.o.
Nevonet Sp. z o o
Simple Coin s.r.o.
Prepaid Services Company Ltd.
Bank Zachodni WBK SA
Euro Bank S.A.
Getin Noble Bank S.A.
Bank Millennium SA
Bank Polska Kasa Opieki SA
PKO Bank Polski SA
SGB-Bank S.A.
Polski Standard Patnoci Sp. z o.o.
CallPay Sp. z o.o.
ICP Polska Sp. z o.o.
Mobile Traffic DATA Sp. z o.o.
mPay S.A.
Bank Pekao S.A.
SkyCash Poland S.A.
Ferratum Bank p.l.c.
Homepay Sp. z o.o.
Leaders sp. z o.o. sp. k.
Digital Virgo S.A.
Simpay Krzysztof Wojdak
uPaid Sp. z o.o.
Android Pay
MasterPass
PayPal
Skrill
Visa Checkout

ACH
ACH
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
acquiring
aggregator
aggregator
aggregator
aggregator
aggregator
BTC acquiring
BTC acquiring
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
BTC exchange
cash vouchers
HCE-issuer bank
HCE-issuer bank
HCE-issuer bank
HCE-issuer bank
HCE-issuer bank
HCE-issuer bank
HCE-issuer bank
mobile payments
mobile payments
mobile payments
mobile payments
mobile payments
mobile payments
mobile payments
online lending
SMS premium
SMS premium
SMS premium
SMS premium
wallets
wallets
wallets
wallets
wallets
wallets

Powstacw Warszawy 6, 81-718 Sopot


ul. Pileckiego 65, 02-781 Warszawa
ul. Puawska 17, Warszawa 02-515 Polska
ul. Jagielloska 34, 05-120 Legionowo
ul. Jana Olbrachta 94, 01-102 Warszawa
ul. Kanclerska 15 , 60-327 Pozna
ul. Jutrzenki 139, 02-231 Warszawa
ul. Puawska 182, 02-670 Warszawa
ul. Jutrzenki 118, 02-230 Warszawa
ul. Giedowa 5, 01-211 Warszawa
Tajcina 113, 36-002 Jasionka
ul. Jutrzenki 139, 02-231 Warszawa
Al. Jerozolimskie 92, 00-807 Warszawa
ul. Jana Olbrachta 94, 01-102 Warszawa
Prosta 68, 00-838 Warszawa
32 - 34 Great Marlborough St, W1F 7JB, London, UK
ul. Starocka 7 , 61-361 Pozna
ul. Wielicka 72, 30-552 Krakw
ul. Arkoska 11, Gdask 80-387
ul.Grunwaldzka 182, 60-166 Pozna
ul. Kanclerska 15, 60-327 Pozna
ul. w. Marcin 73/6, 61-808 Pozna
71 Sutton Hall Road, Hounslow, London TW5 0PX, UK
ul. Mokotowska 1, 00-640 Warszawa
ul. Jzefa Kustronia 51, 30-433 Krakw
ul. Zacisze 2/6, 40-025 Katowice
ul. Andrzeja Struga 78, 90-557 d
Os. Wichrowe Wzgrze 25 c, 61- 697 Pozna
Chytron 26, Office 21 , 1075 Nikozja , Cypr
ul. w. Filipa 23 /4, 31-150 Krakw
ul. Sowackiego 12, 87-800 Wocawek
ul. Wodarzewska 33/5, 02-384 Warszawa
ul. Pod Krzyw Wie 14, 87-100 Toru
IH 24 HOLBORN VIADUCT, EC1A 2BN London, UK
ul. Lborska 3B 80-386 Gdask
ul. Zota 59, 14 pitro, 00-120 Warszawa
ul. Kotaja 47/43, 81-333 Gdynia
Na Maninch 876/7, Praha Holeovice, 170 00, CZ
25 Canada Square, London E14 5LQ, UK
Rynek 9/11, 50-950 Wrocaw
ul.witego Mikoaja 72, 50-126 Wrocaw
ul. Przyokopowa 33, 01-208 Warszawa
ul. Stanisawa aryna 2A, 02-593 Warszawa
ul.Grzybowska 53/57, 00-950 Warszawa
ul. Puawska 15, 02-515 Warszawa
ul. Szarych Szeregw 23A, 60-462 Pozna
ul. Cypryjska 72, 02-761 Warszawa
ul. A. Baraniaka 88 B, 61-131 Pozna
ul. Puawska 99a, 02-595 Warszawa
ul. Drubickiego 11, 61-693 Pozna
ul. Grochowska 21a, 04-186 Warszawa
ul. Grzybowska 53/57, 00-950 Warszawa
Rondo ONZ 1 p. 29, 00-124 Warszawa
TBC Level 6, 14 High Str. 1551 Sliema, MALTA
ul. Grzybowska 87, 00-844 Warszawa
ul. Wadowicka 8a, 30-415 Krakw
ul. Inflancka 4, 00-189 Warsaw
ul. Lborska 3b, 80-386 Gdask
ul. Haski 10 A, 01-689 Warszawa
n/a
n/a
n/a
n/a
n/a

Source: Inteliace Research

Payments in Poland, 2016

Brand/banner

8
Inteliace Research

About this report

About Inteliace Research

This report has been prepared using Inteliace Research


proprietary research and publicly available sources,
including: financial reports, press publications, industry
magazines, directories, financial databases and expert
opinions.

