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

Published By :

Timetric

Published Date : Sep 2013

Category :

Banking

No. of Pages : 80 Pages


Synopsis

The report provides market analysis, information and insights into the Philippines’ cards and payments market, including:

  • Current and forecast values for each category of the Philippines’ 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 the Philippines’ 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 the Philippines’ cards and payments industry.

Executive summary

Steady growth was recorded in the Filipino card payments channel during the review period (2008–2012), as the number of cards in circulation increased at a CAGR of 7.65%, rising from 40.8 million in 2008 to 54.8 million in 2012. This growth was primarily driven by the prepaid cards category which registered the highest growth rate at a CAGR of 17.26%. Over the forecast period (2013–2017), the number of cards in circulation is expected to increase from 58.1 million in 2013 to 72.9 million in 2017, after registering a CAGR of 5.84%. 

The card payments channel is dominated by four large domestic banking groups – Metrobank, Banco de Oro, Bank of the Philippine Islands (BPI), and Land Bank of the Philippines. In the debit card category, domestic banks held a collective market share of 57% in 2011. Foreign banks such as Citibank and HSBC dominate the credit card business. In terms of number of credit cards in circulation in 2011, Citibank held the highest share of 20.6% with 1.4 million cards, followed by HSBC with 10.8% and 747,676 cards.

Scope

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

Reasons to buy

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

Key highlights

  • Over the forecast period, the prepaid cards category is expected to record the highest growth at a CAGR of 15.77% due to increased adoption by the government and corporate companies. The card volume will increase from 11.2 million cards in 2013 to 20.0 million in 2017.
  • The cards and payments industry benefits from international remittances due to the large number of Filipinos migrating to other countries. Remittance money rose by 5.7% to US$6.9 billion in the first quarter of 2013 and it is expected to grow further as more Filipinos seek employment abroad.
  • As competition intensifies, banks are implementing innovative strategies to attract new customers and retain existing ones. Shopping rebates, raffles, installment programs, discounts and freebies at partner retail merchants on credit card purchases are common tactical promotions.
  • The number of card transactions was positively impacted by the interconnectivity of domestic ATM and POS terminal network operators such as MagaLink, BancNet and Expressnet. In 2010, these three domestic operators connected their POS terminals across the country.
Table of contents

1 Executive Summary

2 Market Attractiveness and Future Prospects of Cards and Payments Industry
2.1 Analysis of Cards and Payments Industry Drivers
2.2 Macroeconomic and Consumer Drivers
2.2.1 Strong GDP growth
2.2.2 Growing urbanization
2.2.3 Government agencies adopting e-payments
2.2.4 Rising consumer confidence
2.3 Infrastructure Drivers
2.3.1 Increasing number of internet users
2.3.2 Emergence of contactless payments
2.3.3 Migration to EMV technology for secure transactions
2.3.4 Growing number of POS terminals
2.3.5 Increasing number of ATMs
2.4 Business Drivers
2.4.1 Growing retail sector
2.4.2 Growing remittance business
2.4.3 Rising e-commerce
2.4.4 Increasing outbound tourism spending
2.5 Card Fraud Statistics
2.6 Regulatory Framework

3 Emerging Consumer Attitudes and Trends
3.1 Market Segmentation and Targeting
3.1.1 Retail customers
3.1.2 Corporate customers
3.2 Consumer Preference
3.2.1 Price
3.2.2 Services
3.2.3 Convenience
3.3 Online Buying Behavior

4 Competitive Landscape and Industry Dynamics
4.1 Overview of the Payment Channels
4.2 Debit Card Category Share
4.2.1 By bank
4.2.2 By scheme
4.3 Credit Card Category Share
4.3.1 By bank
4.3.2 By scheme
4.4 Charge Card Category Share

5 Strategies Adopted by Key Operators
5.1 Market Entry Strategies
5.2 Marketing and Product Strategies
5.2.1 Debit cards
5.2.2 Credit cards
5.2.3 Prepaid cards
5.3 Pricing Strategies

