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Turkeys 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 : 95 Pages


Synopsis

The report provides market analysis, information and insights into Turkey\'s cards and payments industry, including:

  • Current and forecast values for each category of Turkey\'s cards and payments industry including debit cards, credit cards and prepaid cards.
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas.
  • Analysis of various market drivers and regulations governing Turkey\'s cards and payments industry.
  • Detailed analysis of the marketing strategies adopted for selling debit, credit 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 Turkey\'s cards and payments industry.

Executive summary

The card payments channel in Turkey demonstrated robust growth during the review period (2008–2012). In terms of volume, the channel grew at a compound annual growth rate (CAGR) of 11.19%, to reach 177.4 million cards in 2012. The increasing acceptance of cards in retail outlets, growing consumer preference for cashless transactions and improved banking infrastructure contributed to review-period growth. In terms of volume, the channel is expected to grow at a CAGR of 5.83% over the forecast period (2013–2017) to reach 243.9 million in 2017. 

While cash continues to be an important part of the overall payments system, it is increasingly being displaced by the card payments channel. To capitalize on consumer preferences, banks and card issuers have adopted various marketing and pricing strategies to encourage customers to increase card payments. Common strategies include offers, product discounts, reward points and insurance cover. A complete cashless payment system is planned for implementation by 2023.

Scope

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

Reasons to buy

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

Key highlights

  • The Turkish card payments channel recorded impressive growth during the review period. The number of cards in circulation grew at a CAGR of 11.19% from 116.1 million in 2008 to 177.4 million in 2012. Increasing consumer awareness, improved banking infrastructure and effective government initiatives contributed to the channel growth. By volume, the channel is anticipated to grow at a CAGR of 5.83% over the forecast period, from 194.4 million cards in 2013 to 243.9 million in 2017.
  • Debit cards dominate the total card payments channel in terms of volume. Debit cards are most commonly used by consumers to shop at retail outlets, withdraw cash from ATMs and for online payments. By volume, debit cards accounted for 51.4% of the total cards and payments in 2012. Growing consumer demand, widespread acceptance of credit cards by merchants, and the increase in the number of POS terminals contributed to the expansion of the total credit card category in Turkey. Prepaid cards are widely used in the form of food, travel and gift cards.
  • The Interbank Card Center of Turkey (BKM) aims to make Turkey a 100% cash-free country by 2023, the 100th anniversary of Turkey‘s republic. As a part of this, an anti-cash campaign called ‘Bye Bye Cash’ was initiated in May 2011 to promote cards as a more effective transaction method. This campaign aims mainly to make people use debit cards on small purchases where cash is usually preferred. BKM also wants people to use debit cards for almost all transactions, increase the total frequency of card use, make new users aware of the features of cards, and encourage merchants to direct clients to cards. BKM also used social media such as Facebook and Twitter to create nationwide consumer awareness.
  • In terms of volume of cards in circulation, the debit cards category held the highest channel share of 51.4% in 2012. The second-largest share was held by the credit cards category with 30.6%, followed by prepaid cards with 17.9%. The number of debit cards is expected to increase from 100.0 million in 2013 to 126.9 million in 2017, at a forecast-period CAGR of 6.13%. The prepaid cards category is forecast to post the highest growth at a CAGR of 9.06% over the forecast period, rising from 37.4 million cards in 2013 to 52.9 million in 2017.
Table of contents

1 Executive Summary

2 Analysis of 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 NFC-enabled SIM cards
2.1.4 Biometric ATMs
2.1.5 Mobile Wallet
2.1.6 Internet penetration
2.1.7 Contactless cards
2.1.8 Mobile payments
2.1.9 Network-related developments
2.2 Business Drivers
2.2.1 Rising e-commerce sales
2.2.2 Increasing campaigns for cashless payments
2.2.3 Retail industry dynamics
2.2.4 Increasing competitive pressure to bring product innovation
2.3 Economic Fundamentals
2.3.1 GDP
2.3.2 Inflation
2.3.3 Unemployment rate
2.3.4 GDP per capita income

