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

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

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

Summary
The Swiss payment cards grew in value and volume terms during the review period (2009-2013). In terms of transaction value, payment cards grew from CHF111.3 billion (US$102.3 billion) in 2009 to CHF126.7 billion (US$136.8 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 3.31%, and is anticipated to post a forecast-period (2014-2018) CAGR of 2.85% to reach to CHF146.3 billion (US$161.6 billion) in 2018. In terms of the number of cards in circulation, payment cards grew from 16.6 million in 2009 to 20.7 million in 2013, at a CAGR of 5.63%, and are anticipated to post a forecast-period CAGR of 3.65% to reach 24.9 million in 2018.
Several mobile payments (m-payments) solutions were promoted in the country during the review period. Some charge amounts to mobile phone bills, while others are linked to bank accounts or credit cards. Post Finance offers an m-payment solution that is connected to the customer's account. Currently, m-payments are used at parking facilities, vending machines and mountain cabs where there is a mobile phone reception. M-payments grew significantly during the review period and are anticipated to provide scope for card-based payments over the forecast period.
In terms of transaction value, both the credit and charge card markets recorded CAGRs of 4.84% and 4.24% respectively. In 2013, the value of credit card transactions reported at point of sale (POS) terminals was significantly greater than that reported at ATMs, representing 94.4% of the total credit cards transaction value. Similarly, the charge cards transaction value reported at POS terminals was greater than that reported at ATMs, representing 95.1% of the total charge cards transaction value.
The increasing use of credit and charge cards at POS terminals for purchases, supported by banks offering bonus programs, reward points, cash back offers and discounts at partner retailers, will further increase card transaction values over the forecast period.
With growth in the payment cards instrument type, both in terms of the number of cards and transaction value, card fraud increased marginally at a CAGR of 0.59% during the review period, from CHF94.4 million (US$86.8 million) in 2009 to CHF96.7 million (US$104.3 million) in 2013. Banks and Swiss authorities carry out periodic card fraud awareness campaigns and preventive measures to safeguard against card misuse. Banks also list "do's and don'ts" on their websites and at ATMs to reduce card fraud.
Scope
This report provides a comprehensive analysis of Switzerland's cards and payments industry.
It provides current values for Switzerland's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Switzerland'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 Switzerland's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Switzerland's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Switzerland's cards and payments industry.
Assess the competitive dynamics in Switzerland's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Switzerland.
Gain insights into key regulations governing Switzerland's cards and payments industry.
Key Highlights
The Swiss payment cards grew in value and volume terms during the review period (2009-2013). In terms of transaction value, payment cards grew from CHF111.3 billion (US$102.3 billion) in 2009 to CHF126.7 billion (US$136.8 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 3.31%, and is anticipated to post a forecast-period (2014-2018) CAGR of 2.85% to reach to CHF146.3 billion (US$161.6 billion) in 2018. In terms of the number of cards in circulation, payment cards grew from 16.6 million in 2009 to 20.7 million in 2013, at a CAGR of 5.63%, and are anticipated to post a forecast-period CAGR of 3.65% to reach 24.9 million in 2018.
Several mobile payments (m-payments) solutions were promoted in the country during the review period. Some charge amounts to mobile phone bills, while others are linked to bank accounts or credit cards. Post Finance offers an m-payment solution that is connected to the customer's account. Currently, m-payments are used at parking facilities, vending machines and mountain cabs where there is a mobile phone reception. M-payments grew significantly during the review period and are anticipated to provide scope for card-based payments over the forecast period.
In terms of transaction value, both the credit and charge card markets recorded CAGRs of 4.84% and 4.24% respectively. In 2013, the value of credit card transactions reported at point of sale (POS) terminals was significantly greater than that reported at ATMs, representing 94.4% of the total credit cards transaction value. Similarly, the charge cards transaction value reported at POS terminals was greater than that reported at ATMs, representing 95.1% of the total charge cards transaction value.
The increasing use of credit and charge cards at POS terminals for purchases, supported by banks offering bonus programs, reward points, cash back offers and discounts at partner retailers, will further increase card transaction values over the forecast period.
With growth in the payment cards instrument type, both in terms of the number of cards and transaction value, card fraud increased marginally at a CAGR of 0.59% during the review period, from CHF94.4 million (US$86.8 million) in 2009 to CHF96.7 million (US$104.3 million) in 2013. Banks and Swiss authorities carry out periodic card fraud awareness campaigns and preventive measures to safeguard against card misuse. Banks also list "do's and don'ts" on their websites and at ATMs to reduce card fraud.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Growing number of ATMs
2.1.2 Growing number of POS termils
2.1.3 Rising internet penetration
2.1.4 Growing mobile payments
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 Payment cards
3.1.3 Direct debits
3.1.4 Cash transactions
3.1.5 Check payments
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Overview
