The report titled “Asia Credit Cards Market Outlook to 2025 -
By Commercial and Personal Credit Cards; By Transactions at ATM and POS
Terminals; by Total Cards in Circulation; Transaction Value and Volume through
Issuers and Operators; and by Countries (Japan, South Korea, India, China,
Indonesia, Philippines, Singapore, and Others” provides
a comprehensive analysis of the credit cards industry within Asia covering
various aspects including the introduction and genesis, the market size of a
credit cards by value and volume of transaction, number of cards in
circulation, segmentation by personal and commercial credit cards, transactions
at ATM and POS terminals, the transaction value of credit cards through
operators and issuers and total cards in circulation by operators and issuers.
It also covers issues and challenges, trends and
developments, SWOT analysis, country profiles of major countries and
regulatory framework of the industry. The report concludes with market
projections and analyst recommendations highlighting major opportunities and
cautions.
Asia
Credit Cards Market Overview and Size
The rapidly
increasing the digital payments industry in Asia has scaled up rapidly over the
last few years which has led to an increase in credit card usage. The total
transaction value showcased high growth in Asia along with a CAGR of 14.2% for
the period 2013-2018. The rise of affordable smartphones
and subsequent internet and mobile penetration has led to significant
growth in the digital payments space. The people in these mature markets are
aware of digital payments and have steadily embraced non-cash methods over the
years. The total number of credit cards in circulation increased at a CAGR of
12.9% during 2013-2018. The current usage of cash in emerging countries exceeds
90.0%. They have seen some traction in the last few years, primarily due to
mobile and internet penetration and a focus on financial inclusion through
mobile-based services. In most of the developed countries such as Singapore and
Japan, more than 80.0% of adults have access to financial services. Regulators
and governments of emerging and developing countries can set up a separate
entity such as the National Payments Corporation of India (NPCI) to
promote retail payments and further increase the usage and circulation of
credit cards.
Asia Credit
Cards Market Segmentation
Japan was leading in
terms of 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
CAGR of 0.9% in the period 2013-2018. Credit card POS transactions increased
steadily over the last year within Asia thus, keeping with the government’s
objective of promoting cashless payments in most of the countries.
Japan was followed by South Korea, India and China in terms of the
total number of credit cards in circulation respectively during the
year 2018. Installation of a larger number 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.
ATM cash withdrawals
by credit card are much lower than POS transactions because of high
transaction charges in the case of ATM withdrawal. Banks tend to
charge 2.5-3.0% of the withdrawn amount subject to
a minimum amount.
Comparative
Landscape in Asia Credit Cards Market
Competition within
the Asia credit card market was observed as concentrated, showcasing
the late growth stage. 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. The major
operators in the Asian credit card industry
were UnionPay International Co. Ltd., Visa Inc., MasterCard International
Inc., JCB Card Co., and Shinhan Financial Group Co. Ltd. in terms of
total cards in circulation and total transaction value during the year 2018.
Industrial and Commercial Bank of China Ltd dominated in terms of total cards
in circulation in 2018. It was followed by China Merchants Bank Co
Ltd, China Construction Bank Corp and Bank of China Ltd.
In order to attract a
larger customer base, there has been the introduction of various types of
credit cards as per the users need such as reward cards for rewards for
shopping, traveling and even filling up the fuel in vehicles, there are cards
where the design and the appearance of the credit cards can
be customized as per the users need, credit cards with NFC technology
or contactless technology which helps to make faster payments through
POS terminals. All these customer attraction schemes have made the credit card
market in Asia to be recognized as highly competitive, therefore,
displaying huge barriers for new entrants in almost every country in Asia.
Country Profiles
of Major Countries in Asia credit Card Market
In India, banks
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.
In
Indonesia, the middle and upper-middle classes of credit card users are
concerned about the disclosure of tax information due to credit cards
being subject to investigation, causing inconvenience. Although subjects of
interest are consumers whose transactions exceed IDR 1 billion a
year, the public concern is still stirred because of it relating to consumers’
privacy. Hence, people are refraining from making purchases through credit
cards, and prefer to use cash instead.
Cashless revolution
encouraged credit card transaction volume and value in Singapore.
In
Malaysia, credit cards issuers are extending services to include installment
plans at interest-free or low rates as this type of credit provides convenience
thus, eliminating all kinds of complicated paperwork. As a result, the credit
cards industry in Malaysia has little competition thus, allowing growth despite
the rising popularity of mobile payments.
South
Korea mobile payment platform drives personal credit card value growth,
whilst commercial credit card value growth slows down due to government policy
of eliminating corporate tax benefits.
In
Philippines, the regulations that implement the Philippine Credit
Card Industry Regulation Law (Republic Act No 10870) were approved by
the Monetary Board (MB) in May of 2018 to boost the credit cards in circulation
and eventually improve the credit card transaction value. The new regulations
aim to make credit cards readily available and easier to use for consumers.
In China, intense
innovations in IT capabilities help drive the growth of credit
cards whereas in Japan, the government continues to encourage
cashless payments as part of its economic growth strategy in 2018.
Asia
Credit Cards Market Future Outlook and Projections
By the forecast
period ending 2025, it is expected that the total number of credit
cards in circulation in Asia will grow at a positive CAGR of 6.8% for the
period 2018-2025. The expected growth in contactless payments through
credit cards will be a major growth driver for the increase in the transaction
value because of the ease and speed provided. The total transaction value of
credit cards in Asia will have a CAGR of 7.4% during 2018-2025. 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 the future.
Partnerships with FinTech will play a crucial role in the
development of the 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
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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