Finlands Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Published: Oct, 2014 | Pages: 86 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights into Finland's cards and payments industry, including:
Current and forecast values for each category of Finland's cards and payments industry, including debit cards, credit cards and charge cards
Comprehensive analysis of the industry's market attractiveness and future growth areas
Analysis of various market drivers and regulations governing Finland's cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit and charge cards used by banks and other institutions in the market
Comprehensive analysis of consumer attitudes and buying preferences for cards
The competitive landscape of Finland's cards and payments industry

Summary
The European debt crisis had a profound effect on Finland's economy, with GDP contracting by 1.4% in 2013. The subdued economic development from 2009 onwards had a dampening effect on the overall cards and payments industry during the review period (2009-2013). As the country entered into a recession for the third time in 2014, economic recovery is anticipated to be sluggish, which is likely to impede the cards and payments industry's growth over the forecast period (2014-2018).
In terms of number of cards in circulation, the Finnish payment cards instrument, including debit, credit and charge cards, registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 2.03%, increasing from 10.6 million cards in circulation in 2009 to 11.4 million in 2013. In terms of transaction value, payment cards valued EUR56.6 billion (US$75.1 billion) in 2013, after registering a review-period CAGR of 3.27%.
Improved banking infrastructure, new product developments, and higher awareness of electronic payments and wider acceptance of payment cards at point-of-sale (POS) terminals were key factors driving growth. The adoption of Europay, MasterCard and Visa (EMV) standards and the emergence of contactless technology supported this growth.
The average transaction value (ATV) in Finland was US$54.1 in 2013, which was the lowest among Nordic countries such as Norway, Denmark and Sweden, which recorded ATVs of US$68.3, US$56.6 and US$55 respectively. In terms of card penetration, Norway had the highest level of penetration with 3.6 cards per inhabitant, followed by Sweden with 2.3, Denmark with 2.4 and Finland with 1.5.
Despite having one of the smallest populations in the eurozone, Finland leads the world in terms of frequency of use of payment cards. Finland recorded the highest frequency of use in 2013, with 172.8 transactions per card, followed by Denmark with 159.2, Sweden with 114.1, the Netherlands with 107.1, and Australia with 96.6. According to a 2013 study by the Federation of Finnish Financial Services, two-thirds of Finns use payment cards for regular purchases at grocery stores, supermarkets and gas stations. With the government's proposed reforms to be introduced in late 2014, making it compulsory for retailers to offer electronic options for small-value payments, the frequency of use is anticipated to accelerate further over the forecast period.
Scope
This report provides a comprehensive analysis of Finland's cards and payments industry.
It provides current values for Finland's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Finland's cards and payments industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions.
It profiles the major banks in Finland's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Finland's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Finland's cards and payments industry.
Assess the competitive dynamics in Finland's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Finland.
Gain insights into key regulations governing Finland's cards and payments industry.
Key Highlights
The European debt crisis had a profound effect on Finland's economy, with GDP contracting by 1.4% in 2013. The subdued economic development from 2009 onwards had a dampening effect on the overall cards and payments industry during the review period (2009-2013). As the country entered into a recession for the third time in 2014, economic recovery is anticipated to be sluggish, which is likely to impede the cards and payments industry's growth over the forecast period (2014-2018).
In terms of number of cards in circulation, the Finnish payment cards instrument, including debit, credit and charge cards, registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 2.03%, increasing from 10.6 million cards in circulation in 2009 to 11.4 million in 2013. In terms of transaction value, payment cards valued EUR56.6 billion (US$75.1 billion) in 2013, after registering a review-period CAGR of 3.27%.
The average transaction value (ATV) in Finland was US$54.1 in 2013, which was the lowest among Nordic countries such as Norway, Denmark and Sweden, which recorded ATVs of US$68.3, US$56.6 and US$55 respectively. In terms of card penetration, Norway had the highest level of penetration with 3.6 cards per inhabitant, followed by Sweden with 2.3, Denmark with 2.4 and Finland with 1.5.
Despite having one of the smallest populations in the eurozone, Finland leads the world in terms of frequency of use of payment cards. Finland recorded the highest frequency of use in 2013, with 172.8 transactions per card, followed by Denmark with 159.2, Sweden with 114.1, the Netherlands with 107.1, and Australia with 96.6. According to a 2013 study by the Federation of Finnish Financial Services, two-thirds of Finns use payment cards for regular purchases at grocery stores, supermarkets and gas stations. With the government's proposed reforms to be introduced in late 2014, making it compulsory for retailers to offer electronic options for small-value payments, the frequency of use is anticipated to accelerate further over the forecast period.
