In 2024, payment methods in the Czech Republic are evolving with a variety of options. Consumers are increasingly embracing flexible and secure ways to shop online. From card payments powered by Visa and Mastercard to Buy Now, Pay Later (BNPL) options, the market is diverse. Cash remains a trusted option for many, while bank transfers and digital wallets like PayPal and Apple Pay offer modern, seamless alternatives. This overview explores the key payment methods shaping Czechia’s e-commerce landscape.
Payment by card in Czech Republic
In the Czech Republic, card payments are highly prevalent in e-commerce, with Visa and Mastercard being the dominant card networks. They are widely accepted across online merchants, making them the preferred payment method for many consumers. American Express and Diners Club are also available but are less commonly used compared to Visa and Mastercard.
Local banks, such as Česká spořitelna, Komerční banka, and ČSOB, issue these cards, ensuring strong security measures for online transactions. Czech consumers favor credit cards for their flexibility, while debit cards are often used for everyday online purchases. Both options are highly trusted by merchants due to their reliability and widespread acceptance.
In 2023, 78.8% of Czech e-commerce platforms accepted Visa and Mastercard, reflecting their strong presence in the market. Although cash on delivery is still popular for some segments of the population, card payments are consistently increasing as the primary choice for online shoppers
Payment by cash in Czech Republic
In the Czech Republic, cash payments remain highly relevant for e-commerce, particularly through cash on delivery (COD), which is preferred by 36% of online shoppers. Many consumers still choose COD due to its simplicity and trust, especially among those who may be hesitant about online transactions. With COD, customers pay when the goods are delivered.
Another common method is click-and-collect, where consumers order online and pay in cash when picking up their items at physical stores or collection points. This method combines the convenience of online shopping with the familiarity of cash payments.
Despite the growth of digital payments, cash remains vital, especially for older consumers or those without banking access.
Payment by bank transfer in Czech Republic
In the Czech Republic, bank transfers are a widely used payment method for e-commerce, and they offer a secure way to complete transactions. Consumers often rely on standard bank transfers, where they initiate payments from their bank accounts via online banking. Many e-commerce platforms support this method, as it is familiar and trusted by consumers. PayU, a widely used payment gateway in Czechia, allows users to connect directly to their bank accounts for seamless transactions, functioning similarly to iDeal in the Netherlands.
In recent years, instant payments have gained popularity. These payments allow money to be transferred between accounts within seconds, even on weekends or holidays. Almost all Czech banks, including major ones like Air Bank and Česká spořitelna, offer instant payment services. However, UniCredit Bank and Max Bank are exceptions and have yet to adopt instant payments.
The CERTIS system, operated by the Czech National Bank, processes both standard and instant payments, with limits up to CZK 2.5 million for each transaction. Instant payments provide a faster alternative to traditional bank transfers and are increasingly integrated into e-commerce platforms. However, their adoption remains lower than other methods, accounting for around 3.5% of total payment volumes.
Payment by BNPL in Czech Republic
In the Czech Republic, Buy Now, Pay Later (BNPL) is growing in popularity for e-commerce. Several local and international providers offer flexible installment solutions for online shoppers. The most prominent local player is Twisto, often compared to Klarna. Twisto offers deferred payments and pay-in-3 options, allowing consumers to split payments into manageable parts without additional fees. Twisto is gaining traction, particularly with younger, tech-savvy consumers who prefer to manage their expenses flexibly.
Currently, BNPL accounts for about 5% of e-commerce transactions in the Czech Republic. This figure is expected to grow to 15% in the coming years. International providers like Klarna and PayPal Pay in 4 also contribute to this growth.
BNPL helps merchants boost conversion rates by allowing consumers to spread payments. This method is set to grow as digital payments increase.
Local actors : Twisto
Payment by digital wallet and X-Pay in Czech Republic
Digital wallets play a significant role in Czech e-commerce. These wallets account for around 22% of all online transactions. The most popular options include PayPal, Apple Pay, and Google Pay. Consumers use these for fast, secure payments without entering card details.
Local options like PayU and Paysera also offer convenience. PayU acts as a gateway for various payment methods, including bank transfers and digital wallets.
Consumers value the speed and ease of digital wallets. They align with the increasing shift towards mobile and digital payments in Czechia.
From cards to digital wallets and BNPL, Czechia’s e-commerce landscape continues to evolve, providing consumers with secure and flexible options. Interested in diving deeper into payment trends worldwide? Access our #PayWorldTour library now!
