Emerging Opportunities in Malaysia’s Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Published: January 2013
No. of Pages: 89
   

Synopsis
The report provides market analysis, information and insights into Malaysia’s cards and payments market, including:
• Current and forecast values for each segment of Malaysia’s cards and payments 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 Malaysia’s cards and payments 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 Malaysia’s cards and payments market


Summary
While cash remains the dominant method of payment in Malaysia, there have been concerted efforts from issuers, the government and regulatory bodies to support card usage.
The nation’s credit card category has expanded rapidly. A large part of this growth has been driven by government initiatives, such as a reduction of income requirements for prospective cardholders and minimum monthly repayments. All of this has made payment cards far more accessible, resulting in significant growth for the industry. In 2012, the transaction value of debit and credit cards recorded respective growth rates of 10.0% and 9.1% over figures from 2011. The industry value registered a CAGR of 10.88% during the review period (2008–2012) growing from MYR304.4 billion (US$91.7 billion) in 2008 to MYR460.1 billion (US$149.5 billion) in 2012.


Scope
• This report provides a comprehensive analysis of Malaysia’s cards and payments market
• It provides current values for Malaysia’s cards and payments market for 2011 and forecast figures for 2016
• It details the different macroeconomic, infrastructural, consumer and business drivers affecting Malaysia’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 Malaysia’s cards and payments market


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


Key Highlights
• The Malaysian cards and payments industry grew at a CAGR of 9.94% in volume terms during the review period and is forecast to post a projected CAGR of 7.62% over the forecast period. The growth in the volume of closed-loop and open-loop prepaid cards is expected to drive industry growth.
• Prepaid cards dominated the industry with more than 93 million prepaid cards in circulation in 2012 compare to only 7.9 million credit cards and 39.6 million debit cards.
• Contactless and mobile payments are being rolled out extensively across Malaysia. In April 2009, the world’s first commercial near-field-communication (NFC) payment service for mobile phones was launched by Visa in conjunction with handset maker Nokia and payments facilitator Maybank.
• In March 2011, Bank Negara Malaysia (BNM) introduced new regulation pertaining to the eligibility requirements of credit cards. These rules limited the issuing of credit cards to those who have an annual income of MYR24,000 (US$7,625) or more.
• During the review period, the central bank mandated the use of chip-based automated teller machine (ATM) cards and EMV standards for credit cards.

