Emerging Opportunities in Lebanon s Cards and Payments Industry

Transcription

1 Emerging Opportunities in Lebanon s Cards and Payments Industry Industry Size, Trends, Factors, Strategies, Products and Competitive Landscape Product Code: VR0918MR Published Date: May

2 TABLE OF CONTENTS TABLE OF CONTENTS 1 Executive Summary Industry Attractiveness and Future Prospects of the Cards and Payments Industry Analysis of the Lebanese Cards and Payments Industry Drivers Macroeconomic Fundamentals Rising per capita income Stable GDP growth Declining unemployment rate Infrastructure Drivers Improving payment infrastructure Growing number of ATMs Increasing number of POS terminals Internet penetration Business Drivers Retail dynamics Emergence of contactless payments Rising demand for prepaid cards Growing e-commerce market Other Growth Drivers Travel sector Growing mobile commerce Increased focus on target product offerings Card Fraud Statistics Regulatory Framework Installation of ATM Types of card accepted in the country Regulation related to E-commerce Regulation with respect to anti-money laundering Emerging Consumer Attitudes and Trends Market Segmentation and Targeting Retail customers Corporate customers Consumer Preference Price, Convenience and Service Price Convenience Services Competitive Landscape and Industry Dynamics Debit Cards Category Share By bank By scheme Credit Cards Category Share By bank By Scheme Emerging Opportunities in Lebanon s Cards and Payments Industry Page 2

3 TABLE OF CONTENTS 5.3 Charge Cards Category Share Strategies Adopted by Key Operators Marketing / Product Strategy Debit cards Credit cards Prepaid cards Pricing Strategies Industry Size and Growth Potential Industry Share Analysis by Type of Card Total Industry Size and Forecast of Cards Industry Analysis by number of cards Analysis by transaction value Analysis by transaction volume Debit Cards Category Size and Forecast Analysis by number of cards Analysis by transaction value Analysis by transaction volume Other key performance indicators Prepaid Card Category Size and Forecast Analysis by segment open and closed-loop cards Analysis by transaction value Charge Card Category Size and Forecast Analysis by number of cards Analysis by transaction value Analysis by number of transactions Analysis by frequency of use Credit Cards Category Size and Forecast Analysis by number of cards Analysis by transaction value Analysis by transaction volume Other key performance indicators Company Profiles, Product, and Marketing Strategies Byblos Bank S.A.L Strategies Debit cards offered Credit cards offered Prepaid cards offered Charge cards Bank of Beirut Strategies Debit cards offered Credit cards offered Prepaid card offered Emerging Opportunities in Lebanon s Cards and Payments Industry Page 3

4 TABLE OF CONTENTS Charge cards offered Banque Libano-Française Strategies Debit cards offered Credit cards offered Prepaid cards offered Appendix Methodology Contact Us About Timetric Disclaimer Emerging Opportunities in Lebanon s Cards and Payments Industry Page 4

