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

Published: Jul, 2014 | Pages: 100 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

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

Summary
The Thai card payments channel grew in value and volume terms during the review period (2009-2013). In terms of the number of cards in circulation, the channel grew from 61.2 million in 2009 to 119.5 million in 2013, at a compound annual growth rate (CAGR) of 18.20%, and is anticipated to further post a CAGR of 7.26% over the forecast period to reach 179.7 million in 2018. In terms of transaction value, the card payments channel grew THB4.1 trillion (US$119 billion) in 2009 to THB7.5 trillion (US$244.5 billion) in 2013, at a review-period CAGR of 16.48%. It is anticipated to post a forecast-period CAGR of 6.70%, to reach to THB11 trillion (US$353.8 billion) in 2018.
Many factors supported the review-period growth such as an increase in per capita income, payment infrastructure modernization, and an influx of foreign banks that have brought technological innovations and branch expansion opportunities with them. As banking customers become more sophisticated, banks are differentiating their product offerings and subsequently card customization for specific customer groups such as high-income individuals, travelers and online shoppers is gaining prominence. Banks are also using online, mobile and social media to promote products and services, and increase customer engagement.
Growing demand from consumers for prepaid cards has forced banks and issuing companies to introduce numerous variants of prepaid cards to meet specific needs. Krungthai Bank offers the KTB e-Money Card, while Bank of Ayudhya and Bangkok Bank offer the Krungsri Gift Card and Shell Prepaid Card respectively. Cards for other specific purposes such as public transport fares, online shopping and entertainment are slowly gaining importance.
Growth in the number of middle-class families and young population, the greater need for credit, changes in consumer spending habits and the easy approval of credit cards fueled demand. Banks are issuing customized credit cards targeted at diverse customer segments such as the young population, high-income customers and travelers. Co-branded credit cards are slowly gaining popularity in Thailand, and most are offered in association with retailers, oil companies and automobile manufacturers. Siam Commercial Bank (SCB), for example, offers the SCB Toyota Card in association with Toyota.
The value of e-commerce increased from THB61.2 billion (US$1.8 billion) in 2009 to THB156.4 billion (US$5.1 billion) in 2013, at a review-period CAGR of 26.44%. E-commerce is expected to reach THB446.9 billion (US$14.4 billion) in 2018, at a forecast-period CAGR of 22.36%.
Outbound tourist spending increased at a review-period CAGR of 5.80% and is expected to rise over the forecast period at a CAGR of 6.46% to reach THB218.5 billion (US$7 billion) in 2018. Strong economic growth and an increase in disposable incomes are likely to spur outbound spending. Banks are also offering reward points, discounts and free insurance cover. Positive growth prospects for the e-commerce and travel industries are expected to encourage growth. Banks are also encouraging customers to use payment cards by awarding cashback offers, discounts, reward points and purchase insurance.
Scope
This report provides a comprehensive analysis of Thailand's cards and payments industry.
It provides current values for Thailand's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Thailand'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 Thailand's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Thailand's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Thailand's cards and payments industry.
Assess the competitive dynamics in Thailand's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Thailand.
Gain insights into key regulations governing Thailand's cards and payments industry.