Contactless payments are being rolled out across the country, in areas such as public transport systems and at retail merchants. In 2012, Elisa issued prepaid stickers to students using near-field communication (NFC) technology in association with MasterCard, and benefit and discount card Lyyra. These stickers were issued to more than 100,000 students, and can be used in college canteens and at other stores where contactless terminals are installed.

 1 Key Facts and Events
2 Executive Summary
3 Payment Instruments
3.1 Current Payments Environment
3.2 Altertive Payment Instruments
3.2.1 Mobile payments
3.2.2 PayPal
3.2.3 Skrill
3.2.4 Elisa Lompakko
3.2.5 Klar
3.2.6 Click2Pay
3.2.7 EuTeller
3.2.8 Trustly
3.2.9 ClickandBuy
3.2.10 Facial recognition algorithms
4 Market Attractiveness and Future Prospects of Cards and Payments
5 Alysis of Cards and Payments Industry Drivers
5.1 Demographic Drivers
5.2 Economic Drivers
5.3 Infrastructure Drivers
5.4 Business Drivers
6 Emerging Consumer Attitudes and Trends
6.1 Market Segmentation and Targeting
6.1.1 Consumer cards
6.1.2 Corporate cards
6.2 New Product Launches
6.3 Travel Spending
6.3.1 Outbound trips volume and spending
6.3.2 Inbound trips volume and spending
7 Payment Cards
7.1 Payment Cards Instrument Alysis
7.1.1 Number of cards in circulation by card type
7.1.2 Transaction volume by card type
7.1.3 Transaction value by card type
7.1.4 Persol vs commercial cards
8 Debit Cards
8.1 Debit Cards Market Alysis
8.1.1 Number of debit cards in circulation
8.1.2 Debit card transaction volumes by channel
8.1.3 Debit card transaction value by channel
8.1.4 Number of debit cards in circulation by scheme
8.1.5 Debit cards transaction value by scheme
8.1.6 Debit cards issuers market shares
8.1.7 Debit cards comparison
9 Credit Cards
9.1 Credit Cards Market Alysis
9.1.1 Number of credit cards in circulation
9.1.2 Credit cards transaction volume by channel
9.1.3 Credit cards transaction value by channel
9.1.4 Number of credit cards in circulation by scheme
9.1.5 Credit cards transaction value by scheme
9.1.6 Credit cards issuers market share
9.1.7 Credit cards comparison
10 Charge Cards
10.1 Charge Cards Market Alysis
10.1.1 Number of charge cards in circulation
10.1.2 Charge cards transaction volume by channel
10.1.3 Charge cards transaction value by channel
10.1.4 Number of charge cards in circulation by scheme
10.1.5 Charge cards transaction value by scheme
10.1.6 Charge cards comparison
11 Commercial Cards
11.1 Commercial Cards Market Alysis
11.1.1 Number of commercial cards in circulation
11.1.2 Commercial cards transaction value
11.1.3 Commercial credit cards
11.1.4 Commercial charge cards
11.1.5 Commercial cards comparison
12 Regulations in the Cards and Payments Industry
12.1 Regulatory Framework
12.2 SEPA Cards Framework
12.3 Anti-Money Laundering (AML)
12.4 Foreign Direct Investment (FDI) Regulations
13 Card Fraud Statistics
13.1 Card Fraud Alysis
14 Card Issuers
14.1 Nordea Bank
14.2 OP-Pohjola Group
14.3 Danske Bank
14.4 Bank of aland
14.5 Handelsbanken
15 Card Schemes
15.1 Visa
15.2 MasterCard
15.3 American Express
15.4 Diners Club
16 Appendix
16.1 Tables
16.2 Methodology
16.3 Contact Timetric
16.4 About Timetric
16.5 Timetric's Services
16.6 Definitions
16.7 Disclaimer


List of Tables
Table 1: Finland - Key Facts, 2013
Table 2: Regiol Benchmarking of Finnish Payment Cards, 2013
Table 3: Cards for High-Income Customers
Table 4: Cards for Students and Young People
Table 5: Cards for Frequent Travelers
Table 6: Cards for Corporate Customers
Table 7: Finland - New Product Launches
Table 8: Regiol Benchmarking of Finnish Debit Cards, 2013
Table 9: Finland - Visa Domestic Interchange Reimbursement Fees, 2011
Table 10: Finland - MasterCard Consumer Card Interchange Fees, 2014
Table 11: Finland - MasterCard Commercial Card Interchange Fees, 2014
Table 12: Finland - Debit Cards Comparison and Key Features
Table 13: Regiol Benchmarking of Finnish Credit Cards, 2013
Table 14: Finland - Visa Domestic Interchange Reimbursement Fees, 2011
