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Indonesias Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Nov 2013

Category :

Banking

No. of Pages : 113 Pages


Synopsis

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

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

Executive summary

The Indonesian card payments channel grew substantially both in volume and value terms during the review period. In terms of number of cards in circulation, the Indonesian card payments channel grew at a CAGR of 21.26% increasing from 52.4 million cards in 2008 to 113.2 million in 2012. The card payments channel is expected to register a CAGR of 20.36%, rising from 138.1 million cards in 2013 to 289.9 million in 2017. In terms of transaction value, the channel grew at a CAGR of 19.68% from IDR846.7 trillion (US$87.3 billion) in 2008 to IDR1.7 quadrillion (US$185.2 billion) in 2012. Debit and credit card transactions remained the key growth drivers, followed by prepaid cards which registered increased demand from Indonesian consumers. Over the forecast period, the total card transaction value is expected to grow at a CAGR of 12.52%, to reach IDR3.3 quadrillion (US$328.8 billion) by the end of 2017.

Scope

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

Reasons to buy

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

Key highlights

  • The Indonesian card payments channel registered significant growth during the review period (2008–2012), recording a compound annual growth rate (CAGR) of 21.26% to reach 113.2 million cards in circulation by the end of 2012. It is anticipated to grow at a projected CAGR of 20.36% over the forecast period (2013–2017), to reach 289.9 million cards in 2017.
  • Growth in the Indonesian cards payments channel is expected to be driven by increasing demand for prepaid cards, a better regulatory framework, a growing market for online and mobile commerce, and a positive economic outlook.
  • Indonesia’s central bank, Bank Indonesia (BI), enforced new regulations for the credit card category in January 2013, placing a cap on interest rates charged by banks on credit cards. BI also set the minimum monthly income requirement at IDR3 million (US$32), and the maximum available credit limit at three times this rate. Credit card users must be at least 21 years old.
  • The popular payment channels in Indonesia are credit transfers, checks and cards. The payments channel structure has changed significantly in the past decade and new channels with paperless transactions have gained popularity. Most transactions, however, are still made with cash.
Table of contents

1 Executive Summary

2 Analysis of the Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 ATMs
2.1.2 POS terminals
2.1.3 Internet penetration
2.1.4 Mobile payments
2.1.5 Contactless and near-field communication (NFC) payments
2.1.6 Complete migration to EMV technology
2.2 Business Drivers
2.2.1 Growth in the retail industry
2.2.2 Increase in competition
2.2.3 Transport cards
2.2.4 Financial education to create awareness
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Inflation
2.3.3 GDP per capita income

3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfer

4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Regulations related to card issuers
4.1.2 Regulations related to credit cards
4.1.3 Regulations related to debit and prepaid cards
4.1.4 Electronic banking regulations
4.1.5 Implementation of anti-money laundering and combating the financing of terrorism
4.1.6 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Counterfeit cards
4.2.3 Card ID theft
4.2.4 Cards lost or stolen

5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate users
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Analysis by product categories
5.3.2 Analysis by retail channels

6 Analysis of Card Payments and Growth Prospects
6.1 Channel Share Analysis by Card Category
6.2 Size and Forecast of the Card Payments Channel
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects
7.1 Overall Category Size and Forecast
7.1.1 Analysis by number of cards in circulation
7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Sub-Category Size and Forecast
7.3.1 Analysis by number of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Sub-Category Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share analysis
7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects
8.1 Overall Category Size and Forecast
8.1.1 Analysis by number of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme Share Analysis
8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Analysis by number of cards in circulation
9.1.2 Analysis by transaction value
9.1.3 Analysis by transaction volume
9.2 Transaction Share Analysis by Channel
9.2.1 Analysis by transaction value
9.2.2 Analysis by transaction volume
9.3 Personal Charge Cards Sub-Category Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
9.3.3 Analysis by transaction volume
9.4 Commercial Charge Cards Sub-Category Size and Forecast
9.4.1 Analysis by number of cards in circulation
9.4.2 Analysis by transaction value
9.4.3 Analysis by transaction volume
9.5 Competitive Landscape
9.5.1 Scheme share analysis
9.5.2 Issuer share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Analysis by number of cards in circulation
10.1.2 Analysis by transaction value
10.2 Open-Loop Prepaid Cards Segment Size and Forecast
10.2.1 Analysis by number of cards in circulation
10.2.2 Analysis by transaction value
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast
10.3.1 Analysis by number of cards in circulation
10.3.2 Analysis by transaction value

