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

Published: Jan, 2014 | Pages: 94 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights on Russia's cards and payments industry, including:
Current and forecast values for each category of Russia'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 Russia'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 Russia's cards and payments industry

Summary
The Russian card payments channel grew substantially both in volume and value terms during the review period. In terms of total cards volume, the channel grew at a CAGR of 19.70% and is expected to grow at a CAGR of 7.00% over the forecast period. In value terms, the card payments channel increased from RUB8.8 trillion (US$354.6 billion) in 2008 to RUB21.8 trillion (US$700.8 billion) in 2012, at a CAGR of 25.39%. The value is expected to reach RUB43.9 trillion (US$1.4 trillion) in 2017, growing at a CAGR of 13.19% over the forecast period. Dominating the card payments channel in terms of volume are debit cards, with a 65.7% share in 2012, followed by prepaid and credit cards with respective shares of 25.5% and 8.7%.
In 2010, the Bank of Russia (BoR) 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 BoR to develop and improve its payment system is to minimize associated risks whilst ensuring its efficient and smooth operation. 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 Russian citizens. The UEC is intended to eventually replace all local, regional, and national forms of ID, and will serve as a combined electronic ID, driver's license, car insurance certificate, and bank card and migration document, among other possible functions. The card will be used as a complete communication tool between cardholders and the government. The government and the BoR introduced the UEC in January 2013 on a voluntary basis, and the number of cards in circulation had reached 10,000 by March 2013. The Russian government has also envisaged setting up application points at post offices, banks and commercial centers, amongst other locations in the country.
Scope
This report provides a comprehensive analysis of Russia's cards and payments industry.
It provides current values for Russia's cards and payments industry for 2012, and forecast figures for 2017.
It details the different economic, infrastructural 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 banks and other institutions.
It profiles the major banks in Russia's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Russia's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Russia's cards and payments industry.
Assess the competitive dynamics in Russia's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Russia.
Gain insights into key regulations governing Russia's cards and payments industry.

Key Highlights
The Russian card payments channel demonstrated significant growth during the review period (2008-2012) at a compound annual growth rate (CAGR) of 19.70% to reach 257.1 million cards in 2012. 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.
Russian banks expanded their networks of automatic teller machines (ATMs) during the review period to develop business throughout the country. The number of ATMs installed increased from 75,018 in 2008 to 171,909 in 2012, at a CAGR of 23.04% and the number of POS terminals in Russia grew at a review-period CAGR of 20.17%, rising from 333,247 in 2008 to 695,023 in 2012.
With competitive pressures in the Russian card payments category, banks and issuers are investing heavily in marketing and pricing strategies with the aim of attracting larger customer bases. Incentives offered by banks include discounts in retail outlets and restaurants, reward points, increasing daily limits for cash withdrawals, and insurance cover. Within their marketing strategies, banks are segmenting their customer bases to maximize the potential of expanding their market shares.
To improve the card payment system, banks in Russia began using NFC technology. The contactless payment system has gained momentum in the country over the past two years. Since then, Mobile Telesystems (MTS), a leading telecommunication operator, introduced contactless payment facilties in Lukoil petrol stations in Perm and the Moscow subway in 2010, followed by Megafon in 2011, which launched NFC payments in the St. Petersburg subway. The spread of contactless terminals in public transport networks enhanced their use by daily commuters. The contactless-enabled ticket vending machines have been initiated with the spread to the transport networks of Warsaw. Contactless ticketing machines were installed in 2012 for the Uefa Euro 2012 football championship. Payment terminals were installed in buses and trams, and were designed to accept payments up to US$15.

 1 Executive Summary
2 Alysis of Market 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 Mobile payments
2.1.5 Near Field Communication (NFC)
2.2 Business Drivers
2.2.1 Growth in the retail industry
2.2.2 Increasing competitive pressure to bring product innovation
2.2.3 Favorable government policies for prepaid cards
2.2.4 Government benefit programs to foster growth of card-based transactions
2.2.5 Changing consumer lifestyle and spending pattern
2.3 Economic Drivers
2.3.1 Stable GDP
2.3.2 Inflation
2.3.3 GDP per capita income
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Cash
3.1.2 Checks
3.1.3 Card payments
3.1.4 Credit transfer
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
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 Industry Segmentation and Targeting
5.1.1 Retail customers
5.1.2 Corporate customers
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
5.3 Retail Card Spending
5.3.1 Alysis by product category
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 number 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 number of cards in circulation
7.1.2 Alysis by transaction value
7.1.3 Alysis by transaction volume
7.2 Transaction Share Alysis by Channel
7.2.1 Alysis by transaction value
7.2.2 Alysis by transaction volume
7.3 Persol Credit Cards Sub-Category Size and Forecast
7.3.1 Alysis by number of cards in circulation
7.3.2 Alysis by transaction value
7.3.3 Alysis by transaction volume
7.4 Commercial Credit Cards Sub-Category 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 number 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 Prepaid Card Payments and Growth Prospects
9.1 Overall Category Size and Forecast
9.1.1 Alysis by number of cards in circulation
9.1.2 Alysis by transaction value
9.2 Open-Loop Prepaid Cards Segment Size and Forecast
9.2.1 Alysis by number of cards in circulation
9.2.2 Alysis by transaction value
9.3 Closed-Loop Prepaid Cards Segment Size and Forecast
9.3.1 Alysis by number of cards in circulation
9.3.2 Alysis by transaction value
10 Merchant Acquiring
10.1 Merchant Acquirers in Russia
11 Company Profiles of Card Issuers
11.1 Sberbank of Russia
11.1.1 Key fincials
11.1.2 Card portfolio
11.1.3 Strategies
11.2 Alfa-Bank
11.2.1 Key fincials
11.2.2 Card portfolio
11.2.3 Strategies
11.3 VTB 24 (JSC)
11.3.1 Key fincials
11.3.2 Card portfolio
11.3.3 Strategies
11.4 Vozrozhdenie Bank
11.4.1 Key fincials
11.4.2 Card portfolio
11.4.3 Strategies
11.5 ZAO Citibank
11.5.1 Key fincials
11.5.2 Card portfolio
11.5.3 Strategies
12 Appendix
12.1 Methodology
12.2 Contact Timetric
12.3 About Timetric
12.4 Timetric's Services
12.5 Definitions
12.6 Disclaimer


