Less than 3% of branch transactions, 200 active fintechs, and instant payments settled in under 2 seconds. Hungary’s fintech market knows what it wants. The question is: how do banks, startups, and investors respond?
It’s a balancing act: stability vs. innovation, regulation vs. growth. Positioned between Western fintech hubs and emerging regional players, the market has doubled in sizeover the past six years, shaped by both domestic innovation and international entrants.
Yet, despite the progress, venture funding is tighter, and profitability pressures are rising. This forces fintechs, banks, and regulators to rethink their strategies for long-term sustainability. As Hungary adapts to these new conditions, collaboration between fintechs, traditional banks, and regulatory bodies has become more critical than ever.
Rules of the Game: How Hungary Regulates Fintech
Hungary’s regulatory environment since 2020 has been increasingly supportive of fintech innovation while maintaining EU-aligned safeguards. The Central Bank of Hungary (MNB) has taken a “welcoming” stance toward fintech, emphasizing uniform but flexible regulations that protect consumers yet give innovators room to grow. This keeps things clear and straightforward, with fintechs and traditional financial providers treated equally.
To further encourage innovation, the MNB established a regulatory sandbox in early 2019—among Central Europe’s first—and an Innovation Hub dedicated to guiding fintech companies through licensing and compliance challenges. By 2021, the central bank actively expanded these initiatives, working closely with universities, hosting hackathons, and launching an AI-powered chatbot for financial innovation queries.
Additionally, MNB has experimented with blockchain-based NFT issuance as part of a smartphone app for Hungary’s Money Museum, allowing users to collect NFTs linked to real currency and explore blockchain applications in a controlled environment.
Hungary’s Central Bank (MNB) also launched a pioneering pilot project for a Central Bank Digital Currency (CBDC) aimed at retail users—among the first in the EU—focusing initially on financial inclusion among primary school students and families. The digital currency pilot runs on centralized infrastructure developed by the MNB, reflecting Hungary’s proactive approach to exploring digital currency innovation.
Hungary’s fintech market operates within the broader framework of EU financial regulations, implementing key directives like PSD3 and the Payment Services Regulation (PSR), which standardize cross-border payments and security protocols. The Markets in Crypto-Assets(MiCA) regulation is also in effect, integrating crypto services into the regulated financial system, while DORA (Digital Operational Resilience Act) sets cybersecurity standards across financial institutions. Beyond these mandatory EU-wide measures, Hungary has introduced legislative amendmentsto simplify digital contracting and electronic verification, streamlining onboarding processes for fintechs and banks operating in the country.
On the sustainability front, Hungary introduced new ESG due diligence obligations for financial institutions in October 2024. Under the MNB’s ESG Guideline No. 9/2024, Hungarian financial institutions will gradually integrate ESG considerations into their credit risk evaluations starting July 2025. This guideline introduces a standardized ESG questionnaire covering environmental, social, and governance criteria, bringing Hungary fully in line with European standards on sustainability reporting and responsible lending practices.
Overall, Hungary’s regulatory environment remains practical and balanced. The MNB consistently demonstrates openness to innovation, while keeping regulations aligned with broader European standards to ensure stability and consumer protection.
Commercial Banks, Neobanks, and Fintechs: Market Dynamics
Hungary’s banking sector remains a key pillar of the economy, evolving rapidly in response to digitalization, regulatory shifts, and market consolidation. With 39 banks operating in the country, the sector is composed of 17 commercial banks, 11 specialized credit institutions, 9 foreign bank branches, and 2 guarantee institutions.
Digital adoption continues to rise – 76.8% of transactions are now digital, and 30.4% of customers actively use mobile banking. The sector has also seen an increased push toward real-time transactions, with the Hungarian Instant Payment System (HIPS) processing over 349 million transactions in 2023, with most payments settled in under 2 seconds.
As the market evolves, three key forces are shaping the financial landscape: traditional commercial banks, which are rapidly digitizing while consolidating their positions, neobanks, which are challenging incumbents with digital-first solutions; and fintechs, which are increasingly embedded within both banking and payment systems.
Commercial Banks
Hungary’s commercial banking sector is led byOTP Bank, the country’s largest financial institution with a strong presence across Central and Eastern Europe. Domestically, OTP has focused heavily on digital transformation, introducing online account opening, digital loans, e-signatures, and “innovation branch” concepts to modernize customer experiences.
