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

Published By :

Timetric

Published Date : Mar 2013

Category :

Banking

No. of Pages : 70 Pages

Synopsis

The report provides market analysis, information and insights into Nigeria’s cards and payments market, including:
  • Current and forecast values for each category of Nigeria’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 Nigeria’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 Nigeria’s cards and payments industry
Summary

The Nigerian card industry recorded strong growth during the review period (2008-2012) both in terms of volume and value. The card industry grew at a CAGR of 15.77%, rising from 24.9 million cards in circulation in 2008 to 44.7 million cards in 2012. Over the forecast period, the cards and payments industry is forecast to register a CAGR of 6.00%, rising from 48.8 million cards in circulation to 61.6 million cards in 2017. In comparison with the same period in 2011, Nigeria’s GDP recorded a CAGR of 6.5% in the third-quarter of 2012. The country’s annual GDP increased from 6.7% in 2011 to 6.9% in 2012. Economically, the nation mainly comprises oil and non-oil sectors, which posted decelerated growth rates in third-quarter of 2012. According to International Monitor Fund (IMF) forecasts, over 2013-2017, Nigeria’s GDP is expected to grow at an average rate of 6.6%. This will maintain consumer prosperity and foster growth opportunities in the cards and payments industry.

Scope
  • This report provides a comprehensive analysis of Nigeria’s cards and payments industry
  • It provides current values for Nigeria’s cards and payments industry for 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Nigeria’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 Nigeria’s cards and payments industry
Reasons To Buy
  • Make strategic business decisions using historic and forecast market data related to Nigeria’s cards and payments industry and each market within it
  • Understand the key market trends and growth opportunities within Nigeria’s cards and payments industry
  • Assess the competitive dynamics in Nigeria’s cards and payments industry
  • Gain insights into the marketing strategies used for selling various types of cards in Nigeria
  • Gain insights into key regulations governing Nigeria’s cards and payments industry
Key Highlights
  • Nigeria’s internet penetration levels rose by 19% from 46.2 million internet users in 2011 to 55 million in 2012, equivalent to 33.4% of the total population. This is creating a new, high-impact distribution channel for many businesses, especially due to the increasing popularity of social media.
  • The credit card category recorded a CAGR of 24.77% during the review period, growing from 300,800 cards in circulation in 2008 to 729,000 cards in 2012. Over the forecast period, the category is projected to register a CAGR of 5.32%, rising from 807,100 cards in circulation in 2013 to 993,100 cards in 2017.
  • UBA Bank was the leading bank in terms of debit card issuance volume in 2011 and accounted for 27.9% of the total debit card volume. Other key operatives in the debit cards category include Guaranty Trust Bank, First Bank, Oceanic Bank and Union Bank, which accounted for respective industry shares of 4.4%, 16.9%, 6.6% and 8.1%.
  • In 2010, the Central Bank of Nigeria (CBN) announced its financial inclusion strategy which includes providing financial services such as loans, savings, money transfers, insurance and pensions in adequate measures to the disadvantaged and low income population, with the aim of reducing the percentage of Nigerians excluded from financial services from 46.3% as of 2010 to 20% by the end of 2020.
Table of Content

1 Executive Summary


2 Market Attractiveness and Future Prospects of Cards and Payments Industry

3 Analysis of Nigeria Cards and Payments Industry Drivers
3.1 Macroeconomic Fundamentals
3.1.1 Sustainable gross domestic product (GDP) growth
3.1.2 Financial inclusion strategy
3.2 Infrastructure Drivers
3.2.1 Growing internet penetration rates
3.2.2 Smartphone penetration
3.2.3 Enhanced security measures on card products
3.2.4 Growing number of ATMs
3.2.5 Increasing number of POS terminals
3.3 Business Drivers
3.3.1 Strong future prospects of retail
3.3.2 Lower banking penetration
3.4 Consumer Drivers
3.4.1 Changing lifestyles and spending habits
3.4.2 Urban vs rural population
3.4.3 Nigerian consumer confidence score
3.5 Card Fraud Statistics
3.5.1 By channel
3.6 Regulatory Framework
3.6.1 Guidelines on stored value and prepaid card issuance and operations
3.6.2 Regulations on credit cards
3.6.3 KYC and anti-money laundering measures