11 Merchant Acquiring
11.1 Merchant Acquirers in Indonesia

12 Company Profiles of Card Issuers
12.1 PT Bank Internasional Indonesia
12.1.1 Key financials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Bank Danamon Indonesia
12.2.1 Key financials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Bank Central Asia
12.3.1 Key financials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Bank Mandiri
12.4.1 Key financials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Australia and New Zealand Banking Group Limited Indonesia
12.5.1 Key financials
12.5.2 Card portfolio
12.5.3 Strategies

13 Appendix
13.1 Methodology
13.2 Contact Timetric
13.3 About Timetric
13.4 Timetric’s Services
13.5 Definitions
13.6 Disclaimer

List of Table


Table 1: Indonesian Payment Channels (IDR Trillion), 2008–2012
Table 2: Market Entry Strategy of Foreign Banks in Indonesia
Table 3: Indonesian Card Fraud (IDR Million), 2008–2012
Table 4: Cards For Students and the Young Population in Indonesia
Table 5: Card Targeted at Women in Indonesia
Table 6: Co-branded Cards Offered by Banks in Indonesia
Table 7: Credit Cards with Reward Points and Benefits in Indonesia
Table 8: Cards for HNWIs in Indonesia
Table 9: Indonesian Cards for Sports Fans
Table 10: Cards for Travelers in Indonesia
Table 11: Corporate Cards Offered in Indonesia
Table 12: Consumer Card Spending Product Category in Indonesia (IDR Million), 2008 and 2012
Table 13: Indonesian Consumer Card Spending by Retail Channel (IDR Million), 2008–2012
Table 14: Indonesian Card Payments Channel by Card Category (Thousand), 2008–2017
Table 15: Indonesian Card Payments Channel Size by Number of Cards (Million), 2008–2017
Table 16: Indonesian Card Payments Channel Size by Transaction Value (IDR Billion), 2008–2017
Table 17: Indonesian Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 18: Indonesian Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Table 19: Indonesian Credit Cards Category Size by Transaction Value (IDR Trillion), 2008–2017
Table 20: Indonesian Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 21: Indonesian Credit Cards Category Size by Transaction Volume (Million), 2008–2017
Table 22: Indonesian Personal Credit Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Table 23: Indonesian Personal Credit Cards Sub-Category Size by Transaction Value (IDR Trillion), 2008–2017
Table 24: Indonesian Personal Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008–2017
Table 25: Indonesian Personal Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 26: Indonesian Commercial Credit Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Table 27: Indonesian Commercial Credit Cards Sub-Category Size by Transaction Value (IDR Trillion), 2008–2017
Table 28: Indonesian Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008–2017
Table 29: Indonesian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 30: Indonesian Debit Cards Category Size by Volume of Cards (Million), 2008–2017
Table 31: Indonesian Debit Cards Category Size by Transaction Value (IDR Trillion), 2008–2017
Table 32: Indonesian Debit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 33: Indonesian Debit Cards Category Size by Transaction Volume (Billion), 2008–2017
Table 34: Indonesian Charge Cards Category Size by Volume of Cards (Thousand), 2008–2017
Table 35: Indonesian Charge Cards Category Size by Transaction Value (IDR Billion), 2008–2017
Table 36: Indonesian Charge Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 37: Indonesian Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Table 38: Indonesian Personal Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Table 39: Indonesian Personal Charge Cards Sub-Category Size by Transaction Value (IDR Billion), 2008–2017
Table 40: Indonesian Personal Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2008–2017
Table 41: Indonesian Personal Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 42: Indonesian Commercial Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Table 43: Indonesian Commercial Charge Cards Sub-Category Size by Transaction Value (IDR Billion), 2008–2017
Table 44: Indonesian Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2008–2017
Table 45: Indonesian Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Table 46: Indonesian Prepaid Cards Category Size by Volume of Cards (Million), 2008–2017
Table 47: Indonesian Prepaid Cards Category Size by Transaction Value (IDR Billion), 2008–2017
Table 48: Indonesian Prepaid Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 49: Indonesian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2008–2017
Table 50: Indonesian Open-Loop Prepaid Cards Segment Size by Transaction Value (IDR Billion), 2008–2017
Table 51: Indonesian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2008–2017
Table 52: Indonesian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2008–2017
Table 53: Indonesian Closed-Loop Prepaid Cards Segment Size by Transaction Value (IDR Billion), 2008–2017
Table 54: Indonesian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2008–2017
Table 55: Top Merchant Acquirers in Indonesia, 2012
Table 56: PT Bank Internasional Indonesia – Key Financial Indicators (IDR Billion), 2011–2012
Table 57: PT Bank Internasional Indonesia – Card Portfolio and Key Features
Table 58: Bank Danamon Indonesia – Key Financial Indicators (IDR Billion), 2011–2012
Table 59: Bank Danamon Indonesia – Card Portfolio and Key Features
Table 60: BCA Key Financial Indicators (IDR Billion), 2011–2012
Table 61: BCA – Card Portfolio and Key Features
Table 62: Bank Mandiri – Key Financial Indicators (IDR Billion), 2011–2012
Table 63: Bank Mandiri – Card Portfolio and Key Features
Table 64: ANZ Group Indonesia – Key Financial Indicators (IDR Billion), 2011–2012
Table 65: ANZ Group Indonesia – Card Portfolio and Key Features
Table 66: Key Definitions

