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

Published By :

Timetric

Published Date : Dec 2014

Category :

Banking

No. of Pages : 92 Pages

Synopsis

The report provides top-level market analysis, information and insights into Lebanon's cards and payments industry, including:
  • Current and forecast values for each category of Lebanon's cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Lebanon's cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by banks and other institutions in the market
  • Comprehensive analysis of consumer attitudes and buying preferences for cards
  • The competitive landscape of Lebanon's cards and payments industry

Executive summary

  • Lebanese payments cards (including debit, credit and charge cards) registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 3.41%, increasing from 1.6 million cards in circulation in 2009 to 1.8 million by the end of 2013. In terms of transaction value, payment cards valued LBP15.5 trillion (US$10.3 billion) in 2013, after registering a review-period (2009–2013) CAGR of 12.07%. The introduction of improved cards, rising consumer awareness for electronic payments, adoption of advanced technologies such as PayWave and PayPass feature, EMV technology and contactless cards all contributed towards the growth in payment cards.
  • In 2013, the average transaction value (ATV) in Lebanon was US$177.6, which was the fifth highest in the Middle East and North Africa (MENA) region. Kuwait recorded the highest ATV, with US$319.6, followed by the UAE (US$263.1), Oman (US$207.1) and Bahrain (US$185.3). In terms of card penetration, Lebanon had the ninth highest level of 0.4 cards per inhabitant, followed by Iran (2.4), the UAE (2), South Africa (1.3), Kuwait (1.3), Israel (1.1), Oman (1.0), Bahrain (0.8) and Saudi Arabia (0.7).
  • Lebanon ranked seventh among the other MENA countries in the frequency of use of payment cards, with 31.9 transactions per card. Israel recorded the highest frequency with 131.2, followed by Saudi Arabia (95.3), Kuwait (47.4), Iran (46.5), the UAE (43.1) and Nigeria (38.2).
  • The prepaid cards market is growing rapidly, and is expected to surpass debit, credit and charge cards in terms of number of cards in circulation by 2018. In terms of the number of cards in circulation, the prepaid cards market in Lebanon increased with 107,702 cards in circulation in 2013, which is anticipated to increase to 2.3 million cards in 2018. To promote such cards, Byblos Bank and Blom Bank are offering cards at different prices ranging from LBP12,060–LBP376,875 (US$8–US$250), targeting the young population (from the age of 12 years) and regular internet surfers who prefer to make purchases online. These cards include offers such as the redemption of reward points that are attached with it.
  • Prepaid cards are also popular for the remittance facility. IRemit, a global remittance company, issues the I-remit Visa Prepaid Card which ensures faster and safer remittance facilities from Lebanon to the beneficiary in the Philippines. This card also offers facilities such as online payment for utility bills and online shopping.
  • Smart cards with contactless technology features are an emerging trend across the globe, with the same case in Lebanon. Contactless technology was introduced to the country in association with Visa. Bank Audi and Visa launched PayWave contactless payment technology in June 1, 2014, and the bank also issues cards with PayPass contactless features in association with MasterCard.
  • Similarly, contactless technology is being used for mobile payments. In April 15, 2014, Bank Audi launched the Tap2pay NFC Mobile Payment service, which allows mobile phone users to use their mobile phone as a credit card. This was launched in partnership with MasterCard and the mobile operators Alfa and Touch.

Scope

  • This report provides a comprehensive analysis of Lebanon's cards and payments industry.
  • It provides current values for Lebanon's cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Lebanon's cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details the marketing strategies used by various banks and other institutions.
  • It profiles the major banks in Lebanon's cards and payments industry.

Reasons to buy

  • Make strategic business decisions using top-level historic and forecast market data related to Lebanon's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in Lebanon's cards and payments industry.
  • Assess the competitive dynamics in Lebanon's cards and payments industry.
  • Gain insights in to the marketing strategies used to sell various card types in Lebanon.
  • Gain insights into key regulations governing Lebanon's cards and payments industry.