Emerging Opportunities in Malaysia’s Cards and Payments Industry: 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 Payment Industry
3 Analysis of Cards and Payment Industry Drivers
3.1 Macroeconomic Fundamentals
3.1.1 Stable GDP growth rate
3.1.2 Overnight Policy Rate (OPR)
3.1.3 Stable unemployment rate
3.1.4 Malaysian Institute of Economic Research (MIER) consumer sentiments index
3.2 Infrastructure Drivers
3.2.1 Launch of secure online shopping platforms
3.2.2 Emergence of contactless payments
3.2.3 Migration to EMV cards
3.2.4 MOLPoints
3.2.5 Launch of mobile money
3.3 Business Drivers
3.3.1 Retail industry
3.3.2 Growing mobile commerce
3.3.3 Online shopping dynamics
3.3.4 Outbound travel segment
3.4 Card Fraud Statistics
3.4.1 By channel
3.5 Regulatory Framework
3.5.1 Revised eligibility requirements for credit card issuance
3.5.2 Business practice defined by Bank Negara Malaysia for credit cards issuers
3.5.3 Regulations pertaining to credit card infrastructure security
3.5.4 E-money 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 Behavior
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 Credit transfer
5.1.3 Checks
5.1.4 Cards
5.1.5 Direct debit
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
6 Strategies Adopted by Key Competitors
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 Payment Card Industry
7.1 Market Share Analysis by Type of Card
7.2 Total and Forecast of Card Industry Size
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 Category 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 Category Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by segment – open and closed-loop cards
7.4.3 Analysis by transaction value
7.5 Charge Card Category 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
7.6 Credit Card Category 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 Maybank
8.1.1 Strategies
8.1.2 Maybank key financial
8.2 CIMB
8.2.1 Strategies
8.2.2 CIMB Bank key financial
8.3 RHB Bank
8.3.1 Strategies
8.3.2 RHB Bank key financial
8.4 Public Bank (PB)
8.4.1 Strategies
8.4.2 Public Bank key financial
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: Malaysia Payment Channels (MYR Million), 2008–2012
Table 2: Malaysian Card Industry by Type of Card, (Thousand), 2008–2017
Table 3: Malaysian Cards Industry Size by Volume (Thousands), 2008–2017
Table 4: Malaysian Cards Industry Size by Transaction Value (MYR Million), 2008–2017
Table 5: Malaysian Cards Industry Size by Transaction Value (USUS$ Million), 2008–2017
Table 6: Malaysian Cards Industry Size by Transaction Volume (Million), 2008–2017
Table 7: Malaysian Debit Card Category Market Size (Thousands), 2008–2017
Table 8: Malaysian Debit Card Category Market Size (MYR Million), 2008–2017
Table 9: Malaysian Debit Card Category Market Size (USUS$ Million), 2008–2017
Table 10: Malaysian Debit Card Category Market Size by Transaction Volume (Million), 2008–2017
Table 11: Malaysian Prepaid Card Category Market Size (Thousands), 2008–2017
Table 12:Malaysian Open-Loop Prepaid Cards Category Market Size (Thousands), 2008–2017
Table 13: Malaysian Closed-Loop Prepaid Cards Category Market Size (Thousands), 2008–2017
Table 14: Malaysian Prepaid Cards Category Market Size (MYR Million), 2008–2017
Table 15: Malaysian Prepaid Cards Category Market Size (USUS$ Million), 2008–2017
Table 16: Malaysian Charge Card Category Market Size (Thousands), 2008–2017
Table 17: Malaysian Charge Card Category Market Size (MYR Million), 2008–2017
Table 18: Malaysian Charge Card Category Market Size (USUS$ Million), 2008–2017
Table 19: Malaysian Charge Card Category Market Size by Transaction Volume (Million), 2008–2017
Table 20: Malaysian Credit Card Category Market Size by Volume (Thousands), 2008–2017
Table 21: Malaysian Credit Card Category Market Size by Transaction Value (MYR Million), 2008–2017
Table 22: Malaysian Credit Card Category Market Size by Transaction Value (USUS$ Million), 2008–2017
Table 23: Malaysian Credit Card Category Market Size by Transaction Volume (Million), 2008–2017
Table 24: Malaysian Credit Card Category Market Size by Frequency of Use, 2008–2017
Table 25: Maybank Key Financial Indicators, 2010–2011
Table 26: CIMB Bank Key Financial Indicators, 2010–2011
Table 27: RHB Bank Key Financial Indicators, 2010–2011
Table 28: RHB Bank Key Financial Indicators, 2010–2011
Table 29: Cards and Payments Key Definitions