3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Check payments
3.1.3 Card payments

4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 FDI regulations
4.2 Card Fraud Statistics
4.2.1 Counterfeit cards
4.2.2 Cards lost or stolen
4.2.3 Card identity theft

5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate customers
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.2.3 Outbound tourist card 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 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 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 Prepaid 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
9.2 Open-Loop Prepaid Cards Segment Size and Forecast
9.2.1 Analysis by number of cards in circulation
9.2.2 Analysis by transaction value
9.3 Closed-Loop Prepaid Cards Segment Size and Forecast
9.3.1 Analysis by volume of cards in circulation
9.3.2 Analysis by transaction value

10 Merchant Acquiring
10.1 Merchant Acquirers in Turkey

11 Company Profiles of Card Issuers
11.1 TC Ziraat Bankası AŞ
11.1.1 Key financials
11.1.2 Card portfolio
11.1.3 Strategies
11.2 Yapı ve Kredi Bankası AŞ
11.2.1 Key financials
11.2.2 Card portfolio
11.2.3 Strategies
11.3 T Garanti Bank AÅž
11.3.1 Key financials
11.3.2 Card portfolio
11.3.3 Strategies
11.4 Akbank TAÅž
11.4.1 Key financials
11.4.2 Card portfolio
11.4.3 Strategies
11.5 Burgan Bank AÅž
11.5.1 Key financials
11.5.2 Card portfolio
11.5.3 Strategies

12 Appendix
12.1 Methodology
12.2 Contact Timetric
12.3 About Timetric
12.4 Timetric’s Services
12.5 Definitions
12.6 Disclaimer

List of Table


Table 1: Turkish Payment Channels (TRY Billion), 2008–2012
Table 2: Marketing Entry Strategies of Multinational Banks in Turkey
Table 3: Turkish Card Fraud (TRY Million), 2008–2012
Table 4: Turkish Cards for High-Income Groups
Table 5: Turkish Corporate Cards
Table 6: Turkish Consumer Card Spending by Product Category (TRY Million), 2008–2012
Table 7: Turkish Consumer Card Spending by Retail Channel (TRY Million), 2008–2017
Table 8: Turkish Card Payments – Channel by Card Category (Million), 2008–2017
Table 9: Turkish Card Payments – Channel Size by Volume of Cards (Million), 2008–2017
Table 10: Turkish Card Payments – Channel Size by Transaction Value (TRY Million), 2008–2017
Table 11: Turkish Card Payments – Channel Size by Transaction Value (US$ Million), 2008–2017
Table 12: Turkish Credit Cards – Category Size by Number of Cards (Million), 2008–2017
Table 13: Turkish Credit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Table 14: Turkish Credit Cards – Category Size by Transaction Value (US$ Billion), 2008–2017
Table 15: Turkish Credit Cards – Category Size by Transaction Volume (Million), 2008–2017