Its OTP Mobile’s Simple apphas become a key player in mobile payments, while the OTP Startup Partner Program fosters fintech collaborations, reinforcing its role in Hungary’s financial innovation space. Despite competition from both neobanks and traditional players, OTP continues to set the pace for digital banking adoption in the country.
However, OTP isn’t the only major player. K&H Bank (part of Belgium’s KBC Group), Erste BankHungary, UniCredit, and Raiffeisen Bank are also significant forces in the market, with strong consumer and corporate banking operations. In response to changing customer demands, these banks have made significant digital investments—K&H and Erste have launched advanced mobile banking apps (K&H e-bank and Erste’s George platform), while MKB Bank, before its merger, undertook a full core banking system overhaul, switching to Oracle Flexcube to modernize its digital infrastructure.
One of the biggest changes in the Hungarian banking landscape was the creation of MBH Bank, formed through the merger of MKB Bank, Budapest Bank, and Takarek Group. The consolidation, which began in 2020 and was finalized in 2023, was part of a government-led effort to increase domestic control over the financial sector and create a strong competitor to OTP Bank. The newly formed MBH Bank instantly became Hungary’s second-largest financial institution, significantly expanding its capital base and customer reach.
At the same time, digital transformation is reshaping how customers interact with banks. Branch-based transactions have dropped below 3%while mobile banking usage continues to grow, forcing traditional banks to rethink their physical presence and invest more in digital services.
Neobanks in Hungary
The rise of neobanks in Hungary reflects a broader shift in consumer behavior, where digital convenience, cost-efficiency, and seamless user experience are driving adoption. Projections suggest that the number of neobank users in Hungary will continue to rise, reaching an estimated 568,330 users by 2028.
The most dominant player in Hungary’s neobank market is Revolut, which has experienced remarkable growth, surpassing 1.5 million customers in Hungary by late 2024. That figure represents roughly 13% of all Hungarian bank cards in circulation, underscoring Revolut’s deep penetration into the market. Over 75% of Revolut transactions in Hungary now take place domestically, signaling its widespread use.
Another major player is Wise, which has positioned itself as a key cross-border payments provider. In 2020, it became the first fintech in the EU to obtain an MNB settlement account, allowing it to participate in Hungary’s instant payments system without an intermediary bank. This move marked a shift in financial infrastructure accessibility, making Hungary one of the first markets in Europe to open its payments network to non-bank financial institutions.
Beyond Revolut and Wise, a few neobanks in Hungary are carving out a niche in business banking. OneSafe makes it easier for companies to manage both fiat and crypto, offering multi-currency accounts, crypto-to-fiat swaps, and Web3 invoicing. Airwallex andPayoneerhelp businesses handle cross-border payments and expenses, while Wallester keeps things simple with customizable corporate cards and real-time tracking.
Fintechs & Tech Providers
Hungary’s fintech ecosystem has grown significantly over the past few years, driven by increasing demand for digital financial solutions, strong engineering talent, and supportive regulatory policies. The sector has more than doubled in size over the past six years, with over 200 active fintech companies in 2025. Most operate in the B2B space, providing banking software, payment processing, regtech, and digital lending solutions.
Rather than directly competing with banks, many fintechs collaborate with incumbents, providing white-label solutions or API-based services that enhance existing financial infrastructure. This has led to a symbiotic environment – banks gain high-tech solutions, while startups gain clients and investments.
As digital transactions surge and cyber threats increase, fintechs specializing in fraud prevention, AI-driven analytics, and blockchain-based payments are seeing rapid adoption.
Hungarian businesses are also increasingly adopting fintech solutions for treasury management, hedging, and cross-border payments. Fintech-assisted risk management tools have grown significantly, with a 66% increase in forward transactions in 2024 as businesses seek multi-currency solutions and digital hedging tools.
Key Players in Hungary’s Fintech Scene
SEON: Fraud Prevention & Cybersecurity
One of Hungary’s most recognized fintech firms, SEON specializes in fraud detection and cybersecurity solutions. Its AI-powered fraud prevention technology is used by financial institutions worldwide, including neobanks like Revolut, to combat identity fraud and cybercrime. SEON secured a $94 million Series B funding round, marking one of Hungary’s largest fintech investments.
Barion Payment: Leading Digital Payment Provider
Barion Payment Zrt. has become a major force in online payments, offering e-wallet solutions and a merchant payment gateway. The company provides businesses with secure, low-cost card processing services and data-driven payment insights, making it one of Hungary’s most widely used fintech payment providers.
