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

Published: Jun, 2014 | Pages: 107 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights into Saudi Arabia's cards and payments industry, including:
Current and forecast values for each category of Saudi Arabia's cards and payments industry, including debit cards, credit cards, charge cards and prepaid cards
Comprehensive analysis of the industry's market attractiveness and future growth areas
Analysis of various market drivers and regulations governing Saudi Arabia's cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit, charge 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 Saudi Arabia's cards and payments industry

Summary
The Saudi Arabian economy was largely resilient to the global financial crisis, mainly due to a sound banking and financial system. The system was well capitalized with domestic banks maintaining a capital adequacy ratio of 17.9% at the end of 2013, as a result of which credit was easily available to corporate sectors. Consequently, business activity was vibrant and confidence was high, which reflected positively on employment levels, income and the overall card payments channel.
The Saudi Arabian card payments channel grew at a healthy pace, both in terms of volume and value during the review period (2009?2013). In terms of the number of cards in circulation, the channel increased from 17.2 million cards in 2009 to 26.8 million in 2013, at a review-period compound annual growth rate (CAGR) of 11.75%. Over the forecast period (2014?2018), the card payments channel is anticipated to register a CAGR of 8.66%, to reach 42.2 million cards in 2018.
In terms of transaction value, the card payments channel increased from SAR489.2 billion (US$130.5 billion) in 2009 to SAR863.9 billion (US$230.4 billion) in 2013, at a review-period CAGR of 15.28%. The card payments channel is anticipated to increase further from SAR936.7 billion (US$249.8 billion) in 2014 to SAR1.2 trillion (US$308.7 billion) in 2018, representative of a forecast-period CAGR of 5.44%.
While the debit cards category occupied the largest channel share of 57.7% in 2013, in terms of the number of cards in circulation, the prepaid and credit card categories are eroding the share of the debit cards category, which is anticipated to decrease to 52.3% in 2018. With government efforts to attract the non-banked population into the country's banking system, domestic and foreign banks are issuing prepaid cards in large numbers. In 2013, the number of prepaid cards in circulation was 8.3 million, and is anticipated to reach 16.4 million by 2018.
E-commerce is increasing as a result of improvements in telecommunication infrastructure, payment and security systems, and an increased consumer willingness to shop online. E-commerce registered a review-period CAGR of 35.71%, rising from SAR1.8 billion (US$468.1 million) in 2009 to SAR6.0 billion (US$1.6 billion) in 2013.
Scope
This report provides a comprehensive analysis of Saudi Arabia's cards and payments industry.
It provides current values for Saudi Arabia's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Saudi Arabia'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 Saudi Arabia's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Saudi Arabia's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Saudi Arabia's cards and payments industry.
Assess the competitive dynamics in Saudi Arabia's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Saudi Arabia.
Gain insights into key regulations governing Saudi Arabia's cards and payments industry.

