Emerging Opportunities in Australia's Cards and Payments Market: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Synopsis

The report provides market analysis, information and insights into the Australian cards and payments market, including:

• Current and forecast values for each segment of the Australian cards and payment market including debit cards, credit cards, prepaid cards and charge cards.
• Comprehensive analysis of the industry’s market attractiveness and future growth areas.
• Analysis of various market drivers and regulations governing the Australian cards and payment market.
• Detailed analysis of the marketing strategies adopted for selling prepaid cards used by various bankers and other institutions in the market.
• Comprehensive analysis of consumer attitudes and their buying preferences for cards.
• Competitive landscape of the Australian cards and payments market.

Executive summary

The Australian cards and payments market registered marginal growth during the review period (2007–2011), with a recorded rate of 6.8% in 2011 over figures from 2010. A positive economic outlook, a need for more sophisticated prepaid and charge cards, the growth of online and mobile shopping, and the growing demand for prepaid products, all combined to support the overall growth of the market. During the review period, the cards and payments industry increased in volume at a CAGR of 7.6% to reach 99.3 million cards in 2011. In value terms, the Australian cards and payments market valued AUD517.1 billion (US$590.1 billion) in 2011. As consumers increasingly move from using cash to card as a method of payment, card payments are expected to deliver strong growth over the forecast period.

Scope

This report provides a comprehensive analysis of the Australian cards and payments market.

• It provides current values for the Australian cards and payments market for 2011 and forecast figures for 2016.
• It details the different macroeconomic, infrastructural, consumer and business drivers affecting the Australian cards and payments industry.
• It outlines the current regulatory framework in the industry.
• It details the marketing strategies used by various bankers and other institutions.
• It profiles the major banks in the Australian cards and payments market.

Key highlights

• The Australian cards and payments market registered marginal growth during the review period (2007–2011), with a recorded rate of 6.8% in 2011 over figures from 2010.
• The development of mobile wallets specifically for mobile commerce is expected to change the dynamics of the cards and payments industry by creating new participants across mobile network carriers, handset OEMs, and NFC chip makers as they aim to capture payment card industry revenue.
• The competitive landscape in the Australian cards and payments market, especially for credit cards, has turned significantly during the review period following the issuance of companion cards where each account holder receives an American Express card as well as either a Visa or MasterCard.
• The Australian mobile commerce market is growing at a fast rate and is acting as an engine of overall e-commerce growth by converting potential brick and mortar sales to digital sales, as consumers use their smart phones while shopping in store.
• Reforms pertaining to interchange fees are expected to benefit consumers in terms of rewards.
• In June 2011, the Ministerial Council on Consumer Affairs and the Consumer Affairs Advisory Council (CCAAC) gave relief (under RG 185 and CO/05-738) for gift vouchers and cards from the financial services licensing, conduct, and disclosure obligations of the Corporations Act.

Reasons to buy

• Make strategic business decisions using historic and forecast market data related to the Australian cards and payments market and each market within it.
• Understand the key market trends and growth opportunities within the Australian cards and payments market.
• Assess the competitive dynamics in the Australian cards and payments market.
• Gain insights into the marketing strategies used for selling various types of cards in the Australian market.
• Gain insights into key regulations governing the Australian cards and payment market.

Table of contents

1 Executive Summary

2 Market Attractiveness and Future Prospects of The Australian Cards and Payments Industry

3 Analysis of Australian Cards and Payments Market Drivers
3.1 Macroeconomic Fundamentals
3.1.1 Per-capita income
3.1.2 Inflation
3.1.3 Central bank interest rate
3.2 Infrastructure Drivers
3.2.1 Advanced encryption standard
3.2.2 Digital wallet
3.2.3 Near field communication (NFC)
3.2.4 Banking applications designed by banks
3.2.5 Anti-skimming applications
3.2.6 EMV-smart cards
3.3 Business Drivers
3.3.1 Prepaid cards – gift cards, loyalty and incentive cards
3.3.2 Government purchasing cards
3.3.3 E-commerce
3.3.4 Mobile commerce
3.3.5 Growth of retail spending
3.4 Consumer Drivers
3.4.1 Overseas on-line purchase
3.4.2 Luxury spending
3.4.3 Outbound tourism
3.4.4 Shift from credit fuelled spending
3.5 Card Fraud Statistics
3.5.1 By channel
3.6 Regulatory Framework
3.6.1 Variation to the surcharging standards
3.6.2 EFTPOS System: consultation on the future regulatory framework
3.6.3 Interchange fee benchmarks
3.6.4 Access regimes for various schemes
3.6.5 Ongoing customer due diligence (OCDD)
3.6.6 KYC Policy
3.6.7 Regulations governing the prepaid card market in Australia
3.6.8 Regulations related to gift cards
3.6.9 Epayments code and the regulations