Key Highlights
The Thai card payments channel grew in value and volume terms during the review period (2009-2013). In terms of the number of cards in circulation, the channel grew from 61.2 million in 2009 to 119.5 million in 2013, at a compound annual growth rate (CAGR) of 18.20%, and is anticipated to further post a CAGR of 7.26% over the forecast period to reach 179.7 million in 2018. In terms of transaction value, the card payments channel grew THB4.1 trillion (US$119 billion) in 2009 to THB7.5 trillion (US$244.5 billion) in 2013, at a review-period CAGR of 16.48%. It is anticipated to post a forecast-period CAGR of 6.70%, to reach to THB11 trillion (US$353.8 billion) in 2018.
Growing demand from consumers for prepaid cards has forced banks and issuing companies to introduce numerous variants of prepaid cards to meet specific needs. Krungthai Bank offers the KTB e-Money Card, while Bank of Ayudhya and Bangkok Bank offer the Krungsri Gift Card and Shell Prepaid Card respectively. Cards for other specific purposes such as public transport fares, online shopping and entertainment are slowly gaining importance.
Growth in the number of middle-class families and young population, the greater need for credit, changes in consumer spending habits and the easy approval of credit cards fueled demand. Banks are issuing customized credit cards targeted at diverse customer segments such as the young population, high-income customers and travelers. Co-branded credit cards are slowly gaining popularity in Thailand, and most are offered in association with retailers, oil companies and automobile manufacturers. Siam Commercial Bank (SCB), for example, offers the SCB Toyota Card in association with Toyota.
The value of e-commerce increased from THB61.2 billion (US$1.8 billion) in 2009 to THB156.4 billion (US$5.1 billion) in 2013, at a review-period CAGR of 26.44%. E-commerce is expected to reach THB446.9 billion (US$14.4 billion) in 2018, at a forecast-period CAGR of 22.36%.
Outbound tourist spending increased at a review-period CAGR of 5.80% and is expected to rise over the forecast period at a CAGR of 6.46% to reach THB218.5 billion (US$7 billion) in 2018. Strong economic growth and an increase in disposable incomes are likely to spur outbound spending. Banks are also offering reward points, discounts and free insurance cover. Positive growth prospects for the e-commerce and travel industries are expected to encourage growth. Banks are also encouraging customers to use payment cards by awarding cashback offers, discounts, reward points and purchase insurance.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Growing mobile payments
2.1.2 ATMs
2.1.3 POS termils
2.1.4 M-Pesa
2.1.5 EMV cards
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 Check payments
3.1.2 Credit transfer
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 Restructuring of payment systems fees and charges
4.1.3 Anti-money laundering and counter terrorism fincing (AML/CTF)
4.1.4 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Lost or stolen card fraud
4.2.2 Counterfeit card fraud
4.2.3 Card-not-present 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
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 Siam Commercial Bank (SCB)
12.1.1 Key fincials
12.1.2 Card portfolio
12.1.3 Strategies
12.2 Krungthai Bank (KTB)
12.2.1 Key fincials
12.2.2 Card portfolio
12.2.3 Strategies
12.3 Kasikornbank
12.3.1 Key fincials
12.3.2 Card portfolio
12.3.3 Strategies
12.4 Bangkok Bank
12.4.1 Key fincials
12.4.2 Card portfolio
12.4.3 Strategies
12.5 Bank of Ayudhya (Krungsri)
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: Thai Payment Channels (THB Trillion), 2009-2013
Table 2: Payment Systems Fee and Charges by the Thai Banker's Association and the BoT
Table 3: Market Entry Strategies of Foreign Banks
Table 4: Thai Card Fraud (THB Million), 2009-2013
Table 5: Thai Cards for High-Income Customers
Table 6: Thai Travel Cards
Table 7: Thai Cards for Shoppers
Table 8: Thai Co-branded Cards
Table 9: Thai Cards for Online Shoppers
Table 10: Thai Transport Cards
Table 11: Thai Entertainment Cards
Table 12: Thai Cards Offered for Corporate Customers
Table 13: Thai Card Payments Channel by Card Category (Million), 2009-2018
Table 14: Thai Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 15: Thai Card Payments Channel Size by Transaction Value (THB Trillion), 2009-2018
Table 16: Thai Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 17: Thai Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 18: Thai Credit Cards Category Size by Transaction Value (THB Billion), 2009-2018
Table 19: Thai Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 20: Thai Credit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 21: Thai Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 22: Thai Persol Credit Cards Segment Size by Transaction Value (THB Billion), 2009-2018
Table 23: Thai Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 24: Thai Persol Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 25: Thai Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 26: Thai Commercial Credit Cards Segment Size by Transaction Value (THB Billion), 2009-2018
Table 27: Thai Commercial Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 28: Thai Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 29: Thai Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 30: Thai Debit Cards Category Size by Transaction Value (THB Trillion), 2009-2018
Table 31: Thai Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 32: Thai Debit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 33: Thai Charge Cards Category Size by Volume of Cards (Thousand), 2009-2018
Table 34: Thai Charge Cards Category Size by Transaction Value (THB Billion), 2009-2018
Table 35: Thai Charge Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 36: Thai Charge Cards Category Size by Transaction Volume (Million), 2009-2018
Table 37: Thai Persol Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 38: Thai Persol Charge Cards Segment Size by Transaction Value (THB Billion), 2009-2018
Table 39: Thai Persol Charge Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 40: Thai Persol Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 41: Thai Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 42: Thai Commercial Charge Cards Segment Size by Transaction Value (THB Billion), 2009-2018
Table 43: Thai Commercial Charge Cards Segment Size by Transaction Value  (US$ Million), 2009-2018
Table 44: Thai Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 45: Thai Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018
Table 46: Thai Prepaid Cards Category Size by Transaction Value (THB Billion), 2009-2018
Table 47: Thai Prepaid Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 48: Thai Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 49: Thai Open-Loop Prepaid Cards Segment Size by Transaction Value (THB Billion), 2009-2018
Table 50: Thai Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 51: Thai Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 52: Thai Closed-Loop Prepaid Cards Segment Size by Transaction Value (THB Billion), 2009-2018
Table 53: Thai Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 54: SCB - Key Fincial Indicators (THB Billion), Year Ended December, 2012-2013
Table 55: SCB - Card Portfolio and Key Features
Table 56: KTB - Key Fincial Indicators (THB Billion), Year Ended December, 2012-2013
Table 57: KTB - Card Portfolio and Key Features
Table 58: Kasikornbank  - Key Fincial Indicators (THB Billion), Year Ended December,  2012-2013
Table 59: Kasikornbank  - Card Portfolio and Key Features
Table 60: Bangkok Bank - Key Fincial Indicators (THB Billion), Year Ended December, 2012-2013
Table 61: Bangkok Bank - Card Portfolio and Key Features
Table 62: Bank of Ayudhya - Key Fincial Indicators (THB Billion), Year Ended December, 2012-2013
Table 63: Bank of Ayudhya - Card Portfolio and Key Features
Table 64: Key Definitions