Key highlights

  • Lebanese payments cards (including debit, credit and charge cards) registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 3.41%, increasing from 1.6 million cards in circulation in 2009 to 1.8 million by the end of 2013. In terms of transaction value, payment cards valued LBP15.5 trillion (US$10.3 billion) in 2013, after registering a review-period (2009–2013) CAGR of 12.07%.
  • In 2013, the average transaction value (ATV) in Lebanon was US$177.6, which was the fifth highest in the Middle East and North Africa (MENA) region. Kuwait recorded the highest ATV, with US$319.6, followed by the UAE (US$263.1), Oman (US$207.1) and Bahrain (US$185.3). In terms of card penetration, Lebanon had the ninth highest level of 0.4 cards per inhabitant, followed by Iran (2.4), the UAE (2), South Africa (1.3), Kuwait (1.3), Israel (1.1), Oman (1.0), Bahrain (0.8) and Saudi Arabia (0.7). 
  • Lebanon ranked seventh among the other MENA countries in the frequency of use of payment cards, with 31.9 transactions per card. Israel recorded the highest frequency with 131.2, followed by Saudi Arabia (95.3), Kuwait (47.4), Iran (46.5), the UAE (43.1) and Nigeria (38.2). 
  • The prepaid cards market is growing rapidly, and is expected to surpass debit, credit and charge cards in terms of number of cards in circulation by 2018. In terms of the number of cards in circulation, the prepaid cards market in Lebanon increased with 107,702 cards in circulation in 2013, which is anticipated to increase to 2.3 million cards in 2018. To promote such cards, Byblos Bank and Blom Bank are offering cards at different prices ranging from LBP12,060–LBP376,875 (US$8–US$250), targeting the young population (from the age of 12 years) and regular internet surfers who prefer to make purchases online. These cards include offers such as the redemption of reward points that are attached with it.
  • Smart cards with contactless technology features are an emerging trend across the globe, with the same case in Lebanon. Contactless technology was introduced to the country in association with Visa. Bank Audi and Visa launched PayWave contactless payment technology in June 1, 2014, and the bank also issues cards with PayPass contactless features in association with MasterCard.
  • Similarly, contactless technology is being used for mobile payments. In April 15, 2014, Bank Audi launched the Tap2pay NFC Mobile Payment service, which allows mobile phone users to use their mobile phone as a credit card. This was launched in partnership with MasterCard and the mobile operators Alfa and Touch.
Table of Contents

1 Key Facts and Top Events

2 Executive Summary

3 Payment Instruments
3.1 Current Payments Environment
3.2 Alternative Payment Instruments
3.2.1 Click2pay
3.2.2 Skrill
3.2.3 ClickandBuy
3.2.4 Neteller
3.2.5 CashU
3.2.6 NetCommerce
3.2.7 Paymo
3.2.8 DaoPay

4 Market Attractiveness and Future Prospects of Cards and Payments

5 Analysis of Cards and Payments Industry Drivers
5.1 Demographic Drivers
5.2 Economic Drivers
5.3 Infrastructure Drivers
5.4 Business Drivers

6 Emerging Consumer Attitudes and Trends
6.1 Market Segmentation and Targeting
6.1.1 Consumer cards
6.1.2 Corporate cards
6.1.3 New product launches
6.2 Travel Spending
6.2.1 Outbound spending
6.2.2 Inbound spending

7 Payment Cards
7.1 Payment Cards Instrument Analysis
7.1.1 Number of cards in circulation by card type
7.1.2 Transaction volume by card type
7.1.3 Transaction value by card type
7.1.4 Personal vs commercial cards

8 Debit Cards
8.1 Debit Cards Market Analysis
8.1.1 Number of debit cards in circulation
8.1.2 Debit card transaction volume by channel
8.1.3 Debit card transaction value by channel
8.1.4 Number of debit cards in circulation by scheme
8.1.5 Debit cards transaction value by scheme
8.1.6 Debit cards issuers market shares
8.1.7 Debit card comparison

9 Credit Cards
9.1 Credit Cards Market Analysis
9.1.1 Number of credit cards in circulation
9.1.2 Credit cards transaction volume by channel
9.1.3 Credit cards transaction value by channel
9.1.4 Number of credit cards in circulation by scheme
9.1.5 Credit cards transaction value by scheme
9.1.6 Credit cards issuers market share
9.1.7 Credit card comparison

10 Charge Cards
10.1 Charge Cards Market Analysis
10.1.1 Number of charge cards in circulation
10.1.2 Charge cards transaction volume by channel
10.1.3 Charge cards transaction value by channel
10.1.4 Number of charge cards in circulation by scheme
10.1.5 Charge cards transaction value by scheme
10.1.6 Charge card comparison

11 Commercial Cards
11.1 Commercial Cards Market Analysis
11.1.1 Number of commercial cards in circulation
11.1.2 Commercial cards transaction value
11.1.3 Commercial credit cards
11.1.4 Commercial charge cards
11.1.5 Commercial card comparison

12 Regulations in the Cards and Payments Industry
12.1 Regulatory Framework
12.2 Anti-Money Laundering (AML)
12.3 Foreign Direct Investment (FDI) Regulations
13 Card Fraud Statistics
13.1 Card Fraud Analysis
14 Card Issuers
14.1 Bank Audi
14.2 Blom Bank
14.3 Credit Libanais
14.4 Byblos Bank

