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

Published: Feb, 2014 | Pages: 101 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

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

Summary
The Norwegian card payments channel registered significant growth during the review period (2009-2013). In terms of number of cards in circulation, the card payments channel grew at a CAGR of 2.86% to reach 18.6 million cards by the end of 2013. In value terms, the channel valued NOK647.9 billion (US$108.9 billion) in 2013. Changing lifestyle demographics, the increased popularity of online shopping and higher disposable per capita incomes supported the growth of the number of cards in circulation.
The younger generation is a considerable and growing target group in terms of card spending. To tap into this younger population, SpareBank 1 SR-Bank in Norway offers a Visa card for children under 13 years old. Amounts in the accounts linked to these card can be controlled by parents, there is no issuance fee and it is free to use in stores and at SpareBank 1s ATMs. The bank also offers a Visa Electron credit card for people aged 13-18 years, with no annual fees and free use for retail payments in Norway and abroad. SpareBanken Vest also offers the Vestavinn 13-17 client program for teenagers to manage spending and savings. The program includes a Visa Electron 10-17 card with benefits such as no annual fees, fee-free purchases around the world and 24-hour withdrawal facilities at Union Bank Vest ATMs, and reduced-cost withdrawals in foreign countries.
Scope
This report provides a comprehensive analysis of Norway's cards and payments industry.
It provides current values for Norway's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Norway'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 Norway's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Norway's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Norway's cards and payments industry.
Assess the competitive dynamics in Norway's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Norway.
Gain insights into key regulations governing Norway's cards and payments industry.

Key Highlights
The highest share in 2013 was occupied by the debit card category which accounted for 37.7% of the cards in circulation. The number of debit cards in circulation grew from 6.1 million in 2009 to 7.0 million in 2013, and is expected to record a CAGR of 0.46% over the forecast period to reach 7.2 million by 2018. The main driver of the debit card category is the availability of the BankAxept payment system, with well-developed facilities and nationwide acceptance. Customers are increasingly using cards to replace smaller cash payments.
Despite the increase in use of card payments, card fraud in Norway has declined since 2009, with technically enhanced payment systems and more secure transactions. During the review period, the total number of cards increased from 16.6 million in 2009 to 20.5 million in 2013, at a CAGR of 2.86%. However, total card fraud transaction values recorded a CAGR of -9.68%, falling from NOK214.7 million (US$34.1 million) in 2009 to NOK142.9 million (US$24.0 million) in 2013. The adoption of EMV cards remains the major driving factor in reducing the instances of card fraud, as it has replaced traditional magnetic strip cards with chip-based security. The number of EMV cards in circulation increased from 6.5 million in 2009 to 12.5 million in 2013.
Banks are also making significant efforts to make the payment system secure and reduce card fraud. In March 2013, EnterCard, in collaboration with Encap, integrated a two-factor user-authentication process into its remember card. Card services can be access using this application with no need for any other security such as one-time or SMS passwords. The bank also implemented a new fraud management solution in 2013 developed by predictive analytics company Fico. The solution is capable of integrating with mobile communications, enabling EnterCard to carry out safe communication by mobile phones.
Norway is expected to record strong growth in payments through mobile phones. This growth will be primarily driven by enhanced mobile communications, high penetration of smartphones, and compatible credit card providers' services. In 2003, Visa Norge and Telenor Mobil signed an agreement to encourage m-commerce in the country. The MobilHandel m-payment solution is available to customers with Visa cards and Telenor Mobil subscriptions. In 2013, Seamless Company introduced SEQR, a mobile payment service, in Norway. It enables merchants to facilitate customers to pay through smartphones and receive bills through collector acco account. Over the forecast period, the value of m-payments is expected to increase from NOK4.7 billion (US$0.8 billion) in 2014 to NOK12.3 billion (US$1.9 billion) in 2018.