Key Highlights
The Saudi Arabian card payments channel grew at a healthy pace, both in terms of volume and value during the review period (2009?2013). In terms of the number of cards in circulation, the channel increased from 17.2 million cards in 2009 to 26.8 million in 2013, at a review-period compound annual growth rate (CAGR) of 11.75%. Over the forecast period (2014?2018), the card payments channel is anticipated to register a CAGR of 8.66%, to reach 42.2 million cards in 2018.
In terms of transaction value, the card payments channel increased from SAR489.2 billion (US$130.5 billion) in 2009 to SAR863.9 billion (US$230.4 billion) in 2013, at a review-period CAGR of 15.28%. The card payments channel is anticipated to increase further from SAR936.7 billion (US$249.8 billion) in 2014 to SAR1.2 trillion (US$308.7 billion) in 2018, representative of a forecast-period CAGR of 5.44%.
While the debit cards category occupied the largest channel share of 57.7% in 2013, in terms of the number of cards in circulation, the prepaid and credit card categories are eroding the share of the debit cards category, which is anticipated to decrease to 52.3% in 2018. With government efforts to attract the non-banked population into the country's banking system, domestic and foreign banks are issuing prepaid cards in large numbers. In 2013, the number of prepaid cards in circulation was 8.3 million, and is anticipated to reach 16.4 million by 2018.
Saudi Arabia's well-developed telecommunications infrastructure allowed it to record one of the highest mobile penetration rates in the Middle East and North Africa (MENA) region in 2013. Banks such as Al Rajhi Bank, Samba Financial Group and The National Commercial Bank (NCB) partnered with merchants and online retailers to provide secure payment facilities, enabling customers to pay via mobile phones or online. Consequently, mobile payments (m-payments) grew from SAR453.4 million (US$14.2 million) in 2010 to SAR813.1 million (US$216.8 million) in 2013 and are anticipated to reach SAR7.2 billion (US$1.9 billion) in 2018, at a forecast-period CAGR of 46.48%.
E-commerce is increasing as a result of improvements in telecommunication infrastructure, payment and security systems, and an increased consumer willingness to shop online. E-commerce registered a review-period CAGR of 35.71%, rising from SAR1.8 billion (US$468.1 million) in 2009 to SAR6.0 billion (US$1.6 billion) in 2013.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Rising internet penetration
2.1.2 Growing mobile payments
2.1.3 Automated teller machines (ATMs)
2.1.4 Point-of-sale (POS) termils
2.1.5 Adoption of EMV infrastructure
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Growth in e-commerce
2.3 Economic Drivers
2.3.1 GDP growth
2.3.2 GDP per capita
2.3.3 Inflation
3 Cards and Payments Industry Share Alysis
3.1 Industry Overview
3.1.1 Credit transfer
3.1.2 Check payments
3.1.3 Card transactions
3.1.4 Cash transactions
3.1.5 Direct debit
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Overview
4.1.2 Payment systems in the country
4.1.3 Anti-money laundering and terrorism fincing (AML/CTF)
4.1.4 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Lost or stolen card
4.2.3 Counterfeit card fraud
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
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 categories
5.3.2 Alysis by retail channel
6 Alysis of Card Payments and Growth Prospects
6.1 Channel Share Alysis by Card Category
6.2 Size of and Forecast for 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 Segment 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 Segment 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 Charge 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
9.1.3 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 Segment 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 Segment Size and Forecast
9.4.1 Alysis by number 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
10 Alysis of Prepaid Card Payments and Growth Prospects
10.1 Overall Category Size and Forecast
10.1.1 Alysis by number 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 number of cards in circulation
10.3.2 Alysis by transaction value
11 Merchant Acquiring
12 Company Profiles of Card Issuers
12.1 Al Rajhi Bank (ARB)
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 The Saudi British Bank
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Samba Fincial Group
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Riyad Bank
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 The tiol Commercial Bank (NCB)
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: Saudi Arabian Payment Channels (SAR Billion), 2009-2013
Table 2: Market Entry Strategies of Foreign Banks
Table 3: Saudi Arabian Card Fraud (SAR Million), 2009-2013
Table 4: Saudi Arabian Cards for High-Income Customers by Bank
Table 5: Saudi Arabian Co-branded Cards by Bank
Table 6: Saudi Arabian Travel Cards by Bank
Table 7: Saudi Arabian Cards for Women
Table 8: Saudi Arabian Cards for Online Shoppers
Table 9: Saudi Arabian Cards for Unbanked Population
Table 10: Saudi Arabian Cards Offered for SMEs and Large Corporations by Bank
Table 11: Saudi Arabian Consumer Card Spending by Product Category (SAR Million), 2008 and 2012
Table 12: Saudi Arabian Consumer Card Spending by Retail Channel (SAR Million), 2008 and 2012
Table 13: Saudi Arabian Card Payments Channel by Card Category (Million), 2009-2018
Table 14: Saudi Arabian Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 15: Saudi Arabian Card Payments Channel Size by Transaction Value (SAR Billion), 2009-2018
Table 16: Saudi Arabian Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 17: Saudi Arabian Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 18: Saudi Arabian Credit Cards Category Size by Transaction Value (SAR Billion), 2009-2018
Table 19: Saudi Arabian Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 20: Saudi Arabian Credit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 21: Saudi Arabian Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 22: Saudi Arabian Persol Credit Cards Segment Size by Transaction Value (SAR Billion), 2009-2018
Table 23: Saudi Arabian Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 24: Saudi Arabian Persol Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 25: Saudi Arabian Commercial Credit Cards Segment Size by Volume of Cards (Thousand),  2009-2018
Table 26: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Value (SAR Million), 2009-2018
Table 27: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 28: Saudi Arabian Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018
Table 29: Saudi Arabian Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 30: Saudi Arabian Debit Cards Category Size by Transaction Value (SAR Billion), 2009-2018
Table 31: Saudi Arabian Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 32: Saudi Arabian Debit Cards Category Size by Transaction Volume (Billion), 2009-2018
Table 33: Saudi Arabian Charge Cards Category Size by Volume of Cards (Thousand), 2009-2018
Table 34: Saudi Arabian Charge Cards Category Size by Transaction Value (SAR Billion), 2009-2018
Table 35: Saudi Arabian Charge Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 36: Saudi Arabian Charge Cards Category Size by Transaction Volume (Million), 2009-2018
Table 37: Saudi Arabian Persol Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 38: Saudi Arabian Persol Charge Cards Segment Size by Transaction Value (SAR Billion), 2009-2018
Table 39: Saudi Arabian Persol Charge Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 40: Saudi Arabian Persol Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 41: Saudi Arabian Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 42: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Value (SAR Million), 2009-2018
Table 43: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Value  (US$ Million), 2009-2018
Table 44: Saudi Arabian Commercial Charge Cards Segment Size by Transaction Volume (Thousand), 2009-2018
Table 45: Saudi Arabian Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018
Table 46: Saudi Arabian Prepaid Cards Category Size by Transaction Value (SAR Billion), 2009-2018
Table 47: Saudi Arabian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 48: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 49: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Transaction Value (SAR Billion), 2009-2018
Table 50: Saudi Arabian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 51: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 52: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Transaction Value (SAR Million), 2009-2018
Table 53: Saudi Arabian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 54: Al Rajhi Bank - Key Fincial Indicators (SAR Million), Year Ending December, 2011-2012
Table 55: Al Rajhi Bank - Card Portfolio and Key Features
Table 56: SABB - Key Fincial Indicators (SAR Million), Year Ending December, 2011-2012
Table 57: SABB - Card Portfolio and Key Features
Table 58: Samba Fincial Group - Key Fincial Indicators (SAR Million), Year Ending December, 2011-2012
Table 59: Samba Fincial Group - Card Portfolio and Key Features
Table 60: Riyad Bank - Key Fincial Indicators (SAR Million), Year Ending December, 2011-2012
Table 61: Riyad Bank - Card Portfolio and Key Features
Table 62: NCB - Key Fincial Indicators (SAR Million), Year Ending December, 2012-2013
Table 63: NCB - Card Portfolio and Key Features
Table 64: Key Definitions