Asia Credit Cards Market Segmentation
By Country: Japan was leading in terms of the total cards in circulation and also in the total transaction value of credit cards in the year 2018. Total credit cards in circulation had a percentage share of ~ % with ~ billion cards in circulation amounting to USD ~ million. Credit card POS transactions increased steadily over the last year in Asia, keeping with the government’s objective of promoting cashless payments in most of countries. Japan was followed by South Korea, India and China with ~%, ~% and ~% of cards in circulation respectively. The installation of larger numbers of POS terminals at merchant locations and the higher number of cards in circulation, especially amongst urban residents, aided the growth of credit card transactions in countries such as China, India, Philippines and others.
Competition Scenario In Asia Credit Cards Market
Asia represents as an attractive opportunity for growth in the credit card payments industry as it has grown increasingly complex and fragmented over the last few years. Industrial & Commercial Bank of China Ltd is the Leading Issuer of Credit Cards in Asia with ~% of the total cards circulated in Asian countries. It accounted for the highest share in terms of both credit cards in circulation and transaction value in 2018. It attained the leading position in credit cards by launching a variety of cards with lucrative offers, including lounge services, dining offers at major restaurants and shopping offers at various high-end stores.
In 2018, Industrial & Commercial Bank of China Ltd was followed by China Merchants Bank Co Ltd, China Construction Bank Corp and Bank of China Ltd with ~%, ~%, and ~% share in terms of total cards in circulation. Issuers/Banks have entered the co-branded credit cards space by launching multiple of card with online retailers, known airlines, facility providers and various other brands to target younger consumers, who frequently shop online and other high-end customers with specific needs.
UnionPay, Visa and MasterCard have been the dominant credit card operators in Asia for many years. The largest banks in Asia have entered into deals with these operators, enabling expansion in the coverage of UnionPay, Visa- and MasterCard-operated products.
In 2017, credit card operated by RuPay, the indigenous card operator, was introduced in India to provide consumers with an alternative to Visa and MasterCard. RuPay is expected to make inroads into credit cards over the forecast period by focusing on premium customers. Credit card issuers faced a major issue due to the emergence of e-wallets and various national and international FinTech companies and startups.
Players such as Amazon, BookMyShow, and Flipkart are promoting cashless payments by offering credit cards by offering special discounts and characteristics for their retail departments. Offline retailers are coming up with various offers and tricks to indulge customers to use credit cards by offering cash-backs and discount vouchers and even free gifts.
INDIA CREDIT CARDS MARKET, 2013-2025
Market Overview and Size:
Credit card transaction value increased in 2018, to reach INR ~ billion. The number of credit cards in circulation increased by ~% in 2018, to reach ~ million. The most important factors in credit cards are growth in usage amongst younger Indians, as well as low non-performing loans – indicating healthy growth in credit card usage and low payment default rates. Credit card transaction value is expected to increase by a CAGR of ~% over the forecast period, to reach INR ~ billion by 2025.
India Credit Cards Market Segmentation:
Credit card POS transactions increased steadily over the last year by ~%, in keeping with the government’s objective of promoting cashless payments. The installation of larger numbers of POS terminals at merchant locations and the higher number of cards in circulation, especially amongst urban residents, aided the growth of credit card transactions.
Competitive Landscape:
HDFC Bank Is the Leading Issuer of Credit Cards. It accounted for the highest share in terms of both credit cards in circulation and transaction value in 2018 at ~% and INR ~ billion respectively. It attained the leading position in credit cards by launching a variety of cards with lucrative offers, including lounge services, dining offers at major restaurants and shopping offers at various high-end stores. In 2018, HDFC Bank was followed by SBI Cards & Payment Services and other private banks, such as ICICI Bank, Citi bank and Axis Bank.
Forecast Period Trends:
By the year ending 2025, it is expected that the total credit cards in circulation, Total transaction value and total transaction volume will have a CAGR of ~%, ~% and ~% respectively.
Credit card transactions are expected to witness healthy growth over the forecast period to ~ billion, with both the personal and commercial segments performing well. The credit card non-performing loans rate was low in 2017, and the sound repayment record of consumers will incentivize further expansion of services by banks.
The Reserve Bank of India, India’s central bank, has also reduced the liability of consumers to zero in the case of fraudulent transactions if there is negligence on the part of the bank.
Asia Credit Card Market Size Future Outlook And Projections, 2019(F) - 2025(F)
The trend of increasing numbers of credit cards in circulation is expected to continue over the forecast period i.e. 2025 to ~ billion cards. This will be helped by schemes such as the payment of outstanding dues in equated monthly installments (EMIs), and additional facilities, such as access to premium services at hotels and airlines, including lounge access. Within Asia, major card networks are looking to tie up with banking partners for the issuance of contactless cards. The role of specific regulatory bodies in monitoring, regulating and promoting digital payments in Asia will have a great impact on the issuance of the credit cards in future. Partnerships with FinTech will play a crucial role in the development of digital payments ecosystem by promoting innovation and enabling open loop payments that promote the adoption of digital payments. In
Countries such as the Philippines, Vietnam, China, Bangladesh and others, increased remittance partnerships with international players have opened up the market for more such partnerships with money transfer companies to enable digital remittance transfers to accounts and wallets in Bangladesh. Thus, there will be more opportunities for FinTech / banks / international players as regulators and the government bodies are also encouraging new solutions that will boost digital payments.
Key Segments Covered: -
Credit cards
Value of transaction by Issuer and Operator
Volume of the 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: -
Asia Credit Cards Market Overview and Genesis
Asia Credit Cards Market Value Chain and Business Model Analysis
Asia Credit Cards Market Size
Trends and Developments in Asia Credit card Market
Issues and Challenges in Asia Credit Cards Market
SWOT Analysis of Asia Credit Cards Market
Regulatory Landscape in Asia Credit Cards market
Asia Credit Card Market Future Outlook and Projections
Country Profiles (Japan, South Korea, India, China, Indonesia, Malaysia, Philippines, and Singapore) within Asia Credit Cards Market
Analyst Recommendations in Asia Credit Cards Market
Success Case Study in Asia Credit Cards Market
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