The Cards and Payments Industry in Estonia: Emerging Trends and Opportunities to 2020

Published: May, 2016 | Pages: 58 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
Timetric’s 'The Cards and Payments Industry in Estonia: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Estonian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, cash transactions, direct debits and credit transfers during the review period (2011–2015).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2016–2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together Timetric’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

Summary
Timetric’s 'The Cards and Payments Industry in Estonia: Emerging Trends and Opportunities to 2020' report provides top-level market analysis, information and insights into the Estonian cards and payments industry, including:

• Current and forecast values for each market in the Estonian cards and payments industry, including debit card, credit and charge cards.

• Detailed insights into payment instruments including credit transfers, direct debits, cash transactions, checks and payment cards. It also, includes an overview of the country's key alternative payment instruments.

• E-commerce market analysis.

• Analysis of various market drivers and regulations governing the Estonian cards and payments industry.

• Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.

• Comprehensive analysis of consumer attitudes and buying preferences for cards.

• The competitive landscape in the Estonian cards and payments industry.

Scope
• This report provides a comprehensive analysis of the Estonian cards and payments industry.

• It provides current values for the Estonian cards and payments industry for 2015, and forecast figures to 2020.

• It details the different demographic, economic, infrastructural and business drivers affecting the Estonian cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details marketing strategies used by various banks and other institutions.

Reasons to Buy
• Make strategic business decisions, using top-level historic and forecast market data, related to the Estonian cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities in the Estonian cards and payments industry.

• Assess the competitive dynamics in the Estonian cards and payments industry.

• Gain insights into marketing strategies used for various card types in Estonia.

• Gain insights into key regulations governing the Estonian cards and payments industry.

Key Highlights
• The government launched the Digital Agenda 2020 for Estonia in 2014, to increase broadband access in the country by 2020. The aim is to provide broadband of at least 30mbps across the country, and to enhance the uptake of high-speed broadband of 100mbps to account for 60% or more of all internet connections by 2020. In another move towards digitalization, in December 2014 the government extended the electronic citizenship (e-Residency) system to individuals in other countries, making it convenient for them to access government services electronically. e-Residency is offered to global citizens looking to set up a business in Estonia, and carry out online business in the European Union (EU). It helps business owners to obtain a physical company address, and access electronic services such as banking, international payments, tax payments, and remote signing of relevant documents and contracts. Businesses from countries such as the US, Finland, Russia, the UK, Canada and India have already shown an interest in the service. These initiatives are expected to drive growth in digital payments in the country.

• In line with the rising adoption of contactless technology in European counterparts such as the UK and Germany, Estonia is also expected to see a rise in contactless adoption over the forecast period. With major banks such as Swedbank, SEB and LHV Bank having announced plans to launch contactless technology, uptake of contactless payments will increase. Swedbank and LHV Bank have indicated that they will launch contactless cards by the end of 2016, and Swedbank has announced plans to transform its payment terminals to contactless technology by 2016. SEB plans to introduce contactless cards by 2017.

• Alternative payments are also gaining prominence in the country, with the availability of Fortumo, Taxify and WoraPay. Fortumo, headquartered in Estonia, has evolved into a leading carrier billing payment solution. It has operations in 95 countries and works with 350 mobile network operators worldwide. The company serves 1.4 billion users globally. In Estonia, it has 100% coverage, and is provided through mobile operators such as Telia, Elisa and Tele2. Estonia-based taxi-hailing company Taxify launched its mobile carrier billing service in April 2015. This app allows Android and iOS users to pay for taxi fares by in-app payments using their mobile service provider.

 Table of Contents

1 Definitions and Methodology
1.1 Definitions
1.2 Methodology

2 Key Facts and Events

3 Executive Summary

4 Payment Instruments
4.1 Current Payment Environment

5 E-Commerce
5.1 E-Commerce Market Analysis

6 Alternative Payments
6.1 Alternative Payment Instruments
6.1.1 Fortumo
6.1.2 Pocopay
6.1.3 Skrill
6.1.4 Taxify carrier billing
6.1.5 WoraPay

7 Regulations in the Cards and Payments Industry
7.1 Regulatory Framework
7.1.1 SEPA cards framework
7.1.2 Anti-money laundering regulation
7.2 Foreign Direct Investment (FDI) Regulations