4.2 SEPA Cards Framework
4.2.1 Anti-money laundering and counter terrorism fincing (AML/CTF)
4.2.2 Foreign direct investment (FDI) regulations
4.3 Card Fraud Statistics
4.3.1 Card-not-present fraud
4.3.2 Counterfeit card fraud
4.3.3 Lost or stolen card fraud
4.3.4 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
6 Alysis of Payment Cards and Growth Prospects
6.1 Payment Cards Share Alysis by Card Market
6.2 Size of and Forecast for the Card Market
6.2.1 Alysis by number of cards in circulation
6.2.2 Alysis by transaction value
7 Alysis of Credit Cards Market and Growth Prospects
7.1 Overall Market 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 Cards Market and Growth Prospects
8.1 Overall Market 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 Cards Market and Growth Prospects
9.1 Overall Market 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 Cards Market and Growth Prospects
10.1 Overall Market 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 Post Fince
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Union Bank of Switzerland
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Raiffeisen Switzerland
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Credit Suisse
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Corner Bank
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: Switzerland - Payment Instruments (CHF Billion), 2009-2013
Table 2: Market Entry Strategies of Foreign Banks
Table 3: Switzerland - Card Fraud Value (CHF Million), 2009-2013
Table 4: Switzerland - Cards for High-Income Customers, 2014
Table 5: Switzerland - Cards for Students and Young Population, 2014
Table 6: Switzerland - Cards for Travelers, 2014
Table 7: Switzerland - Cards Offered for Corporate Customers, 2014
Table 8: Switzerland - Payment Cards Instrument by Card Market (Thousand), 2009-2018
Table 9: Switzerland - Payment Cards Instrument Size by Volume of Cards (Million), 2009-2018
Table 10: Switzerland - Payment Cards Instrument Size by Transaction Value (CHF Billion), 2009-2018
Table 11: Switzerland - Payment Cards Instrument Size by Transaction Value (US$ Billion), 2009-2018
Table 12: Switzerland - Credit Cards Market Size by Volume of Cards (Million), 2009-2018
Table 13: Switzerland - Credit Cards Market Size by Transaction Value (CHF Billion), 2009-2018
Table 14: Switzerland - Credit Cards Market Size by Transaction Value (US$ Billion), 2009-2018
Table 15: Switzerland - Credit Cards Market Size by Transaction Volume (Million), 2009-2018
Table 16: Switzerland - Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 17: Switzerland - Persol Credit Cards Segment Size by Transaction Value (CHF Billion), 2009-2018
Table 18: Switzerland - Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 19: Switzerland - Persol Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 20: Switzerland - Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 21: Switzerland - Commercial Credit Cards Segment Size by Transaction Value (CHF Million), 2009-2018
Table 22: Switzerland - Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 23: Switzerland - Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 24: Switzerland - Debit Cards Market Size by Volume of Cards (Million), 2009-2018
Table 25: Switzerland - Debit Cards Market Size by Transaction Value (CHF Billion), 2009-2018
Table 26: Switzerland - Debit Cards Market Size by Transaction Value (US$ Billion), 2009-2018
Table 27: Switzerland - Debit Cards Market Size by Transaction Volume (Million), 2009-2018
Table 28: Switzerland - Charge Cards Market Size by Volume of Cards (Thousand), 2009-2018
Table 29: Switzerland - Charge Cards Market Size by Transaction Value (CHF Billion), 2009-2018
Table 30: Switzerland - Charge Cards Market Size by Transaction Value (US$ Billion), 2009-2018
Table 31: Switzerland - Charge Cards Market Size by Transaction Volume (Million), 2009-2018
Table 32: Switzerland - Persol Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 33: Switzerland - Persol Charge Cards Segment Size by Transaction Value (CHF Million), 2009-2018
Table 34: Switzerland - Persol Charge Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 35: Switzerland - Persol Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 36: Switzerland - Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 37: Switzerland - Commercial Charge Cards Segment Size by Transaction Value (CHF Million), 2009-2018
Table 38: Switzerland - Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 39: Switzerland - Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 40: Switzerland - Prepaid Cards Market Size by Volume of Cards (Million), 2009-2018
Table 41: Switzerland - Prepaid Cards Market Size by Transaction Value (CHF Million), 2009-2018
Table 42: Switzerland - Prepaid Cards Market Size by Transaction Value (US$ Million), 2009-2018
Table 43: Switzerland - Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 44: Switzerland - Open-Loop Prepaid Cards Segment Size by Transaction Value (CHF Million), 2009-2018
Table 45: Switzerland - Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 46: Switzerland - Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 47: Switzerland - Closed-Loop Prepaid Cards Segment Size by Transaction Value (CHF Million), 2009-2018
Table 48: Switzerland - Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 49: Post Fince - Key Fincial Indicators (CHF Million), Year Ended December, 2012-2013
Table 50: Post Fince - Card Portfolio and Key Features, 2014
Table 51: UBS - Key Fincial Indicators (CHF Million), Year Ended December, 2012-2013
Table 52: UBS - Card Portfolio and Key Features
Table 53: Raiffeisen Switzerland - Key Fincial Indicators (CHF Million), Year Ended December 2012-2013
Table 54: Raiffeisen Switzerland - Card Portfolio and Key Features
Table 55: Credit Suisse - Key Fincial Indicators (CHF Million), Year Ended December, 2012-2013
Table 56: Credit Suisse - Card Portfolio and Key Features
Table 57: Corner Bank - Key Fincial Indicators (CHF Million), Year Ended December, 2012-2013
Table 58: Corner Bank - Card Portfolio and Key Features
Table 59: Key Definitions