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Emerging Opportunities in Azerbaijans Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Jul 2013

Category :

Banking

No. of Pages : 61 Pages

Synopsis

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

  • Current and forecast values for each category of Azerbaijan\'s cards and payments industry including debit cards and credit cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Azerbaijan\'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 Azerbaijan\'s cards and payments industry

Executive summary

Azerbaijan’s card payments channel demonstrated robust growth during the review period. Improved banking infrastructure, a shift towards card-based payments and government efforts to accelerate cashless transactions in the country contributed to the growth of the channel during the review period. The card payments channel grew from 3.6 million cards in 2008 to 4.9 million in 2012, at a CAGR of 7.86%. The total number of cards is expected to grow to 6.1 million at a CAGR of 3.80% over the forecast period. Card payments recorded high growth during the review period to overtake credit transfers in 2011. Card payments recorded a CAGR of 18.15% during the review period to be valued at AZN7.8 billion (US$9.9 billion) in 2012, higher than the credit transfer value of AZN7 billion (US$8.9 billion). The government of Azerbaijan has taken several initiatives to increase the volume of card-based payments in the country. 

In May 2013, the government, along with Visa, introduced a marketing campaign, ‘Life is easier with Visa’ to promote the usage of Visa cards. Growth in internet penetration has resulted in increased online retail sales in the country. According to the State Statistical Committee of Azerbaijan, online retail sales are forecast to reach AZN 6.4 million (US$8.1 million) by the end of 2017.

Scope

  • This report provides a comprehensive analysis of Azerbaijan\'s cards and payments industry
  • It provides current values for Azerbaijan\'s cards and payments industry for 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Azerbaijan\'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 Azerbaijan\'s cards and payments industry

Reasons to buy

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

Key highlights

  • The card payments channel grew from 3.6 million cards in 2008 to 4.9 million in 2012 at a CAGR of 7.86%. The total number of cards is expected to grow to 6.1 million at a CAGR of 3.80% over the forecast period. During the review period, the highest growth was registered in the credit cards category with a CAGR of 20.72%.
  • The government is also planning to offer a number of benefits to citizens who use cards for making payments. For instance, card payments might not be subjected to value added tax (VAT).
  • The Transport Ministry introduced a single-card system across public transport buses, enabling passengers to pay bus fares using their cards instead of cash. The system is expected to be completed by 2015.
  • In December 2012, MasterCard announced plans to introduce contactless cards in Azerbaijan by the end of the first half of 2013.
Table of contents

1 Executive Summary

2 Market Attractiveness and Future Prospects of the Cards and Payments Industry

3 Analysis of Azerbaijan\'s Cards and Payments Industry Drivers
3.1 Infrastructure Drivers
3.1.1 Increasing number of ATMs and POS terminals
3.1.2 Increasing internet users
3.1.3 Emergence of new technologies
3.2 Business Drivers
3.2.1 Virtual payment cards
3.2.2 Growing retail industry
3.2.3 Increasing outbound tourism
3.3 Macroeconomic Fundamentals
3.3.1 Declining inflation
3.3.2 Urban and rural populations
3.4 Card Fraud Statistics
3.5 Regulatory Framework

4 Emerging Consumer Attitudes and Trends
4.1 Industry Segmentation and Targeting
4.1.1 Retail Segment
4.1.2 Corporate Segment
4.2 Consumer Preference
4.2.1 Price
4.2.2 Services
4.2.3 Convenience

5 Competitive Landscape and Industry Dynamics
5.1 Industry Share Analysis by Credit Transfer and Card Payments Channels
5.1.1 Credit transfer
5.1.2 Card payments
5.2 Debit Cards Category Share
5.2.1 By bank
5.2.2 By scheme
5.3 Credit Cards Category Share
5.3.1 By scheme

6 Strategies Adopted by Key Operators
6.1 Market Entry Strategies
6.2 Marketing and Product Strategy
6.2.1 Debit cards
6.2.2 Credit cards
6.3 Pricing Strategies

7 Size and Growth Potential of the Card Payments Channel
7.1 Channel Share Analysis by Card Category
7.2 Size and Forecast of the Card Payments Channel
7.2.1 Analysis by number of cards
7.2.2 Analysis by transaction value
7.2.3 Analysis by transaction volume
7.3 Debit Cards Category Size and Forecast
7.3.1 Analysis by number of cards
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.3.4 Other key performance indicators
7.4 Credit Cards Category Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.4.4 Other key performance indicators

8 Company Profiles, Products and Marketing Strategies
8.1 International Bank of Azerbaijan (IBA)
8.1.1 International Bank of Azerbaijan key financials
8.1.2 Card portfolio
8.1.3 Strategies
8.2 AccessBank
8.2.1 AccessBank key financials
8.2.2 Card portfolio
8.2.3 Strategies
8.3 Bank Respublika
8.3.1 Bank Respublika key financials
8.3.2 Card portfolio
8.3.3 Strategies
8.4 Kapital Bank
8.4.1 Kapital Bank key financials
8.4.2 Card portfolio
8.4.3 Strategies
8.5 Xalq Bank
8.5.1 Xalq Bank key financials
8.5.2 Card portfolio
8.5.3 Strategies

