Emerging Opportunities in the Russia Cards and Payments Market: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Published: November 2012
No. of Pages: 111
  

Synopsis

The report provides market analysis, information and insights into Russia's cards and payments market, including:

  • Current and forecast values for each segment of the Russian 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 Russia's 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 Russia's cards and payments market.

Executive summary

The Russian cards and payments market demonstrated significant growth during the review period (2007–2011). The market in volume terms grew at a compound annual growth rate (CAGR) of 17.9% to reach 200.2 million cards in 2011. Key growth drivers include increased annual disposable income, the development of online shopping, investment in the banking infrastructure and raised consumer awareness about the benefits of using payment cards. The market size in terms of volume is expected to grow at a CAGR of 5.4% over the forecast period (2012–2016), to reach 266.5 million in 2016. In 2010, the Bank of Russia continued its work with credit institutions and other organizations that operate payment systems and provide payment infrastructure services, with a view to developing the national system in line with international standards. The primary objective of the Bank of Russia is to develop and improve its payment system to minimize associated risks whilst ensuring its efficient and smooth operation. As part of a new national payment system, the Ministry for Economic Development has approved a plan to launch the Universal Electronic Card (UEC) for all citizens in Russia.

Scope

This report provides a comprehensive analysis of Russia's cards and payments market.

  • It provides current values for Russia's cards and payments market for 2011 and forecast figures for 2016.
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Russia's 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 Russia's cards and payments market.

Key highlights

  • The Russian cards and payments market demonstrated significant growth during the review period (2007–2011). The market in volume terms grew at a compound annual growth rate (CAGR) of 17.9% to reach 200.2 million cards in 2011.
  • As a part of a new national payment system, the Ministry for Economic Development has approved a plan to launch the Universal Electronic Card (UEC) for all citizens in Russia. The UEC is intended to eventually replace all local, regional, and national forms of ID, and will serve as a combination electronic ID, driver's license, car insurance certificate, bank card and migration document, among other possible functions.
  • Russian banks have expanded their infrastructure networks of Automatic Teller Machines (ATMs) during the review period in order to develop business throughout the country.
  • With competitive pressures in the Russian cards and payments market, banks and issuers are investing heavily in marketing and pricing strategies with the aim of attracting larger customer bases. Some incentives offered by banks include: discounts in retail outlets and restaurants, rewards points, increasing daily limits for cash withdrawals and insurance coverage.

Reasons to buy

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

Emerging Opportunities in the Russia Cards and Payments Market: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Table of Contents

1 Executive Summary

2 Market Attractiveness and Future Prospects of Cards and Payments Industry

3 Analysis of Cards and Payments Market Drivers
3.1 Infrastructure Drivers
3.1.1 Near Field Communication (NFC)
3.1.2 Technically advanced security measures
3.1.3 Internet and Mobile Penetration
3.1.4 Growing number of ATMs
3.1.5 Increasing number of POSs
3.2 Business Drivers
3.2.1 Growing Russian retail industry
3.2.2 Lower penetration of credit cards
3.2.3 Increasing competition
3.2.4 Increasing volume of tourists
3.2.5 Favorable government policies for prepaid cards
3.3 Consumer Drivers
3.3.1 Per capita annual disposable income
3.3.2 Urban vs. rural population
3.3.3 Larger working population
3.3.4 Increasing number of benefit cards
3.3.5 Changing consumer lifestyle and spending pattern
3.4 Card Fraud Statistics
3.4.1 By channel
3.5 Regulatory Framework

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail Customers
4.1.2 Corporate customers
4.2 Consumer Preference – Price, Convenience, and Services
4.2.1 Price
4.2.2 Services
4.2.3 Convenience
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 Cards
5.1.5 Direct debit
5.1.6 Checks
5.2 Debit Cards Market Share
5.2.1 By Bank
5.2.2 By Scheme
5.3 Prepaid Cards Market Share
5.4 Credit Cards Market Share
5.4.1 By Bank
5.4.2 By Scheme
5.5 Charge Cards Market Share
5.5.1 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
6.3 Pricing Strategies

