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

Published: Aug, 2014 | Pages: 86 | Publisher: Timetric
Industry: Financial Services | Report Format: Electronic (PDF)

Synopsis
The report provides top-level market analysis, information and insights on Ukraine's cards and payments industry, including:
Current and forecast values for each category of Ukraine'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 Ukraine's cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit 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 Ukraine's cards and payments industry

Summary
Ukraine's economy was deeply impacted by the 2008-2009 global economic crises and saw demand decrease for its steel and chemical exports. In August 2010, Ukraine entered into an agreement with the International Monetary Fund (IMF) for US$15.1 billion to put the country on the growth path and revive its beleaguered banking sector, and GDP growth resumed from 2010 onwards reaching a peak of 5.11% in 2011.
A lack of government enthusiasm in implementing key reforms in the energy sector caused the IMF program to stall in 2011; as a result, real GDP growth fell to 0.3% in 2013. This led to a decrease in the foreign exchange reserves in 2013, with fears of sovereign debt default in 2014. In March 2014, the European Union (EU) and IMF announced bail-out packages worth EUR11.2 billion and US$14-18 billion respectively, to support Ukraine's economy, although prospects over the forecast period (2014-2018) are uncertain due to the Crimean conflict.
The Ukrainian card payments channel grew at a healthy pace both in value and volume terms during the review period (2009-2013); the number of cards in circulation in the channel grew from 29.7 million in 2009 to 35.7 million in 2013, at a compound annual growth rate (CAGR) of 4.76%, and is anticipated to further post a CAGR of 5.06% over the forecast period to reach 45.3 million in 2018.
In terms of transaction value, the card payments channel grew at a review-period CAGR of 27.25%. The card payments channel is forecast to increase at a forecast-period CAGR of 14.50%.
Many factors supported review-period growth, such as an increase in per capita income, payment infrastructure modernization, and the adoption of technologically advanced payment cards. The government supported modernization in the form of regulations in September 2010 mandating all companies selling goods and services to accept card payments, contributed to the growth in value terms during the review-period. Banks have also targeted corporate employees and opened salary accounts, leading to the issue of debit cards in high volume.
Growing consumer demand for prepaid cards has forced banks and issuing companies to introduce many variants of prepaid cards to meet specific needs. PrivatBank and Prominvestbank offer the E Card and Visa Virtuon respectively, while Ukrsotsbank offers the Gift Card. Cards for other specific purposes such as public transport fares and online shopping are slowly gaining importance in Ukraine.
Scope
This report provides a comprehensive analysis of Ukraine's cards and payments industry.
It provides current values for Ukraine's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Ukraine'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 Ukraine's cards and payments industry.
Reason To Buy
Make strategic business decisions using top-level historic and forecast market data related to Ukraine's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Ukraine's cards and payments industry.
Assess the competitive dynamics in Ukraine's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Ukraine.
Gain insights into key regulations governing Ukraine's cards and payments industry.
Key Highlights
The Ukrainian card payments channel grew at a healthy pace both in value and volume terms during the review period (2009-2013); the number of cards in circulation in the channel grew from 29.7 million in 2009 to 35.7 million in 2013, at a compound annual growth rate (CAGR) of 4.76%, and is anticipated to further post a CAGR of 5.06% over the forecast period to reach 45.3 million in 2018.
In terms of transaction value, the card payments channel grew at a review-period CAGR of 27.25%. The card payments channel is forecast to increase at a forecast-period CAGR of 14.50%.
Many factors supported review-period growth, such as an increase in per capita income, payment infrastructure modernization, and the adoption of technologically advanced payment cards. The government supported modernization in the form of regulations in September 2010 mandating all companies selling goods and services to accept card payments, contributed to the growth in value terms during the review-period. Banks have also targeted corporate employees and opened salary accounts, leading to the issue of debit cards in high volume.
The value of e-commerce increased at a review-period CAGR of 49.18%. Over the forecast period, e-commerce is expected to increase at a forecast-period CAGR of 32.21%. Outbound tourist spending increased at review-period CAGR of 11.51%, and is expected to rise over the forecast period at a CAGR of 8.12%.
The growing popularity of contactless technology prompted banks in Ukraine to offer cards enabled with this technology. Card issuers have begun circulating contactless stickers which can be used to pay for purchases in large retail chains using mobile phones.