9 Appendix
9.1 Methodology
9.2 Contact Us
9.3 About Timetric
9.4 Disclaimer

List of Table


Table 1: Number of Outbound Tourists in Azerbaijan (Thousands), 2007-2011
Table 2: Azerbaijan\'s Payment Channels (AZN Million), 2008 and 2012
Table 3: Market Entry Strategies of Foreign Banks in Azerbaijan
Table 4: Fees Information of Credit Cards Offered by Banks in Azerbaijan
Table 5: Azerbaijan Card Payments Channel by Card Category (Thousands), 2008-2017
Table 6: Azerbaijan Card Payments Channel Size by Number of Cards (Thousands), 2008-2017
Table 7: Azerbaijan Card Payments Channel Size by Transaction Value (AZN Million), 2008-2017
Table 8: Azerbaijan Card Payments Channel Size by Transaction Value (US$ Million), 2008-2017
Table 9: Azerbaijan Card Payments Channel Size by Number of Transactions (Million), 2008-2017
Table 10: Azerbaijan Debit Cards Category Size by Number of Cards (Thousands), 2008-2017
Table 11: Azerbaijan Debit Cards Category Size by Transaction Value (AZN Million), 2008-2017
Table 12: Azerbaijan Debit Cards Category Size by Transaction Value (US$ Million), 2008-2017
Table 13: Azerbaijan Debit Cards Category Size by Number of Transactions (Million), 2008-2017
Table 14: Azerbaijan Debit Cards Category Frequency of Use, 2008-2017
Table 15: Azerbaijan Credit Cards Category Size by Number of Cards (Thousands), 2008-2017
Table 16: Azerbaijan Credit Cards Category Size by Transaction Value (AZN Million), 2008-2017
Table 17: Azerbaijan Credit Cards Category Size by Transaction Value (US$ Million), 2008-2017
Table 18: Azerbaijan Credit Cards Category Size by Number of Transactions (Million), 2008-2017
Table 19: Azerbaijan Credit Cards Category Frequency of Use, 2008-2017
Table 20: Azerbaijan Credit Cards Category Size by Average Transaction Value (AZN), 2008-2017
Table 21: Azerbaijan Credit Cards Category Size by Average Transaction Value (US$), 2008-2017
Table 22: International Bank of Azerbaijan Key Financial Indicators, 2011-2012
Table 23: AccessBank Key Financial Indicators, 2011-2012
Table 24: Bank Respublika Key Financial Indicators, 2011-2012
Table 25: Kapital Bank Key Financial Indicators, 2011-2012
Table 26: Xalq Bank Key Financial Indicators, 2010-2011

List of Chart


Figure 1: Azerbaijan - Growth of Various Card Categories (%), 2008-2017
Figure 2: Growth Potential of Azerbaijan\'s Card Payments Channel by Area of Use
Figure 3: Azerbaijan Cards and Payments Industry Drivers
Figure 4: Number of ATMs and POS Terminals in Azerbaijan (Thousands), 2008-2017
Figure 5: Number of Internet Users in Azerbaijan(Million), 2008-2012
Figure 6: Online Retail Sales in Azerbaijan (AZN Million), 2008-2017
Figure 7: Retail Sales Turnover in Azerbaijan (AZN Billion), 2008-2012
Figure 8: Azerbaijan Inflation Rate (%), 2008-2017
Figure 9: Urban and Rural Populations in Azerbaijan (Million), 2008-2017
Figure 10: Azerbaijan Card Fraud Statistics (AZN Million), 2008-2012
Figure 11: Card Payments Channel Customer Segmentation in Azerbaijan
Figure 12: Types of Cards Offered by Banks in Azerbaijan
Figure 13: Azerbaijan\'s Consumer Preferences According to Card Category
Figure 14: Shares of Different Payment Channels in Azerbaijan (%), 2008 and 2012
Figure 15: Credit Transfer Transactions Value in Azerbaijan (AZN Million), 2008-2012
Figure 16: Card Payments Value in Azerbaijan (AZN Million), 2008-2012
Figure 17: Azerbaijan Debit Cards Category Share by Bank (%), 2011
Figure 18: Azerbaijan Debit Cards Category Share by Scheme (%), 2011
Figure 19: Azerbaijan Credit Cards Category Share by Scheme (%), 2011
Figure 20: Azerbaijan Card Payments Channel by Card Category (%), 2008-2017
Figure 21: Azerbaijan Card Payments Channel Size by Number of Cards (Thousands), 2008-2017
Figure 22: Azerbaijan Card Payments Channel Size by Transaction Value (AZN Million), 2008-2017
Figure 23: Azerbaijan Card Payments Channel Size by Number of Transactions (Million), 2008-2017
Figure 24: Azerbaijan Debit Cards Category Size by Number of Cards (Thousands), 2008-2017
Figure 25: Azerbaijan Debit Cards Category Size by Transaction Value (AZN Million),2008-2017
Figure 26: Azerbaijan Debit Cards Category Size by Number of Transactions (Million), 2008-2017
Figure 27: Azerbaijan Debit Cards Category Frequency of Use, 2008-2017
Figure 28: Debit Card Transactions at ATMs and POS Terminals (Million), 2008-2017
Figure 29: Azerbaijan Credit Cards Category Size by Number of Cards (Thousands), 2008-2017
Figure 30: Azerbaijan Credit Cards Category Size by Transaction Value (AZN Million), 2008-2017
Figure 31: Azerbaijan Credit Cards Category Size by Number of Transactions (Million), 2008-2017
Figure 32: Azerbaijan Credit Cards Category Frequency of Use, 2008-2017
Figure 33: Azerbaijan Credit Cards Category Size by Average Transaction Value (AZN), 2008-2017
Figure 34: International Bank of Azerbaijan - Card Portfolio
Figure 35: AccessBank - Card Portfolio
Figure 36: Bank Respublika - Card Portfolio
Figure 37: Kapital Bank - Card Portfolio
Figure 38: Xalq Bank - Card Portfolio

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