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

Published By :

Timetric

Published Date : Jun 2013

Category :

Banking

No. of Pages : 77 Pages


Synopsis

The report provides 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, 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 Bulgaria’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 Bulgaria’s cards and payments industry
Executive summary

The card payments channel declined in terms of number of cards in circulation. The prepaid card category was the only channel to record growth during the review period. In terms of number of cards in circulation, prepaid cards increased from 73,431 cards in 2008 to 198,600 cards in 2012. The number of prepaid cards is projected to grow at a CAGR of 15.27% over the forecast period to reach 438,222 cards in 2017. Banks are offering tailor-made products to drive adoption and increasingly target the young population. The younger generation is a considerable and growing target segment. According to the US Census Bureau, there were 776,724 people aged between 15-24 years, representing 11% of the country’s total population in 2012. According to the National Statistical Institute of Bulgaria, 81.3% of individuals aged between 16-24 years use the internet regularly for online shopping. To entice the younger population, banks are offering debit and credit cards with special discounts and privileges. Corporate cards designed to meet specific business needs have been introduced. For example, First Investment Bank offers MasterCard Business and Visa Business credit cards which help to manage business travel expenses and offers free insurance. Retail customers consider cost as a major determining factor over service and convenience. Due to the Eurozone crisis, price has become a major deciding factor in determining card payment options. To remain competitive, financial card providers charge minimal interest rates and low charges along with extended repayment facilities.

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 2012 and forecast figures for 2017
  • It details the different macroeconomic, 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 bankers and other institutions
  • It profiles the major banks in Bulgaria’s cards and payments industry
Reasons to buy

  • Make strategic business decisions using 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 the marketing strategies used for selling various types of cards in Bulgaria
  • Gain insights into key regulations governing Bulgaria’s cards and payments industry
Key highlights

  • In terms of number of cards in circulation, debit cards category held the highest share of the card payments channel with 83.6% in 2012. The second largest channel share was held by credit cards with 13.6%, followed by prepaid cards with 2.8%.
  • Prepaid cards gained momentum during the review period and recorded a high adoption rate. The prepaid cards category grew from 73,431 cards in 2008 to 198,600 cards in 2012, at a CAGR of 28.24%. Over the forecast period, the prepaid cards category is projected to grow at a CAGR of 15.27% to reach 438,222 cards in 2017.
  • The debit cards category in Bulgaria is relatively mature and recorded a CAGR of -4.25%, in terms of the number of cards in circulation, during the review period. Over the forecast period, the debit cards category is projected to post a CAGR of -1.65% in terms of the number of cards in circulation.
  • Internet penetration increased from 41.5% in 2008 to 57.6% in 2012. During the review period, internet penetration increased to 4.1 million users in 2012, growing at a CAGR of 7.72%. The growth in the number of internet users was largely driven by the country’s high literacy rate and young population. Growth in the young population supported by increased internet penetration is expected to increase the use of card payments for online shopping.
  • Consistent GDP growth, adoption of new technologies for safe and secure banking, and growing online sales are expected to support the growth of Bulgaria’s card payments channel over the forecast period.
Table of contents

1 Executive Summary

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

3 Analysis of Bulgaria’s Cards and Payments Industry Drivers
3.1 Infrastructure Drivers
3.1.1 Increasing number of ATMs and POS terminals
3.1.2 Emergence of contactless and NFC technology
3.1.3 Growing number of internet users
3.1.4 Introduction of Single Euro Payments Area (SEPA)
3.2 Business Drivers
3.2.1 Virtual payment cards
3.2.2 Growing outbound leisure travel
3.3 Macroeconomic fundamentals
3.3.1 Stable GDP growth
3.3.2 Declining inflation
3.4 Card Fraud Statistics
3.5 Regulatory Framework
3.5.1 Payment instruments’ regulations
3.5.2 SEPA cards framework
3.5.3 International bank account number (IBAN)
3.5.4 Money laundering

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
4.3 Online Buying Behavior
4.4 Preferred Payment Methods

5 Competitive Landscape and Industry Dynamics
5.1 Industry Share Analysis by Payment Channels
5.1.1 Overview of payment channels
5.1.2 Credit transfer
5.1.3 Card payments
5.1.4 Direct debit
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 bank
5.3.2 By scheme
5.4 Charge Cards Category Share

6 Strategies Adopted by Key Operators
6.1 Market Entry Strategies
6.2 Marketing / 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 Prepaid Cards Category Size and Forecast
7.4.1 Analysis by segment – open and closed-loop cards
7.4.2 Analysis by transaction value
7.5 Charge Cards Category Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by transaction value
7.5.3 Analysis by number of transactions
7.5.4 Analysis by frequency of use
7.6 Credit Cards Category Size and Forecast
7.6.1 Analysis by number of cards
7.6.2 Analysis by transaction value
7.6.3 Analysis by transaction volume
7.6.4 Other key performance indicators

8 Company Profiles, Products and Marketing Strategies
8.1 UniCredit Bulbank
8.1.1 Strategies
8.1.2 Credit cards offered
8.1.3 Debit cards offered
8.2 DSK Bank
8.2.1 Strategies
8.2.2 Credit cards offered
8.2.3 Debit cards offered
8.3 First Investment Bank
8.3.1 Strategies
8.3.2 Credit cards offered
8.3.3 Debit cards offered