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail segment
4.1.2 Corporate segment
4.2 Consumer Preference
4.2.1 Price
4.2.2 Convenience
4.2.3 Services
4.3 Online Buying Behaviour
4.4 Preferred Payment Methods

5 Competitive Landscape and Industry Dynamics
5.1 Market Share Analysis by Payment Channels
5.1.1 Overview of payment channels
5.1.2 Cash
5.1.3 Credit transfer
5.1.4 Direct debit
5.1.5 Checks
5.1.6 Cards payments
5.2 Debit Cards Market Share
5.2.1 By Bank
5.2.2 By Scheme
5.3 Credit Cards Market Share
5.3.1 By Bank
5.3.2 By Scheme
5.4 Charge Cards Market Share
5.4.1 By Card Type

6 Strategies Adopted by Key Players
6.1 Market Entry Strategies
6.2 Marketing / Product Strategy
6.2.1 Debit cards
6.2.2 Credit cards
6.2.3 Prepaid cards
6.2.4 Charge cards
6.3 Pricing Strategies

7 Market Size and Growth Potential of Australian Payment Card Industry
7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Industry
7.2.1 Analysis by number of cards
7.2.2 Analysis by transaction value
7.2.3 Analysis by transaction volume
7.3 Debit Card Market Size and Forecast
7.3.1 Analysis by number of cards
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.3.4 Other key performance indicators
7.4 Prepaid Card Market Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by segments – open loop cards and closed loop cards
7.4.3 Analysis by transaction value
7.5 Credit Card Market Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by transaction value
7.5.3 Analysis by transaction volume
7.5.4 Other key performance indicators
7.6 Charge Card Market Size and Forecast
7.6.1 Analysis by number of cards
7.6.2 Analysis by transaction value
7.6.3 Analysis by transaction volume

8 Company Profiles, Product, and Marketing Strategies
8.1 ANZ Banking Group
8.1.1 Strategies
8.1.2 Debit cards offered
8.1.3 Credit cards offered
8.1.4 Prepaid cards offered
8.2 Commonwealth Bank of Australia
8.2.1 Strategies
8.2.2 Debit cards offered
8.2.3 Credit cards offered
8.2.4 Prepaid cards offered
8.3 Westpac Banking Corporation
8.3.1 Strategies
8.3.2 Debit cards offered
8.3.3 Credit cards offered
8.3.4 Prepaid cards offered
8.4 National Australia Bank Group
8.4.1 Strategies
8.4.2 Debit cards offered
8.4.3 Credit cards offered
8.4.4 Prepaid cards offered

9 Appendix
9.1 Methodology
9.2 Definitions
9.3 Contact Us
9.4 About Timetric
9.4.1 Our Approach
9.5 Services
9.6 Disclaimer

List of Tables

Table 1: Australian Repo Rate (%), Feb 2009 – Jun 2012
Table 2: Market Entry Strategy of Foreign Banks in Australia
Table 3: Australia Card Industry by Type of Cards (Thousands), 2007–2016
Table 4: Australia Card Industry Market Size by Volume (Thousands), 2007–2016
Table 5: Australia Card Industry Market Size by Transaction Value (AUD Million), 2007–2016
Table 6: Australia Card Industry Market Size by Transaction Value ( US$ Million), 2007–2016
Table 7: Australia Card Industry Market Size by Transaction Volume (Million), 2007–2016
Table 8: Australia Debit Card Industry Market Size by Volume (Thousands), 2007–2016
Table 9: Australia Debit Card Industry Market Size (AUD Million), 2007–2016
Table 10: Australia Debit Card Industry Market Size by Transaction Value ( US$ Million), 2007–2016
Table 11: Australia Debit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Table 12: Australia Debit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 2007–2016
Table 13: Australia Prepaid Card Industry Market Size ( Thousands), 2007–2016
Table 14: Australia Open Loop Prepaid Card Industry Market Size (Thousands), 2007–2016
Table 15: Australia Close Loop Prepaid Card Market Size (Thousands), 2007 – 2016
Table 16: Australia Prepaid Card Industry Market Size (AUD Million), 2007–2016
Table 17: Australia Prepaid Card Industry Market Size by Transaction Value ( US$ Million), 2007–2016
Table 18: Australia Credit Card Industry Market Size by Volume (Thousands), 2007–2016
Table 19: Australia Credit Card Industry Market Size by Transaction Value (AUD Million), 2007–2016
Table 20: Australia Credit Card Industry Market Size by Transaction Value ( US$ Million), 2007–2016
Table 21: Australia Credit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Table 22: Australia Credit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 2007–2016
Table 23: Australia Credit Card Industry Market Size by Average Transaction Value (AUD) 2007–2016
Table 24: Australia Credit Card Industry Market Size by Average Transaction Value (US$) 2007–2016
Table 25: Australia Charge Card Industry Market Size (Thousands), 2007–2016
Table 26: Australia Charge Card Industry Market Size (AUD Million), 2007–2016
Table 27: Australia Charge Card Industry Market Size by Transaction Value ( US$ Million), 2007–2016
Table 28: Australia Charge Card Industry Market Size by Transaction Volume (Million), 2007–2016
Table 29: Cards and Payments Key Definitions

