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

Published By :

Timetric

Published Date : Aug 2013

Category :

Banking

No. of Pages : 71 Pages

Synopsis

The report provides market analysis, information and insights into Iceland’s cards and payments market, including:

  • Current and forecast values for each category of Iceland’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 Iceland’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 Iceland’s cards and payments industry

Executive summary

Iceland’s card payments channel exhibited negative growth during the review period (2008–2012), declining at a CAGR of -2.49%, from 796,456 cards in 2008 to 719,950 cards in 2012. This can be attributed to the banking crisis that occurred in the country during 2008–2011. Over the forecast period (2013–2017), the channel is expected to register marginal growth at a CAGR of 1.85%, rising from 737,259 cards in 2013 to 793,275 in 2017. Despite numerous challenges such as the banking crisis, global economic slowdown, bankruptcy of major banks and currency depreciation, Iceland’s economy recovered from 2010 onwards. 

Gross domestic product (GDP) growth increased from -4.1% in 2010 to 1.2% in 2012. Notably, inflation declined from 12% in 2008 to 6% in 2012, but is still high when compared to pre-crisis figures. Iceland’s GDP is projected to grow at an average of 2.1% over the forecast period. The country’s balance of payments still needs to be handled as the Icelandic krona is still recovering in the world market. However, post-bailout Iceland has emerged from its banking crisis and is now repaying parts of its bailout debt to the IMF. Economic recovery is expected to foster growth in the card payments channel over the forecast period.

Scope

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

Reasons to buy

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

Key highlights

  • In terms of card volume, the debit cards category held 57.4% of the channel in 2012, followed by credit cards with 40.6% and charge cards with 2%. Over the forecast period, the volume of debit cards is expected to increase from 423,990 cards in 2013 to 456,983 cards in 2017, at a CAGR of 1.89%. The credit cards category is expected to post growth of 1.79%, rising from 299,058 cards in 2013 to 321,082 cards in 2017.
  • Norway and Iceland have the highest ranking in internet use in Europe, followed by Sweden and Denmark. As of December 2012, the total number of internet users in Iceland reached 325,752, an increase of 3.4% over 2011. The internet penetration level reached 99% by the end of 2012.
  • The Central Bank of Iceland (CBI) enforced the adoption of enhanced security standards and compliance with Europay MasterCard Visa (EMV) requirements, in accordance with European Union (EU) guidelines. Most banks in Iceland have completed migration of their card products from the traditional magnetic stripe to EMV chip technology in accordance with the regulation.
  • Increasing employment, rising consumer disposable income, growing wages and declining inflation in the country have resulted in an increase in consumer purchasing power and their appetite for credit transactions. Over the forecast period, credit card transactions volume is projected to grow at a CAGR of 2.81%, compared to 1.49% CAGR growth of debit card transactions volume.
Table of contents

1 Executive Summary

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

3 Analysis of Iceland Cards and Payments Industry Drivers
3.1 Economic Drivers
3.1.1 Gradually recovering economy
3.1.2 Increasing urbanization
3.1.3 Declining unemployment rate
3.2 Infrastructure Drivers
3.2.1 Growing number of internet users
3.2.2 Emergence of mobile payments to foster contactless cards
3.2.3 EMV migration enabling secure card payments
3.2.4 Increasing number of smartphone users enabling card payments
3.2.5 Growing number of POS terminals
3.3 Business Drivers
3.3.1 Outbound tourists card spending growth
3.3.2 Growth of mobile payments
3.3.3 Growing retail sector
3.3.4 E-commerce market growth fueled by high internet penetration
3.4 Consumer Drivers
3.4.1 Increasing per capita income
3.4.2 Economically active population growth
3.5 Card Fraud Statistics
3.6 Regulatory Framework
3.6.1 SEPA framework and guidelines

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

5 Competitive Landscape and Industry Dynamics
5.1 Market Share Analysis by Payment Channels
5.1.1 Overview of payment channels
5.1.2 Cash transactions
5.1.3 Card payments
5.1.4 Check 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 bank
5.3.2 By scheme
5.4 Charge Card Category Share

6 Strategies Adopted by Key Operators
6.1 Marketing and Product Strategy
6.1.1 Debit cards
6.1.2 Credit cards
6.2 Pricing Strategies

7 Industry Size and Growth Potential of Card Payments Channel
7.1 Industry Share Analysis by Card Category
7.2 Total Industry Size and Forecast of Cards 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 Card 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 Charge Card Category Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by transaction value
7.4.3 Analysis by number of transactions
7.4.4 Analysis by frequency of use
7.5 Credit Card Category Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by transaction value
7.5.3 Analysis by transaction volume
7.5.4 Other key performance indicators

8 Company Profiles, Products and Marketing Strategies
8.1 Arion Banki
8.1.1 Key financials
8.1.2 Card product offerings
8.1.3 Strategies
8.2 Islandsbanki
8.2.1 Key financials
8.2.2 Card product offerings
8.2.3 Strategies
8.3 Landsbankinn
8.3.1 Key financials
8.3.2 Card product offerings
8.3.3 Strategies

