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

Published By :

Timetric

Published Date : Mar 2015

Category :

Banking

No. of Pages : 82 Pages

Synopsis

The report provides top-level market analysis, information and insights into Bulgaria's cards and payments industry, including:

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

Executive summary

  • The global economic crisis in 2009–2010 had a severe effect on the Bulgarian economy, with gross domestic product (GDP) contracting by 5.5% in 2009. The Bulgarian government and World Bank entered into a memorandum of understanding (MoU) in January 2012 in response. This represented an important step taken by the country’s government to draw on the World Bank’s expertise in developing and implementing strategies and programs to revive the country’s economy. GDP grew by 0.9% in 2013, and is anticipated to rise to 3.0% in 2018, which will be beneficial for Bulgaria’s cards and payments industry over the forecast period (2014–2018).
  • Bulgarian payment cards (including debit and credit cards) registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 2.08%, and increasing from 7.7 million cards in circulation in 2009 to 8.5 million in 2013. In terms of transaction value, payment cards valued BGN15.1 billion (US$10.7 billion) in 2013, after registering a review-period CAGR of 7.33%. Rising consumer awareness for electronic payments and the adoption of advanced technologies such as contactless cards and EMV technology contributed towards the growth in payment cards during the review period, in terms of transaction value, volume and the number of cards in circulation.
  • In 2013, the average transaction value (ATV) in Bulgaria was US$85.5, which ranked fifteenth in the overall European region. Greece recorded the highest ATV, with US$227.6, while Estonia recorded the lowest with US$37.3. Bulgaria ranked twenty-first in terms of card penetration, with 1.2 cards per inhabitant, while Luxembourg recorded the highest rate with 4.4 and Romania recorded the lowest with 0.6. Bulgaria ranked the lowest among other European countries in terms of frequency of use, with 18.7 transactions per card, while Finland recorded the highest frequency with 172.8.
  • Prepaid cards recorded a CAGR of 24.99% during the review period, increasing from 461,513 cards in 2009 to 1.1 million in 2013. These cards are more beneficial to the country’s unbanked population, as they do not require a bank account to use. Central Cooperative issues virtual prepaid cards that do not require an individual to have a physical card. This card is created online, and can be used for the payment of goods and services. This removes the requirement for customers to visit a bank to collect the card. The bank also issues Prepaid Gift Cards to customers, which can be personalized and can be used to give gifts on different occasions. With the increasing number of prepaid cards being distributed in the country, this segment is anticipated to undergo positive growth, with 2.1 million cards estimated to be distributed by the end of 2018.
  • Card fraud is increasing at a CAGR of 0.31% in Bulgaria, with various technological innovations to combat and prevent it. Banks in association with MasterCard and Visa now offer contactless credit cards, called PayPass and PayWave respectively. These cards provide more convenience at the time of the payment, as they require tapping the card in front of the card reader instead of entering the PIN. DSK Bank, Fibank and UniCredit Bulbank offer contactless cards.

Scope

  • This report provides a comprehensive analysis of Bulgaria’s cards and payments industry.
  • It provides current values for Bulgaria’s cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Bulgaria’s cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various banks and other institutions.
  • It profiles major banks in Bulgaria’s cards and payments industry.

Reasons to buy

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

Key highlights

  • Bulgarian payment cards (including debit and credit cards) registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 2.08%, and increasing from 7.7 million cards in circulation in 2009 to 8.5 million in 2013. In terms of transaction value, payment cards valued BGN15.1 billion (US$10.7 billion) in 2013, after registering a review-period CAGR of 7.33%. Rising consumer awareness for electronic payments and the adoption of advanced technologies such as contactless cards and EMV technology contributed towards the growth in payment cards during the review period, in terms of transaction value, volume and the number of cards in circulation.
  • In 2013, the average transaction value (ATV) in Bulgaria was US$85.5, which ranked fifteenth in the overall European region. Greece recorded the highest ATV, with US$227.6, while Estonia recorded the lowest with US$37.3. Bulgaria ranked twenty-first in terms of card penetration, with 1.2 cards per inhabitant, while Luxembourg recorded the highest rate with 4.4 and Romania recorded the lowest with 0.6. Bulgaria ranked the lowest among other European countries in terms of frequency of use, with 18.7 transactions per card, while Finland recorded the highest frequency with 172.8.
  • Prepaid cards recorded a CAGR of 24.99% during the review period, increasing from 461,513 cards in 2009 to 1.1 million in 2013. These cards are more beneficial to the country’s unbanked population, as they do not require a bank account to use.
  • Card fraud is increasing at a CAGR of 0.31% in Bulgaria, with various technological innovations to combat and prevent it. Banks in association with MasterCard and Visa now offer contactless credit cards, called PayPass and PayWave respectively. These cards provide more convenience at the time of the payment, as they require tapping the card in front of the card reader instead of entering the PIN. DSK Bank, Fibank and UniCredit Bulbank offer contactless cards.
Table of Contents