5 LIST OF FIGURES LIST OF FIGURES Figure 1: Growth of Various Card Categories in Lebanon, Review and Forecast Periods... 9 Figure 2: Growth Potential of the Lebanese Cards and Payments Industry by Area of Usage Figure 3: Lebanon Cards and Payments Industry Drivers Figure 4: Per Capita Income (Million LBP) in Lebanon, Figure 5: Lebanese GDP Growth Rate (%), Figure 6: Lebanese Unemployment Rate (Percentage of Total Labor Force), Figure 7: Number of ATMs (Thousands) in Lebanon, Figure 8: Number of POS Terminals (Thousand) in Lebanon, Figure 9: Lebanese Internet Penetration Rate (%), Figure 10: Lebanese Taverna E-Gift Card Format Figure 11: Internet Penetration in the MENA Region (%), Figure 12: Lebanon Outbound and Inbound Travel Segment Volume (Million), Figure 13: Lebanese Smartphone Users (Million), Figure 14: Type of Cards Offered by Banks in Lebanon Figure 15: Lebanon Card Fraud Statistics (LBP Million), Figure 16: Lebanon Cards Industry Segmentation Figure 17: Cards Offered to Specialized Professionals in Lebanon Figure 18: Lebanese Population Distribution by Age (%), Figure 19: Student Cards Offered by the Bank of Beirut in Lebanon Figure 20: Cards Targeting HNWIs by Byblos Bank in Lebanon Figure 21: Corporate Cards Offered in Lebanon Figure 22: Consumer Preferences on Various Card Types Figure 23: Annual Fees for American Express Charge Cards in Lebanon Figure 24: Value Added Services on Byblos Bank s Visa Platinum Credit Card Figure 25: Lebanese Debit Card Category Share by Bank (%), Figure 26: Lebanese Debit Card Category Share by Scheme (%), Figure 27: Lebanese Credit Card Category Share by Bank (%), Figure 28: Lebanese Credit Card Category Share by Scheme (%), Figure 29: Lebanese Charge Card Category Share by Scheme (%), Figure 30: Byblos Bank Debit Cards Loyalty Program Figure 31: Byblos Bank s Loyalty Points Program for Credit Cards Figure 32: Value Added Services on Credit Cards in Lebanon Figure 33: Co-Branded and Affinity Cards Offered in Lebanon Figure 34: Prepaid Gift Cards Offered in Lebanon Figure 35: Internet Prepaid Cards Offered in Lebanon Figure 36: Pricing Strategies of Various Service Providers Figure 37: Lebanese Cards Industry by Type of Card (%), Figure 38: Lebanese Cards and Payments Size by Number of Cards (Thousands), Figure 39: Lebanese Cards and Payments Size by Transaction Value (LBP Billion), Figure 40: Lebanese Cards and Payments Size by Transaction Volume (Million), Figure 41: Lebanonese Debit Cards Category Size by Number of Cards (Thousands), Figure 42: Lebanese Debit Cards Category Size by Transaction Value (LBP Billion), Figure 43: Lebanese Debit Cards Category Size by Number of Transactions (Million), Figure 44: Lebanese Debit Cards, Frequency of Use, Figure 45: Debit Card Transactions at ATMs and POS Terminals (Million), Figure 46: Lebanese Prepaid Cards Category Size by Number of Cards (Thousands), Figure 47: Lebanese Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousands), Figure 48: Lebanese Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousands), Figure 49: Lebanese Prepaid Cards Category Size by Transaction Value (LBP Million), Figure 50: Lebanese Charge Cards Category Size by Number of Cards (Thousands), Figure 51: Lebanese Charge Cards Category Size by Transaction Value (LBP Million), Figure 52: Lebanese Charge Cards Category Size by Number of Transactions, Figure 53: Lebanese Charge Cards Category Frequency of Use, Figure 54: Lebanese Credit Cards Category Size by Number of Cards (Thousands), Figure 55: Lebanese Credit Cards Category Size by Transaction Value (LBP Billion), Figure 56: Lebanese Credit Cards Category Size by Number of Transactions (Million), Figure 57: Lebanese Credit Cards Category Frequency of Use, Figure 58: Lebanese Credit Cards Category Size by Average Transaction Value (LBP), Figure 59: Byblos Bank s Customer Segmentation by Cards Offered Figure 60: Bank of Beirut s Customer Segmentation of Cards Offered Figure 61: Banque Libano-Française s Customer Segmentation of Cards Offered Emerging Opportunities in Lebanon s Cards and Payments Industry Page 5