7 Market Size and Growth Potential of Cards and Payments 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 Credit 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 Debit Card Market Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.4.4 Other key performance indicators
7.5 Prepaid Card Market Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by segments – open loop cards and closed loop cards
7.5.3 Analysis by transaction value
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 Sberbank of Russia
8.1.1 Strategies
8.1.2 Credit card offered
8.1.3 Debit cards offered
8.1.4 Financial performance
8.2 Alfa-Bank
8.2.1 Strategies
8.2.2 Credit card offered
8.2.3 Debit card offered
8.2.4 Prepaid card offered
8.2.5 Financial performance
8.3 VTB 24 (JSC)
8.3.1 Strategies
8.3.2 Credit card offered
8.3.3 Debit card offered
8.3.4 Financial performance
8.4 Vozrozhdenie Bank
8.4.1 Strategies
8.4.2 Credit card offered
8.4.3 Debit card offered
8.4.4 Financial performance
8.5 Tinkoff Credit Systems
8.5.1 Strategies
8.5.2 Credit card 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: Russian Retail Industry (RUB Billion), 2007–2011
Table 2: Russian Retail Industry (RUB Billion), 2012–2016
Table 3: Russian Retail Industry (US$ Billion), 2007–2011
Table 4: Russian Retail Industry (US$ Billion), 2012–2016
Table 5: Payment Channels in Russia (RUB Million), 2007 and 2011
Table 6: Market Entry Strategy of Foreign Banks in Russia
Table 7: Bank’s Credit Card Product Portfolio (In Thousands), 2007–2011
Table 8: Russian Cards Market Size by Volume (Thousands), 2007–2016
Table 9: Russian Cards Market Size by Transaction Value (RUB Million), 2007–2016
Table 10: Russian Cards Market Size by Transaction Value (US$ Million), 2007–2016
Table 11: Russian Cards Market Size by Transaction Volume (Million), 2007–2016
Table 12: Russian Credit Card Industry Market Size by Volume (Thousands), 2007–2016
Table 13: Russian Credit Card Industry Market Size by Transaction Value (RUB Million), 2007–2016
Table 14: Russian Credit Card Industry Market Size by Transaction Value (US$ Million), 2007–2016
Table 15: Russian Credit Card Category Market Size by Transaction Volume (Million), 2007–2016
Table 16: Russian Credit Card Industry Market Size by Frequency of Use (Transactions/Card/Year),
Table 17: Russian Credit Card Industry Market Size by Average Transaction Value (RUB), 2007–2016
Table 18: Russian Credit Card Industry Market Size by Average Transaction Value (US$), 2007–2016
Table 19: Russian Debit Card Industry Market Size (Thousands), 2007–2016
Table 20: Russian Debit Card Industry Market Size (RUB Million), 2007–2016
Table 21: Russian Debit Card Industry Market Size (US$ Million), 2007–2016
Table 22: Russian Debit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Table 23: Russian Debit Card Industry Market Size by Frequency of Use (Transaction/Card/Year), 2007–
Table 24: Russian Prepaid Card Industry Market Size (Thousands), 2007–2016
Table 25:Russian Open-Loop Prepaid Cards Industry Market Size (Thousands), 2007–2016
Table 26: Russian Closed-Loop Prepaid Cards Industry Market Size (Thousands), 2007–2016
Table 27: Russian Prepaid Cards Industry Market Size (RUB Million), 2007–2016
Table 28: Russian Prepaid Cards Industry Market Size (US$ Million), 2007–2016
Table 29: Russian Charge Card Industry Market Size (Thousands), 2007–2016
Table 30: Russian Charge Card Industry Market Size (RUB Million), 2007–2016
Table 31: Russian Charge Card Industry Market Size (US$ Million), 2007–2016
Table 32: Russian Charge Card Industry Market Size by Transaction Volume (Million), 2007–2016
Table 33: Sberbank of Russia Financial Position, Fiscal Year Ending December 2011 (RUB Billion)
Table 34: Alfa-Bank Financial Position (US$ Billion)
Table 35: VTB Group Financial Position (RUB Billion)
Table 36: Vozrozhdenie Bank Financial Position (RUB Billion)
Table 37: Cards and Payments Key Definitions