6 Size and Growth Potential of Card Payments Channel
6.1 Industry Share Analysis by Type of Card
6.2 Total Channel Size and Forecast of Payment Cards
6.2.1 Analysis by number of cards
6.2.2 Analysis by transaction value
6.2.3 Analysis by transaction volume
6.3 Debit Card Category Size and Forecast
6.3.1 Analysis by number of cards
6.3.2 Analysis by transaction value
6.3.3 Analysis by transaction volume
6.3.4 Other key performance indicators
6.4 Prepaid Card Category Size and Forecast
6.4.1 Analysis by number of cards
6.4.2 Analysis by segment – open and closed-loop prepaid cards
6.4.3 Analysis by transaction value
6.5 Charge Card Category Size and Forecast
6.5.1 Analysis by number of cards
6.5.2 Analysis by transaction value
6.5.3 Analysis by number of transactions
6.5.4 Analysis by frequency of use
6.6 Credit Card Category Size and Forecast
6.6.1 Analysis by number of cards
6.6.2 Analysis by transaction value
6.6.3 Analysis by transaction volume
6.6.4 Other key performance indicators

7 Company Profiles, Products and Marketing Strategies
7.1 BDO Unibank, Inc. (BDO)
7.1.1 Key financials
7.1.2 Product portfolio
7.1.3 Strategies
7.2 The Bank of the Philippine Islands
7.2.1 Key financials
7.2.2 Product portfolio
7.2.3 Strategies
7.3 Metrobank
7.3.1 Key financials
7.3.2 Card portfolio
7.3.3 Strategies
7.4 The Land Bank of the Philippines (LBP)
7.4.1 Key financials
7.4.2 Card portfolio
7.4.3 Strategies
7.5 Citibank Philippines
7.5.1 Product portfolio
7.5.2 Strategies

8 Appendix
8.1 Methodology
8.2 Definitions
8.3 Contact Us
8.4 About Timetric
8.5 Timetric’s Services
8.6 Disclaimer

List of Table

Table 1: Remittance Cards Offered by Various Banks in the Philippines
Table 2: Cards Targeting Internet Shoppers in the Philippines
Table 3: Foreign Banks Entry Modes in Philippines
Table 4: Value-Added Services on Card Products in the Philippines
Table 5: Co-branded Cards Offered by Banks in the Philippines
Table 6: Prepaid Gift Cards Offered by BPI Bank
Table 7: Charges on Card Transactions at Other Bank’s ATMs in the Philippines (PHP), 2012
Table 8: Annual Maintenance Charges on Credit Cards in the Philippines (PHP), 2012
Table 9: Filipino Card Payments Channel by Category (Thousand), 2008–2017
Table 10: Filipino Card Payments Channel Size by Number of Cards (Thousand), 2008–2017
Table 11: Filipino Card Payments Channel Size by Transaction Value (PHP Billion), 2008–2017
Table 12: Filipino Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 13: Filipino Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Table 14: Filipino Debit Cards Category Size by Number of Cards (Thousand), 2008–2017
Table 15: Filipino Debit Cards Category Size by Value of Transactions (PHP Billion), 2008–2017
Table 16: Filipino Debit Cards Category Size by Value of Transactions (US$ Billion), 2008–2017
Table 17: Filipino Debit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 18: Filipino Debit Cards Category by Frequency of Use, 2008–2017
Table 19: Filipino Prepaid Cards Category Size by Number of Cards (Thousand), 2008–2017
Table 20: Filipino Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008–2017
Table 21: Filipino Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008–2017
Table 22: Filipino Prepaid Cards Category Size by Transaction Value (PHP Billion), 2008–2017
Table 23: Filipino Prepaid Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 24: Filipino Charge Cards Category Size by Number of Cards (Thousand), 2008–2017
Table 25: Filipino Charge Cards Category Size by Transaction Value (PHP Billion), 2008–2017
Table 26: Filipino Charge Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 27: Filipino Charge Cards Category Size by Number of Transactions (Million), 2008–2017
Table 28: Filipino Charge Cards Category by Frequency of Use, 2008–2017
Table 29: Filipino Credit Cards Category Size by Number of Cards (Thousand), 2008–2017
Table 30: Filipino Credit Cards Category Size by Transaction Value (PHP Billion), 2008–2017
Table 31: Filipino Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 32: Filipino Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 33: Filipino Credit Cards Category by Frequency of Use, 2008–2017
Table 34: Filipino Credit Cards Category Size by Average Transaction Value (PHP), 2008–2017
Table 35: Filipino Credit Card Category Size by Average Transaction Value (US$), 2008–2017
Table 36: BDO Unibank’s Key Financial Indicators (PHP Million), 2011 and 2012
Table 37: BDO Unibank – Cards Offered and Key Features
Table 38: BPI Bank’s Key Financial Indicators (PHP Million), 2011 and 2012
Table 39: Bank of the Philippine Islands – Cards Offered and Key Features
Table 40: Metrobank’s Key Financial Indicators (PHP Million), 2011 and 2012
Table 41: Metrobank – Cards Offered and Key Features
Table 42: LBP Bank’s Key Financial Indicators (PHP Million), 2010 and 2011
Table 43: LBP Bank – Card Products Offered and Key Features
Table 44: Citibank – Card Products Offered and Key Features
Table 45: Key Definitions

