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

Published By :

Timetric

Published Date : May 2013

Category :

Banking

No. of Pages : 74 Pages

Synopsis

The report provides market analysis, information and insights on Pakistan’s cards and payments market, including:

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

Executive summary

In terms of the number of cards in circulation, Pakistan’s cards industry recorded significant growth at a CAGR of 28.29% during the review period (2008–2012). The total number of cards increased from 9.7 million in 2008 to 26.2 million in 2012. The industry is projected to grow at a CAGR of 13.27% over the forecast period (2012−2017), increasing from 31.9 million cards in 2013 to 52.5 million cards in 2017. In 2012, the prepaid cards category held the second-largest share of the cards industry, equivalent to 16.9%. 

In terms of the number of cards in circulation, the category increased significantly from 1.6 million in 2008 to 4.4 million in 2012, at a CAGR of 28.51% during the review period. Prepaid cards are increasingly used in both the public and private sectors in order to transfer funds to employees and disaster victims efficiently. Notably, in association with the national database registration authority (NADRA), which maintains the civil registration of all Pakistanis, Habib Bank issued 700,000 Watan Cards (pre-loaded cards) under the government’s poverty alleviation scheme (BISP) to make flood relief payments in 2011. Despite numerous challenges such as flooding, the global economic slowdown and weak capital inflow, Pakistan’s economy performed relatively well, with GDP growing from 3.0% in 2011 to 3.7% in 2012. 

The agricultural and manufacturing sectors drove this growth while deceleration was registered in the services sector. Inflation declined from 13.7% in 2011 to 11% in 2012 due to the protracted energy crisis, weak fiscal fundamentals and a decrease in private investment expenditure. Consequently, Pakistan’s GDP is forecast to stabilize at 3.5% in 2013.

Scope

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

Key highlights

  • In terms of the number of cards in circulation, Pakistan’s cards industry recorded significant growth at a CAGR of 28.29% during the review period (2008–2012). The total number of cards increased from 9.7 million in 2008 to 26.2 million in 2012. The industry is projected to grow at a CAGR of 13.27% over the forecast period (2012−2017), increasing from 31.9 million cards in 2013 to 52.5 million cards in 2017.
  • In terms of the number of cards in circulation, Pakistan’s credit cards category held a share of 4.2% in 2012. The category is forecast to decrease from 3.2% in 2013 to 1.7% in 2017. During the review period, the number of credit cards declined at a CAGR of 9.49% from 1.6 million in 2008 to 1.1 million in 2012. This trend is mainly due to high interest rates which ranged from 35−40% during the review period and the fact that cards are not widely accepted as a payment platform by the nation’s internet retailers.
  • Smart cards are not very popular in Pakistan but are used by the government to transfer funds to help the poorer population and pensioners. The National Database and Registration Authority (NADRA) issued nearly 92.8 million Smart National Identity Cards (SNIC) by the end of January 2013.
  • Branchless banking is an emerging trend in the Pakistani financial services industry. Branchless banking regulation was issued by the State Bank of Pakistan (SBP) in 2008 and regulates various participants such as mobile network operators (MNOs), technology companies and courier businesses.

Reasons to buy

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

1 Executive Summary

2 Market Attractiveness and Future Prospects of Card Payments Industry

3 Analysis of Pakistan Cards and Payments Industry Drivers
3.1 Macroeconomic Fundamentals
3.1.1 GDP growth rate
3.1.2 Per capita income
3.1.3 Inflation
3.1.4 Bank repo rate
3.2 Infrastructure Drivers
3.2.1 Number of ATMs
3.2.2 E-banking
3.2.3 Increasing number of internet users
3.3 Business Drivers
3.3.1 Growing retail sector
3.3.2 Closed-loop prepaid cards
3.3.3 Urbanization
3.4 Card Fraud Statistics
3.5 Regulatory Framework

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail sector
4.2 Consumer Preferences
4.2.1 Price
4.2.2 Convenience
4.2.3 Services