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

5 Competitive Landscape and Industry Dynamics
5.1 Analysis by Selected Payment Channels
5.1.1 Credit transfers
5.1.2 Card payments
5.1.3 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

6 Strategies Adopted by Key Players
6.1 Market Entry Strategies
6.1.1 Case studies
6.2 Marketing/Product Strategy
6.2.1 Debit cards
6.2.2 Credit cards
6.2.3 Prepaid cards

7 Market Size and Growth Potential of Payment Card Industry
7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Industry
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 Prepaid Card Category Size and Forecast
7.4.1 Analysis by number of cards - segment
7.4.2 Analysis by transaction value
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, Product, and Marketing Strategies
8.1 United Bank for Africa (UBA) Plc
8.1.1 Strategies
8.1.2 Debit cards offered
8.1.3 Prepaid cards offered
8.2 Zenith Bank Plc
8.2.1 Card products
8.3 Guaranty Trust Bank plc
8.3.1 Strategies
8.3.2 Debit cards offered
8.3.3 Credit cards offered
8.3.4 Prepaid cards offered
8.4 First Bank of Nigeria Plc
8.4.1 Strategies
8.4.2 Debit cards offered
8.4.3 Credit cards offered

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

List of Table


Table 1: Nigeria’s Payment Channels (NGN Million), 2008-2012
Table 2: Nigeria’s Cards Market by Type of Card (Number in Thousands), 2008–2017
Table 3: Nigeria’s Cards and Payments Industry Size by Volume (Thousands), 2008–2017
Table 4: Nigeria’s Cards and Payments Industry Size by Transaction Value (NGN Million), 2008–2017
Table 5: Nigeria’s Cards and Payments Industry Size by Transaction Value (US$ Million), 2008–2017
Table 6: Nigeria’s Cards and Payments Industry Size by Transaction Volume (Million), 2008–2017
Table 7: Nigeria’s Debit Card Category Size by Volume (Thousands), 2008–2017
Table 8: Nigeria’s Debit Card Category Size by Value of Transactions (NGN Million), 2008–2017
Table 9: Nigeria’s Debit Card Category Size by Value of Transactions (US Million), 2008–2017
Table 10: Nigeria’s Debit Card Category Size by Transaction Volume (Million), 2008–2017
Table 11: Nigeria’s Card Category Size by Frequency of Use, 2008–2017
Table 12: Nigeria’s Prepaid Card Category Size by Volume (Thousands), 2008–2017
Table 13:Nigeria’s Open-Loop Prepaid Cards Segment Size by Volume (Thousands), 2008–2017
Table 14: Nigeria’s Closed-Loop Prepaid Cards Segment Size by Volume (Thousands), 2008–2017
Table 15: Nigeria’s Prepaid Cards Category Size by Transaction Value (NGN Million), 2008–2017
Table 16: Nigeria’s Prepaid Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 17: Nigeria’s Credit Card Category Size by Volume (Thousands), 2008–2017
Table 18: Nigeria’s Credit Card Category Size by Transaction Value (NGN Million), 2008–2017
Table 19: Nigeria’s Credit Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 20: Nigeria’s Credit Card Category Size by Transaction Volume (Million), 2008–2017
Table 21: Nigeria’s Credit Card Category Size by Frequency of Use, 2008–2017
Table 22: Nigeria’s Credit Card Category Size by Average Transaction Value (NGN), 2008–2017
Table 23: Nigeria’s Credit Card Category Size by Average Transaction Value (US$), 2008–2017
Table 24: Snapshot of United Bank for Africa (UBA) Plc, December 2011
Table 25: Credit Cards Offered by Zenith Bank Plc and Fees Info
Table 26: Cards Offered by GT Bank and Fees Info

