In 2023, the Czech Republic is set to transform the landscape of cashless transactions with a groundbreaking service called Cvak, which empowers vendors to accept payments without requiring a physical payment terminal. This development means that even in scenarios where paying with a card was previously impossible, like when visiting a hairdresser, hiring a plumber, or buying snacks from a stall, payments can now be made through a mobile phone.
Air Bank has unveiled a novel approach to facilitate electronic payments at establishments that previously did not have payment terminals and were hesitant to accept card payments. Named Cvak, a term inspired by the sound of a click, this service kicked off with 500 small business operators who joined a preliminary program in December 2023, making it easier for their patrons to transact without cash.
With Cvak, the familiar inconvenience of not being able to use a card at certain locations, such as campsites where the nearest ATM might be miles away, is effectively addressed. This solution promises to eliminate such hassles, even in sought-after destinations like Lipno.
Developed and owned by Air Bank, Cvak is set to expand its reach with the inclusion of three additional banks in the first quarter of the year: Fio banka, mBank, and MONETA Money Bank. The Cvak service streamlines payments by transferring funds directly from the customer’s account to the merchant’s account for those with accounts in the participating banks, or via card for customers with accounts in other banks, all without the need for traditional payment terminals.
