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Australias Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Nov 2013

Category :

Banking

No. of Pages : 108 Pages


Synopsis

The report provides market analysis, information and insights into Australia\'s cards and payments industry, including:

  • Current and forecast values for each category of Australia\'s cards and payments industry including debit cards, credit cards, prepaid cards and charge cards.
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas.
  • Analysis of various market drivers and regulations governing Australia\'s cards and payments industry.
  • Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by various bankers and other institutions in the market.
  • Comprehensive analysis of consumer attitudes and their buying preferences for cards.
  • Competitive landscape of Australia\'s cards and payments industry.

Executive summary

The Australian card payments channel registered marginal growth during the review period (2008–2012). A positive economic outlook, the need for more sophisticated prepaid cards and an increase in online shopping all combined to support the growth of the card payments channel. During the review period, the card payments channel increased in volume at a CAGR of 5.18% to reach 98.0 million cards in circulation in 2012. 

In value terms, the card payments channel valued AUD601.0 billion (US$624.2 billion). As more consumers move away from cash, cards payments are expected to deliver strong growth over the forecast period. Growth is expected to be driven by increasing demand for prepaid cards, improvements to the regulatory framework, online and mobile commerce, and a positive economic outlook.

Scope

  • This report provides a comprehensive analysis of Australia\'s cards and payments industry.
  • It provides current values for Australia\'s cards and payments industry for 2012 and forecast figures for 2017.
  • It details the different macroeconomic, infrastructural and business drivers affecting Australia\'s cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various bankers and other institutions.
  • It profiles the major banks in Australia\'s cards and payments industry.

Reasons to buy

  • Make strategic business decisions using historic and forecast market data related to Australia\'s cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within Australia\'s cards and payments industry.
  • Assess the competitive dynamics in Australia\'s cards and payments industry.
  • Gain insights into the marketing strategies used for selling various types of cards in Australia.
  • Gain insights into key regulations governing Australia\'s cards and payment industry.

Key highlights

  • In terms of the number of cards in circulation, the Australian card payments channel is expected to post a forecast-period CAGR of 3.20% and will continue to be dominated by the prepaid card category, which represented a share of 39.0% in 2012. The second-largest share was held by the debit cards category with 38.6%, followed by the credit cards category with 18.7% and the charge cards category with 3.6%.
  • During the review period, the announcement of relatively high interchange fees by the Reserve Bank of Australia (RBA) had a noticeable effect on the credit card category. For MasterCard and Visa schemes, transactions on platinum cards currently attract a 1% interchange fee, compared to the interchange fees on standard credit cards: 0.4% for Visa and 0.3% for MasterCard. These developments increased the interchange and other revenue received by credit card issuers, which they may use to fund more generous reward programs without needing to increase annual fees.
  • During the review period, the total number of high net worth individuals (HNWIs) increased at a CAGR of 11.72% from 194,799 in 2008 to 301,824 in 2012. Despite its relatively small population, Australia is home to more affluent individuals than its neighboring countries. Over the forecast period, the total number of HNWIs is estimated to reach 401,887 in 2017. Recognizing this growth, Australian banks and card providers are making a significant effort to target this group, as HNWIs traditionally show a greater willingness to use non-cash payment methods such as credit, debit and prepaid cards. Examples include the Diamond and Platinum Awards Credit Card from Commonwealth Bank of Australia, the Singapore Airlines Westpac Platinum Credit Cards from Westpac, and the ANZ Platinum Credit Card and Qantas Platinum card from National Australia Bank.
  • To make transactions even more secure, Australian banks are providing secret net codes for online debit card payments. With the introduction of this technology, debit cards are now as frequently used online as credit cards. The NAB Classic Banking debit card, issued by the National Australia Bank, comes with enhanced security and chip technology.
Table of contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technology
2.1.1 ATMs
2.1.2 POS terminals
2.1.3 Internet penetration
2.1.4 Digital wallets
2.1.5 Near-field communication (NFC)
2.1.6 Banking applications designed by banks
2.1.7 EMV smart cards
2.1.8 Contactless payments
2.1.9 Mobile payments
2.1.10 Anti-skimming applications
2.2 Business Drivers
2.2.1 Growth in prepaid cards – gift cards, loyalty and incentive cards
2.2.2 An increase in the use of government purchasing cards
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Inflation
2.3.3 Central bank interest rate
2.3.4 GDP per capita income

