With shopping, holiday and loan card

June 22, 2017 As recent research results show, the overwhelming majority of Poles prefer card payments. Non-cash transactions are faster and less problematic than those made with paper money. Cards are constantly being improved, and consumers are not afraid of further innovations and willingly use the proposed payment methods. The dynamic development of the financial market is not limited to the banking sector only. The non-banking industry also opens up to the needs of its clients and offers innovative solutions, such as payday loans with card payments. In addition to the traditional debit card, there are several other types of cards – it’s worth getting more information about them to find out which one is best for us. We check which cards Poles use most often and why. 

Payment card – convenience, speed, security

Payment card - convenience, speed, security

A payment card is a payment instrument issued by financial institutions, usually banks. Using bank cards is a very convenient alternative to cash transactions, which are often problematic. At the time of payment, simply insert the card into the terminal, enter the PIN code, and the bank will take care of the rest of the transaction, i.e. settlement with the service provider. When paying by card, we do not have to worry about the amount of cash in the wallet, looking for small items or receiving the rest, which adds weight to our wallet. We pay conveniently, quickly and above all safely.

Credit, debit or prepaid card?

Credit, debit or prepaid card?

We can classify payment cards in several ways. There is often a division into specific payment organizations in which we meet with cards – Visa, Mastercard, American Express and Diners Club. However, depending on our needs and the method of settling with the bank, we can distinguish several types of payment cards:

  • Credit card – a card based on a credit limit granted by the bank; the card holder periodically receives a statement of transactions made with the card and information on the method and date of settlement; of course, the use of the card involves interest, but if we manage to return 100% of the debt within a certain period of time (grace period), we will avoid interest; receiving a credit card does not have to involve opening a bank account. Check if it’s worth having a City Bank credit card;
  • Debit card – this is a payment card associated with the bank account; at the time of the transaction using it, the bank collects the amount due from the card owner’s account, and the condition for the transaction is to have sufficient funds; the name of the card can be a bit misleading, because debit can be understood as acceptable debt, but the debit card does not allow for a negative balance on the account, and the word “debit” means in this case immediate booking of the transaction and debiting the customer’s account;
  • Prepaid card – otherwise a prepaid card; this type of card requires prior top-up, e.g. via a bank transfer to the so-called technical account of the issuing bank; the topped up card can be used in any transaction that does not exceed the balance available on the card; after using up the available funds, we can “top up” the card again; The main advantage of a prepaid card is security, because in the event of theft we only lose the funds on the card.

We prefer to pay by card

We prefer to pay by card

The combination of finance and technology is a real power. Few people can imagine functioning without payment cards. We got used to the convenience that we indisputably gain when using plastic money. The recently published results of a study by Mastercard show that Poles seem less than other Europeans “addicted” to cash. Only 39% of us declare that they prefer to use paper money – the European average in this case is 47%.

The payment card allows for quick and trouble-free shopping. When asked about the reasons for using the card, Polish respondents to the Masterindex survey answered that speed is the most important thing for them – as much as 53% indicate the advantage of payment cards. 49% of respondents were reluctant to withdraw from ATMs, and 42% considered receiving the rest as the main disadvantage of paying with cash. Experts from the financial industry say that the increase in the popularity of payment cards was largely influenced by contactless technology, which Poles particularly liked.

We are currently the European leader in contactless payments. Almost every 4 Poles (23%) use their proximity card every day, which is over 3 times the European average. Further innovations mean that interest in cards increases. Mastercard introduces a revolutionary new payment method.

Debit cards instead of credit cards

Debit cards instead of credit cards

According to NBP statistics, we currently have 5.8 million credit cards. Their number has not changed significantly since 2014. However, comparing the data from 2009 – the period of peak popularity of credit cards – we will notice that the number of loans in our wallets decreased by almost half. At the end of 2009, Poles had as many as 11 million cards. From the previously mentioned Mastercard study, we find out that Poles use debit cards most often – as many as 78% of us declare this.

So why are more and more people choosing debit cards and moving away from these credit cards? Experts believe that there is no single reason. Some customers gave up their “packet” credit cards, which they received in addition to bank accounts, but as a result did not use them. Another reason for resigning from credit cards is to increase the functionality of debit cards with which we will make many payments. In the past, only a loan was used to book flights or a hotel, but today it is unnecessary for these purposes.

The same applies to card payments abroad – most debit cards are already adapted to this. According to Mastercard, customers who already decide to use a credit card praise above all the possibility of postponing payments (36%) and the possibility of making unplanned purchases (32%). A credit card can therefore be an alternative to cash loans and loans.

Pre-paid loan

Pre-paid loan

Paying with a card is natural for us. However, cards are not only issued by banks. The non-bank loan market has been growing at a rapid pace for some time. The loan industry is closely monitoring the market and customer demand. If we do not like to use cash, then the non-bank cash loan is depreciating. Of course, at present, most loan companies automatically send a loan online to our bank account – having a bank account is an essential element in the verification transfer. However, for some people this may not be a convenient solution.

Thirteen card

Lenders are moving with the times and it turns out that we can also borrow in the form of cards. An exemplary example is the Thirteen Card Card, which was the first to offer borrowers such an innovative solution. It works similar to a credit card, on which we set the limit ourselves, which we can use for six months of the contract duration. We will use the Thirteen card anywhere, anytime. This form of loan will help us to pay for our vacation, but before you think about what to choose to finance your vacation – loan or credit. Thirteen cooperates with renowned partners such as mBank and Visa. Together, they managed to create a product that meets the needs of the most demanding customers.