Inteliace Research is an independent and privately owned


research firm based in the heart of Eastern Europe in
Warsaw / Poland.
Our company specializes in value-added research services
and tailored business intelligence solutions.

Views presented in this report reflect solely the


independent and unbiased opinion of Inteliace Research
and authors.
Whilst all care has been taken in compiling information in
this report, Inteliace Research is not responsible for any
loss, damage, expense or claim, howsoever arising,
suffered as a result of reliance on the data contained
within this report.

Payments in Poland, 2016

Through our customized research services we help our


clients to better understand their customers, competitors
and overall market dynamics.
The lead researcher and founder of Inteliace Research is
Marcin Mazurek.
Our contact details:
Inteliace Research
ul. Foksal 17b/31, Warszawa, Poland
Tel. +48 22 408 66 20,
Tel. (m) +48 502 512 178
Fax. +48 22 349 21 40
mail: info@inteliace.com
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clients only. In case of any doubt please contact us at:
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9
Inteliace Research

RECENT PUBLICATIONS BY INTELIACE RESEARCH

Our Recent Documents:

BANK OUTLETS DENSITY IN POLAND (3/3)


GSTO SIECI PLACWEK BANKOWYCH W POLSCE (3/3)
Number of outlets per 1 million inhabitants, by county powiat, 2011
Liczba placwek bankowych na 1 milion mieszkacw, wg. powiatw, 2011r.
Minimum: 126

379 powiatw

Number of bank outlets per 1 million


inhabitants varies a lot on county level

Na poziomie powiatw gsto placwek


jest bardzo zrnicowana

Maximum: 947

100

200

300

400

rdo/Source : Inteliace Research

500

600

700

800

900

1000

Inteliace Research

BANK OUTLETS DENSITY IN POLAND (1/3)


GSTO SIECI PLACWEK BANKOWYCH W POLSCE (1/3)

2016
February - Mortgage Lending in Poland 16
May - Banking Market in Poland 16
May - Bank outlets database 16
June - Insurance Market in Poland 16
August - Top 200 CEE banks 16
September - Investment Funds and Asset Mgmt. 16

Number of bank outlets per 1000 sq km, by region, 2011


Liczba placwek na 1000 km2 powierzchni wg. wojewdztw, 2011r.

GE MONEY BANK OVERVIEW

28

56
75

59

35

66

67

38
52

Liczba/Number

44

176
88

48

CAGR**

As of March 2006

28

37

BAZA PLACWEK BANKOWYCH W POLSCE I STATYSTYKA POWIATW, 2011

rednia / Average
= 58

59

The Southern and Central Poland have


the largest density of bank outlets
Poudniowa oraz centralna Polska s
najgciej pokryte sieci placwek
bankowych na km2

History & Background

Concept Description

Results

Timeline

Target Clients

Assets

In 1995, GE group purchased a small regional


bank: Solidarno Chase D.T. Bank. Bank was
rebranded soon to GE Capital Bank.
In 1998, GE group purchased another small bank
(PAMBank)and converted it to a mortgage
specialist: GE Bank Mieszkaniowy
In 2004, GE group acquired POS lending
specialist :Chrobry with a network of ~1000 POS.
Chrobry was renamed to: Dobry Kredyt
In 2004 , a used car dealers network was created
under the GEpard brand, being the main channel
for car loans sales
As of Jan. 2005, all GE activities in Poland were
consolidated under one roof: GE Capital bank

>60

Channels

40-60

GE money bank - 48 branches


GEpard, ~200 used car dealers
Dobry Kredyt consumer finance 12
outlets and ~1000 POS
Expander - 33 branches - financial
products
1 distributor*

< 40

rdo/Source: Inteliace Research

Inteliace Research

Shareholders
General Electric
Company

99

Products
Only lending products on offer:
mortgage
refinancing loan
credit cards
installment loans
cash loans
car loans

PLN billion

Market
share
(%)

Top notch risk management and collection


High performing sales staff
Fast loan processing and flexibility
High margins
Control over distributors (GEpard, Expander,
Dobry Kredyt)
Advanced cross-selling between segments

and many other ...

10.9
7.4

8.3

9.1

2003

2004

2005

1.6

1.7

1.6

Loans
PLN billion

14.2
6.6

7.6

8.6

2003

2004

2005

Net Profit
Other

Affluent individuals and professionals


looking for mortgage. Valuing quick
processing and flexibility, sometimes not
fulfilling lending criteria set by other
banks (for example job contract or own
funds level)
Mass market clients looking for simple
and quick consumer loans

51.2

PLN billion

0.30

0.32

2003

2004

2005

20.4

26.7

22.8

0.14

ROE (%)

* Although Expander is distributing products from various banks, GE offer / for example mortgage/ is reported to be favoured
** Compound Annual Growth Rate
Inteliace Research
Source: Inteliace Analysis

Visit http://www.inteliace.com for more details


Inteliace Research

Payments in Poland, 2016

BAZA PLACWEK BANKOWYCH W POLSCE I STATYSTYKA POWIATW, 2011

Mediana
Median (443)