1 Key Facts and Top Events

2 Executive Summary

3 Payment Instruments
3.1 Current Payments Environment
3.2 Alternative Payment Instruments
3.2.1 Mobile payments
3.2.2 PayPal
3.2.3 ClickandBuy
3.2.4 Click2Pay
3.2.5 PaySafeCard
3.2.6 Skrill

4 Market Attractiveness and Future Prospects of Cards and Payments

5 Analysis of Cards and Payments Industry Drivers
5.1 Demographic Drivers
5.2 Economic Drivers
5.3 Infrastructure Drivers
5.4 Business Drivers

6 Emerging Consumer Attitudes and Trends
6.1 Market Segmentation and Targeting
6.1.1 Consumer cards
6.1.2 Corporate cards
6.2 Travel Spending
6.2.1 Outbound trips volume and spending
6.2.2 Inbound trips volume and spending

7 Payment Cards
7.1 Payment Cards Instrument Analysis
7.1.1 Number of cards in circulation by card type
7.1.2 Transaction volume by card type
7.1.3 Transaction value by card type
7.1.4 Personal vs commercial cards

8 Debit Cards
8.1 Debit Cards Market Analysis
8.1.1 Number of debit cards in circulation
8.1.2 Debit cards transaction volume by channel
8.1.3 Debit cards transaction value by channel
8.1.4 Number of debit cards in circulation by scheme
8.1.5 Debit cards transaction value by scheme
8.1.6 Debit cards issuers market shares
8.1.7 Debit cards comparison

9 Credit Cards
9.1 Credit Cards Market Analysis
9.1.1 Number of credit cards in circulation
9.1.2 Credit cards transaction volume by channel
9.1.3 Credit cards transaction value by channel
9.1.4 Number of credit cards in circulation by scheme
9.1.5 Credit cards transaction value by scheme
9.1.6 Credit cards issuers market share
9.1.7 Credit cards comparison

10 Commercial Cards
10.1 Commercial Cards Market Analysis
10.1.1 Number of commercial cards in circulation
10.1.2 Commercial cards transaction value
10.1.3 Commercial cards comparison

11 Regulations in the Cards and Payments Industry
11.1 Regulatory Framework
11.2 Anti-Money Laundering
11.3 Foreign Direct Investment Regulations

12 Card Fraud Statistics
12.1 Card Fraud Analysis

13 Card Issuers
13.1 United Bulgarian Bank
13.2 DSK Bank
13.3 UniCredit Bulbank
13.4 First Investment Bank
13.5 Raiffeisenbank

14 Card Schemes
14.1 Visa
14.2 MasterCard
14.3 Borica
14.4 American Express
14.5 Diners Club

15 Prepaid Cards
15.1 Prepaid Cards Market Analysis
15.1.1 Number of prepaid cards in circulation
15.1.2 Prepaid cards transaction value
15.1.3 Open-loop prepaid cards
15.1.4 Closed-loop prepaid cards
15.1.5 Prepaid cards comparison

16 Appendix
16.1 Tables
16.2 Methodology
16.3 Contact Timetric
16.4 About Timetric
16.5 Timetric’s Services
16.6 Definitions
16.7 Disclaimer