List of Chart


Figure 1: Benchmarking the Indonesian Card Payments Channel Against Other Key Regional Markets
Figure 2: Indonesia – Growth of Various Card Categories (%), 2008–2017
Figure 3: ATM Penetration Per 100,000 Inhabitants in Indonesia (Thousand), 2008–2017
Figure 4: POS Terminal Penetration Per 100,000 Inhabitants in Indonesia (Thousand), 2008–2017
Figure 5: Volume of Internet Users Per 100 Inhabitants in Indonesia (%), 2008–2012
Figure 6: Indonesian Growth in Value of M-Payments (IDR Million), 2008–2017
Figure 7: Value of Retail Sales in Indonesia (IDR Billion), 2008–2012
Figure 8: GDP Growth in Indonesia (% Change), 2008–2017
Figure 9: Inflation Rate in Indonesia, (%), 2008–2017
Figure 10: GDP Per Capita in Indonesia (US$), 2008–2017
Figure 11: Shares of Key Payment Channels in Indonesia (%), 2008 and 2012
Figure 12: Indonesian Card Fraud (IDR Million), 2008–2012
Figure 13: Indonesian Cards-Not-Present Fraud Value (IDR Million), 2008–2012
Figure 14: Indonesian Counterfeit Card Fraud Value (IDR Million), 2008–2012
Figure 15: Indonesian Fraud by Card ID Theft Value (IDR Million), 2008–2012
Figure 16: Indonesian Cards Lost or Stolen Fraud Value (IDR Million), 2008–2012
Figure 17: Indonesian Cards and Payments Industry Segmentation by Card Type
Figure 18: Indonesian Outbound Tourist Trips (Thousand), 2008–2012
Figure 19: Indonesian Outbound Tourists Spending (IDR Billion), 2008–2017
Figure 20: Retail Consumer Card Spending by Product Category in Indonesia (%), 2012
Figure 21: Retail Consumer Card Spending by Retail Channel in Indonesia (%), 2012
Figure 22: Indonesian Overall Card Volume and Penetration (Thousand), 2008–2017
Figure 23: Indonesian Card Payments Channel by Card Category (%), 2008–2017
Figure 24: Indonesian Card Payments Channel Size by Volume of Cards (Million), 2008–2017
Figure 25: Indonesian Card Payments Channel Size by Transaction Value (IDR Billion), 2008–2017
Figure 26: Indonesian Credit Card Volume and Penetration (Million), 2008–2017
Figure 27: Indonesian Credit Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 28: Indonesian Credit Cards Category Size by Transaction Value (IDR Trillion), 2008–2017
Figure 29: Indonesian Card Category Size by Transaction Volume (Million), 2008–2017
Figure 30: Indonesian Credit Card Transactions Value by Channel (IDR Trillion), 2008–2017
Figure 31: Indonesian Credit Card Transaction Volume by Channel (Million), 2008–2017
Figure 32: Indonesian Personal Credit Cards Sub-Category Size by Volume of Cards (Million), 2008–2017
Figure 33: Indonesian Personal Credit Cards Sub-Category Size by Transaction Value (IDR Trillion), 2008– 2017
Figure 34: Indonesian Personal Credit Cards Sub-Category Size by Transaction Volume (Million),
2008–2017
Figure 35: Indonesian Commercial Credit Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Figure 36: Indonesian Commercial Credit Cards Sub-Category Size by Transaction Value (IDR Trillion), 2008–2017