Dorsum: Fintech for Investment & Wealth Management
A long-standing player in Hungary’s financial sector, Dorsum develops investment management software for banks, brokerage firms, and wealth managers. The company has successfully transitioned into fintech solutions, launching robo-advisory platforms and AI-powered wealth management tools to meet the growing demand for digital investment services.
Finshape: AI-Powered Banking Solutions
Formed from the merger of Hungary’s W.UP and Czech firm BSC, Finshape is a key provider of AI-driven banking personalization and data analytics solutions. The company helps banks enhance customer experience through real-time behavioral insights, offering AI-powered recommendations, financial insights, and automation tools.
Fintech Startups & Investment Trends
Hungary’s fintech startup ecosystem has steadily expanded in recent years. While the overall startup landscape in Hungary has faced challenges, fintech remains one of the country’s strongest and most active sectors, alongside AI and EdTech.
Programs like the Fast Track Programme and the Hungarian Innovation Agency (NIU) have played a role in accelerating early-stage fintech development, while the National Bank of Hungary’s Innovation Hub and Regulatory Sandboxprovide a testing ground for new financial technologies.
One of the major strengths of Hungary’s fintech startup ecosystem is the Buy Now, Pay Later (BNPL) and SME financing space, with companies like Péntech and PastPaysimplifying cash flow for businesses.
Other notable fintech startups include ff.next, which develops mobile banking solutions for younger generations, and Blueopes, which focuses on AI-driven investment tools with an ESG angle.
Other Notable Fintech Startups:
- ThinkZee (Formerly BankZee) – A family banking platform designed for Gen Z, integrating financial literacy tools and secure banking features.
- SmartKassa– A fully digital fiscalized till system that integrates card payments and digital transaction management for retail businesses.
- Wyze.me – Develops AI-driven financial tools for better money management and decision-making.
- FintechX – A banking-as-a-service (BaaS) provider, helping companies integrate fintech capabilities into their platforms.
- Acounto– A digital accounting platform offering automated bookkeeping, payroll management, and tax advisory services.
- Payee– A legal debt collection fintech, integrated with Számlázz.hu, allowing businesses to initiate legal action on overdue invoices with just a few clicks.
Investment Landscape
Hungary’s fintech investment scene has evolved in recent years, but securing funding remains a mixed experience for startups. Despite the high interest of local venture capital firms, international investors, and bank-backed accelerators in the early-stage fintechs, Hungary isn’t among the top investment destinations in Eastern Europe. Compared to regional leaders like Poland and Estonia, Hungary’s startup funding volume remains relatively small, meaning fintechs looking to scale often seek foreign capital to fuel growth.
The biggest challenge isn’t early-stage funding—it’s follow-on investment. In 2024, late-stage funding (Series A to C) made up over 63% of total investment volume in Eastern Europe, yet Hungary sees fewer large-scale rounds, making it difficult for startups to move beyond the initial phase. At the same time, fintech remains one of the strongest investment sectors, accounting for 23.4% of total venture funding in the region, which signals strong long-term potential.
That being said, some fintechs have broken through. SEON’s record-breaking $94M Series B round led by IVP from Silicon Valley remains one of Hungary’s biggest fintech success stories, while PastPay’s €12M Series A secured backing from UK-based Platina Capital.
On the local front, Hiventures, a state-backed VC fund, remains one of the most active investors, funding multiple early-stage fintechs, while PortfoLion Capital(linked to OTP Bank) has backed scale-ups like SEON and Finshape. Meanwhile, bank-run accelerators like MBH Fintechlab (formerly MKB Fintechlab) have played a role in nurturing fintech startups, integrating them into Hungary’s broader financial ecosystem.
Looking ahead, the path to scaling remains a challenge, but Hungary’s fintech sector is in a strong position, benefiting from solid investor interest, regulatory support, and a growing reputation in AI-driven financial services. Whether the country will produce its first fintech unicorn in the coming years remains to be seen—but the momentum is there.
Industry Support: Accelerators, Associations, and Their Role
A network of accelerators, incubators, and industry associations underpins Hungary’s fintech community. The most prominent industry association is the Hungarian FinTech Association(HFA), established in April 2020 as the first independent representative body for the fintech sector. HFA’s mandate is to strengthen the ecosystem’s competitiveness, represent fintech companies’ interests in dialogue with regulators, and promote Budapest as a regional fintech hub.
