The European FinTech market is incredibly competitive yet highly lucrative, as Olegs Cernisevs, Chief Technology Officer (CTO) of Blackcatcard, highlights in an interview with naftemporiki.gr.
Blackcatcard is a European FinTech company backed by Papaya Ltd, offering financial services to both individual and corporate clients. Its portfolio includes mobile and online banking solutions featuring personal European IBAN accounts, virtual and physical payment cards, and an integrated cryptocurrency exchange with custodial crypto wallets.
According to your expertise, how is the electronic payments market/landscape/ecosystem formed today? Will the market change due to the regular entry of new players?
The electronic payments landscape today is shaped by several key factors, including rapid technological advancements, regulatory developments, and changing consumer expectations. The shift toward cashless societies has been fueled by the proliferation of digital payment solutions, from mobile wallets to embedded finance, which integrate financial services seamlessly into everyday platforms.
The European FinTech landscape is incredibly rich and competitive. The entry of new players, especially technology-driven, is reshaping the competitive landscape. These entrants typically focus on niche markets, offering agile solutions tailored to specific needs, which contrasts with the more standardized approaches of traditional financial institutions. For example, platforms like Blackcatcard deliver highly personalized services, such as industry-specific payment solutions for various sectors.
In Europe, regulatory frameworks such as PSD2 and the anticipated PSD3 have fostered innovation by promoting open banking and increased competition. These regulations empower consumers to have greater control over their financial data while encouraging collaboration between traditional banks and FinTech companies.
Which are the main and most helpful services offered by Blackcatcard, also available for Greek users? What is there to expect in the near future?
Blackcatcard provides online banking services such as quick remote IBAN account opening, SEPA payments, and Mastercard cards, covering both personal and business needs.
What really sets Blackcatcard apart, is the ability to create tailored financial solutions for niche industries, offering flexibility and innovation that few fintechs or traditional banks can match. Whether it’s customized payment tools for regulated sectors like iGaming or content creation, or co-branded financial products for specific business needs, Blackcatcard designs solutions that address unique challenges with precision and adaptability. This focus on personalization allows the company to serve industries and audiences often overlooked by conventional providers, setting it apart as a leader in innovation and customer-centric finance.
Are you aware of how much have electronic payments in Greece increased in the last five (5) years, given also the pandemic period and in light of the growth of mobile-online banking? What are the forecasts and consumer trends for the next 5 years?
Over the past five years, Greece has experienced a significant increase in electronic payments, a trend further accelerated by the COVID-19 pandemic. In 2022, the Greek financial card and payments market saw robust growth, driven by post-pandemic recovery and inflation impacts. This positive trajectory has continued into 2023, albeit at a moderated pace, reflecting economic stability after successive crises.
Mobile banking, in particular, has seen remarkable adoption. As of August 2024, there were 6.2 million mobile banking users in Greece, surpassing the 3.6 million users accessing internet banking via PCs. This represents a 41% increase in mobile users over the past two years, indicating a strong consumer shift towards mobile platforms.
Looking ahead, the digital payments market in Greece is projected to grow at a compound annual growth rate (CAGR) of 5.04% between 2024 and 2028, reaching an estimated market volume of $14.62 billion by 2028. The largest segment within this market is expected to be digital commerce, with a projected transaction value of $10.87 billion in 2024.
Consumer trends suggest a continued preference for digital and mobile banking solutions, driven by convenience and technological advancements. The substantial growth in mobile banking users reflects this shift, with consumers increasingly favoring mobile platforms for their banking needs. This trend is expected to persist, with digital payments becoming more integral to daily transactions in Greece.
According to your opinion, what are the biggest risks and concerns for consumers and especially e-consumers? What could possibly reverse the course of the e-payments market?
Security and privacy remain the most significant concerns for consumers in the electronic payments space. Recent studies show that 60% of users prioritize security when choosing payment methods, while 41% emphasize privacy. The increasing sophistication of cyber threats, such as data breaches, fraud, and identity theft, continues to challenge consumer confidence. Furthermore, the rapid evolution of digital payment technologies can create apprehension, especially among those unfamiliar with newer systems.
For e-consumers, transparency around fees and terms is another critical factor. Hidden costs or unclear processes can deter users from adopting digital payments. Moreover, the trust deficit in emerging technologies, such as AI and blockchain, further complicates consumer adoption.
At Blackcatcard, addressing these concerns is a top priority. Security is embedded into every aspect of our operations, guided by robust frameworks such as the Digital Operational Resilience Act (DORA). We utilize advanced technologies, including AI-driven monitoring systems, to detect and prevent fraudulent activities in real-time. Key Risk Indicators (KRIs) are implemented to monitor potential threats proactively, while regular stress-testing ensures system resilience.
Additionally, Blackcatcard follows ISO 27001 standards, ensuring that our information security practices are industry-leading. Through 24/7 multilingual customer support and consumer education initiatives, we empower our users to adopt safe practices and make informed decisions.
Following the recent interesting publication of the Christmas shopping survey in various European countries, conducted by Blackcatcard & YouGov, do you have any extra findings or insights to share or comment upon regarding the Greek market and compared to the other nations?
Indeed, according to our research conducted together with YouGov, Greece stands out in certain ways when it comes to holiday spendings. Greeks prefer a pragmatic approach to holiday spending, avoiding excessive expenses. Traditional values and economic factors play a key role in shaping their consumer habits, distinguishing them from more lavish European nations. At the same time, an interest in travel and practical gifts like smartphones highlights a growing desire for meaningful and high-quality purchases.
Greek consumers are highly engaged in e-commerce and digital payments, exhibiting distinct habits compared to the rest of Europe. In Greece, 92% of online shoppers purchase from domestic sellers, while only 21% shop from other EU countries and 14% from non-EU countries. Greeks favor clothing and footwear, with around 35.5% of the population ordering these items online in 2023, similar to Southern European nations like Italy.
In contrast, Northern Europeans, such as Germans, lean more towards electronics and household appliances.
The Greek e-commerce market is projected to reach US$3,249 million in 2024, with an expected annual growth rate (CAGR 2024-2029) of 8.68%, resulting in a market volume of US$4,927 million by 2029.
This reflects alignment with broader European trends where travel and clothing dominate online purchases. However, Greeks are more price-sensitive and often prefer local products, contrasting with Northern Europeans, who frequently engage in cross-border shopping for high-value items.
In digital payments, the total transaction value in Greece is projected to reach US$12.01 billion in 2024, with an expected annual growth rate (CAGR 2024-2028) of 5.04%, resulting in a projected total amount of US$14.62 billion by 2028.
This rapid transition was significantly influenced by the 2015 financial crisis and capital controls, which accelerated the shift to cashless payments. In Northern Europe, such as Sweden and Finland, the transition is nearly complete, with cash use being minimal. Greece also ranks high among eurozone countries for contactless payment usage, showcasing strong technological adoption, though it still lags behind nations with penetration rates exceeding 80%.