2008–2017
Figure 37: Indonesian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 38: Indonesian Credit Cards Category Share by Scheme (%), 2012
Figure 39: Indonesian Credit Cards Category Shares by Issuer (%), 2012
Figure 40: Indonesian Debit Card Volume and Penetration, 2008–2017
Figure 41: Indonesian Debit Card Category Size by Volume of Cards (Million), 2008–2017
Figure 42: Indonesian Debit Cards Category Size by Transaction Value (IDR Trillion), 2008–2017
Figure 43: Indonesian Debit Cards Category Size by Transaction Volume (Billion), 2008–2017
Figure 44: Indonesian Debit Cards Transaction Value by Channel (IDR Trillion), 2008–2017
Figure 45: Indonesian Debit Cards Transaction Volume by Channel (Million), 2008–2017
Figure 46: Indonesian Debit Cards Category Share by Scheme (%), 2012
Figure 47: Indonesian Debit Cards Category Share by Issuer (%), 2012
Figure 48: Indonesian Charge Card Volume and Penetration (Thousand), 2008–2017
Figure 49: Indonesian Charge Cards Category Size by Volume of Cards (Thousand), 2008–2017
Figure 50: Indonesian Charge Cards Category Size by Transaction Value (IDR Billion), 2008–2017
Figure 51: Indonesian Charge Cards Category Size by Transaction Volume (Million), 2008–2017
Figure 52: Indonesian Charge Cards Transaction Value by Channel (IDR Billion), 2008–2017
Figure 53: Indonesian Charge Cards Transaction Volume by Channel (Million), 2008–2017
Figure 54: Indonesian Personal Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Figure 55: Indonesian Personal Charge Cards Sub-Category Size by Transaction Value (IDR Billion), 2008–2017
Figure 56: Indonesian Personal Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 57: Indonesian Commercial Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2008–2017
Figure 58: Indonesian Commercial Charge Cards Sub-Category Size by Transaction Value (IDR Billion), 2008–2017
Figure 59: Indonesian Commercial Charge Cards Sub-Category Size by Transaction Volume (Million), 2008–2017
Figure 60: Indonesian Charge Cards Category Share by Scheme (%), 2012
Figure 61: Indonesian Charge Cards Category Share by Issuer (%), 2012
Figure 62: Indonesian Prepaid Card Volume and Penetration, 2008–2017
Figure 63: Indonesian Prepaid Cards Category Size by Volume of Cards (Million), 2008–2017
Figure 64: Indonesian Prepaid Cards Category Size by Transaction Value (IDR Billion), 2008–2017
Figure 65: Indonesian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2008–2017
Figure 66: Indonesian Open-Loop Prepaid Cards Segment Size by Transaction Value (IDR Billion), 2008–2017
Figure 67: Indonesian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2008–2017
Figure 68: Indonesian Closed-Loop Prepaid Cards Segment Size by Transaction Value (IDR Billion), 2008–2017

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