List of Table

Table 1: Bulgaria – Key Facts, 2013
Table 2: Regional Benchmarking of Bulgarian Payment Cards Instrument, 2013
Table 3: Specialized Cards for High-Income Customers
Table 4: Specialized Cards for Young Population and Students
Table 5: Specialized Cards for Shoppers and Vehicle Owners
Table 6: Specialized Cards for Female Population
Table 7: Specialized Cards for Business Managers and Entrepreneurs
Table 8: Regional Benchmarking of Bulgarian Debit Cards, 2013
Table 9: Bulgaria – Visa Domestic Interchange Reimbursement Fees
Table 10: Bulgaria – MasterCard Consumer Card Domestic Interchange Reimbursement Fees
Table 11: Bulgaria – MasterCard Commercial Card Interchange Fees
Table 12: Bulgaria – Debit Cards Comparison and Key Features
Table 13: Regional Benchmarking of Bulgarian Credit Cards, 2013
Table 14: Bulgaria – Visa Domestic Interchange Reimbursement Fees
Table 15: Bulgaria – MasterCard Consumer Card Interchange Fees, 2014
Table 16: Bulgaria – MasterCard Commercial Card Interchange Fees
Table 17: Bulgaria – Gold Credit Cards Comparison and Key Features
Table 18: Bulgaria – Premium Credit Cards Comparison and Key Features
Table 19: Bulgaria – Commercial Cards Comparison and Key Features
Table 20: Bulgaria – Market Entry Strategies of Foreign Banks
Table 21: Regional Benchmarking of Bulgaria Prepaid Cards, 2013
Table 22: Bulgaria – Prepaid Cards Comparison and Key Features
Table 23: Bulgaria – Payment Instruments Transaction Value (BGN Billion), 2009–2013
Table 24: Bulgaria – Payment Instruments Transaction Value (US$ Million), 2009–2013
Table 25: Bulgaria – Payment Instruments Transaction Volume (Million), 2009–2013
Table 26: Bulgaria – Number of Cards in Circulation by Card Types (Thousand), 2009–2018
Table 27: Bulgaria – Transaction Volume by Card Type (Million), 2009–2018
Table 28: Bulgaria – Transaction Value by Card Type (BGN Billion), 2009–2018
Table 29: Bulgaria – Transaction Value by Card Type (US$ Million), 2009–2018
Table 30: Bulgaria – Personal and Commercial Cards Transaction Value (BGN Million), 2009–2018
Table 31: Bulgaria – Personal and Commercial Cards Transaction Value (US$ Billion), 2009–2018
Table 32: Bulgaria – Number of Debit Cards in Circulation (Million), 2009–2018
Table 33: Bulgaria – Debit Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 34: Bulgaria – Debit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 35: Bulgaria – Debit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 36: Bulgaria – Number of Debit Cards in Circulation By Scheme (Thousand), 2009–2013
Table 37: Bulgaria – Debit Cards Transaction Value By Scheme (BGN Million), 2009–2013
Table 38: Bulgaria – Debit Cards Transaction Value By Scheme (US$ Million), 2009–2013
Table 39: Bulgaria – Debit Cards Transaction Value by Issuer (BGN Million), 2009–2013
Table 40: Bulgaria – Debit Cards Transaction Value by Issuer (US$ Million), 2009–2013
Table 41: Bulgaria – Number of Credit Cards in Circulation (Thousand), 2009–2018
Table 42: Bulgaria – Credit Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 43: Bulgaria – Credit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 44: Bulgaria – Credit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 45: Bulgaria – Number of Credit Cards in Circulation By Scheme (Thousand), 2009–2013
Table 46: Bulgaria – Credit Cards Transaction Value By Scheme (BGN Million), 2009–2013
Table 47: Bulgaria – Credit Cards Transaction Value By Scheme (US$ Million), 2009–2013
Table 48: Bulgaria – Credit Cards Transaction Value By Issuer (BGN Million), 2009–2013
Table 49: Bulgaria – Credit Cards Transaction Value By Issuer (US$ Million), 2009–2013
Table 50: Bulgaria – Credit Cards Balance Outstanding By Issuer (BGN Million), 2009–2013
Table 51: Bulgaria – Credit Cards Balance Outstanding By Issuer (US$ Million), 2009–2013
Table 52: Bulgaria – Number of Commercial Cards in Circulation (Thousand), 2009–2018
Table 53: Bulgaria – Commercial Cards Transaction Value (BGN Million), 2009–2018
Table 54: Bulgaria – Commercial Cards Transaction Value (US$ Million), 2009–2018
Table 55: Bulgaria – Card Fraud (BGN Thousand), 2009–2013
Table 56: Bulgaria – Card Fraud (US$ Thousand), 2009–2013
Table 57: Bulgaria – Number of Prepaid Cards in Circulation (Thousand), 2009–2018
Table 58: Bulgaria – Prepaid Cards Transaction Value (BGN Million), 2009–2018
Table 59: Bulgaria – Prepaid Cards Transaction Value (US$ Million), 2009–2018
Table 60: Bulgaria – Open-Loop Prepaid Cards, 2009–2018
Table 61: Bulgaria – Closed-Loop Prepaid Cards, 2009–2018
Table 62: Key Definitions