 1 Executive Summary
2 Alysis of Industry Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technology
2.1.1 ATMs
2.1.2 POS termils
2.1.3 Internet penetration
2.1.4 Contactless technology
2.1.5 EMV
2.1.6 M-payment value
2.2 Business Drivers
2.2.1 Growth of online commerce
2.2.2 Retail sales value
2.2.3 Customer segmentation and persolized offerings
2.3 Economic Drivers
2.3.1 GDP per capita
2.3.2 GDP growth 
2.3.3 Inflation
2.3.4 Low unemployment
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Direct debits
3.1.4 Credit transfers
3.1.5 Cards 
4 Regulatory Framework and Card Fraud Statistics 
4.1 Regulatory Framework 
4.1.1 SEPA cards framework 
4.1.2 Anti-money laundering (AML) regulation 
4.1.3 Foreign direct investment (FDI) regulations 
4.2 Card Fraud Statistics 
4.2.1 Card-not-present 
4.2.2 Counterfeit cards 
4.2.3 Cards lost or stolen 
4.2.4 Card ID theft 
5 Emerging Consumer Attitudes and Trends 
5.1 Market Segmentation and Targeting 
5.1.1 Retail users 
5.1.2 Corporate users 
5.2 Travel and Tourism Spending 
5.2.1 Outbound tourist volume 
5.2.2 Outbound tourist spending 
5.3 Retail Card Spending 
5.3.1 Alysis by product categories 
5.3.2 Alysis by retail channels 
6 Alysis of Card Payments and Growth Prospects 
6.1 Channel Share Alysis by Card Category 
6.2 Size and Forecast of the Card Payments Channel 
6.2.1 Alysis by Volume of cards in circulation 
6.2.2 Alysis by transaction value 
7 Alysis of Credit Card Payments and Growth Prospects 
7.1 Overall Category Size and Forecast 
7.1.1 Alysis by volume of cards in circulation 
7.1.2 Alysis by transaction value 
7.1.3 Alysis by transaction volume 
7.2 Transaction Share Alysis at ATMs and POSs 
7.2.1 Alysis by transaction value 
7.2.2 Alysis by transaction volume 
7.3 Persol Credit Cards Size and Forecast 
7.3.1 Alysis by volume of cards in circulation 
7.3.2 Alysis by transaction value 
7.3.3 Alysis by transaction volume 
7.4 Commercial Credit Cards Size and Forecast 
7.4.1 Alysis by number of cards in circulation 
7.4.2 Alysis by transaction value 
7.4.3 Alysis by transaction volume 
7.5 Competitive Landscape 
7.5.1 Scheme share alysis 
7.5.2 Issuer share alysis 
8 Alysis of Debit Card Payments and Growth Prospects 
8.1 Overall Category Size and Forecast 
8.1.1 Alysis by volume of cards in circulation 
8.1.2 Alysis by transaction value 
8.1.3 Alysis by transaction volume 
8.2 Transaction Share Alysis by Channel 
8.2.1 Alysis by transaction value 
8.2.2 Alysis by transaction volume 
8.3 Competitive Landscape 
8.3.1 Scheme share alysis 
8.3.2 Issuer share alysis 
9 Alysis of Charge Card Payments and Growth Prospects 
9.1 Overall Category Size and Forecast 
9.1.1 Alysis by volume of cards in circulation 
9.1.2 Alysis by transaction value 
9.1.3 Alysis by transaction volume 
9.2 Transaction Share Alysis by Channel 
9.2.1 Alysis by transaction value 
9.2.2 Alysis by transaction volume 
9.3 Persol Charge Cards Size and Forecast 
9.3.1 Alysis by number of cards in circulation 
9.3.2 Alysis by transaction value 
9.3.3 Alysis by transaction volume 
9.4 Commercial Charge Cards Size and Forecast 
9.4.1 Alysis by volume of cards in circulation 
9.4.2 Alysis by transaction value 
9.4.3 Alysis by transaction volume 
9.5 Competitive Landscape 
9.5.1 Scheme share alysis 
9.5.2 Issuer share alysis 
10 Alysis of Prepaid Card Payments and Growth Prospects 
10.1 Overall Category Size and Forecast 
10.1.1 Alysis by volume of cards in circulation 
10.1.2 Alysis by transaction value 
10.2 Open-Loop Prepaid Cards Segment Size and Forecast 
10.2.1 Alysis by number of cards in circulation 
10.2.2 Alysis by transaction value 
10.3 Closed-Loop Prepaid Cards Segment Size and Forecast 
10.3.1 Alysis by volume of cards in circulation 
10.3.2 Alysis by transaction value 
11 Merchant Acquiring 
11.1 Merchant Acquirers in the Norway 
11.2 Company Profiles of Merchant Acquirers in Norway 
12 Company Profiles of Card Issuers 
12.1 Sparebanken Vest 
12.1.1 Key fincials 
12.1.2 Card portfolio 
12.1.3 Strategies 
12.2 EnterCard Norge AS 
12.2.1 Card portfolio 
12.2.2 Strategies 
12.3 DNB Bank 
12.3.1 Key fincials 
12.3.2 Card portfolio 
12.3.3 Strategies 
12.4 Santander Consumer Bank AS 
12.4.1 Key fincials 
12.4.2 Card portfolio 
12.4.3 Strategies 
12.5 SEB 
12.5.1 Key fincials 
12.5.2 Card portfolio
12.5.3 Strategies
13 Appendix 
13.1 Methodology 
13.2 Contact Timetric 
13.3 About Timetric 
13.4 Timetric's Services 
13.5 Definitions 
13.6 Disclaimer


