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

Synopsis
Timetric's 'The Cards and Payments Industry in Pakistan: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Pakistani cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including check payments, payment cards, direct debits and cash 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 Pakistan: Emerging Trends and Opportunities to 2020' report provides top-level market analysis, information and insights into Pakistan's cards and payments industry, including:

• Current and forecast values for each market in the Pakistani cards and payments industry, including debit and pay later cards.

• Detailed insights into payment instruments including cash, direct debits, 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 Pakistani cards and payments industry.

• Detailed analysis of strategies adopted by banks and other institutions to market debit and pay later cards.

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

• The competitive landscape in the Pakistani cards and payments industry.
Scope
• This report provides a comprehensive analysis of the Pakistani cards and payments industry.

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

• It details the different demographic, economic, infrastructural and business drivers affecting the Pakistani 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 Pakistani cards and payments industry and each market within it.

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

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

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

• Gain insights into key regulations governing the Pakistani cards and payments industry.
Key Highlights
• A low rate of financial inclusion remains the main challenge for the wider adoption of cards in Pakistan. According to the World Bank, the number of adults in Pakistan with no access to formal financial services crossed 100 million in 2015 - accounting for 5% of the world's unbanked population. The percentage of the population aged 15 or above with a bank account was 8.7% in 2014 - according to the World Bank's Global Findex survey. To improve financial inclusion, the government launched the National Financial Inclusion Strategy (NFIS) in May 2015, which aims to expand financial access to at least 50% of the adult population by 2020. Pakistan has also received support from the World Bank Group in form of its Country Partnership Strategy (2015-2019), which offers reforms to improve financial inclusion. Improvements in financial inclusion will provide access to financial services such as current and savings accounts, and debit cards.

• In April 2016, the State Bank of Pakistan (SBP) - the country's central bank - introduced the domestic payment scheme PayPak to compete in the local market with international schemes. The cards issued under this scheme focus on the domestic market, and thereby can only be used in Pakistan. The aim is to offer low-cost payment cards in order to bring more of the population under the purview of the formal banking system. PayPak has been introduced by 1Link, which is a consortium of major banks that is already providing interoperability services for ATMs, fund transfers and utility bill payments. PayPak also offers the provision of digital financial services such as making payments and deposits, obtaining credit, paying utility bills and purchasing goods and services using digital channels such as online, mobile and self-service kiosks.

• To promote secured payments, the central bank issued a guideline in June 2016 making it mandatory for card processing infrastructures - including automated teller machines (ATMs) and point of sale (POS) terminals - to be Europay, MasterCard and Visa (EMV) compliant by December 31, 2017. According to this guideline, all card service providers are required to implement EMV standards on payment cards by June 30, 2018, and accept chip and PIN by December 31, 2018.