5 Competitive Landscape and Industry Dynamics
5.1 Industry Share Analysis by Payment Channels
5.1.1 Overview of payment channels
5.1.2 Cash transactions
5.1.3 Credit transfer
5.1.4 Card payments
5.1.5 Checks
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 Entry Strategies
6.2 Marketing / Product Strategies
6.2.1 Debit cards
6.2.2 Credit cards

7 Size and Growth Potential of the Cards Industry
7.1 Industry Share Analysis by Type of Card
7.2 Total Size and Forecast of the Cards 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
7.4.2 Analysis by segment – open and closed-loop cards
7.4.3 Analysis by transaction value
7.5 Charge 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 number of transactions
7.5.4 Analysis by frequency of use
7.6 Credit Card 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 Habib Bank Limited
8.1.1 Strategies
8.1.2 Debit cards offered
8.1.3 Credit cards offered
8.2 MCB Bank Limited
8.2.1 Strategies
8.2.2 Debit cards offered
8.2.3 Credit cards offered
8.2.4 Prepaid card offered
8.3 Standard Chartered Bank Pakistan
8.3.1 Strategies
8.3.2 Debit card offered
8.3.3 Credit cards offered

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

List of Table


Table 1: Pakistan Repo Rate (%), 2009–2012
Table 2: Pakistani Payment Channels (PKR Billion), 2008 and 2012
Table 3: Pakistani Cards industry by Type of Card (Thousands), 2008–2017
Table 4: Pakistani Cards Industry Size by Number of Cards (Thousands), 2008–2017
Table 5: Pakistani Cards Industry Size by Transaction Value (PKR Million), 2008–2017
Table 6: Pakistani Cards Industry Size by Transaction Value (US$ Million), 2008–2017
Table 7: Pakistani Cards Industry Size by Transaction Volume (Million), 2008–2017
Table 8: Pakistani Debit Card Category Size by Number of Cards (Thousands), 2008–2017
Table 9: Pakistani Debit Card Category Size by Transaction Value (PKR Million), 2008–2017
Table 10: Pakistani Debit Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 11: Pakistani Debit Card Category Size by Number of Transactions (Million), 2008–2017
Table 12: Pakistani Debit Card Category Frequency of Use, 2008–2017
Table 13: Pakistani Prepaid Card Category Size by Number of Cards (Thousands), 2008–2017
Table 14: Pakistani Open-Loop Cards Segment Size by Number of Cards (Thousands), 2008–2017
Table 15: Pakistani Closed-Loop Cards Segment Size by Number of Cards (Thousands), 2008–2017
Table 16: Pakistani Prepaid Cards Category Size by Transaction Value (PKR Million), 2008–2017
Table 17: Pakistani Prepaid Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 18: Pakistani Charge Card Category Size by Number of Cards (Thousands), 2008–2017
Table 19: Pakistani Charge Card Category Size by Transaction Value (PKR Million), 2008–2017
Table 20: Pakistani Charge Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 21: Pakistani Charge Card Category Size by Number of Transactions (Million), 2008–2017
Table 22: Pakistani Charge Card Category Frequency of Use, 2008–2017
Table 23: Pakistani Credit Card Category Size by Number of Cards (Thousands), 2008–2017
Table 24: Pakistani Credit Card Category Size by Transaction Value (PKR Million), 2008–2017
Table 25: Pakistani Credit Card Category Size by Transaction Value (US$ Million), 2008–2017
Table 26: Pakistani Credit Card Category Size by Transaction Volume (Million), 2008–2017
Table 27: Pakistani Credit Card Category Frequency of Use, 2008–2017
Table 28: Pakistani Credit Card Category Average Transaction Value (PKR), 2008–2017
Table 29: Pakistani Credit Card Category Average Transaction Value (US$), 2008–2017
Table 30: Habib Bank Limited – Key Financial Indicators, 2010 and 2011
Table 31: MCB Bank Limited – Key Financial Indicators, 2011 and 2012
Table 32: Standard Chartered Bank Pakistan – Key Financial Indicators, 2010 and 2011
Table 33: Cards and Payments Key Definitions