8 Analysis of Cards and Payments Industry Drivers
8.1 Demographic Drivers
8.2 Economic Drivers
8.3 Infrastructure Drivers
8.4 Business Drivers

9 Market Segmentation
9.1 Market Segmentation and Targeting
9.1.1 Consumer cards
9.1.2 Commercial cards

10 Payment Cards
10.1 Payment Cards Market Analysis
10.1.1 Volume and value of payment card transactions by type
10.1.2 Personal vs commercial cards

11 Debit Cards
11.1 Debit Card Market Analysis
11.1.1 Debit card transaction volumes and values by channel
11.1.2 Debit card scheme and issuer shares in terms of transaction value
11.1.3 Debit cards comparison

12 Credit Cards
12.1 Credit Card Market Analysis
12.1.1 Credit card transaction volumes and values by channel
12.1.2 Credit card scheme and issuer shares in terms of transaction value
12.1.3 Credit cards comparison

13 Charge Cards
13.1 Charge Card Market Analysis
13.1.1 Charge card transaction volumes and values by channel
13.1.2 Charge card scheme shares in terms of transaction value
13.1.3 Charge cards comparison

14 Commercial Cards
14.1 Commercial Card Market Analysis
14.1.1 Commercial cards comparison

15 Appendix
15.1 Tables
15.2 Contact Timetric
15.3 About Timetric
15.4 Timetric’s Services
15.5 Disclaimer

List of Tables
Table 1: Key Definitions
Table 2: Annual Average Exchange Rate
Table 3: Estonia – Key Facts, 2015
Table 4: Regional Benchmarking of Estonia’s Payment Cards, 2015
Table 5: Estonia – Mode of Entry of Foreign Banks
Table 6: Cards for High-Income Consumers, 2016
Table 7: Cards for Retail and Online Shoppers, 2016
Table 8: Cards for Students and Young People, 2016
Table 9: Commercial Cards Comparison and Key Features, 2016
Table 10: Estonia – Visa Domestic Multi-Lateral Interchange Fees, December 2015
Table 11: Estonia – MasterCard Consumer Card Interchange Fees, April 2016
Table 12: Estonia – MasterCard Commercial Card Interchange Fees, April 2016
Table 13: Estonia – Debit Cards Comparison and Key Features, 2016
Table 14: Estonia – Visa Domestic Multi-lateral Interchange Fees, December 2015
Table 15: Estonia – MasterCard Consumer Card Interchange Fees, April 2016
Table 16: Estonia – MasterCard Commercial Card Interchange Fees, April 2016
Table 17: Estonia – Gold Credit Cards Comparison and Key Features, 2016
Table 18: Estonia – Platinum Credit Cards Comparison and Key Features, 2016
Table 19: Estonia – Charge Cards Comparison and Key Features, 2016
Table 20: Estonia – Commercial Cards Comparison and Key Features, 2016
Table 21: Estonia – Payment Instrument Transaction Values (EUR Million), 2011–2015
Table 22: Estonia – Payment Instrument Transaction Values (US$ Million), 2011–2015
Table 23: Estonia – Payment Instrument Transaction Volumes (Thousand), 2011–2015
Table 24: Estonia – Number of Payment Cards in Circulation by Type (Thousand), 2011–2020
Table 25: Estonia – Volume of Payment Card Transactions by Type (Million), 2011–2020
Table 26: Estonia – Value of Payment Card Transactions by Type (EUR Billion), 2011–2020
Table 27: Estonia – Value of Payment Card Transactions by Type (US$ Billion), 2011–2020
Table 28: Estonia – Personal and Commercial Card Transaction Volumes (Million), 2011–2020
Table 29: Estonia – Personal and Commercial Card Transaction Values (EUR Million), 2011–2020
Table 30: Estonia – Personal and Commercial Card Transaction Values (US$ Million), 2011–2020
Table 31: Estonia – Number of Debit Cards in Circulation (Million), 2011–2020
Table 32: Estonia – Debit Card Transaction Volumes and Frequency by Channel, 2011–2020
Table 33: Estonia – Debit Card Total and Average Transaction Values by Channel, 2011–2020
Table 34: Estonia – Debit Card Total and Average Transaction Values by Channel, 2011–2020
Table 35: Estonia – Number of Debit Cards in Circulation by Scheme (Thousand), 2011–2015
Table 36: Estonia – Debit Card Transaction Values by Scheme (EUR Million), 2011–2015
Table 37: Estonia – Debit Card Transaction Values by Scheme (US$ Million), 2011–2015
Table 38: Estonia – Debit Card Transaction Values by Issuer (EUR Billion), 2011–2015
Table 39: Estonia – Debit Card Transaction Values by Issuer (US$ Billion), 2011–2015
Table 40: Estonia – Number of Credit Cards in Circulation (Thousand), 2011–2020
Table 41: Estonia – Credit Card Transaction Volumes and Frequency by Channel, 2011–2020
Table 42: Estonia – Credit Card Total and Average Transaction Values by Channel, 2011–2020
Table 43: Estonia – Credit Card Total and Average Transaction Values by Channel, 2011–2020
Table 44: Estonia – Number of Credit Cards in Circulation by Scheme (Thousand), 2011–2015
Table 45: Estonia – Credit Card Transaction Values by Scheme (EUR Million), 2011–2015
Table 46: Estonia – Credit Card Transaction Values by Scheme (US$ Million), 2011–2015
Table 47: Estonia – Pay Later Card Transaction Values by Issuer (EUR Million), 2011–2015
Table 48: Estonia – Pay Later Card Transaction Values by Issuer (US$ Million), 2011–2015
Table 49: Estonia – Number of Charge Cards in Circulation (Thousand), 2011–2020
Table 50: Estonia – Charge Card Transaction Volumes and Frequency by Channel, 2011–2020
Table 51: Estonia – Charge Card Total and Average Transaction Values by Channel, 2011–2020
Table 52: Estonia – Charge Card Total and Average Transaction Values by Channel, 2011–2020
Table 53: Estonia – Number of Charge Cards in Circulation by Scheme (Thousand), 2011–2015
Table 54: Estonia – Charge Card Transaction Values by Scheme (EUR Million), 2011–2015
Table 55: Estonia – Charge Card Transaction Values by Scheme (US$ Million), 2011–2015
Table 56: Estonia – Number of Commercial Cards in Circulation (Thousand), 2011–2020
Table 57: Estonia – Commercial Card Transaction Values (EUR Million), 2011–2020
Table 58: Estonia – Commercial Card Transaction Values (US$ Million), 2011–2020