3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfers
3.1.5 Direct debits

4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Standards under the Payment Systems (Regulation) Act, 1998
4.1.2 Interchange fee benchmarks
4.1.3 Access regimes for various schemes
4.1.4 Anti-Money Laundering and Counter-Terrorism Financing Act, 2006
4.1.5 Regulations governing the prepaid card category
4.1.6 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Counterfeit card fraud
4.2.3 Card ID theft
4.2.4 Cards lost or stolen

5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate users
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist expenditure
5.2.3 Outbound tourist card expenditure
5.3 Retail Card Spending
5.3.1 Analysis by product category
5.3.2 Analysis by retail channels

6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by number of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Category Size and Forecast
7.3.1 Analysis by number of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Category Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme Share Analysis
7.5.2 Issuer Share Analysis

8 Analysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Analysis by number of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share analysis
8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Analysis by number of cards in circulation
9.1.2 Analysis by transaction value
9.1.3 Analysis by transaction volume
9.2 Transaction Share Analysis by Channel
9.2.1 Analysis by transaction value
9.2.2 Analysis by transaction volume
9.3 Personal Charge Cards Category Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
9.3.3 Analysis by transaction volume
9.4 Commercial Charge Cards Category Size and Forecast
9.4.1 Analysis by number of cards in circulation
9.4.2 Analysis by transaction value
9.4.3 Analysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share analysis
9.5.2 Issuer share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Analysis by number of cards in circulation
10.1.2 Analysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Analysis by number of cards in circulation
10.2.2 Analysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Analysis by number of cards in circulation
10.3.2 Analysis by transaction value

11 Merchant Acquiring
11.1 Merchant Acquirers in Australia

12 Company Profiles of Card Issuers
12.1 ANZ Banking Group
12.1.1 Key financials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Commonwealth Bank of Australia
12.2.1 Key financials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Westpac Banking Corporation
12.3.1 Key financials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 National Australia Bank Group
12.4.1 Key financials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Bank of Queensland Ltd
12.5.1 Key financials
12.5.2 Card portfolio
12.5.3 Strategies

13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric’s Services
13.5 Definitions
13.6 Disclaimer