Table 15: Finland - MasterCard Consumer Card Interchange Fees, 2014
Table 16: Finland - MasterCard Commercial Card Interchange Fees, 2014
Table 17: Finland - Gold Credit Cards Comparison and Key Features
Table 18: Finland - Premium Credit Cards Comparison and Key Features
Table 19: Regiol Benchmarking of Finnish Charge Cards, 2013
Table 20: Finland - Charge Cards Comparison and Key Features
Table 21: Finland - Commercial Cards Comparison and Key Features
Table 22: Finland - Market Entry Strategies of Foreign Banks
Table 23: Finland - Payment Instruments Transaction Value (EUR Billion), 2009-2013
Table 24: Finland - Payment Instruments Transaction Value (US$ Billion), 2009-2013
Table 25: Finland - Payment Instruments Transaction Volume (Million), 2009-2013
Table 26: Finland - Number of Cards in Circulation by Card Type (Thousand), 2009-2018
Table 27: Finland - Transaction Volume by Card Type (Million), 2009-2018
Table 28: Finland - Transaction Value by Card Type (EUR Million), 2009-2018
Table 29: Finland - Transaction Value by Card Type (US$ Million), 2009-2018
Table 30: Finland - Persol and Commercial Cards Transaction Value (EUR Billion), 2009-2018
Table 31: Finland - Persol and Commercial Cards Transaction Value (US$ Billion), 2009-2018
Table 32: Finland - Number of Debit Cards in Circulation (Million), 2009-2018
Table 33: Finland - Debit Cards Transaction Volume and Frequency by Channel, 2009-2018
Table 34: Finland - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 33: Finland - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 34: Finland - Number of Debit Cards in Circulation by Scheme (Million), 2009-2013
Table 35: Finland - Debit Cards Transaction Value by Scheme (EUR Million), 2009-2013
Table 36: Finland - Debit Cards Transaction Value by Scheme (US$ Million), 2009-2013
Table 37: Finland - Debit Cards Transaction Value by Issuer (EUR Billion), 2009-2013
Table 38: Finland - Debit Cards Transaction Value by Issuer (US$ Billion), 2009-2013
Table 39: Finland - Number of Credit Cards in Circulation (Million), 2009-2018
Table 40: Finland - Credit Cards Transaction Volume and Frequency by Channel, 2009-2018
Table 41: Finland - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 42: Finland - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
Table 43: Finland - Number of Credit Cards in Circulation by Scheme (Thousand), 2009-2013
Table 44: Finland - Credit Cards Transaction Value by Scheme (EUR Million), 2009-2013
Table 45: Finland - Credit Cards Transaction Value by Scheme (US$ Million), 2009-2013
Table 46: Finland - Credit Cards Transaction Value by Issuer (EUR Million), 2009-2013
Table 47: Finland - Credit Cards Transaction Value by Issuer (US$ Million), 2009-2013
Table 48: Finland - Credit Cards Balance Outstanding By Issuer (EUR Million), 2009-2013
Table 49: Finland - Credit Cards Balance Outstanding By Issuer (US$ Million), 2009-2013
Table 50: Finland - Number of Charge Cards in Circulation (Thousand), 2009-2018
Table 51: Finland - Charge Cards Transaction Volume and Frequency by Channel, 2009-2018
Table 52: Finland - Charge Cards Total and Average Transaction Value by Channel, 2009-2018
Table 53: Finland - Charge Cards Total and Average Transaction Value by Channel, 2009-2018
Table 54: Finland - Number of Charge Cards in Circulation by Scheme (Thousand), 2009-2013
Table 55: Finland - Charge Cards Transaction Value by Scheme (EUR Million), 2009-2013
Table 56: Finland - Charge Cards Transaction Value by Scheme (US$ Million), 2009-2013
Table 57: Finland - Number of Commercial Cards in Circulation (Thousand), 2009-2018
Table 58: Finland - Commercial Cards Transaction Value (EUR Billion), 2009-2018
Table 59: Finland - Commercial Cards Transaction Value (US$ Billion), 2009-2018
Table 60: Finland - Commercial Credit Cards, 2009-2018
Table 61: Finland - Commercial Charge Cards, 2009-2018
Table 62: Finland - Card Fraud (EUR Million), 2009-2013
Table 63: Finland - Card Fraud (US$ Million), 2009-2013
Table 64: Key Definitions