List of Figures

Figure 1: Growth Potential of The Russian Cards And Payments Market by Area of Usage
Figure 2: Number of Credit Cards Issued By Banks (Thousand), 2007–2011
Figure 3: Russian Cards and Payments Market Drivers
Figure 4: Internet Penetration in Russia (%), 2007–2011
Figure 5: Mobile Internet Penetration in Russia (%), 2007–2011
Figure 6: Smart Phone Users in Russia (Million), 2009 and 2011
Figure 7: Number of ATMs in Russia (Thousand), 2007–2016
Figure 8: Number of POSs in Russia (Thousand), 2007–2016
Figure 9: Russian Retail Industry (RUB Billion), 2007–2016
Figure 10: Credit Card Per Person in BRIC Countries, 2011
Figure 11: Number of Foreign Banks Operating in Russia, 2007– 2011
Figure 12: Tourist Volume in Russia (Million), 2007–2016
Figure 13: Russia Annual Per Capita Disposable Income (RUB) 2007–2011
Figure 14: Russian Urban and Rural Population (%), 2007–2011
Figure 15: Russian Population Distribution by Age Group (%), 2007–2011
Figure 16: Card Fraud Statistics By Region (US$ Million), 2007–2011
Figure 17: Russian Card Fraud Statistics By Channel (RUB Million), 2007–2011
Figure 18: Russian Cards and payments Market Segmentation by Card Type
Figure 19: Russian Population Segmentation (%), 2011
Figure 20: Russian Male and Female Population, 2007–2011
Figure 21: Cards for Premium Customers in Russia
Figure 22: Cards For Travelers in Russia
Figure 23: Corporate Cards in Russia
Figure 24: Consumer Preferences on Various Types of Cards
Figure 25: Online Buying Trends and Forecast
Figure 26: Online Buying Trends and Forecast by Gender, 2011
Figure 27: Payment Methods Used by Russian Online Consumers – 2011
Figure 28: Payment Channels in Russia (RUB Billion), 2007
Figure 29: Payment Channels in Russia (RUB Billion), 2011
Figure 30: Value and Growth of Cash-Based Transactions in Russia (RUB Million), 2007- 2011
Figure 31: Value and Growth of Credit Transfers in Russia (RUB Million), 2007- 2011
Figure 32: Credit Transfers in Volume Terms in Russia (%), 2010
Figure 33: Value and Growth of Card Payments in Russia (RUB Million), 2007–2011
Figure 34: Card Market – Share of Different Card Types by Volume in Russia (%), 2011
Figure 35: Value and Growth of Direct Debit Transactions in Russia (RUB Million), 2007–2011
Figure 36: Value and Growth of Check-Based Transactions in Russia (RUB Million), 2007- 2011
Figure 37: Debit Card Market Share by Banks in Russia (%), 2011
Figure 38: Debit Card Market Share by Schemes in Russia (%), 2011
Figure 39: Prepaid Card Market Share in Russia (%), 2011
Figure 40: Credit Card Market Share by Banks in Russia (%), 2011
Figure 41: Credit Card Market Share by Banks in Russia (%), 2011
Figure 42: Charge Card Market Share by Schemes in Russia (%), 2011
Figure 43: Marketing/Product Strategies Based on Card Type
Figure 44: Russian Cards and Payments Market, Number of Debit Card Offered (Million), 2007–2016
Figure 45: Bank’s Credit Card Product Portfolio (In Thousands), 2007–2011
Figure 46: Co-branded Cards From Banks
Figure 47: Credit Card Pricing Strategies of Various Service Providers
Figure 48: Russian Card Industry by Type of Cards (%), 2007–2016
Figure 49: Russian Card Industry Market Size by Volume (Thousands), 2007–2016
Figure 50: Russian Card Industry Market Size by Transaction Value (RUB Million), 2007–2016
Figure 51: Russian Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 52: BRIC Countries Credit Card Per Person, 2011
Figure 53: Russian Credit Card Industry Market Size by Volume (Thousands), 2007–2016
Figure 54: Russian Credit Card Industry Market Size by Transaction Value (RUB Million), 2007–2016
Figure 55: Russian Credit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 56: Russian Credit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 2007–2016
Figure 57: Russian Credit Card Industry Market Size by Average Transaction Value (RUB), 2007–2016
Figure 58: Russian Debit Card Industry Market Size (Thousands), 2007–2016
Figure 59: Russian Debit Card Industry Market Size (RUB Million), 2007–2016
Figure 60: Russian Debit Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 61: Russian Debit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 2007–2016
Figure 62: Debit Card Usage ATM and POS (Thousands), 2007–2016
Figure 63: Russian Prepaid Card Industry Market Size (Thousands), 2007–2016
Figure 64: Russian Open Loop Prepaid Card Industry Market Size (Thousands), 2007–2016
Figure 65: Russian Close Loop Prepaid Card Industry Market Size (Thousands), 2007–2016
Figure 66: Russian Prepaid Card Industry Market Size (RUB Million), 2007–2016
Figure 67: Russian Charge Card Industry Market Size (Thousands), 2007–2016
Figure 68: Russian Charge Card Industry Market Size (RUB Million), 2007–2016
Figure 69: Russian Charge Card Industry Market Size by Transaction Volume (Million), 2007–2016
Figure 70: Sberbank Market Segmentation of Cards Offered
Figure 71: Sberbank Grace Period Offer for Credit Card Users
Figure 72: Alfa-Bank Market Segmentation of Cards Offered
Figure 73: VTB 24 (JSC) Market Segmentation of Cards Offered
Figure 74: VTB 24 (JSC) Partner Banks
Figure 75: Vozrozhdenie Bank Market Segmentation of Cards Offered
Figure 76: TCS Market Segmentation of Cards Offered

Published By: Timetric
Product Code: Timetric401


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