6 LIST OF TABLES LIST OF TABLES Table 1: BankMed s MedMiles Program on Credit Card Products Table 2: Lebanese Cards Industry by Type of Card (Thousands), Table 3: Lebanese Cards and Payments Size by Number of Cards (Thousands), Table 4: Lebanese Cards and Payments Industry Size by Transaction Value (LBP Million), Table 5: Lebanese Cards and Payments Size by Transaction Value (US$ Million), Table 6: Lebanese Cards and Payments Size by Transaction Volume (Million), Table 7: Lebanese Debit Cards Category Size by Number of Cards (Thousands), Table 8: Lebanese Debit Cards Category Size by Transaction Value (LBP Million), Table 9: Lebanese Debit Cards Category Size by Transaction Value (US$ Million), Table 10: Lebanese Debit Cards Category Size by Number of Transactions (Million), Table 11: Lebanese Debit Cards, Frequency of Use, Table 12: Lebanese Prepaid Cards Category Size by Number of Cards (Thousands), Table 13: Lebanese Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousands), Table 14: Lebanese Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousands), Table 15: Lebanese Prepaid Cards Category Size by Transaction Value (LBP Million), Table 16: Lebanese Prepaid Cards Category Size by Transaction Value (US$ Million), Table 17: Lebanese Charge Cards Category Size by Number of Cards (Thousands), Table 18: Lebanese Charge Cards Category Size by Transaction Value (LBP), Table 19: Lebanese Charge Cards Category Size by Transaction Value (US$), Table 20: Lebanese Charge Cards Category Size by Number of Transactions, Table 21: Lebanese Charge Cards Category Frequency of Use, Table 22: Lebanese Credit Cards Category Size by Number of Cards (Thousands), Table 23: Lebanese Credit Cards Category Size by Transaction Value (LBP Million), Table 24: Lebanese Credit Cards Category Size by Transaction Value (US$ Million), Table 25: Lebanese Credit Cards Category Size by Number of Transactions (Million), Table 26: Lebanese Credit Cards Category Frequency of Use, Table 27: Lebanese Credit Cards Category Size by Average Transaction Value (LBP), Table 28: Lebanese Credit Cards Category Size by Average Transaction Value (US$), Emerging Opportunities in Lebanon s Cards and Payments Industry Page 6

7 EXECUTIVE SUMMARY 1 Executive Summary Lebanon s cards industry recorded a CAGR of X.XX% in volume terms during the review period ( ). The total number of cards increased from X.X million in 2008 to X.X million cards in Over the forecast period, the industry is forecast to grow at a CAGR of X.XX%, from X.X million cards in 2013 to X.X million in Prepaid cards are considered a growth driver After the debit and credit card categories, a prepaid card is the most popular card payment category in Lebanon. Indeed, in 2012, the category held the third-largest industry share of X.X%. The total number of prepaid cards in circulation increased significantly during the review period, from XXX,XXX in 2008 to XXX,XXX in 2012, at a CAGR of XX.XX%. Over the forecast period ( ), this category is expected to post a CAGR of XX.XX%, rising from XXX,XXX cards in 2013 to XXX,XXX in Demand is increasing due to the diversity of card s payment functions. Increasing competition the in credit and charge card categories is expected reduce interest rates Both credit and charge cards are major revenue sources for financial institutions. Annual fees, interest on cash advances and value added services all contribute to the generation of profit. The categories held respective industry shares of XX.X% and X.X% in Relatively low penetration rates are encouraging the entry of new operators and in 2011, CSC Bank (CSC) established an agreement with JCB International (JCBI) to issue JCB cards in Lebanon. Increasing levels of competition are expected to lower interest rates on credit limits and consequently encourage consumers to use more cards. Improving broadband infrastructures to accelerate e-commerce transactions In 2012, The Ministry of Telecommunications signed an agreement the Cyprus Telecommunications Authority (Cyta) in order to acquire XX% capacity in the Alexandros international submarine cable that connects Cyprus, Egypt and France. Through this agreement, Lebanon can access an additional XXX gigabits of bandwidth. It also signed an agreement to aid the construction of the Europa system a submarine cable between Cyprus and Lebanon which will be operational by the end of This broadening of telecommunication infrastructure is expected to reduce broadband rates and increase the volume of online transactions. Improving economic performance In 2009, Lebanon s overall economic activity decelerated due to a period of recession which negatively impacted the country s exports. Due to political instability and war in neighboring country Syria, this trend continued until 2012 and adversely impacted tourism, exports and foreign direct investment (FDI). The government is taking initiatives such as the implementation of an appropriate tax policy and administration reforms and the utilization of funds to improve public financial management. Despite these adverse economic conditions, the IMF expects Lebanon to register stable growth over forecast period, ranging from X.X% in 2013 to X.X% in Competition in online payment services In Lebanon, the e-commerce channel is still in its developmental stages and only X.X% of internet users actively purchase products online. Many use the internet to facilitate online banking rather than purchasing goods and services. This is mainly due to a lack of online payment platforms rather than a weak telecom infrastructure. In April 2013, PayPal introduced its services in Egypt and Lebanon. Until PayPal s entry, Lebanese online shoppers were forced to use foreign debit and credit cards to make online payments. PayPal s entry is anticipated to increase the number domestic online card payments and reduce charges. Emerging Opportunities in Lebanon s Cards and Payments Industry Page 7