List of Table


Table 1: Australia – Payment Channels (AUD Billion), 2008–2012
Table 2: Australia – Entry Strategies of Foreign Banks
Table 3: Australia – Card Fraud (AUD Million), 2008–2012
Table 4: Australia – Student Cards Offered
Table 5: Australia – Forex / Travel Credit Cards of ANZ Bank
Table 6: Australia – Corporate Cards Offered in Australia
Table 7: Australia – Consumer Card Spending by Product Category (AUD Million), 2008 and 2012
Table 8: Australia – Consumer Card Spending by Retail Channel (AUD Million), 2008–2012
Table 9: Australia – Payment Channel Volumes by Card Category (Million), 2008–2017
Table 10: Australia – Card Payments Channel Size by Number of Cards (Million), 2008–2017
Table 11: Australia – Card Payments Channel Size by Transaction Value (AUD Billion), 2008–2017
Table 12: Australia – Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 13: Australia – Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Table 14: Australia – Credit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 15: Australia – Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 16: Australia – Credit Card Category Size by Transaction Volume (Billion), 2008–2017
Table 17: Australia – Personal Credit Cards Category Size by Volume (Million), 2008–2017
Table 18: Australia – Personal Credit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 19: Australia – Personal Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 20: Australia – Personal Credit Cards Category Size by Transaction Volume (Billion), 2008–2017
Table 21: Australia – Commercial Credit Cards Category Size by Number of Cards (Thousand), 2008–2017
Table 22: Australia – Personal Credit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 23: Australia – Commercial Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 24: Australia – Commercial Credit Cards Category Size by Transaction Volume (Million), 2008–2017
Table 25: Australia – Debit Cards Category Size by Number of Cards (Million), 2008–2017
Table 26: Australia – Debit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 27: Australia – Debit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 28: Australia – Debit Cards Category Size by Transaction Volume (Billion), 2008–2017
Table 29: Australia – Charge Cards Category Size by Number of Cards (Million), 2008–2017
Table 30: Australia – Debit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 31: Australia – Charge Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 32: Australia – Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Table 33: Australia – Personal Charge Cards Category Size by Number of Cards (Million), 2008–2017
Table 34: Australia – Personal Charge Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 35: Australia – Personal Charge Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 36: Australia – Personal Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Table 37: Australia – Commercial Charge Cards Category Size by Number of Cards (Million), 2008–2017
Table 38: Australia – Commercial Charge Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 39: Australia – Commercial Charge Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 40: Australia – Commercial Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Table 41: Australia – Prepaid Cards Category Size by Number of Cards (Million), 2008–2017
Table 42: Australia – Prepaid Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Table 43: Australia – Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 44: Australia – Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008–2017
Table 45: Australia – Open-Loop Prepaid Cards Segment Size by Transaction Value (AUD Million), 2008–2017
Table 46: Australia – Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2008–2017
Table 47: Australia – Closed-Loop Prepaid Cards Segment Size by Number of Cards (Million), 2008–2017
Table 48: Australia – Closed-Loop Prepaid Cards Segment Size by Transaction Value (AUD Billion), 2008–2017
Table 49: Australia – Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008–2017
Table 50: Australia – Top Four Merchant Acquirers, 2011
Table 51: ANZ Banking Group – Key Financial Indicators (AUD Million), 2011–2012
Table 52: ANZ Banking Group – Card Portfolio and Key Features
Table 53: Commonwealth Bank of Australia – Key Financial Indicators (AUD Million), 2011–2012
Table 54: Commonwealth Bank of Australia – Card Portfolio and Key Features
Table 55: Westpac – Key Financial Indicators (AUD Million), 2011–2012
Table 56: Westpac – Card Portfolio and Key Features
Table 57: National Australia Bank Group – Key Financial Indicators (AUD Million), 2011–2012
Table 58: National Australia Bank Group – Card Portfolio and Key Features
Table 59: Bank of Queensland Ltd – Key Financial Indicators (AUD Million), 2011–2012
Table 60: Bank of Queensland Ltd – Card Portfolio and Key Features
Table 61: Key Definitions

