Empowering Retail through Data and Innovation

Space4Commerce is Mastercard’s innovative initiative designed to support retail partners across Europe. The initiative aims to enhance business operations through data-driven insights, drawing on Mastercard’s extensive data ecosystem and consumer research. By showcasing market perspectives and fostering knowledge-sharing through case studies, best practices, and success stories, Space4Commerce empowers retailers to navigate the evolving market landscape with confidence.

On May 19, 2025, the Budapest edition of the Space4Commerce initiative took place at MÜPA, under the title „Data Unlocked: Personalization and Consumer Trends in Marketing”. The event offered attendees an in-depth look at the forces reshaping today’s market, with a particular focus on how shifting consumer behaviors are redefining the marketing and retail sectors.

The lineup of speakers featured experts from Mastercard’s Hungarian and European teams, as well as representatives from Google and Teufel. During the event, the Space4Commerce team presented findings from two newly conducted consumer research studies, offering fresh insights into personalization and emerging consumer trends.

Generational Differences & Emerging Behaviors

Presenters Agnieszka Śpionek and Viktória Haasz explored how shopping behaviors differ across generations. They introduced innovative trends such as the Pinduoduo group-buying model, which harnesses community purchasing power to drive down prices. The session also highlighted generational shifts in language and perception—for example, how the term „cool” is increasingly seen as outdated among Gen Z.

One standout topic was Smartflation, a newly emerging phenomenon that reflects how consumers are finding more cost-effective ways to access premium and luxury products.

Key findings about Gen Z’s shopping habits included:

• Only 36% would lower their standard of living during financial hardship.
• 63% actively seek cheaper alternatives for regularly purchased products, with brand loyalty contingent on clear financial benefits.
• Just 17% believe luxury is out of reach—thanks in part to the growing popularity of second-hand marketplaces.
• Many Gen Z consumers still report frustration during the shopping experience, despite their digital savviness.

E-Commerce in Central Europe: Trends and Insights

In the second half of the program, Edina Horváth and Bálint Oláh spotlighted the latest e-commerce trends in Central Europe, focusing on online sales of physical goods such as fashion and electronics. Starting with a macroeconomic overview, they then shared personal anecdotes to illustrate how key revenue drivers influence performance in the digital marketplace.

Highlights from their session:

• 80% of consumers expect a personalized shopping experience, though many remain cautious about sharing personal data.
• Over 90% have abandoned a purchase due to unsuitable delivery options.
• The use of digital wallets has tripled over the past two years.

The Budapest event offered valuable insights and sparked meaningful discussions about how personalization, data, and innovation can shape the future of retail. Through initiatives like Space4Commerce, Mastercard continues to support retailers in making smarter, more informed business decisions in a rapidly evolving market.

Collective effort is needed to protect our digital ecosystem

Cybercriminals caused damages worth 30 billion forints in Hungary last year. While active across all industries, their activities pose a particularly high risk to the online retail sector. According to Mastercard’s recently published and large-scale study – filling a long-standing gap in the field – 43% of online marketplace users have experienced some form of fraud attempt, and one in five lost money or data as a result. The research explored the state of cybercrime in Hungary from the perspectives of users, companies, and cybersecurity professionals. Globally, the cost of cybercrime reached $9.5 trillion by the end of 2024, and by 2028, it could soar to $13 trillion—more than 60 times the size of Hungary’s GDP.

Nearly half of the Hungarian population (48%) has been directly or indirectly affected by fraud, yet only around one-fifth (22%) feel adequately prepared to defend themselves against such threats. While 70% of adults know that a bank would never request card details or login credentials by phone or email, numerous crimes occurred last year in which victims were defrauded of over HUF 10 million forints in this way. Despite multi-factor authentication and well-designed security systems, the weakest link is still the emotionally pressured, unprepared, or convenience-seeking user with limited awareness of security risks.

Nevertheless, the false sense of security pervades Hungarian society. Although tens of thousands fall victim to fraud annually and the total damage runs into tens of billions of forints, even the most “digitally savvy” 18-29 age group scores poorly on actual digital security knowledge. According to The Age of Cybercrime 2025—a study initially made available by Mastercard to banks and organizations involved in the Kiberpajzs initiative—the knowledge level of this age group barely reaches 1.5 on a four-point scale. The report emphasizes that the alarming growth of cybercrime can only be curbed through collective action, collaboration, and continuous knowledge sharing.

In Hungary, there is a significant intention-action gap between cybersecurity knowledge and digital behaviour. 46% of users cannot distinguish real messages from service providers or merchants from fraudulent ones. Younger generations tend to overestimate their security awareness due to their confidence in digital technologies. Although 90.5% of 18-29-year-olds believe they are difficult to deceive, their average score on a 10-question digital security test was only 1.5 out of 4. Interestingly, the older the respondent, the less confident they feel in their preparedness against digital fraud—yet older age groups actually performed better in the test.

The increasing number of successful fraud attempts and other cybercriminal activities pose a serious reputational risk, threatening the very trust on which online commerce and digital payment ecosystems are built. Among small and medium-sized enterprises that fall victim to cyberattacks, 60% cease operations within six months due to the damages suffered. Currently, the public sector faces the highest level of threat from cybercriminals, while threats to the healthcare sector have decreased. However, the technology sector has become increasingly targeted since the pandemic.

We explore how automation and AI have transformed the threat landscape, enabling attackers to launch high volumes of sophisticated attacks. The analysis reveals the changing nature of cybercrime, with criminals collaborating and innovating to launch more effective attacks. The study emphasizes the need for information sharing and collaboration across sectors to enhance cybersecurity resilience. Practical recommendations for improving cybersecurity education and awareness are also provided, stressing the need for a collective effort to protect our digital ecosystem. The Age of Cybercrime 2025 document is a crucial resource for understanding the current cybersecurity landscape and offering actionable insights for market players to strengthen their cybersecurity strategies and resilience. Let us take these insights and turn them into action to safeguard our digital future.