• This VRL report incorporates a detailed breakdown of the socio-economic factors expected to drive the growth of Indian credit and debit cards, and gives you the information you need to successfully enter this growing market
• A recent estimate by Visa Inc puts the target population for credit and debit cards in India at 200 million. Yet there are about 400 million Indian people who don't have a bank account. It is this combined 600 million which should be viewed as the true target market for prepaid cards
• The number of Indian prepaid cards in issue is incredibly small - only 2% of the total targeted population
The Indian card market is fast growing, and the pace is accelerating. Industry observers point to strong similarities between the growth of the Indian mobile phone market, and that for debit and prepaid cards. The CAGR of mobile phone take up in India during 2006-2010 was 52%. By comparison the number of debit cards issued between 2003 and 2009 increased by a CAGR of 47%. The transaction value has shown healthy growth of 32% during the period. In 2009-10 fiscal, payments made by debit cards in India rose by 44% y-o-y.
Payroll cards dominate the prepaid cards market with a 34% share, with travel cards at 24%, and multipurpose cards with a 22% market share. Remittances and other prepaid cards are estimated to account for 14% and 6% of the market respectively. Estimates by ICICI Bank suggest the prepaid cards market is expected to grow by almost 75% in 2010 y-o-y.
Axis Bank is the domestic leader in prepaid cards, with a 39% market share followed by ITZ Cash Card at 22% and ICICI Bank at 16%. Other players include SBI, HDFC Bank and Punjab National Bank. In the multipurpose cards market, ITZ Cash Card Limited is the leading player. It is the largest firm in the non-banked category for prepaid cards. As for the number of debit cards issued, SBI dominates with a 37% share followed by ICICI Bank at 11%.
Features driving the debit/prepaid card industry include the confident growth trajectory of the Indian economy, the availability of a payment infrastructure embracing both private and public sector banks, and increased penetration of mobile telephony. India’s economic expansion remains the catalyst for a dramatic change among the country’s consumers.
• This VRL report tracks moves being taken by state owned, private and dedicated cards issuers to supply the Indian prepaid and debit cards market
• An overview is provided of the Indian payments market and current infrastructure
• Both debit and prepaid cards are analysed and commented on
• The rural/urban split is discussed, important for new account uptake
• Leading Indian banks Axis and ICICI feature as case studies, while more are profiled
Reasons To Buy
• Follow the correlation between the potential growth of the Indian prepaid market and the successful growth of the Indian mobile phone industry
• Analyse the market share for businesses currently providing the cashless option in India
• Explore the socio-economic factors contributing to the current and projected Indian prepaid and debit card market
• Study the facts and figures for the payment infrastructure of Indian banking
• Investigate the business opportunities presented by Indian prepaid and debit cards
• If India is able to maintain its current growth trajectory, average household incomes will triple over the next two decades and it will become the world’s fifth-largest consumer economy by 2025, up from 12th now
• As of 2010, there are 40,000 ATMs and 450,000 POS terminals in India. The key cities which lead in number of ATMs include Mumbai, Delhi, Kolkata, Bangalore, Chennai, Ahmadabad, Hyderabad, Pune, Kanpur, Surat, Jaipur and Lucknow
• There are a significant number of people with mobile phones but without bank accounts in rural India. This gap will only increase as millions of mobile phones are added monthly in rural India
• This is an attractive back-drop for issuing prepaid cards and using mobile banking services