The
report titled “Turkey
Cards and Payments Market Outlook to 2023 – Rapid Acceptance of TROY Cards and
Contactless Cards Coupled with Rising Penetration of Credit Cards to Drive
Market Growth” provides a comprehensive analysis on the cards and
payments industry covering various aspects including the introduction and
genesis, market size of debit and credit card by value and volume of
transaction, number of cards in circulation and average transaction size,
segmentation by domestic transactions by domestic card, International
transactions with domestic cards, domestic transactions with international
cards, further segmented into cash withdrawals and shopping purchases. It also
covers market challenges, growth drivers, trends and developments, issues,
comparative landscape in cards and payments market by issuer and operator and
regulatory framework of the industry. The report concludes with market
projections and analyst recommendations highlighting major opportunities and
cautions.
Turkey Cards and Payments Market Overview and Size
The
credit and debit card business of Turkey has witnessed strong growth owing to
increasing value of transactions, volume of transaction and cards in
circulation. The debit card value of
transaction grew at a rate faster than that of credit cards, even when both
posed double digit growth rate. Adoption of specific payment methods in Turkey
will inevitably be influenced by the fact that a large proportion of Turkish
citizens remains without a bank account – just over a third of the population
is unbanked. The use of cash is particularly prevalent for micropayments
including the small and daily expenditures such as newspapers, taxi journeys
and coffees. The payments industry of Turkey will have to work hard to mitigate
Turkish shoppers over to digital methods of paying for these items.
Turkey Card Market Segmentation
Domestic Transaction with Domestic Credit Card (Cash Withdrawals
and Shopping Purchases): Volume of
domestic transaction with domestic credit card witnessed 4 year CAGR of 4.8%
and 8.7% for cash withdrawals and shopping purchases respectively during 2014-2018.
However, the Value of domestic transaction with domestic credit card witnessed
a four year CAGR for cash withdrawals and shopping purchases of 14.4% and 12.3%
respectively. This happened majorly due to higher value of transaction on
limited or same number of credit card transactions.
International Transaction with Domestic Credit Card (Cash Withdrawals
and Shopp-ing Purchases): Volume of
International transactions using a domestic credit card peaked to an all-time
high in 2018, with a four year CAGR (2014-2018) of 15.7%. The volume of cash
withdrawals on international transaction using domestic credit card reported a
negative four year CAGR (2014-2018) of -2.9% as the transaction fee levied by
ATMs is very high, because of which cardholders have preferred shopping
purchases over cash withdrawals. Consumer
familiarity with credit cards has increased and cards are often the preferred
means of meeting credit needs of Turkish consumers and play a valuable role in
domestic financial management, by making installment purchases with their cards
for the things they cannot pay in one go.
Domestic Transaction with International Credit Cards (Cash
withdrawals and Shopping Purchases): The volume and value of domestic transaction with
international credit card is growing at a rapid four year CAGR of 24.9% and
20.4% respectively. This shows a lot of growing potential in international
credit card business.
Domestic Transaction with Domestic Debit Card (Cash
withdrawals and Shopping Purchases): Volume of domestic transaction with domestic debit card
witnessed a four year CAGR of 7.8% and 25.8% for cash withdrawals and shopping
purchases respectively. On the other hand, the Value of domestic transaction
with domestic debit card witnessed a four year CAGR for cash withdrawals and
shopping purchases of 16.3% and 35.0% respectively. The value of shopping purchases
showed an exorbitant growth because debit card holders are in the process of majorly
switching from cash withdrawals to direct merchant swipes.
International Transaction with Domestic Debit Card (Cash
withdrawals and Shopping Purchases): Volume of International transactions using a domestic debit
card peaked to an all-time high in 2018, with a four year CAGR (2014-2018) of
47.1%. The volume of cash withdrawals on international transaction using
domestic credit card reported a single four year CAGR (2014-2018) of only 5.9%
as the foreign exchange rate fluctuations come into picture, because of which
cardholders have preferred shopping purchases over cash withdrawals.