Table 16: Turkish Personal Credit Cards – Category Size by Number of Cards (Million), 2008–2017
Table 17: Turkish Personal Credit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Table 18: Turkish Personal Credit Cards – Category Size by Transaction Value (US$ Billion), 2008–2017
Table 19: Turkish Personal Credit Cards – Category Size by Transaction Volume (Million), 2008–2017
Table 20: Turkish Commercial Credit Cards – Category Size by Number of Cards (Thousand), 2008–2017
Table 21: Turkish Commercial Credit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Table 22: Turkish Commercial Credit Cards – Category Size by Transaction Value (US$ Billion), 2008–2017
Table 23: Turkish Commercial Credit Cards – Category Size by Transaction Volume (Million), 2008–2017
Table 24: Turkish Debit Cards – Category Size by Volume of Cards (Million), 2008–2017
Table 25: Turkish Debit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Table 26: Turkish Debit Cards – Category Size by Transaction Value (US$ Billion), 2008–2017
Table 27: Turkish Debit Cards – Category Size by Transactions Volume (Million), 2008–2017
Table 28: Turkish Prepaid Cards – Category Size by Volume of Cards (Million), 2008–2017
Table 29: Turkish Prepaid Cards – Category Size by Transaction Value (TRY Million), 2008–2017
Table 30: Turkish Prepaid Cards – Category Size by Transaction Value (US$ Million), 2008–2017
Table 31: Turkish Open-Loop Prepaid Cards – Segment Size by Volume of Cards (Million), 2008–2017
Table 32: Turkish Open-Loop Prepaid Cards – Segment Size by Transaction Value (TRY Million), 2008–2017
Table 33: Turkish Open-Loop Prepaid Cards – Segment Size by Transaction Value (US$ Million), 2008–2017
Table 34: Turkish Closed-Loop Prepaid Cards – Segment Size by Volume of Cards (Million), 2008–2017
Table 35: Turkish Closed-Loop Prepaid Cards – Segment Size by Transaction Value (TRY Million),
Table 36: Turkish Closed-Loop Prepaid Cards – Segment Size by Transaction Value (US$ Million),
Table 37: TC Ziraat Bankası – Key Financial Indicators (TRY Million), 2011–2012
Table 38: TC Ziraat Bankası – Card Product Offerings and Key Features
Table 39: Yapı ve Kredi Bankası AÅž – Key Financial Indicators (TRY Million), 2011–2012
Table 40: Yapı ve Kredi Bankası AÅž – Card Portfolio and Key Features
Table 41: Garanti Bank Key Financial Indicators (TRY Billion), 2011–2012
Table 42: Garanti Bank – Card Portfolio and Key Features
Table 43: Akbank TAÅž – Key Financial Indicators (TRY Billion), 2011–2012
Table 44: Akbank TAÅž – Card Portfolio and Key Features
Table 45: Burgan Bank AÅž – Key Financial Indicators (TRY Million), 2011–2012
Table 46: Burgan Bank AÅž – Card Portfolio and Key Features
Table 47: Key Definitions