15 Card Schemes
15.1 Visa
15.2 MasterCard
15.3 American Express

16 Prepaid Cards
16.1 Prepaid Cards Market Analysis
16.1.1 Number of prepaid cards in circulation
16.1.2 Prepaid cards transaction value
16.1.3 Open-loop prepaid cards
16.1.4 Closed-loop prepaid cards
16.1.5 Prepaid card comparison

17 Appendix
17.1 Tables
17.2 Methodology
17.3 Contact Timetric
17.4 About Timetric
17.5 Timetric’s Services
17.6 Definitions
17.7 Disclaimer

List of Table

Table 1: Lebanon – Key Facts, 2013
Table 2: Regional Benchmarking of Lebanon Payment Cards Instrument, 2013
Table 3: Specialized Cards for High-Income Customers
Table 4: Specialized Cards for Shoppers and Vehicle Owners
Table 5: Specialized Cards for Young Population and Students
Table 6: Specialized Cards for the Female Population
Table 7: Specialized Cards for Frequent Flyers
Table 8: Specialized Cards for Business Managers and Entrepreneurs
Table 9: Lebanon – New Product Launches
Table 10: Regional Benchmarking of Lebanon Debit Cards, 2013
Table 11: Lebanon – Debit Card Comparison
Table 12: Regional Benchmarking of Lebanon Credit Cards, 2013
Table 13: Lebanon – Gold Cards Comparison
Table 14: Lebanon – Premium Cards Comparison
Table 15: Regional Benchmarking of Lebanon Charge Cards, 2013
Table 16: Lebanon – Charge Cards Comparison
Table 17: Lebanon – Commercial Cards Comparison
Table 18: Lebanon – Market Entry Strategies of Foreign Banks
Table 19: Regional Benchmarking of Lebanon Prepaid Cards, 2013
Table 20: Lebanon – Prepaid Cards Comparison
Table 21: Lebanon – Payment Instruments Transaction Value (LBP Trillion), 2009–2013
Table 22: Lebanon – Payment Instruments Transaction Value (US$ Billion), 2009–2013
Table 23: Lebanon – Payment Instruments Transaction Volume (Million), 2009–2013
Table 24: Lebanon – Number of Cards in Circulation by Card Types (Thousand), 2009–2018
Table 25: Lebanon – Transaction Volume by Card Type (Million), 2009–2018
Table 26: Lebanon – Transaction Value by Card Type (LBP Billion), 2009–2018
Table 27: Lebanon – Transaction Value by Card Type (US$ Million), 2009–2018
Table 28: Lebanon – Personal and Commercial Cards Transaction Value (LBP Billion), 2009–2018
Table 29: Lebanon – Personal and Commercial Cards Transaction Value (US$ Million), 2009–2018
Table 30: Lebanon – Number of Debit Cards in Circulation (Million), 2009–2018
Table 31: Lebanon – Debit Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 32: Lebanon – Debit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 33: Lebanon – Debit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 34: Lebanon – Number of Debit Cards in Circulation By Scheme (Thousand), 2009–2013
Table 35: Lebanon – Debit Cards Transaction Value By Scheme (LBP Trillion), 2009–2013
Table 36: Lebanon – Debit Cards Transaction Value By Scheme (US$ Billion), 2009–2013
Table 37: Lebanon – Debit Cards Transaction Value By Issuer (LBP Billion), 2009–2013
Table 38: Lebanon – Debit Cards Transaction Value By Issuer (US$ Million), 2009–2013
Table 39: Lebanon – Number of Credit Cards in Circulation (Thousand), 2009–2018
Table 40: Lebanon – Credit Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 41: Lebanon – Credit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 42: Lebanon – Credit Cards Total and Average Transaction Value by Channel, 2009–2018
Table 43: Lebanon – Number of Credit Cards in Circulation By Scheme (Thousand), 2009–2013
Table 44: Lebanon – Credit Cards Transaction Value By Scheme (LBP Billion), 2009–2013
Table 45: Lebanon – Credit Cards Transaction Value By Scheme (US$ Million), 2009–2013
Table 46: Lebanon – Credit Cards Transaction Value By Issuer (LBP Billion), 2009–2013
Table 47: Lebanon – Credit Cards Transaction Value By Issuer (US$ Million), 2009–2013
Table 48: Lebanon – Number of Charge Cards in Circulation (Thousand), 2009–2018
Table 49: Lebanon – Charge Cards Transaction Volume and Frequency by Channel, 2009–2018
Table 50: Lebanon – Charge Cards Total and Average Transaction Value by Channel, 2009–2018
Table 51: Lebanon – Charge Cards Total and Average Transaction Value by Channel, 2009–2018
Table 52: Lebanon – Number of Charge Cards in Circulation By Scheme (Thousand), 2009–2013
Table 53: Lebanon – Charge Cards Transaction Value By Scheme (LBP Billion), 2009–2013
Table 54: Lebanon – Charge Cards Transaction Value By Scheme (US$ Million), 2009–2013
Table 55: Lebanon – Number of Commercial Cards in Circulation (Thousand), 2009–2018
Table 56: Lebanon – Commercial Cards Transaction Value (LBP Billion), 2009–2018
Table 57: Lebanon – Commercial Cards Transaction Value (US$ Million), 2009–2018
Table 58: Lebanon – Commercial Credit Cards, 2009–2018
Table 59: Lebanon – Commercial Charge Cards, 2009–2018
Table 60: Lebanon – Card Fraud (LBP Million), 2009–2013
Table 61: Lebanon – Card Fraud (US$ Thousand), 2009–2013
Table 62: Lebanon – Number of Prepaid Cards in Circulation (Thousand), 2009–2018
Table 63: Lebanon – Prepaid Cards Transaction Value (LBP Billion), 2009–2018
Table 64: Lebanon – Prepaid Cards Transaction Value (US$ Million), 2009–2018
Table 65: Lebanon – Open-Loop Prepaid Cards, 2009–2018
Table 66: Lebanon – Closed-Loop Prepaid Cards, 2009–2018
Table 67: Key Definitions