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 Bulgaria, 2011–2012
Table 2: Bulgaria Payment Channels (BGN Million), 2008 and 2012
Table 3: Market Entry Strategies of Foreign Banks in Bulgaria
Table 4: Credit Cards Fees Information by Banks in Bulgaria
Table 5: Bulgarian Card Payments Channel by Card Category (Thousands), 2008–2017
Table 6: Bulgarian Card Payments Channel Size by Number of Cards (Thousands), 2008–2017
Table 7: Bulgarian Card Payments Channel Size by Transaction Value (BGN Million), 2008–2017
Table 8: Bulgarian Card Payments Channel Size by Transaction Value (US$ Million), 2008–2017
Table 9: Bulgarian Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Table 10: Bulgarian Debit Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 11: Bulgarian Debit Cards Category Size by Transaction Value (BGN Million), 2008–2017
Table 12: Bulgarian Debit Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 13: Bulgarian Debit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 14: Bulgarian Debit Cards Category Frequency of Use, 2008–2017
Table 15: Bulgarian Prepaid Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 16: Bulgarian Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousands),
Table 17: Bulgarian Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousands),
Table 18: Bulgarian Prepaid Cards Category Size by Transaction Value (BGN Million), 2008–2017
Table 19: Bulgarian Prepaid Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 20: Bulgarian Charge Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 21: Bulgarian Charge Cards Category Size by Transaction Value (BGN), 2008–2017
Table 22: Bulgarian Charge Cards Category Size by Transaction Value (US$), 2008–2017
Table 23: Bulgarian Charge Cards Category Size by Number of Transactions, 2008–2017
Table 24: Bulgarian Charge Cards Category Frequency of Use (Transactions per Card per Year), 2008–2017
Table 25: Bulgarian Credit Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 26: Bulgarian Credit Cards Category Size by Transaction Value (BGN Million), 2008–2017
Table 27: Bulgarian Credit Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 28: Bulgarian Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 29: Bulgarian Credit Cards Category Frequency of Use (Transactions per Card per Year), 2008–2017
Table 30: Bulgarian Credit Cards Category Average Transaction Value (BGN), 2008–2017
Table 31: Bulgarian Credit Cards Category Average Transaction Value (US$), 2008–2017

List of Chart


Figure 1: Bulgaria – Growth of Various Card Categories, 2013–2017
Figure 2: Growth Potential of Bulgaria’s Card Payments Channel by Area of Use
Figure 3: Bulgarian Cards and Payments Industry Drivers
Figure 4: Number of ATMs and POS terminals in Bulgaria (Thousands), 2008–2017
Figure 5: Number of Internet Users in Bulgaria (Million), 2008–2012
Figure 6: Bulgarian GDP Growth Rate (%), 2008–2017
Figure 7: Bulgaria Inflation Rate (%), 2008–2017
Figure 8: Bulgaria Card Fraud Statistics (BGN Million), 2008–2012
Figure 9: Bulgarian Card Payments Channel Customer Segmentation
Figure 10: Bulgarian Consumer Preferences on Various Types of Cards
Figure 11: Online Purchases Preference in Bulgaria (%), 2012
Figure 12: Shares of Different Payment Channels in Bulgaria (%), 2008 and 2012
Figure 13: Bulgaria Value of Credit Transfer (BGN Million), 2008–2012
Figure 14: Bulgaria Value of Card Payments (BGN Million), 2008–2012
Figure 15: Bulgaria Value of Direct Debit Payments (BGN Million), 2008–2012
Figure 16: Bulgarian Debit Cards Category Share by Bank (%), 2011
Figure 17: Bulgarian Debit Cards Category Share by Scheme (%), 2011
Figure 18: Bulgarian Credit Cards Category Share by Bank (%), 2011
Figure 19: Bulgarian Credit Cards Category Share by Scheme (%), 2011
Figure 20: Bulgarian Charge Cards Category Share by Scheme (%), 2011
Figure 21: Share of Banks in Bulgarian Banking Industry (%), 2012
Figure 22: Bulgarian Card Payments Channel by Card Category (%), 2008–2017
Figure 23: Bulgarian Card Payments Channel Size by Number of Cards (Thousands), 2008–2017
Figure 24: Bulgarian Card Payments Channel Size by Transaction Value (BGN Million), 2008–2017
Figure 25: Bulgarian Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Figure 26: Bulgarian Debit Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 27: Bulgarian Debit Cards Category Size by Transaction Value (BGN Million), 2008–2017
Figure 28: Bulgarian Debit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 29: Bulgarian Debit Cards Category Frequency of Use, 2008–2017
Figure 30: Debit Card Transactions ATMs and POS Terminals (Million), 2008–2017
Figure 31: Bulgarian Prepaid Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 32: Bulgarian Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousands),
Figure 33: Bulgarian Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousands),
Figure 34: Bulgarian Prepaid Cards Category Size by Transaction Value (BGN Million), 2008–2017
Figure 35: Bulgarian Charge Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 36: Bulgarian Charge Cards Category Size by Transaction Value (BGN Million), 2008–2017
Figure 37: Bulgarian Charge Cards Category Size by Number of Transactions, 2008–2017
Figure 38: Bulgarian Charge Cards Category Frequency of Use (Transactions per Card per Year), 2008–2017
Figure 39: Bulgarian Credit Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 40: Bulgarian Credit Cards Category Size by Transaction Value (BGN Million), 2008–2017
Figure 41: Bulgarian Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 42: Bulgarian Credit Cards Category Frequency of Use (Transactions per Card per Year), 2008–2017
Figure 43: Bulgarian Credit Cards Category Average Transaction Value (BGN), 2008–2017
Figure 44: UniCredit Bulbank – Market Segmentation of Cards Offered
Figure 45: DSK Bank – Market Segmentation of Cards Offered
Figure 46: Fibank – Market Segmentation of Cards Offered

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