List of Chart


Figure 1: Benchmarking the Turkish Card Payments Channel Against Other Key Regional Markets
Figure 2: Turkey – Growth of Various Card Categories (%), 2008–2017
Figure 3: ATM Penetration per 100,000 Inhabitants in Turkey, 2008–2017
Figure 4: POS Terminals Penetration per 100,000 Inhabitants in Turkey, 2008–2017
Figure 5: Volume of Internet Users Growth in Turkey (Million), 2008–2012
Figure 6: Growth of Contactless Cards in Turkey (Thousand), 2008–2017
Figure 7: Growth of M-Payments in Turkey (Million), 2008–2017
Figure 8: Online Card Payments (TRY Billion), 2008–2012
Figure 9: Value of Retail Sales in Turkey (TRY Billion), 2008–2017
Figure 10: Banking Industry Landscape in Turkey (Number of Banks), 2013
Figure 11: GDP Growth in Turkey (% Change), 2008–2017
Figure 12: Inflation, Average Consumer Prices in Turkey (% Change), 2008–2017
Figure 13: Unemployment Rate in Turkey (%), 2008–2017
Figure 14: Turkish GDP Per Capita (Current US$), 2008–2017
Figure 15: Shares of Turkish Payment Channels (%), 2008 and 2012
Figure 16: Turkish Card Fraud (TRY Million), 2008 and 2012
Figure 17: Turkish Card-Not-Present Fraud Value (TRY Thousand), 2008–2012
Figure 18: Turkish Counterfeit Card Fraud Value (TRY Thousand), 2008–2012
Figure 19: Value of Card Fraud by Lost or Stolen Cards in Turkey (TRY Thousand), 2008–2012
Figure 20: Value of Card Fraud by Card Identity Theft in Turkey (TRY Thousand), 2008–2012
Figure 21: Turkish Cards and Payments Industry Segmentation by Card Type
Figure 22: Turkish Trips of Outbound Tourists Trips (Thousand), 2008–2012
Figure 23: Turkish Outbound Tourists Spending (US$ Million), 2008–2017
Figure 24: Turkish Outbound Tourists Card Spending (TRY Billion), 2008–2012
Figure 25: Retail Consumer Card Spending by Product Category in Turkey (%), 2012
Figure 26: Turkish Retail Consumer Card Spending by Retail Channel (%), 2012
Figure 27: Total Cards Volume and Penetration in Turkey, 2008–2017
Figure 28: Turkish Card Payments – Channel by Card Category (%), 2008–2017
Figure 29: Turkish Card Payments – Channel Size by Volume of Cards (Million), 2008–2017
Figure 30: Turkish Card Payments – Channel Size by Transaction Value (TRY Million), 2008–2017
Figure 31: Turkish Credit Cards – Volume and Penetration, 2008–2017
Figure 32: Turkish Credit Cards – Category Size by Volume of Cards (Million), 2008–2017
Figure 33: Turkish Credit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Figure 34: Turkish Credit Cards – Category Size by Transactions Volume (Million), 2008–2017
Figure 35: Turkish Credit Cards – Transactions Value by Channel (TRY Billion), 2008–2017
Figure 36: Turkish Credit Cards – Transaction Volume by Channel (Million), 2008–2017
Figure 37: Turkish Personal Credit Cards – Category Size by Volume of Cards (Million), 2008–2017
Figure 38: Turkish Personal Credit Cards – Category Size by Transaction Value (TRY Billion), 2008– 2017
Figure 39: Turkish Personal Credit Cards – Category Size by Number of Transactions (Million), 2008–2017
Figure 40: Turkish Commercial Credit Cards – Category Size by Number of Cards (Thousand), 2008–2017
Figure 41: Turkish Commercial Credit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Figure 42: Turkish Commercial Credit Cards – Category Size by Transaction Volume (Million), 2008–2017
Figure 43: Turkish Credit Cards – Category Shares by Scheme (%), 2012
Figure 44: Turkish Credit Cards – Category Shares by Issuer (%), 2012
Figure 45: Turkish Debit Cards – Volume and Penetration, 2008–2017
Figure 46: Turkish Debit Cards – Category Size by Volume of Cards (Million), 2008–2017
Figure 47: Turkish Debit Cards – Category Size by Transaction Value (TRY Billion), 2008–2017
Figure 48: Turkish Debit Cards – Category Size by Transactions Volume (Million), 2008–2017
Figure 49: Turkish Debit Card Transactions – Value Share Analysis by Channel (TRY Billion), 2008–2017
Figure 50: Turkish Debit Card Transactions – Volume Share Analysis by Channel (Million), 2008–2017
Figure 51: Turkish Debit Cards – Category Shares by Scheme (%), 2012
Figure 52: Turkish Debit Cards – Category Share by Bank (%), 2012
Figure 53: Turkish Prepaid Cards – Volume and Penetration, 2008–2017
Figure 54: Turkish Prepaid Cards – Category Size by Volume of Cards (Million), 2008–2017
Figure 55: Turkish Prepaid Cards – Category Size by Transaction Value (TRY Million), 2008–2017
Figure 56: Turkish Open-Loop Prepaid Cards – Segment Size by Volume of Cards (Million), 2008–2017
Figure 57: Turkish Open-Loop Prepaid Cards – Segment Size by Transaction Value (TRY Million), 2008–2017
Figure 58: Turkish Closed-Loop Prepaid Cards – Segment Size by Volume of Cards (Million), 2008–2017
Figure 59: Turkish Closed-Loop Prepaid Cards – Segment Size by Transaction Value (TRY Million),
Figure 60: Merchant Acquirers’ Share by POS Terminals in Turkey (%), 2012

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