 1 Executive Summary
2 Alysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technology
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 Regulatory Framework and Card Fraud Statistics
3.1 Regulatory Framework
3.1.1 Overview
3.1.2 Anti-Money Laundering (AML) and Combating the Fincing of Terrorism (CFT)
3.1.3 Foreign direct investment (FDI) regulations
3.2 Card Fraud Statistics
3.2.1 Lost or stolen card fraud
3.2.2 Counterfeit card fraud
3.2.3 Card ID theft
3.2.4 Card-not-present fraud
4 Emerging Consumer Attitudes and Trends
4.1 Industry Segmentation and Targeting
4.1.1 Retail segment
4.1.2 Corporate segment
4.2 Travel and Tourism Spending
4.2.1 Outbound tourist trips
4.2.2 Outbound tourist spending
5 Alysis of Card Payments and Growth Prospects
5.1 Channel Share Alysis by Card Category
5.2 Size and Forecast of the Card Payments Channel
5.2.1 Alysis by number of cards in circulation
5.2.2 Alysis by transaction value
6 Alysis of Credit Card Payments and Growth Prospects
6.1 Overall Category Size and Forecast
6.1.1 Alysis by number of cards in circulation
6.1.2 Alysis by transaction value
6.1.3 Alysis by transaction volume
6.2 Transaction Share Alysis by Channel
6.2.1 Alysis by transaction value
6.2.2 Alysis by transaction volume
6.3 Persol Credit Cards Segment Size and Forecast
6.3.1 Alysis by number of cards in circulation
6.3.2 Alysis by transaction value
6.3.3 Alysis by transaction volume
6.4 Commercial Credit Cards Segment Size and Forecast
6.4.1 Alysis by number of cards in circulation
6.4.2 Alysis by transaction value
6.4.3 Alysis by transaction volume
6.5 Competitive Landscape
6.5.1 Scheme share alysis
6.5.2 Issuer share alysis
7 Alysis of Debit 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 Competitive Landscape
7.3.1 Scheme share alysis
7.3.2 Issuer share alysis
8 Alysis of Prepaid 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
8.2 Open-Loop Prepaid Cards Segment Size and Forecast
8.2.1 Alysis by number of cards in circulation
8.2.2 Alysis by transaction value
8.3 Closed-Loop Prepaid Cards Segment Size and Forecast
8.3.1 Alysis by number of cards in circulation
8.3.2 Alysis by transaction value
9 Merchant Acquiring
10 Company Profiles of Card Issuers
10.1 PrivatBank
10.1.1 Key fincials
10.1.2 Card portfolio
10.1.3 Strategies
10.2 Raiffeisen Bank Aval
10.2.1 Key fincials
10.2.2 Card portfolio
10.2.3 Strategies
10.3 Ukrsotsbank
10.3.1 Key fincials
10.3.2 Card portfolio
10.3.3 Strategies
10.4 Ukreximbank
10.4.1 Key fincials
10.4.2 Card portfolio
10.4.3 Strategies
10.5 Prominvestbank
10.5.1 Key fincials
10.5.2 Card portfolio
10.5.3 Strategies
11 Appendix
11.1 Methodology
11.2 Contact Timetric
11.3 About Timetric
11.4 Timetric's Services
11.5 Definitions
11.6 Disclaimer


List of Tables
Table 1: Ukraine - Market Entry Strategies of Foreign Banks
Table 2: Number of Banks with Foreign Capital in Ukraine, 2007-2011
Table 3: Ukraine - Card Fraud Value (UAH Million), 2009-2013
Table 4: Ukraine - Cards for High-Income Customers, 2014
Table 5: Ukraine - Cards for Online Shoppers, 2014
Table 6: Ukraine - Cards for Women, 2014
Table 7: Ukraine - Cards for Students and Young Population, 2014
Table 8: Ukraine - Cards for Corporate Customers, 2014
Table 9: Ukraine - Card Payments Channel by Card Category In Terms of Volume of Cards (Thousand), 2009-2018
Table 10: Ukraine - Card Payments Channel Size by Volume of Cards (Million), 2009-2018
Table 11: Ukraine - Card Payments Channel Size by Transaction Value (UAH Billion), 2009-2018
Table 12: Ukraine - Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018
Table 13: Ukraine - Credit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 14: Ukraine - Credit Cards Category Size by Transaction Value (UAH Billion), 2009-2018
Table 15: Ukraine - Credit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 16: Ukraine - Credit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 17: Ukraine - Persol Credit Cards Segment Size by Volume of Cards (Million), 2009-2018
Table 18: Ukraine - Persol Credit Cards Segment Size by Transaction Value (UAH Billion), 2009-2018
Table 19: Ukraine - Persol Credit Cards Segment Size by Transaction Value (US$ Billion), 2009-2018
Table 20: Ukraine - Persol Credit Cards Segment Size by Transaction Volume (Million), 2009-2018
Table 21: Ukraine - Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 22: Ukraine - Commercial Credit Cards Segment Size by Transaction Value (UAH Million), 2009-2018
Table 23: Ukraine - Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 24: Ukraine - Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018
Table 25: Ukraine - Debit Cards Category Size by Volume of Cards (Million), 2009-2018
Table 26: Ukraine - Debit Cards Category Size by Transaction Value (UAH Billion), 2009-2018
Table 27: Ukraine - Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018
Table 28: Ukraine - Debit Cards Category Size by Transaction Volume (Million), 2009-2018
Table 29: Ukraine - Prepaid Cards Category Size by Volume of Cards (Thousand), 2009-2018
Table 30: Ukraine - Prepaid Cards Category Size by Transaction Value (UAH Million), 2009-2018
Table 31: Ukraine - Prepaid Cards Category Size by Transaction Value (US$ Million), 2009-2018
Table 32: Ukraine - Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 33: Ukraine - Open-Loop Prepaid Cards Segment Size by Transaction Value (UAH Million), 2009-2018
Table 34: Ukraine - Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Thousand), 2009-2018
Table 35: Ukraine - Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009-2018
Table 36: Ukraine - Closed-Loop Prepaid Cards Segment Size by Transaction Value (UAH Million), 2009-2018
Table 37: Ukraine - Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018
Table 38: PrivatBank - Key Fincial Indicators (UAH Billion), Year Ending December, 2012-2013
Table 39: PrivatBank - Card Portfolio and Key Features
Table 40: Raiffeisen Bank Aval - Key Fincial Indicators (UAH Billion), Year Ending December, 2012-2013
Table 41: Raiffeisen Bank Aval - Card Portfolio and Key Features
Table 42: Ukrsotsbank - Key Fincial Indicators (UAH Million), Year Ending December, 2012-2013
Table 43: Ukrsotsbank - Card Portfolio and Key Features
Table 44: Ukreximbank - Key Fincial Indicators (UAH Million), Year Ending December, 2012-2013
Table 45: Ukreximbank - Card Portfolio and Key Features
Table 46: Prominvestbank - Key Fincial Indicators (US$ Million), Year Ending December, 2012-2013
Table 47: Prominvestbank - Card Portfolio and Key Features
Table 48: Key Definitions