List of Chart


Figure 1: Benchmarking the Australian Card Payments Channel Against Other Key Regional Markets
Figure 2: Australia – Growth of Various Card Categories (%), 2008–2017
Figure 3: Australia – ATM Penetration Per 100,000 Inhabitants, 2008–2017
Figure 4: Australia – POS Terminal Penetration Per 100,000 Inhabitants, 2008–2017
Figure 5: Australia – Internet Users Per 100 Inhabitant, 2008–2012
Figure 6: Australia – Value of M-Payments Growth (AUD Million), 2008–2017
Figure 7: Australia – GDP Growth (Percentage Change), 2008–2017
Figure 8: Australia – Inflation Rates, (%), 2008–2018
Figure 9: Australia – Reserve Bank of Australia Interest Rates (%), Feb 2009 to June 2012
Figure 10: Australia – GDP Per Capita (Current US$), 2008–2017
Figure 11: Australia – Shares of Different Payment Channels, (%), 2008 and 2012
Figure 12: Australia – Card Fraud (AUD Million), 2008–2012
Figure 13: Australia – Card-Not-Present Fraud Value (AUD Million), 2008–2012
Figure 14: Australia – Counterfeit Card Fraud Value (AUD Million), 2008–2012
Figure 15: Australia – Card ID Theft Fraud Value (AUD Million), 2008–2012
Figure 16: Australia – Fraud Value by Cards Lost or Stolen (AUD Million), 2008–2012
Figure 17: Australia – Cards and Payments Industry Segmentation by Card Type
Figure 18: Australia – Volume of HNWIs (Thousand), 2008–2017
Figure 19: Australia – Outbound Tourism (Thousand), 2008–2012
Figure 20: Australia – Outbound Tourist Expenditure (AUD Billion), 2008–2017
Figure 21: Australia – Outbound Tourists Card Expenditure (AUD Billion), 2008–2012
Figure 22: Australia – Retail Consumer Card Spending by Product Category (%), 2012
Figure 23: Australia – Consumer Card Spending by Retail Channel (%), 2012
Figure 24: Australia – Card Volume and Penetration, 2008–2017
Figure 25: Australia – Payment Channel Volumes by Card Category (%), 2008–2017
Figure 26: Australia – Card Payments Channel Size by Volume of Cards (Million), 2008–2017
Figure 27: Australia – Card Payments Channel Size by Transaction Value (AUD Billion), 2008–2017
Figure 28: Australia – Credit Card Volume and Penetration, (Thousand) 2008–2017
Figure 29: Australia – Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 30: Australia – Credit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Figure 31: Australia – Credit Card Category Size by Transactions Volume (Billion), 2008–2017
Figure 32: Australia – Credit Card Transactions Value by Channel (AUD Billion), 2008–2017
Figure 33: Australia – Credit Card Transaction Volume by Channel (Million), 2008–2017
Figure 34: Australia – Personal Credit Cards Category Size by Volume (Million), 2008–2017
Figure 35: Australia – Personal Credit Cards Category Size by Transaction Value (AUD Billion), 2008– 2017
Figure 36: Australia – Personal Credit Cards Category Size by Number of Transactions (Billion),
Figure 37: Australia – Commercial Credit Cards Category Size by Number of Cards (Thousand), 2008–2017
Figure 38: Australia – Commercial Credit Cards Category Size by Transaction Value (AUD Billion),
Figure 39: Australia – Commercial Credit Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 40: Australia – Credit Cards Category Share by Scheme (%), 2012
Figure 41: Australia – Credit Cards Category Share by Issuer (%), 2012
Figure 42: Australia – Debit Card Volume and Penetration, 2008–2017
Figure 43: Australia – Debit Card Category Size by Number of Cards (Million), 2008–2017
Figure 44: Australia – Debit Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Figure 45: Australia – Debit Cards Category Size by Transaction Volume (Billion), 2008–2017
Figure 46: Australia – Debit Cards Transaction Value by Channel (AUD Billion), 2008–2017
Figure 47: Australia – Debit Cards Transaction Volume by Channel (Million), 2008–2017
Figure 48: Australia – Debit Cards Category Share by Scheme (%), 2012
Figure 49: Australia – Debit Cards Category Share by Issuer (%), 2012
Figure 50: Australia – Charge Card Volume and Penetration, 2008–2017
Figure 51: Australia – Charge Cards Category Size by Number of Cards (Million), 2008–2017
Figure 52: Australia – Charge Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Figure 53: Australia – Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 54: Australia – Charge Cards Transaction Value by Channel (AUD Million), 2008–2017
Figure 55: Australia – Charge Cards Transaction Volume by Channel (Million), 2008–2017
Figure 56: Australia – Personal Charge Cards Category Size by Number of Cards (Million), 2008–2017
Figure 57: Australia – Personal Charge Cards Segment Size by Transaction Value (AUD Billion), 2008–2017
Figure 58: Australia – Personal Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 59: Australia – Commercial Charge Cards Category Size by Number of Cards (Million), 2008–2017
Figure 60: Australia – Commercial Charge Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Figure 61: Australia – Commercial Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 62: Australia – Charge Cards Category Share by Scheme (%), 2012
Figure 63: Australia – Charge Cards Category Share by Issuer (%), 2012
Figure 64: Australia – Prepaid Card Volume and Penetration in Australia, 2008–2017
Figure 65: Australia – Prepaid Cards Category Size by Number of Cards (Million), 2008–2017
Figure 66: Australia – Prepaid Cards Category Size by Transaction Value (AUD Billion), 2008–2017
Figure 67: Australia – Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008–2017
Figure 68: Australia – Open-Loop Prepaid Cards Segment Size by Transaction Value (AUD Million), 2008–2017
Figure 69: Australia – Closed-Loop Prepaid Cards Segment Size by Number of Cards (Million), 2008–2017
Figure 70: Australia – Closed-Loop Prepaid Cards Segment Size by Transaction Value (AUD Billion), 2008–2017

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