How Asia Cards and Payments Market Is Positioned?
In Asia, most of the countries such as India, Indonesia and others were dominated by cash almost a decade ago and have witnessed advancement towards digital transactions both in terms of a number of transactions and volume in recent years. Asian countries are making huge investments in digital technology in order to transform the financial industry most of which is in-house. The young population and millennials have been the major driver for an increase in the payments via credit cards as they are embracing advanced technology and new products thereby, helping the credit card users to move away from traditional methods of payments. The young population who are well versed with the existing banking infrastructure and smartphone technology in Asia are key reasons to gain a competitive advantage by delivering innovative services ahead of their competitors.
- The total number of cards in circulation was witnessed to increase from ~ from 2013 to ~ in 2018, thus displaying a five-year CAGR of ~%. The competitive growth in the credit card industry of Asia was driven by deep client partnerships, strong cross-border-growth, significant long-term growth opportunities, and tailored strategies.
- Banks have been highly enthusiastic about implementing new financial technology to reach and engage with their customers in order to promote the use of digital methods of payment throughout Asia.
- Asia credit cards market remains highly competitive and attractive driving it towards a cashless economy. Banks have tightened regulations to address rising defaults therefore; credit card issuance fell sharply in the early years of the current decade. The growth in credit cards in circulation picked up for both personal and commercial cards in 2018, as banks also looked to increase their revenue from the commercial space.
- Most of the countries such as India, South Korea, China, and others are being transformed into a cashless economy. The total transaction value showcased a growth of ~% in the year 2018 with transactions amounting to USD ~ billion. FinTech players look at developing apps to support credit card payments in Asia to increase the number of cards in circulation and eventually the number and value of transactions.
Credit Cards Market Size
Asian credit card issuers offer multi-branded cards with installment, use award, and loyalty-point features. Point-of-sale machines are found in almost all the stores around the continent, which has made cards as one of the most convenient methods of payment. The usage of cards has been steadily growing with the number of cards in circulation increased at a CAGR of ~% from 2013 to 2018.
Growth is majorly driven by usage amongst the younger population (about ~% of millennials aged 25-34 years tend to use credit cards more than any other age group). Low non-performing loans indicating healthy growth in credit card usage and low payment default rates. The credit card reward and loyalty program is the most significant growth driver for a surge in credit card transaction value and transaction volume. The card issuers and operators have been partnering with member merchants in order to increase the customer acquiring rate. The member merchants provide the cardholders with discounts on the purchases or opportunity to earn reward points which can be redeemed later on shopping/air ticket purchases and many more.
The advancement in technology - such as RIFD / contactless credit cards, chip, and pin cards have contributed to the increase in the Transaction Value. It has shown an absolute growth of ~% since 2013. The highest year on year growth was witnessed in the year 2018 of ~%, as people were more motivated to make credit card transactions because the card loyalty reward points program was on the rise by the issuing bank. Credit card transaction value increased from USD ~ million in 2013 to reach USD ~ million in the year 2018 at a CAGR of ~% during the review period 2013-2018.
Emerging markets in South Asia, on the other hand, is witnessing a slow transition from a cash-driven to a digital payment society. Smartphone-based mobile money services are slowly gaining momentum as part of the payments ecosystem. However, debit cards dominate the plastic card market, and the recent association with international payment networks for QR-based payments has paved the way for players to offer new solutions in this space.
Key Segments Covered:-
Credit cards
Value of transaction by Issuer and Operator
Volume of a transaction by Issuer and Operator
Number of Credit Cards in Circulation by Issuer and Operator
Commercial and Personal Credit Cards
Transactions at ATM and POS
Countries
India
Indonesia
Malaysia
Singapore
Philippines
South Korea
China
Japan
Other Countries (Vietnam, Thailand, Hong Kong, Taiwan and Rest)
Key Target Audience
Credit/ Debit Card Operator
Credit/ Debit Card Issuers
Prepaid Card Issuers/ Operators
Local/ Foreign Bank
Reward/ Loyalty Program Business Operators
Payment gateway provider
Credit/ Debit Card Issuer
POS Device Manufacturers
Debit/ Credit Card Manufacturing companies
ATM Manufacturing Entities
Regulatory Authorities
Time Period Captured in the Report:-
Historical Period: 2013-2018
Forecast Period: 2018-2025
Companies Covered in Asia Credit Card Market:-
Banks (Issuer)
HDFC, India
Bank Mandiri, Indonesia
Bank CIMB Niaga, Indonesia
UOB, Singapore
DBS, Singapore
Citibank BHD, Malaysia
Malaysian Banking, Malaysia
Shinhan Card, South Korea
KB Kookmin, South Korea
BDO Unibank, Philippines
Metropolitan Bank, Philippines
ICBC Bank, China
China Merchants Bank, China
JCB, Japan
Credit Saison, Japan
Others (SBI India, Bank CIMB Niaga Indonesia, Bank Mega, Citibank, HSBC Holdings Plc, Rizal Commercial Banking CORP (RCBC) and Rest)
Operators
Visa Inc.
MasterCard
American Express
Bank Central Asia
Union Pay International
Others (Shinhan Card, BC Card, Petron Corp, Taiwan Rakuten Card and Rest)
Key Topics Covered in the Report:-
MasterCard Asia Credit Cards Market Revenue Share
RuPay Performance in India
India Online Payment System Market
Credit Card Frauds in Asia
Personal and Commercial Credit Cards Market Asia
Contactless Credit Cards in Asia
NFC Credit Cards Market in Asia
Cost of Manufacturing a Credit Card
Fintech Adoption Credit Card Asia Market
Asia Credit Card Transaction Fees
Credit Card Transaction Failure in Asia
Credit Card Security in Asia
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Ankur Gupta, Head Marketing & Communications
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