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

List of Table


Table 1: Cards Offered for Young Population in Iceland
Table 2: Cards Offered for Frequent Flyers in Iceland
Table 3: Icelandic Payment Channels (ISK Million), 2008 and 2012
Table 4: Shopping Rebate Program by Arion Banki in Iceland
Table 5: Icelandic Card Payments Channel by Category (Thousands), 2008–2017
Table 6: Icelandic Card Payments Channel Size by Number of Cards (Thousands), 2008–2017
Table 7: Icelandic Card Payments Channel Size by Transaction Value (ISK Billion), 2008–2017
Table 8: Icelandic Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 9: Icelandic Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Table 10: Icelandic Debit Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 11: Icelandic Debit Cards Category Size by Transaction Value (ISK Billion), 2008–2017
Table 12: Icelandic Debit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 13: Icelandic Debit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 14: Icelandic Debit Cards Category by Frequency of Use, 2008–2017
Table 15: Icelandic Charge Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 16: Icelandic Charge Cards Category Size by Transaction Value (ISK Billion), 2008–2017
Table 17: Icelandic Charge Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 18: Icelandic Charge Cards Category Size by Number of Transactions (Million), 2008–2017
Table 19: Icelandic Charge Cards Category by Frequency of Use, 2008–2017
Table 20: Icelandic Credit Cards Category Size by Number of Cards (Thousands), 2008–2017
Table 21: Icelandic Credit Cards Category Size by Transaction Value (ISK Billion), 2008–2017
Table 22: Icelandic Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 23: Icelandic Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 24: Icelandic Credit Cards Category by Frequency of Use, 2008–2017
Table 25: Icelandic Credit Cards Category Size Average Transaction Value (ISK), 2008–2017
Table 26: Icelandic Credit Cards Category Size Average Transaction Value (US$), 2008–2017
Table 27: Arion Banki’s Key Financial Indicators (ISK Million), 2011 and 2012
Table 28: Arion Banki – Cards Offered and Key Features
Table 29: Islandsbanki’s Key Financial Indicators (ISK Million), 2011 and 2012
Table 30: Islandsbanki – Cards Offered and Key Features
Table 31: Landsbankinn’s Key Financial Indicators (ISK Million), 2011 and 2012
Table 32: Landsbankinn’s Key Financial Indicators (ISK Million), 2011 and 2012

List of Chart


Figure 1: Iceland – Growth of Various Card Categories (%), 2008–2017
Figure 2: Iceland Cards and Payments Industry Drivers
Figure 3: Icelandic GDP Growth Rate (%), 2008–2017
Figure 4: Urban and Rural Population in Iceland (Thousand), 2008–2017
Figure 5: Unemployment Rate in Iceland (%), 2008–2017
Figure 6: Number of Internet Users in Iceland (Thousand), 2008–2012
Figure 7: EMV Adoption Rate in Iceland, 2012
Figure 8: Number of POS Terminals in Iceland (Thousand), 2008–2017
Figure 9: Usage of Debit and Credit Cards Abroad by Icelanders (ISK Billion), 2008–2012
Figure 10: Growth of M-commerce in Iceland (ISK Million), 2008–2017
Figure 11: Iceland B2C E-Commerce Growth (EUR Million), 2008–2012
Figure 12: Per Capita Income of Iceland (ISK Million), 2008–2012
Figure 13: Economically Active Population (Thousand), 2008–2017
Figure 14: Iceland Card Fraud Statistics (ISK Million), 2008–2012
Figure 15: Icelandic Cards and Payments Industry Segmentation
Figure 16: Types of Cards Offered by Banks in Iceland
Figure 17: Shares of Different Payment Channels in Iceland (%), 2008 and 2012
Figure 18: Icelandic Value of Cash Transactions (ISK Billion), 2008–2012
Figure 19: Icelandic Value and Growth of Card Payments (ISK Billion), 2008–2012
Figure 20: Icelandic Value and Growth of Check Payments (ISK Billion), 2008–2012
Figure 21: Iceland Debit Card Category Shares by Bank (%), 2011
Figure 22: Icelandic Debit Card Category Shares by Scheme (%), 2011
Figure 23: Icelandic Credit Card Category Share by Bank (%), 2011
Figure 24: Icelandic Credit Card Category Shares by Scheme (%), 2011
Figure 25: Icelandic Charge Card Category Shares by Scheme (%), 2011
Figure 26: Comparison of Annual Fees of Credit Cards in Iceland
Figure 27: Icelandic Card Payments Channel by Category (%), 2008–2017
Figure 28: Icelandic Card Payments Channel Size by Number of Cards (Thousands), 2008–2017
Figure 29: Icelandic Card Payments Channel Size by Transaction Value (ISK Billion), 2008–2017
Figure 30: Icelandic Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Figure 31: Icelandic Debit Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 32: Icelandic Debit Cards Category Size by Transaction Value (ISK Billion), 2008–2017
Figure 33: Icelandic Debit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 34: Icelandic Debit Cards Category by Frequency of Use, 2008–2017
Figure 35: Debit Card Transactions at ATM and POS Terminals (Million), 2008–2017
Figure 36: Icelandic Charge Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 37: Icelandic Charge Cards Category Size by Transaction Value (ISK Million), 2008–2017
Figure 38: Icelandic Charge Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 39: Icelandic Charge Cards Category by Frequency of Use, 2008–2017
Figure 40: Icelandic Credit Cards Category Size by Number of Cards (Thousands), 2008–2017
Figure 41: Icelandic Credit Cards Category Size by Transaction Value (ISK Billion), 2008–2017
Figure 42: Icelandic Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 43: Icelandic Credit Cards Category by Frequency of Use, 2008–2017
Figure 44: Icelandic Credit Cards Category Size by Average Transaction Value (ISK), 2008–2017

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