List of Chart

Figure 1: Lebanon – Payment Instruments Shares by Transaction Value (%), 2009 and 2013
Figure 2: Lebanon – Payment Instruments Shares by Transaction Volume (%), 2009 and 2013
Figure 3: Lebanon – Payment Cards Transaction Value and Growth, 2009–2018
Figure 4: Lebanon – Total Population (Million) and Proportion Over 65 (%) for 2009–2018
Figure 5: Lebanon – Nominal GDP Per Capita (US$) and Real GDP (%) for 2009–2018
Figure 6: Lebanon – Volume of ATMs and Penetration, 2009–2018
Figure 7: Lebanon – Volume of POS and Penetration, 2009–2018
Figure 8: Lebanon – E-Commerce Value (LBP Billion), 2009–2018
Figure 9: Lebanon – Cards and Payments Industry Segmentation by Card Type
Figure 10: Lebanon – Outbound Spending (LBP Billion), 2009–2013
Figure 11: Lebanon – Inbound Spending (LBP Trillion), 2009–2013
Figure 12: Lebanon – Card Shares In Terms of Numbers in Circulation (%), 2009–2018
Figure 13: Lebanon – Card Shares in Terms of Transaction Volume (%), 2009–2018
Figure 14: Lebanon – Card Shares in Terms of Transaction Value (%), 2009–2018
Figure 15: Lebanon – Personal and Commercial Cards, Transaction Value (LBP Billion), 2009–2018
Figure 16: Lebanon – Number of Debit Cards in Circulation (Thousand), 2009–2018
Figure 17: Lebanon – Debit Card Transaction Volume by Channel (Million), 2009–2018
Figure 18: Lebanon – Debit Card Transaction Value by Channel (LBP Trillion), 2009–2018
Figure 19: Lebanon – Debit Card Scheme Shares in Terms of Number of Cards in Circulation (%), 2013
Figure 20: Lebanon – Debit Card Scheme Market Share in Terms of Transaction Values (%), 2013
Figure 21: Lebanon – Debit Card Issuers’ Market Shares in Terms of Transaction Value (%), 2013
Figure 22: Lebanon – Number of Credit Cards in Circulation (Thousand), 2009–2018
Figure 23: Lebanon – Credit Cards Transaction Volume by Channel (Million), 2009–2018
Figure 24: Lebanon – Credit Cards Transaction Value by Channel (LBP Billion), 2009–2018
Figure 25: Lebanon – Credit Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013
Figure 26: Lebanon – Credit Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 27: Lebanon – Credit Cards Issuers Market Share in Terms of Transaction Value (%), 2013
Figure 28: Lebanon – Number of Charge Cards in Circulation (Thousand), 2009–2018
Figure 29: Lebanon – Charge Cards Transaction Volume by Channel (Thousand), 2009–2018
Figure 30: Lebanon – Charge Cards Transaction Value by Channel (LBP Billion), 2009–2018
Figure 31: Lebanon – Charge Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013
Figure 32: Lebanon – Charge Cards Scheme Market Share in Terms of Transaction Value (%), 2013
Figure 33: Lebanon – Number of Commercial Cards in Circulation (Thousand), 2009–2018
Figure 34: Lebanon – Commercial Cards Transaction Value (LBP Billion), 2009–2018
Figure 35: Lebanon – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013
Figure 36: Lebanon – Number of Prepaid Cards in Circulation (Thousand), 2009–2018
Figure 37: Lebanon – Prepaid Cards Transaction Value (LBP Billion), 2009–2018

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