List of Tables
Table 1: Norwegian Payment Channels (NOK Billion), 2009-2013
Table 2: Market Entry Strategies of Foreign Banks in Norway 
Table 3: Norwegian Card Fraud (NOK Million), 2009-2013 
Table 4: Specialized Credit Cards for Younger Customers 
Table 5: Specialized Cards for Frequent Foreign Travelers 
Table 6: Specialized Cards for Vehicle Owners 
Table 7: Specialized Cards for SMEs and Large Enterprises 
Table 8: Specialized Cards for Business Needs 
Table 9: Norwegian Consumer Card Spending by Product Category (NOK Million), 2008-2012 
Table 10: Norwegian Consumer Spending through Cards by Retail Channel (NOK Million), 2008-2012 
Table 11: Norwegian Card Payments Channel by Card Category (Thousand), 2009-2018 
Table 12: Norwegian Card Payments Channel Size by Volume of Cards (Million), 2009-2018 
Table 13: Norwegian Card Payments Channel Size by Transaction Value (NOK Billion), 2009-2018 
Table 14: Norwegian Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018 
Table 15: Norwegian Credit Cards Category Size by Volume of Cards (Thousand), 2009-2018 
Table 16: Norwegian Credit Cards Category Size by Transaction Value (NOK Billion), 2009-2018 
Table 17: Norwegian Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018 
Table 18: Norwegian Credit Cards Category Size by Transaction Volume (Million), 2009-2018 
Table 19: Norwegian Persol Credit Cards Sub-Category Size by Volume of Cards (Thousand), 2009-2018 
Table 20: Norwegian Persol Credit Cards Sub-Category Size by Transaction Value (NOK Billion), 2009-2018 
Table 21: Norwegian Persol Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2009-2018 
Table 22: Norwegian Persol Credit Cards Sub-Category Size by Transactions Volume (Million), 2009-2018 
Table 23: Norwegian Commercial Credit Cards Sub-Category Size by Volume of Cards (Thousand), 2009-2018 
Table 24: Norwegian Commercial Credit Cards Sub-Category Size by Transaction Value (NOK Million), 2009-2018 
Table 25: Norwegian Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Million), 2009-2018 
Table 26: Norwegian Commercial Credit Cards Sub-Category Size by Transactions Volume (Thousand), 2009-2018 
Table 27: Norwegian Debit Cards Category Size by Volume of Cards (Thousand), 2009-2018 
Table 28: Norwegian Debit Cards Category Size by Transaction Value (NOK Billion), 2009-2018 
Table 29: Norwegian Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018 
Table 30: Norwegian Debit Cards Category Size by Transactions Volume (Million), 2009-2018 
Table 31: Norwegian Charge Cards Category Size by Volume of Cards (Thousand), 2009-2018 
Table 32: Norwegian Charge Cards Category Size by Transaction Value (NOK Billion), 2009-2018 
Table 33: Norwegian Charge Cards Category Size by Transaction Value (US$ Million), 2009-2018 
Table 34: Norwegian Charge Cards Category Size by Transactions Volume (Million), 2009-2018 
Table 35: Norwegian Persol Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2009-2018 
Table 36: Norwegian Persol Charge Cards Sub-Category Size by Transaction Value (NOK Million), 2009-2018 
Table 37: Norwegian Persol Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2009-2018 
Table 38: Norwegian Persol Charge Cards Sub-Category Size by Transactions Volume (Million), 2009-2018 
Table 39: Norwegian Commercial Charge Cards Sub-Category Size by Volume of Cards (Thousand), 2009-2018 
Table 40: Norwegian Commercial Charge Cards Sub-Category Size by Transaction Value (NOK Billion), 2009-2018 
Table 41: Norwegian Commercial Charge Cards Sub-Category Size by Transaction Value (US$ Million), 2009-2018 
Table 42: Norwegian Commercial Charge Cards Sub-Category Size by Transactions Volume (Million), 2009-2018 
Table 43: Norwegian Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018 
Table 44: Norwegian Prepaid Cards Category Size by Transaction Value (NOK Billion), 2009-2018 
Table 45: Norwegian Prepaid Cards Category Size by Transaction Value (US$ Million), 2009-2018 
Table 46: Norwegian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018 
Table 47: Norwegian Open-Loop Prepaid Cards Segment Size by Transaction Value (NOK Million), 2009-2018 
Table 48: Norwegian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018 
Table 49: Norwegian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018 
Table 50: Norwegian Closed-Loop Prepaid Cards Segment Size by Transaction Value (NOK Million), 2009-2018 
Table 51: Norwegian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018 
Table 52: Sparebanken Vest - Key Fincial Indicators (NOK Million), December 2011 and 2012 
Table 53: SpareBanken Vest - Card Product Offerings and Key Features 
Table 54: EnterCard Norge AS - Card Product Offerings and Key Features 
Table 55: DNB Bank- Key Fincial Indicators (NOK Billion), December 2011 and 2012 
Table 56: DNB Bank- Card Product Offerings and Key Features 
Table 57: Santander Consumer Fince - Key Fincial Indicators (EUR Billion), December 2011 and 2012 
Table 58: Santander Consumer Bank AS - Card Product Offerings and Key Features 
Table 59: SEB Group - Key Fincial Indicators (SEK Billion), December 2011 and 2012 
Table 60: SEB Group - Card Product Offerings and Key Features 
Table 61: Key Definitions