For eight consecutive years, Mastercard has been conducting its annual MasterIndex research on the habits and needs of active payment card users. This year’s results clearly show that citizens of Bosnia and Herzegovina are increasingly adopting digital and contactless payments, while the market still faces significant challenges on the path toward full digitalization.
95% of citizens own debit cards, more than 20% also use credit cards, and 73% have paid by card in the last seven days. 63% of users are familiar with contactless payments, while 41% actively use them. Mobile contactless payments are recognized by 74% of users, yet 70% still prefer paying with a physical card. Users associate digital wallets primarily with speed and security (61%), convenience (51%), and transaction safety (39%).
Online payments are on the rise: 34% pay with cards, while 30% use mobile banking applications.
Environmental and social topics are gaining importance: 71% believe companies should operate responsibly, with priorities placed on small businesses (50%), youth education (49%), and local environmental initiatives (42%).
Debit Cards Dominate, Cash Still Present
According to the research, the vast majority of citizens own debit cards—95% of respondents—while credit card usage continues to grow, now exceeding one fifth of the population. Card usage habits are becoming more pronounced, with 73% of respondents having paid by card in the past seven days, representing a significant increase compared to the previous year. However, cash still holds a strong position—one third of users prefer cash payments, even when they own a card.
Contactless Payments – Convenience, Simplicity, and Security in Focus
Contactless payment remains the most recognizable feature: 62.8% of users are familiar with it, and 41% actively use contactless payments in stores. Still, 33% of respondents continue to prefer cash, indicating the need for further education and expansion of the acceptance network.
The most frequently cited benefits are convenience, simplicity, and security. Contactless payments are most commonly used in supermarkets, retail stores, and gas stations. Limited card acceptance at certain locations remains a key barrier to wider adoption. Users state they would use cards more often if merchants offered more discounts, richer loyalty programs, and broader availability of POS terminals—especially in small shops, cafés, and taxis.
Growth of Mobile and Online Payments – Challenges Still Remain
Mobile and online payments are increasing, but they have not yet become part of everyday behavior for most users. Although 74% of respondents are aware of mobile contactless payments, two thirds do not understand how the technology works, and 70% still prefer paying with a physical card.
Nevertheless, users recognize the advantages of digital wallets: 61% highlight speed and security, 51% convenience, and 39% transaction safety.
Online Shopping – Security and Personalization Are Key to Growth
Online shopping continues to grow in popularity, with 35% of users shopping online monthly, although cash on delivery remains dominant at 57%. Online card payments have increased to 34%, while payments via mobile banking applications have reached 30%.
Security concerns persist—60% of users have abandoned an online purchase at least once due to security fears. Personalization and relevant product recommendations strengthen loyalty, with 45% of users stating they increase their purchase frequency when such features are present.
When it comes to security habits, PIN entry remains the most accepted authorization method (50%), while around 40% of users still do not use biometric authentication.
Benefits of Mastercard Premium Cards
Users of Mastercard premium cards most frequently take advantage of discounts at selected merchants within the country, cashback on payments at selected merchants abroad (Mastercard Travel Rewards), as well as access to airport lounges (LoungeKey) and Fast Track services when traveling by air.
Additionally, users highlight discounts and cashback offers on accommodation bookings and car rentals through selected platforms.
SMEs and Business Cards – A New Research Segment Reveals Room for Digital Transformation
Small and medium-sized enterprises in Bosnia and Herzegovina typically hold two to three business cards, mostly debit cards (70%), while a smaller share uses credit cards (41%). Business cards are most commonly used by directors, managers, and company owners, with 64% using them daily or several times per week.
Only 42% of respondents have full insight into their spending, while 27% track it partially and 11% do not track expenses at all.
Social and Local Responsibility: Priorities of Sustainable Business
Although 85% of respondents are still unfamiliar with the concept of ESG, 71% believe it is important for companies to operate responsibly.
The MasterIndex 2025 research was conducted on a representative sample of 1,000 citizens and 150 representatives of small and medium-sized enterprises in Bosnia and Herzegovina, including 91 individual respondents. The results clearly confirm that the future of payments is digital, with trust, education, and infrastructure expansion identified as key factors for further market development.
Source: https://www.mastercard.ba/bs-ba/vizija/novosti/masterindex-2025.html