List of Chart

Figure 1: Bulgaria – Payment Instruments Shares by Transaction Value (%), 2009 and 2013
Figure 2: Bulgaria – Payment Instruments Shares by Transaction Volume (%), 2009 and 2013
Figure 3: Bulgaria – Payment Cards Transaction Value and Growth, 2009–2018
Figure 4: Bulgaria – Total Population (Million) and Proportion Aged Over 65 Years, 2009–2018
Figure 5: Bulgaria – Nominal GDP (US$) and Real GDP Growth Rate (%), 2009–2018
Figure 6: Bulgaria – Volume of ATMs and Penetration, 2009–2018
Figure 7: Bulgaria – Volume of POS Terminals (Thousand) and Penetration, 2009–2018
Figure 8: Bulgaria – Retail Sales Value (BGN Billion), 2009–2018
Figure 9: Bulgaria – Cards and Payments Industry Segmentation by Card Type
Figure 10: Bulgaria – Outbound Trips Volume (Thousand) and Spending (BGN Billion), 2009–2018
Figure 11: Bulgaria – Inbound Trips Volume (Million) and Spending (BGN Billion), 2009–2018
Figure 12: Bulgaria – Card Shares In Terms of Numbers in Circulation (%), 2009–2018
Figure 13: Bulgaria – Card Shares in Terms of Transaction Volume (%), 2009–2018
Figure 14: Bulgaria – Card Shares in Terms of Transaction Value (%), 2009–2018
Figure 15: Bulgaria – Personal and Commercial Cards, Transaction Value (BGN Million), 2009–2018
Figure 16: Bulgaria – Number of Debit Cards in Circulation (Million), 2009–2018
Figure 17: Bulgaria – Debit Cards Transaction Volume by Channel (Million), 2009–2018
Figure 18: Bulgaria – Debit Cards Transaction Value by Channel (BGN Billion), 2009–2018
Figure 19: Bulgaria – Debit Card Scheme Shares in Terms of Number of Cards in Circulation (%), 2013
Figure 20: Bulgaria – Debit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 21: Bulgaria – Debit Cards Issuers’ Market Shares in Terms of Transaction Value (%), 2013
Figure 22: Bulgaria – Number of Credit Cards in Circulation (Thousand), 2009–2018
Figure 23: Bulgaria – Credit Cards Transaction Volume by Channel (Million), 2009–2018
Figure 24: Bulgaria – Credit Cards Transaction Value by Channel (BGN Million), 2009–2018
Figure 25: Bulgaria – Credit Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013
Figure 26: Bulgaria – Credit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 27: Bulgaria – Credit Cards Issuers’ Market Share in Terms of Transaction Value (%), 2013
Figure 28: Bulgaria – Credit Cards Issuers’ Market Share in Terms of Outstanding Balance (%), 2013
Figure 29: Bulgaria – Number of Commercial Cards in Circulation (Thousand), 2009–2018
Figure 30: Bulgaria – Commercial Cards Transaction Value (BGN Million), 2009–2018
Figure 31: Bulgaria – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013
Figure 32: Bulgaria – Number of Prepaid Cards in Circulation (Thousand), 2009–2018
Figure 33: Bulgaria – Prepaid Cards Transaction Value ( BGN Million), 2009–2018

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