List of Chart


Figure 1: Current and Future Prospects of Various Cards in Nigeria
Figure 2: Growth Potential of The Nigeria Cards and Payments Industry by Area of Usage
Figure 3: Nigeria’s Cards and Payments Industry Drivers
Figure 4: Nigeria’s GDP Growth Rate (%), 2012-2017
Figure 5: Number of Internet Users in Nigeria (Million), 2008-2012
Figure 6: Internet Penetration in Nigeria (%), 2008-2012
Figure 7: Number of ATMs in Nigeria (Thousands), 2008-2017
Figure 8: Number of POS Terminals in Nigeria (Thousands), 2008-2017
Figure 9: Nigeria’s Retail Sales Value and Growth (NGN Million), 2008-2012
Figure 10: Urban vs Rural Population in Nigeria (Million), 2008-2017
Figure 11: Nigerian Consumer Confidence Score of Economic Indicators
Figure 12: Nigeria’s Card Fraud Statistics (NGN Million), 2008–2012
Figure 13: Consumer Preferences on Various Types of Cards
Figure 14: Nigeria’s Value and Growth of Credit Transfers (NGN Million) 2008-2012
Figure 15: Nigeria’s Value and Growth of Card Payments (NGN Million) 2008-2012
Figure 16: Nigeria’s Value and Growth of Check Payments (NGN Million), 2008–2012
Figure 17: Nigeria’s Debit Card Market Share by Banks (%), 2011
Figure 18: Nigeria’s Debit Card Market Share by Schemes (%), 2011
Figure 19: Nigeria’s Credit Card Category Share by Bank (%), 2011
Figure 20: Nigeria’s Credit Card Category Share by Schemes (%), 2011
Figure 23: Nigeria’s Cards Market by Type of Card (%), 2008–2017
Figure 24: Nigeria’s Cards and Payments Industry Size by Volume (Thousands), 2008–2017
Figure 25: Nigeria’s Cards and Payments Industry Size by Transaction Value (NGN Million), 2008–2017
Figure 26: Nigeria’s Cards and Payments Industry Size by Transaction Volume (Million), 2008–2017
Figure 27: Nigeria’s Debit Card Category Size by Volume (Thousands), 2008–2017
Figure 28: Nigeria’s Debit Card Category Size by Value of Transactions (NGN Million), 2008–2017
Figure 29: Nigeria’s Debit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 30: Nigeria’s Card Category Size by Frequency of Use, 2008–2017
Figure 31: Debit Card Usage ATMs and POS Terminals (Thousands), 2008–2017
Figure 32: Nigeria’s Prepaid Card Category Size by Volume (Thousands), 2008–2017
Figure 33: Nigeria’s Open-Loop Prepaid Cards Segment Size by Volume (Thousands), 2008–2017
Figure 34: Nigeria’s Closed-Loop Prepaid Cards Segment Size by Volume (Thousands), 2008–2017
Figure 35: Nigeria’s Prepaid Cards Category Size by Transaction Value (NGN Million), 2008–2017
Figure 36: Nigeria’s Credit Card Category Size by Volume (Thousands), 2008–2017
Figure 37: Nigeria’s Credit Card Category Size by Transaction Value (NGN Million), 2008–2017
Figure 38: Nigeria’s Credit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 39: Nigeria’s Credit Card Category Size by Frequency of Use, 2008–2017
Figure 40: Nigeria’s Credit Card Category Size by Average Transaction Value (NGN), 2008–2017
Figure 41: UBA’s Debit and Credit Cards Categories Growth (%), 2007-2011
Figure 42: UBA’s Market Segmentation of Cards Offered
Figure 44: Guaranty Trust Bank’s Market Segmentation of Cards Offered
Figure 45: First Bank of Nigeria’s Market Segmentation of Cards Offered

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