List of Chart


Figure 1: Pakistan – Growth of Various Card Categories (%), 2008–2017
Figure 2: Snapshot of Mymoneyskills.pk Website in Pakistan
Figure 3: Growth Potential of Pakistan’s Cards Industry by Area of Usage
Figure 4: Pakistani Cards and Payments Industry Drivers
Figure 5: Pakistani GDP Growth Rate (%), 2008–2017
Figure 6: Pakistani Per Capita Income (PKR), 2008–2012
Figure 7: Pakistani Inflation Rates (%), 2008–2017
Figure 8: Number of ATMs in Pakistan (Thousands), 2008–2017
Figure 9: Number of Internet Users in Pakistan (Million), 2008–2012
Figure 10: Pakistani Retail Sales (PKR Billion), 2008–2012
Figure 11: Urban Population in Pakistan (Million), 2008−2017
Figure 12: Pakistani Card Fraud Statistics (PKR Million), 2008–2012
Figure 13: Cards Offered to HNWIs
Figure 14: Pakistani Female Population (Million), 2008–2012
Figure 15: Discounts Offered on FWBL Debit Card
Figure 16: Consumer Preferences by Card Type
Figure 17: Share of Different Payment Channels in Pakistan (%), 2008 and 2012
Figure 18: Pakistani Value of Cash Transactions (PKR Billion), 2008–2012
Figure 19: Pakistani Value of Credit Transfer Transactions (PKR Billion), 2008–2012
Figure 20: Pakistani Value of Card Payments (PKR Billion), 2008–2012
Figure 21: Pakistani Value of Check Payments (PKR Billion), 2008–2012
Figure 22: Pakistani Debit Card Category Share by Bank (%), 2011
Figure 23: Pakistani Debit Card Category Share by Scheme (%), 2011
Figure 24: Pakistani Credit Card Category Share by Bank (%), 2011
Figure 25: Pakistani Credit Card Category Share by Scheme (%), 2011
Figure 26: Pakistani Charge Card Category Share by Scheme (%), 2011
Figure 27: Strategies Adopted by Key Players in Pakistan
Figure 28: Pakistani Cards Industry by Type of Card (%), 2008–2017
Figure 29: Pakistani Cards Industry Size by Number of Cards (Thousands), 2008–2017
Figure 30: Pakistani Cards Industry Size by Transaction Value (PKR Million), 2008–2017
Figure 31: Pakistani Cards Industry Size by Transaction Volume (Million), 2008–2017
Figure 32: Pakistani Debit Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 33: Pakistani Debit Card Category Size by Transaction Value (PKR Million), 2008–2017
Figure 34: Pakistani Debit Card Category Size by Number of Transactions (Million), 2008–2017
Figure 35: Debit Card Usage ATMs and POS Terminals (Thousands), 2008–2017
Figure 36: Pakistani Prepaid Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 37: Pakistani Open-Loop Cards Segment Size by Number of Cards (Thousands), 2008–2017
Figure 38: Pakistani Closed-Loop Cards Segment Size by Number of Cards (Thousands), 2008–2017
Figure 39: Pakistani Prepaid Cards Category Size by Transaction Value (PKR Million), 2008–2017
Figure 40: Pakistani Charge Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 41: Pakistani Charge Card Category Size by Transaction Value (PKR Million), 2008–2017
Figure 42: Pakistani Charge Card Category Size by Number of Transactions (Million), 2008–2017
Figure 43: Pakistani Charge Card Category Frequency of Use, 2008–2017
Figure 44: Pakistani Credit Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 45: Pakistani Credit Card Category Size by Transaction Value (PKR Million), 2008–2017
Figure 46: Pakistani Credit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 47: Pakistani Credit Card Category Frequency of Use, 2008–2017
Figure 48: Pakistani Credit Card Category Average Transaction Value (PKR), 2008–2017
Figure 49: Habib Bank Limited – Market Segmentation of Cards Offered
Figure 50: MCB Bank Limited – Market Segmentation of Cards Offered
Figure 51: Standard Chartered Bank Pakistan – Market Segmentation of Cards Offered
Figure 52: Cashback Offers on Credit Card Products by Standard Chartered Bank

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