List of Figures
Figure 1: Current and Future Prospects of Various Cards in Malaysia
Figure 2: Growth Potential of Prepaid and Debit Card Transaction Value (%), 2012 and 2017
Figure 3: Growth Potential of the Malaysian Cards and Payments Industry by Area of Usage
Figure 4: Malaysian GDP Growth Rate (%), Q3-2010–Q3-2012
Figure 5: Malaysian Overnight Policy Rate (%), January 2010–November 2012
Figure 6: Malaysian Unemployment Rate (%), December 2011–September 2012
Figure 7: MIER Consumer Sentiments Index, Q1-2011–Q3-2012
Figure 8: Malaysian Retail Industry (MYR Billion), 2008–2012
Figure 9: Malaysian Smart Phone Penetration (%), 2010–2012
Figure 10: Malaysia Mobile Commerce Sales Dynamics (MYR Billion), 2008–2017
Figure 11: Malaysia Value of Online Shopping (MYR Billion), 2008–2012
Figure 12: Malaysia Outbound Travel Segment Volume (Thousands), 2008–2012
Figure 13: Malaysia Card Fraud Statistics (MYR Million), 2008–2012
Figure 14: Malaysian E-Money Regulation Key Points
Figure 15: Malaysian Cards and Payments Industry Segmentation
Figure 16: Malaysian Young Population (Million), 2008–2012
Figure 17: Malaysian Female Population (Million), 2008–2012
Figure 18: Cards Targeted at Women in Malaysia
Figure 19: Malaysian Volume of Outbound Leisure Tourists (Million), 2008–2012
Figure 20: Malaysian Volume of High-Net-Worth Individual (HNWI) Population, 2010–2015
Figure 21: Cards Offered to HNWIs
Figure 22: Malaysian Volume of Domestic and Outbound Business Tourists (Million), 2008–2012
Figure 23: Consumer Preferences by Card Type
Figure 24: Number of POS Terminals in Malaysia (Thousands), 2008–2017
Figure 25: Malaysia Volume of Domestic and Outbound Business Tourists (Million), 2008–2012
Figure 26: Share of Malaysian Payment Channels, (%), 2008 and 2012
Figure 27: Malaysia Value and Growth of Credit Transfer (MYR Million), 2008–2012
Figure 28: Malaysian Value and Growth of Check Payments (MYR Million), 2008–2012
Figure 29: Malaysian Value and Growth of Cards Payments (MYR Million), 2008–2012
Figure 30: Malaysian Value and Growth of Direct Debits (MYR Million), 2008–2012
Figure 31: Malaysian Debit Card Category Share by Bank, (%), 2011
Figure 32: Malaysian Debit Card Category Share by Scheme, (%), 2011
Figure 33: Malaysian Credit Card Category Share by Bank, (%), 2011
Figure 34: Malaysian Credit Card Category Share by Scheme, (%), 2011
Figure 35: Malaysian Charge Card Category Share by Scheme, (%), 2011
Figure 36: List of Foreign Banks Operating in Malaysia
Figure 37: Marketing Strategies Based on Card Type
Figure 38: Co-Branded Credit Cards
Figure 39: Promotional Credit Card Offers by Public Bank Malaysia
Figure 40: Credit Card Pricing Strategy
Figure 41: Debit Card Pricing Strategies
Figure 42: Malaysian Cards Industry by Type of Card, (%), 2008–2017
Figure 43: Malaysia Cards Industry Size by Volume (Thousands), 2008–2017
Figure 44: Malaysian Cards Industry Size by Transaction Value (MYR Million), 2008–2017
Figure 45: Malaysian Cards Industry Size by Transaction Volume (Million), 2008–2017
Figure 46: Malaysian Debit Card Category Market Size (Thousands), 2008–2017
Figure 47: Malaysian Debit Card Category Market Size (MYR Million), 2008–2017
Figure 48: Malaysian Debit Card Category Market Size by Transaction Volume (Million), 2008–2017
Figure 49: Debit Card Usage ATMs and POS Terminals (Thousands), 2008–2017
Figure 50: Malaysian Prepaid Card Category Market Size (Thousands), 2008–2017
Figure 51: Malaysian Open-Loop Prepaid Cards Category Market Size (Thousands), 2008–2017
Figure 52: Malaysian Closed-Loop Prepaid Cards Category Market Size (Thousands), 2008–2017
Figure 53: Malaysian Prepaid Cards Category Market Size (MYR Million), 2008–2017
Figure 54: Malaysian Charge Card Category Market Size (Thousands), 2008–2017
Figure 55: Malaysian Charge Card Category Market Size (MYR Million), 2008–2017
Figure 56: Malaysian Charge Card Category Market Size by Transaction Volume (Million), 2008–2017
Figure 57: Malaysian Credit Card Category Market Size by Volume (Thousands), 2008–2017
Figure 58: Malaysian Credit Card Category Market Size by Transaction Value (MYR Million), 2008–2017
Figure 59: Malaysian Credit Card Category Market Size by Transaction Volume (Million), 2008–2017
Figure 60: Malaysian Credit Card Category Market Size by Frequency of Use, 2008–2017
Figure 61: Cards Offered by Maybank
Figure 62: Cards Offered by CIMB Group With Special Features
Figure 63: Cards Offered by RHB Bank With Special Features
Figure 64: Cards Offered by Public Bank With Special Features

Published By: Timetric
Product Code: Timetric475


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