Domestic Transaction with International Debit Card (Cash
withdrawals and Shopping Purchases): The international travelers are spending more in Turkey on
business trips or tourism. The volume and value of domestic transaction with
international debit card is growing at rapid four year CAGR of 28.7% and 39.9%
respectively during 2014-2018. Rising incomes and economic stability in recent
years however has started to turn the tide in debit card use. In line with most
European banking markets, debit cards are issued in conjunction with a bank
account and were primarily used for cash withdrawal, serving as a
cost-efficient alternative for branch-based cash withdrawals.
Average Value of Transaction for Debit and Credit Card: Since the citizens of Turkey are mediocre risk takers hence,
they prefer to do less of credit card transactions. It has been observed that
the average value of transaction on debit card has been higher than credit
card.
Comparative Landscape in Turkey Cards and Payments Market
The
card market in Turkey was moderately concentrated with presence of major banks capturing
a larger market share and other handful of banks which do not have a dedicated
cards business. The cards market is further segmented in debit and credit cards.
Turkey market has fierce competition, i.e., the credit card players have been
highly competitive and experimental in product offerings and follow business
strategies to expand their reach to untapped audience and retain existing
clients. On the other hand, the debit card market was also observed to be competitive
as the players are highly prone to lose out market share because of continuous
technological advancement in the financial technologies leading to obsolescence
of existing technologies. The players continuously tend to develop new
technologies and keep in increasing their network with member merchants in
order capture more and more target audience. The major parameters on the basis
of which they compete are technological advancement- financial technology such
as faster transaction service provider, contactless card, virtual cards, chip
and pin enabled cards, reward points and benefits on shopping limits,
personalized banking services and customer support.
Turkey Cards and Payments Market Future Outlook and
Projections
Credit
Cards:
The overall credit card market future by volume of card in circulation is
expected to rise at a slow growth rate due to time taken by people to subscribe
for a credit card is comparatively high. The volume and value of credit card
transaction is expected to surge at a pace higher than the previous five years
because of the increased spending limits, better reward point program and
technological advancement leading to ease of doing transactions.
Debit
Cards: The overall debit card market by volume and value of
transaction is expected to get double by 2023. The growth rate projected is
higher than the credit cards due faster adaptability of debit cards in the
economy. Also, as and when the untapped population actively participates in the
economic activity, they would be first exposed to bank cards instead of credit
cards leading to surge in value and volume of debit card transaction in next
five years.
Key Segments
Covered:-
Credit cards
Value
of transaction
Volume
of transaction
Number
of Credit card in circulation
Domestic
Transaction Using Domestic Credit Card
International
Transaction Using Domestic Credit Card
Domestic
Transaction using International Credit Card
Sectoral
Spending
Debit Cards
Value
of transaction
Volume
of transaction
Number
of Debit card in circulation
Domestic
Transaction Using Domestic Debit Card
International
Transaction Using Domestic Debit Card
Domestic
Transaction using International Debit Card
Sectoral
Spending
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
Investors
Time Period
Captured in the Report:-
Historical Period: 2014-2018
Forecast Period: 2019-2023
Companies Covered in Turkey Card Market:-
Issuers
Turkiye
Cumhuriyeti Ziraat Bankasi AS
Turkiye
Vakiflar Bankasi TAO
Turkiye
Halk Bankasi AS
Denizbank
Yapi
ve Kredi Bankasi AS
Turkiye
Is Bankasi AS (Is bank)
Garanti
Bankasi AS
Ak
bank TAS
Finansbank
AS
TEB
AS
HSBC
Bank AS
Citigroup
Inc
Operators
Visa
Inc
MasterCard
International Inc
American
Express Co
Troy
Key Topics Covered in the Report:-
Stake Holders in Turkey Card Market
Genesis of Turkey Card Market
Credit and Debit Card Coverage
Market Size by Number of Cards in Circulation
(2014-2018)
Market Size by Value of Transaction (2014-2018)
Market Size by Volume of Transactions (2014-2018)
Market Segmentation of Turkey Cards Market
(2014-2018) on Cash Withdrawals and Shopping Purchases
Sectoral Spending by Debit and Credit Card (2018)
Volume of Transaction
Value of Transaction
Growth Drivers, Trends and Developments in Turkey
Card Market
Issues and Challenges in Turkey Card Market
Competition Scenario in Turkey Card Market
Turkey Card Market Future Outlook and
Projections, 2019-2023
Analyst Recommendations
For
more information, refer to below link:-
Related
Reports:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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