List of Chart


Figure 1: Growth of Various Card Categories in the Philippines (%), 2008–2017
Figure 2: Growth Drivers of Cards and Payments Industry in Philippines
Figure 3: GDP Growth Rate in the Philippines (%), 2008–2017
Figure 4: Urban vs. Rural Population in the Philippines (Million), 2008–2017
Figure 5: Governments’ E-payments Adoption Score in the Asia-Pacific, 2011
Figure 6: Number of Internet Users in the Philippines (Million), 2008–2012
Figure 7: EMV Adoption Rates Across the World, 2012
Figure 8: Number of POS Terminals in the Philippines (Thousand), 2008–2017
Figure 9: Number of ATMs in the Philippines (Thousand), 2008–2017
Figure 10: Remittance Money Received From Overseas Filipinos in Various Regions (%),
Figure 11: Spending on Outbound Tourism in the Philippines (PHP Billion), 2008–2012
Figure 12: Card Fraud Statistics in the Philippines (PHP Million), 2008–2012
Figure 13: Customer Segmentation of Card Payments Channel in the Philippines
Figure 14: Customer Segmentation of Card Payments Channel in the Philippines
Figure 15: Special Discounts and Offers on Metrobank’s Femme Visa Card
Figure 16: Snapshot of UnionBank Corporate Card
Figure 17: Product Categories with Highest Conversion from Browsing to Purchases (%), 2012
Figure 18: Value of Check and Card Payment Channels (PHP Billion), 2008–2012
Figure 19: Filipino Debit Card Category Share by Bank (%), 2011
Figure 20: Filipino Debit Card Category Share by Scheme (%), 2011
Figure 21: Filipino Credit Card Category Share by Bank (%), 2011
Figure 22: Filipino Credit Card Category Share by Scheme (%), 2011
Figure 23: Filipino Charge Card Category Share by Scheme (%), 2011
Figure 24: Promotional Reward Programs by HSBC in the Philippines
Figure 25: Filipino Card Payments Channel by Category (%), 2008–2017
Figure 26: Filipino Card Payments Channel Size by Number of Cards (Thousand), 2008–2017
Figure 27: Filipino Card Payments Channel Size by Transaction Value (PHP Billion), 2008–2017
Figure 28: Filipino Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Figure 29: Filipino Debit Cards Category Size by Number of Cards (Thousand), 2008–2017
Figure 30: Filipino Debit Cards Category Size by Value of Transactions (PHP Billion), 2008–2017
Figure 31: Filipino Debit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 32: Filipino Debit Cards Category by Frequency of Use, 2008–2017
Figure 33: Debit Card Transactions at ATMs and POS Terminals (Million), 2008–2017
Figure 34: Filipino Prepaid Cards Category Size by Number of Cards (Thousand), 2008–2017
Figure 35: Filipino Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008–2017
Figure 36: Filipino Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008–2017
Figure 37: Filipino Prepaid Cards Category Size by Transaction Value (PHP Billion), 2008–2017
Figure 38: Filipino Charge Cards Category Size by Number of Cards (Thousand), 2008–2017
Figure 39: Filipino Charge Cards Category Size by Transaction Value (PHP Billion), 2008–2017
Figure 40: Filipino Charge Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 41: Filipino Charge Cards Category by Frequency of Use, 2008–2017
Figure 42: Filipino Credit Cards Category Size by Number of Cards (Thousand), 2008–2017
Figure 43: Filipino Credit Cards Category Size by Transaction Value (PHP Billion), 2008–2017
Figure 44: Filipino Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 45: Filipino Credit Cards Category by Frequency of Use, 2008–2017
Figure 46: Filipino Credit Card Category Size by Average Transaction Value (PHP), 2008–2017

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