List of Tables
Table 1: Russian Payment Channels (RUB Billion), 2008-2012
Table 2: Market Entry Strategy of Foreign Banks in Russia
Table 3: Russian Card Fraud (RUB Million), 2008-2012
Table 4: Cards for High Net Worth Individuals in Russia
Table 5: Cards for Travelers in Russia
Table 6: Co-branded Cards Offered by Banks in Russia
Table 7: Consumer Card Spending Product Category in Russia (RUB Million), 2012
Table 8: Russian Consumer Card Spending by Retail Channel (RUB Million), 2008-2012
Table 9: Russian Card Payments Channel by Card Category (Million), 2008-2017
Table 10: Russian Card Payments Channel Size by Volume of Cards (Million), 2008-2017
Table 11: Russian Card Payments Channel Size by Transaction Value (RUB Trillion), 2008-2017
Table 12: Russian Card Payments Channel Size by Transaction Value (US$ Billion), 2008-2017
Table 13: Russian Credit Cards Category Size by Volume of Cards (Million), 2008-2017
Table 14: Russian Credit Cards Category Size by Transaction Value (RUB Billion), 2008-2017
Table 15: Russian Credit Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 16: Russian Credit Cards Category Size by Transaction Volume (Million), 2008-2017
Table 17: Russian Persol Credit Cards Sub-Category Size by Volume of Cards (Million), 2008-2017
Table 18: Russian Persol Credit Cards Sub-Category Size by Transaction Value (RUB Billion), 2008-2017
Table 19: Russian Persol Credit Cards Sub-Category Size by Transaction Value (US$ Billion), 2008-2017
Table 20: Russian Persol Credit Cards Sub-Category Size by Transaction Volume (Million), 2008-2017
Table 21: Russian Commercial Credit Cards Sub-Category Size by Number of Cards (Thousand), 2008-2017
Table 22: Russian Commercial Credit Cards Sub-Category Size by Transaction Value (RUB Billion), 2008-2017
Table 23: Russian Commercial Credit Cards Sub-Category Size by Transaction Value (US$ Million), 2008-2017
Table 24: Russian Commercial Credit Cards Sub-Category Size by Transaction Volume (Million), 2008-2017
Table 25: Russian Debit Cards Category Size by Volume of Cards (Million), 2008-2017
Table 26: Russian Debit Cards Category Size by Transaction Value (RUB Trillion), 2008-2017
Table 27: Russian Debit Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 28: Russian Debit Cards Category Size by Transaction Volume (Billion), 2008-2017
Table 29: Russian Prepaid Cards Category Size by Volume of Cards (Million), 2008-2017
Table 30: Russian Prepaid Cards Category Size by Transaction Value (RUB Billion), 2008-2017
Table 31: Russian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2008-2017
Table 32: Russian Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousand), 2008-2017
Table 33: Russian Open-Loop Prepaid Cards Segment Size by Transaction Value (RUB Billion), 2008-2017
Table 34: Russian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008-2017
Table 35: Russian Closed-Loop Prepaid Cards Segment Size by Number of Cards (Million), 2008-2017
Table 36: Russian Closed-Loop Prepaid Cards Segment Size by Transaction Value (RUB Billion), 2008-2017
Table 37: Russian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2008-2017
Table 38: Sberbank Key Fincial Indicators (RUB Billion), 2011-2012
Table 39: Sberbank - Card Portfolio and Key Features
Table 40: Alfa-Bank Key Fincial Indicators (RUB Billion), 2011-2012
Table 41: Alfa-Bank - Card Portfolio and Key Features
Table 42: VTB 24 (JSC) Key Fincial Indicators (RUB Billion), 2011-2012
Table 43: VTB 24 (JSC) - Card Portfolio and Key Features
Table 44: Vozrozhdenie Bank Key Fincial Indicators (RUB Billion), 2011-2012
Table 45: Vozrozhdenie Bank - Card Portfolio and Key Features
Table 46: ZAO Citibank Key Fincial Indicators (RUB Billion), 2011-2012
Table 47: ZAO Citibank - Card Portfolio and Key Features
Table 48: Key Definitions