Polish Payments Sector Sees Rapid Growth, With Cashless Transactions Doubling in Five Years

Warsaw, Poland - The Polish payments sector is experiencing a period of rapid growth, driven by the increasing popularity of cashless transactions.

Cashless Transactions on the Rise

According to recent figures from the National Bank of Poland (NBP), the total number of cashless transactions has more than doubled over the past five years, rising from 3 billion in 2016 to 7 billion in 2021. The value of these transactions has also seen significant growth, increasing from PLN 210 billion to PLN 452 billion over the same period.

BLIK: A Key Driver of Growth

BLIK, a popular non-card payment solution in Poland, has been a key driver of this growth. Established by six major banks in Poland in 2015, BLIK uses a 6-digit code generated through the user’s banking app to facilitate transactions. The convenience of this method has contributed to its quick adoption and dynamic growth over the past three years.

Digital Payments Industry Continues to Grow

The digital payments industry has attracted numerous investments and led to the launch of new companies, making it one of the most mature segments in the Polish fintech industry. As a result, the payments segment is expected to continue growing at an increasingly fast pace.

Financial Management Sector Sees Evolution

Another key sector in Poland’s fintech landscape is financial management, which provides solutions for more accurate and convenient management of finances.

Financial Management Providers on the Rise

According to recent figures from June 2022, there are 40 such companies registered in Poland, accounting for over 13% of all fintechs. These providers will likely benefit from the evolution currently taking place in the banking industry, as Polish lenders shift from a service provider model to a financial advisor model.

Software Providers Lead the Way

The software provider sector is also experiencing significant growth, with 523 institutions allowed to grant consumer loans in Poland’s non-banking lending industry. The 47 biggest companies make up 80% of this market, making them a key player in the fintech landscape.

Crowdfunding Sees Rapid Growth

The crowdfunding sector has also seen rapid growth, with equity crowdfunding growing by 89% last year from 9 to 17 companies. This trend is expected to continue, driven by favorable regulatory changes and increasing demand from retail investors.

Insurance Sector Sees Shift

Poland’s insurance industry is also undergoing significant changes, with a shift towards targeted, purpose-specific solutions and away from traditional generic life insurance policies.

Wealth Insurance Segment on the Rise

The gross written premium has been changing over the years, with general life insurance products experiencing a decline in popularity. However, the wealth insurance segment has seen gradual growth, nearly doubling over the same period.

Crowdfunding Sees Record Growth

The crowdfunding sector saw record-breaking growth last year, with traditional crowdfunding leader Zrzutka.pl raising PLN 305 million. Equity crowdfunding also experienced significant growth, increasing from PLN 20 million in 2018 to PLN 274 million in 2021 - a change of nearly 1400%.

This article is brought to you by [Media Outlet], the leading source for fintech news and analysis in Poland.