List of Figures
Figure 1: Estonia – Payment Instrument Shares by Transaction Value (%), 2011 vs 2015
Figure 2: Estonia – Payment Instrument Shares by Transaction Volume (%), 2011 vs 2015
Figure 3: Estonia – E-Commerce Value (US$ Million), 2011–2020
Figure 4: Estonia – Total Population and Structure, 2011–2020
Figure 5: Estonia – Economic Indicators, 2011–2020
Figure 6: Estonia – Number of ATM and POS Terminals, 2011–2020
Figure 7: Estonia – Real Household Final Consumption Expenditure, 2011–2020
Figure 8: Estonia – Segmentation by Card Type
Figure 9: Estonia – Growth in Payment Card Transaction Values and Number of Cards in Circulation by Type, 2011–2020
Figure 10: Estonia – Volume and Value of Payment Card Transactions by Type (%), 2011–2020
Figure 11: Estonia – Personal and Commercial Card, Transaction Volumes and Values (%), 2011–2020
Figure 12: Estonia – Growth in Debit Card Transaction Values and Number of Debit Cards in Circulation, 2011–2020
Figure 13: Estonia – Debit Card Transaction Volumes and Values by Channel, 2011–2020
Figure 14: Estonia – Debit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2015
Figure 15: Estonia – Growth in Credit Card Transaction Values and Number of Credit Cards in Circulation, 2011–2020
Figure 16: Estonia – Credit Card Transaction Volumes and Values by Channel, 2011–2020
Figure 17: Estonia – Credit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2015
Figure 18: Estonia – Growth in Charge Card Transaction Values and Number of Charge Cards in Circulation, 2011–2020
Figure 19: Estonia – Charge Card Transaction Volumes and Values by Channel, 2011–2020
Figure 20: Estonia – Charge Card Scheme Shares in Terms of Transaction Value (%), 2015
Figure 21: Estonia – Number of Commercial Cards in Circulation and Transaction Value, 2011–2020