List of Figures

Figure 1: Current and Future Prospects of Various Cards in Australia
Figure 2: Growth Potential of The Australian Cards And Payments Market by Area of Usage
Figure 3: Australian Cards and Payments Market Drivers
Figure 4: Per-Capita Income in Australia, 2007-2011, AUD
Figure 5: Inflation rates in Australia, (%), 2007 – 2017
Figure 6: Australian Reserve Bank Interest Rate (%), Feb 2009- Jun 2012
Figure 7: Retail Sales Growth in Australia, Average Retail Sales (AUD Million), 2007–2011
Figure 8: Outbound Tourism in Australia, 2007-2011 (Million)
Figure 9: Card Fraud Statistics by Country (US$ Million), 2007–2011
Figure 10: Australia Card Fraud Statistics by Channel (AUD Million), 2007–2011
Figure 11: Australian Cards and Payments Market Segmentation
Figure 12: Australia Population Age Distribution (%), 2011
Figure 13: Students Cards Offered in Australia
Figure 14: Australia Forex / Travel Prepaid Cards
Figure 15: Australia Forex / Travel Credit Cards
Figure 16: Australia Number of High Net Worth Individuals (Thousand), 2007–2011
Figure 17: Corporate Cards Offered in Australia
Figure 18: Consumer Preferences on Various Types of Cards
Figure 19: Australia Online Trade Market by Type of Market (%), 2011
Figure 20: Australia Online Trade – Preferred Payment Method (%), 2011
Figure 21: Australia Payment Channels (%), 2011
Figure 22: Australia Value and Growth of Cash-Based Transactions (AUD Million), 2007–2011
Figure 23: Australia Value and Growth of Credit Transfers (AUD Million), 2007–2011
Figure 24: Australia Value and Growth of Direct Debit Transactions (AUD Million), 2007–2011
Figure 25: Australia Value and Growth of Check-Based Transactions (AUD Million), 2007–2011
Figure 26: Australia Value and Growth of Card Transactions (AUD Million), 2007–2011
Figure 27: Australia Debit Card Market Share by Banks (%), 2011
Figure 28: Australia Debit Card Market Share by Schemes (%), 2011
Figure 29: Australia Credit Card Market Share by Banks (%), 2011
Figure 30: Australia Credit Card Market Share by Schemes (%), 2011
Figure 31: Australia Charge Card Market Share by Schemes (%), 2011
Figure 32: Marketing Strategies Based on Card Type
Figure 33: Monthly Fees on Debit Card by Banks
Figure 34: Complementary Insurance Services by Commonwealth Bank
Figure 35: Reward Points on Debit Card by Banks
Figure 36: Prepaid Card With Added Features
Figure 37: Pricing Strategies of Various Service Providers
Figure 38: Australia Card Industry by Type of Cards (%), 2007–2016
Figure 39: Australia Card Industry Market Size by Volume (Thousands), 2007–2016
Figure 40: Australia Card Industry Market Size by Transaction Value (AUD Million), 2007–2016
Figure 41: Australia Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 42: Australia Debit Card Industry Market Size by Volume (Thousands), 2007–2016
Figure 43: Australia Debit Card Industry Market Size (AUD Million), 2007–2016
Figure 44: Australia Debit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 45: Australia Debit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 2007–2016
Figure 46: Australia Prepaid Card Industry Market Size ( Thousands), 2007–2016
Figure 47: Australia Open Loop Prepaid Card Industry Market Size (Thousands), 2007–2016
Figure 48: Australia Close Loop Prepaid Card Market Size (Thousands), 2007–2016
Figure 49: Australia Prepaid Card Industry Market Size (AUD Million), 2007–2016
Figure 50: Australia Credit Card Industry Market Size by Volume (Thousands), 2007–2016
Figure 51: Australia Credit Card Industry Market Size by Transaction Value (AUD Million), 2007–2016
Figure 52: Australia Credit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 53: Australia Credit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 2007–2016
Figure 54: Australia Credit Card Industry Market Size by Average Transaction Value (AUD), 2007–2016
Figure 55: Australia Charge Card Industry Market Size (Thousands), 2007–2016
Figure 56: Australia Charge Card Industry Market Size (AUD Million), 2007–2016
Figure 57: Australia Charge Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 58: ANZ Find a Credit Card Portal for Credit Card Customers
Figure 59: NAB Balance transfer calculator