Click to Pay in Czech Republic

In a push to advance cashless transactions, four Czech banks are rolling out a novel solution that lets merchants skip traditional terminals while eliminating the need for customers to pay in cash.

While 90% of Czechs use cashless payments at least once a week, a recent survey found that over half reported that they have encountered businesses that do not accept cards, often due to the high costs associated with payment terminals.

The new system, dubbed Cvak (a Czech word that signifies a click), has been spearheaded by AirBank, with Fio, mBank, and Moneta Money Bank also taking part.

The seller downloads the Cvak mobile app and links it with his/her bank account, then inputs the total transaction amount on their phone. The customer uses either their bank card or Google/Apple Pay to tap on the so-called NFC card provided by Cvak, completing the transaction. The seller pays a fee of 0.8% of the entire transaction. The service is open to users of all banks – neither merchants nor consumers need to have an account with the four participating banks.