Another key industry body is the Electronic Payment Service Providers Association (EFISZ),which plays a major role in advancing cashless payments and digital finance solutions in Hungary. EFISZ works closely with regulators, banks, and fintech companies to support the development of sustainable electronic payment ecosystems, facilitate industry cooperation, and protect consumers.
On the traditional banking side, the long-established Hungarian Banking Associationcontinues to operate, representing commercial banks in regulatory matters and often cooperating with fintech bodies on joint initiatives (for example, some working groups on instant payments and cybersecurity include both bank and fintech representatives).
In terms of accelerators and incubators, MKB Fintechlab (now MBH Fintechlab) has been a key pillar. Founded in 2016 and still active through 2020–2023, Fintechlab was Hungary’s first bank-backed fintech incubator, and it has maintained its role as an innovation lab for the banking industry. It offers startups a structured program with mentorship, pilot opportunities inside MKB/MBH Bank, and typically a seed investment. Many of today’s noted fintech startups (Family Finances/ff.next, Blueopes, Péntech, etc.) are alumni of MKB Fintechlab’s program
In parallel, OTP Bank’s Startup Partner Program has functioned as a de facto accelerator on an annual basis – OTP scouts fintech startups from Hungary and internationally run a lab to test their solutions and often continues with partnerships or investments for the best performers. Another notable name is the Hungarian Blockchain Coalitionwhich was set up in 2022 with government and private stakeholders to explore blockchain use cases (including in finance).
Conclusion: Current Market Snapshot
As of early 2025, Hungary’s financial market is one of increased digitalization, a maturing fintech sector, and a banking industry adapting to new realities. On the consumer side, cashless payments have reached record levels. The combination of the Instant Payment system and the pandemic-induced shift in habits means Hungarians pay by card or mobile more than ever before – by 2023, an estimated 56% of Hungarians were regularly using cashless payment methods even for everyday purchases like groceries. Contactless technology is ubiquitous (over 93% of cards and 95% of payment terminals now support NFC tap-and-go payments), and mobile wallet usage is rising steadily (Apple Pay, Google Pay, and local wallets are commonly linked to bank accounts).
The MNB’s long-term goalto achieve 60% electronic payments in all transactions by 2030 appears increasingly attainable. Meanwhile, the rapid adoption of neobanks – with Revolut’s 1.5 million user milestone – indicates a significant portion of the population is comfortable managing finances through non-traditional channels.
This has nudged the incumbent banks to improve customer experience. Most banks now offer fully online account openings and have refreshed their mobile apps to remain competitive. The result is a consumer market with more choices (and better services) than a few years ago, though also one where customer loyalty is tested by easy switching to fintech alternatives.
The fintech startup ecosystem in Hungary has evolved from emergent to early maturation. We see a cohort of startups that have grown into scale-ups with regional or global presence (e.g. SEON, which now has a global client base, or Tresorit in cybersecurity exiting to a Swiss firm), alongside a continuous pipeline of new startups tackling niche problems.
In terms of challenges, fintech firms face the same macroeconomic headwinds as others – the high inflation and energy costs of 2022–23 tested resilience, but most fintechs, being lean and VC-funded, navigated through by focusing on export markets and efficient growth. Access to capital has remained positive, though the global tech downturn in 2022 made investors more selective. Hungarian startups with solid traction (like PastPay) still raised sizable rounds, whereas very early-stage teams now often go through accelerators or grant programs for initial funding.
The market today is more digital, more competitive, and more connected to global fintech currents than it was pre-2020. Looking ahead, stakeholders are focused on maintaining this momentum: the MNB has updated its Electronic Payments Strategy for 2024+to further increase cashless transactions.
Investors are watching for the next breakout fintech successes and banks are embracing fintech collaborations (or acquisitions) as part of their core strategy. Despite economic uncertainties, the overall trajectory of Hungary’s financial sector is modernization and growth.
UNCHAIN CEE Fintech Tour – Hungary, 20th of March
The UNCHAIN CEE Fintech Tour continues on March 20th, turning the spotlight on Hungary’s fintech market. The event will bring together founders, investors, financial institutions, and regulators to explore the opportunities and challenges shaping Hungary’s fintech landscape. Register now to secure your spot in the event. And if you can’t make it, subscribe to our newsletter to get the full post-event rundown.