8 EXECUTIVE SUMMARY Emergence of contactless technology Smart cards which incorporate contactless technology are emerging as a trend across the globe. Contactless technology increases the speed of a transaction and such cards were introduced in Lebanon in association with MasterCard. Fransabank has been offering contactless payment technology in Lebanon since 2006 and in 2012, Bank Audi launched the contactless ABC MasterCard. This is a co-branded card in association with a a prominent shopping mall. Contactless cards are expected to gain popularity over the over the forecast period and establish themselves as a mainstream payment platform. Emerging Opportunities in Lebanon s Cards and Payments Industry Page 8

9 APPENDIX 2 Appendix 2.1 Methodology Timetric s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. Timetric adheres to the Codes of Practice of the Market Research Society ( and the Society of Competitive Intelligence Professionals ( All Timetric databases are continuously updated and revised. 2.1 Contact Us If you have any queries about this report, or would like any further information, please contact info@timetric.com. 2.2 About Timetric Timetric is an independent economic and business research firm that provides critical intelligence on emerging economies and key global industries. The company offers detailed economic and sector intelligence, business insights and independent and authoritative commentary. Underpinning all Timetric s research services is a belief that data if gained following the right technologies and analytic frameworks can provide unique and powerful economic and business insights. The Timetric economic and industry intelligence centers are premium decision tools that provide access to comprehensive research, data and expert analysis. They provide invaluable decision support, presented in an easily digestible format and grounded in rich, proprietary data and data analysis frameworks. Each year, Timetric produces hundreds of high-quality research reports across countries, industries and companies. These reports draw on in-depth primary and secondary research, proprietary data and high-quality modeling and analysis to give its readers a deep insight into global market dynamics and economic trends. Timetric helps its clients to: Gain an unbiased, expert insight from a genuinely independent and trusted source Save time in researching, visualizing and comparing economic and industry data Access the latest and most useful data sets, indices and forecasts Gain access to a unique methodology for understanding economic trends Forecast and predict trends more accurately Emerging Opportunities in Lebanon s Cards and Payments Industry Page 9

10 APPENDIX Economic Research Services Timetric s economic research services are founded on three key goals: 1. To provide the strongest base data: The most accurate data The most timely and frequently updated data sets The best data curation methodologies and standardizations Unique data sets and forward-looking indicators Industry-specific, premium data sets 2. To develop the best data analysis frameworks: Unique economic indices and data analysis frameworks Forward-looking indicators Proprietary indices and surveys Data analysis frameworks, scorecards and models 3. To provide authoritative independent economic insights: To give a uniquely local perspective on developing markets Truly expert, independent economic analysis and commentary Proprietary analysis techniques and frameworks Unique forecasts Timetric believes that world-class content delivery should be the enabling factor across all it does. All its research services follow the principle that data and research should be easy to access, visualize and consume. All economic research products are built on the Timetric economic research software platform, which has four layers: 1. Unique, proprietary aggregation and curation software for pulling together the world s data 2. A cloud time-series database filled with top-quality statistics from across the globe 3. Web-delivered search, discovery and research software to allow customized data searches 4. World-class browser-based display to visualize the data searched 2.3 Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Timetric. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Timetric delivers will be based on information gathered in good faith from both primary and secondary sources, the accuracy of which Timetric is not always in a position to guarantee. Timetric will accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. Emerging Opportunities in Lebanon s Cards and Payments Industry Page 10