Showing posts with label Turkey Cards and Payments Market Analysis. Show all posts
Showing posts with label Turkey Cards and Payments Market Analysis. Show all posts

Monday, November 11, 2019

Turkey Cards and Payments Market Research Report And Market Forecast: Ken Research


How Turkey Cards and Payments Market is Positioned?
Turkey cards and payments market which was dominated by cash almost a decade ago and has witnessed advancement towards digital transactions both in terms of number of transactions and volume in the recent years. Turkey is making huge investments in digital technology in order to transform the financial industry most of which is In-house. The young population has been the major driver for increase in the payments via cards as they are embracing advanced technology and new products thereby, helping turkey to move away from traditional methods of payments. The young population coupled with the existing well developed banking infrastructure of the country in order to gain competitive advantage by delivering innovative services ahead of their competitors.
The total number of cards in circulation was witnessed to increase from ~ as of 31st December 2013 to ~ as of 31st December 2018, thus displaying a five year CAGR of ~%.

Troy - the payment methodology developed by Turkish Banks has been a major game changer in terms of digital methods of payment and has seen a tremendous growth in the acceptance rate over the past few Years due to the Interbank Card Center initiatives also it is fulfilling government’s agenda of making turkey cashless by 2023.

Banks have been highly enthusiastic for implementing new financial technology to reach and engage with their customers in order to promote the use of digital methods of payment throughout Turkey.
Turkey cards and payments market remains highly competitive and attractive driving it towards a cashless economy.

Credit Cards Market Size
In the year 1968, Turkey launched its first credit card. Today, Credit card issuers offer multi-branded cards with instalment, use award, and loyalty-point features. Point-of-sale machines are found in most stores around the country, 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 transactions increasing at a CAGR of ~% from 2014 to 2018.

The credit card reward and loyalty program is the most significant growth driver for 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.

Turkey Credit Card Market Segmentation, 2014-2018
By Transaction Volume, 2014-2018:
The volume of credit card transaction has been on a rise since 2014. The variety of goods and services available in small ticket size has contributed the most to the surge in volume of transactions in recent years. The volume of transactions has increased from ~ million in 2014 to ~ million in 2018. The four year CAGR has been ~%.
The advancement in technology - such as RIFD / contactless credit cards, chip and pin cards have contributed in the increase in the Transaction Value.

By Transaction Value, 2014-2018:
The Transaction Value has shown an absolute growth of ~% since 2014. The highest year on year growth was witnessed in the year 2015 of ~%, as people were more motivated to make credit card transactions because of the card loyalty reward points program were on rise by the issuing bank. The four year CAGR of credit card Transaction Value is ~%.

By Average Transaction value, 2014-2018:
The average credit card Transaction Value was computed by dividing the total Transaction Volume from total value of transaction. It has been observed that there has been a surge of ~ TRY from 2014 to 2018 respectively. The growth in the average ticket size per transaction hasn’t been much; however, the spending per transaction took a constant growth rate. Last four year CAGR is ~%. This throws light on consolidation in terms of year-on year growth rate of average value of transaction.

By Number of Credit Card in Circulation, 2014-2018:
It has been observed that the number of credit cards in circulation have gone up from ~ million in 2014 to ~ million in 2018. The surge in the number of cards in circulation is approximately by 10 million which indicates the consumer spending behaviour more on credit. The credit cards issued has been on a rising trend at a four year CAGR of ~%. The year on year growth rate has been in the range of ~% to ~% in the last four years. In the last two years the growth rate has been constant at ~%, indicating the demand of credit card subscription has gone up and the Cardholders are willing to spend more on credit in order to avail the benefits of reward program and other perquisites. Credit cards in circulation has registered slowest growth rate of ~%, which again shot up to ~% each year in 2017 and in 2018 respectively.

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
Seker Bankasi AS
HSBC Bank AS
Citigroup Inc

Operators
Visa Inc
MasterCard International Inc
American Express Co
Troy

For more information, refer to below link:-

Related Reports:-


Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

Thursday, November 7, 2019

Turkey Cards and Payments Market Outlook to 2023: Ken Research

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
Seker Bankasi 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:-


Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249