Czech Republic – preferred payment methods

Czech Republic

General Information

Population 10.7m
Population 15 + 9m
Online Population 9.4m
Area 78,871 km²
Currency CZK
GDP 241.5bn USD
GDP per Capita 22,579 USD

Card-based payments
Cash-based payments
Bank transfer
Wallets
Other

[{"label":"Card-based payments","value":"28"},{"label":"Cash-based payments","value":"36"},{"label":"Bank transfer","value":"25"},{"label":"Wallets","value":"7"},{"label":"Other","value":"4"}]

Banked population

Czech Republic 81%
Western & Central Europe 94%
World 67%

Credit card penetration

Czech Republic 25%
Western & Central Europe 46%
World 19%

Internet penetration

Czech Republic 88%
Western & Central Europe 91%
World 62%

Smartphone penetration

Czech Republic 68%
Western & Central Europe 75%
World 70%

Czechs look for two main aspects to their purchases – price and quality. Usually price is indicative of quality but cheaper prices win over expensive in the Czech market which is why Czechs will more often purchase from abroad. If that changes once the VAT rule changes is to be seen.

The Czech Republic’s e-commerce market has more online stores per capita than other markets. The number of online stores rose by 8% during 2020 from 40,816 to 45,961.

As with all the other countries in the EU, the VAT rules for e-commerce changed as of 1st July 2021. The VAT threshold for purchases from outwith the EU has been removed and all purchases are now subject to VAT no matter where they came from.

The Czech Republic’s economy dropped by 5.6% in 2020 but is forecast to grow by 4.2% in 2021 and 4.3% in 2022 according to the IMF. Inflation also rose in 2020 by 3.2% and is expected to rise by 2.3% in 2021 and by 2% in 2022.

Future e-commerce trends (2021-2025)

E-Commerce market size forecast ($US billion)

2021 9.6

2022 10.6

2023 11.6

2024 12.5

E-Commerce spending per capita ($US)

2021 891

2022 990

2023 1082

2024 1165

E-Commerce spending as % of GDP

2021 3.5

2022 3.8

2023 4.0

2024 4.2

Czech Republic

The E-Commerce Market

Top e-commerce segments 2019 | 2020

Electrical Goods: 15% | 36%
Homeware & Furniture: 5% | 20%
Clothing & Footwear: 11% | 12%
Airlines & Hotels: 42% | 12%
Health & Beauty:

Cross-border e-commerce

Cross-border proportion of total e-commerce – 4%
Value of cross-border e-commerce ($US billion) – 0.3
% of online shoppers who have shopped cross-border – 23%

Top 3 cross-border shopping origin markets

Germany
Slovakia
Poland

E-commerce % of total retail

Czech Republic 16%
Western & Central Europe 17.6%
World 20%

E-commerce completed on a mobile device

Czech Republic 53%
Western & Central Europe 43%
World 53%

E-commerce market size ($US billion) 8.4bn USD
E-Commerce spending per capita ($US) 785 USD
E-commerce spending as % of GDP 3.2%

_{The information on our Insights pages has been compiled by us in cooperation with Datamatics and Wright & Brown. The data shown is partially owned by us and partially owned by GlobalData. © 2021 by PPRO Financial Ltd. No data and information can be used for any further publication without the explicit approval of PPRO.}

Czech Republic

Local Payment Methods

BitPay

Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Hyperwallet

Type Bank transfer, Gift card, Prepaid voucher Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High PayPal

Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High PaysafeCard

Type Prepaid voucher Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High PaysafeCash

Type Cash Regions Eastern Europe & the CIS, North America + 1 Paysera Wallet

Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High PayU

Type Bank transfer Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 2 Market relevance High SEPA Direct Debit

Type Bank transfer Regions Eastern Europe & the CIS, Western & Central Europe Market relevance High Skrill

Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Trustly