The Indian Prepaid Card Market Report
London (PRWEB) December 05, 2013 -- Synopsis
-This VRL report incorporates a detailed breakdown of the socio-economic factors expected to drive the growth of Indian credit and debit cards, and gives you the information you need to successfully enter this growing market
-A recent estimate by Visa Inc puts the target population for credit and debit cards in India at 200 million. Yet there are about 400 million Indian people who don't have a bank account. It is this combined 600 million which should be viewed as the true target market for prepaid cards
-The number of Indian prepaid cards in issue is incredibly small - only 2% of the total targeted population
Summary
The Indian card market is fast growing, and the pace is accelerating. Industry observers point to strong similarities between the growth of the Indian mobile phone market, and that for debit and prepaid cards. The CAGR of mobile phone take up in India during 2006-2010 was 52%. By comparison the number of debit cards issued between 2003 and 2009 increased by a CAGR of 47%. The transaction value has shown healthy growth of 32% during the period. In 2009-10 fiscal, payments made by debit cards in India rose by 44% y-o-y.
Payroll cards dominate the prepaid cards market with a 34% share, with travel cards at 24%, and multipurpose cards with a 22% market share. Remittances and other prepaid cards are estimated to account for 14% and 6% of the market respectively. Estimates by ICICI Bank suggest the prepaid cards market is expected to grow by almost 75% in 2010 y-o-y.
Axis Bank is the domestic leader in prepaid cards, with a 39% market share followed by ITZ Cash Card at 22% and ICICI Bank at 16%. Other players include SBI, HDFC Bank and Punjab National Bank. In the multipurpose cards market, ITZ Cash Card Limited is the leading player. It is the largest firm in the non-banked category for prepaid cards. As for the number of debit cards issued, SBI dominates with a 37% share followed by ICICI Bank at 11%.
Features driving the debit/prepaid card industry include the confident growth trajectory of the Indian economy, the availability of a payment infrastructure embracing both private and public sector banks, and increased penetration of mobile telephony. India’s economic expansion remains the catalyst for a dramatic change among the country’s consumers.
Scope
-This VRL report tracks moves being taken by state owned, private and dedicated cards issuers to supply the Indian prepaid and debit cards market
-An overview is provided of the Indian payments market and current infrastructure
-Both debit and prepaid cards are analysed and commented on
-The rural/urban split is discussed, important for new account uptake
-Leading Indian banks Axis and ICICI feature as case studies, while more are profiled
Reasons To Buy
-Follow the correlation between the potential growth of the Indian prepaid market and the successful growth of the Indian mobile phone industry
-Analyse the market share for businesses currently providing the cashless option in India
-Explore the socio-economic factors contributing to the current and projected Indian prepaid and debit card market
-Study the facts and figures for the payment infrastructure of Indian banking
-Investigate the business opportunities presented by Indian prepaid and debit cards
Key Highlights
-If India is able to maintain its current growth trajectory, average household incomes will triple over the next two decades and it will become the world’s fifth-largest consumer economy by 2025, up from 12th now
-As of 2010, there are 40,000 ATMs and 450,000 POS terminals in India. The key cities which lead in number of ATMs include Mumbai, Delhi, Kolkata, Bangalore, Chennai, Ahmadabad, Hyderabad, Pune, Kanpur, Surat, Jaipur and Lucknow
-There are a significant number of people with mobile phones but without bank accounts in rural India. This gap will only increase as millions of mobile phones are added monthly in rural India
-This is an attractive back-drop for issuing prepaid cards and using mobile banking services
1 Introduction
1.1 A fast growing market continuing to accelerate
2 Factors Driving Prepaid Cards Industry
2.1 Higher GDP growth
2.2 Growth in payment infrastructure
2.3 Growth in telecom infrastructure
3 Banking sector: size and reach
3.1 Banking in India: an introduction
3.2 Biggest banks in India based on asset size
3.3 Public sector banks
3.4 Private sector banks
3.5 Foreign banks
3.6 Geographic distribution of the banks in India
4 Types of debit and prepaid cards
5 Pros and cons of debit and prepaid cards
6 Market overview
6.1 Debit cards
6.2 Prepaid cards
7 Market segmentation
7.1 Debit and prepaid cards
7.2 Prepaid cards
8 Competition: debit cards
9 Competition: prepaid cards
10 Demographic Analysis
10.1 Income
10.2 Urban/rural divide
11 Opportunities for prepaid cards
11.1 Untapped potential in the rural sector
11.2 Banking and telephone
11.3 Mobile banking services
12 SWOT: Prepaid card industry
13 Competition: Financials
14 Axis Bank: a case study
14.1 Introduction
14.2 Customer base and infrastructure
14.3 Prepaid cards
14.4 Business strategies
14.5 Financial performance
14.6 SWOT analysis
15 ICICI Bank: a case study
15.1 Introduction
15.2 Customer base and infrastructure
15.3 Prepaid cards
15.4 Strategies
15.5 Financial performance
15.6 SWOT analysis
16 Profile of leading banks
16.1 SBI Group
16.2 Punjab National Bank
16.3 HDFC Bank
16.4 Union Bank of India
16.5 Canara Bank
16.6 Bank of India
16.7 Andhra Bank
16.8 Corporation Bank
16.9 ITZ Cash Card Ltd
List of Tables
Table 1: POS market share, 2009-10
Table 2: Banks associated with VISA and MasterCard
Table 3: No. of telephones in India
Table 4: Biggest banks in India
Table 5: Leading public sector banks in India
Table 6: Leading private sector banks in India
Table 7: Leading foreign banks
Table 8: Types of debit cards
Table 9: Debit card volume and transactions
Table 10: Interest rates and spending by the debit card holders
Table 11: Prepaid cards market
Table 12: Debit cards market
Table 13: Prepaid market segments
Table 14: Debit cards: market share
Table 15: Prepaid cards: market share
Table 16: Target population for debit/prepaid cards
Table 17: Rural vs urban population
Table 18: Bank accounts vs telephones
Table 19: Financials: average figures for 2005-9
Table 20: Axis Bank financials
Table 21: ICICI Bank financials
List of Figures
Figure 1: Growth in ATMs in India
Figure 2: Asian countries: ATMs per million
Figure 3: Distribution of key cities in India
Figure 4: ATM locations
Figure 5: Growth in POS terminals in India
Figure 6: Telephone ownership growth in India
Figure 7: Growth in tele-density in India
Figure 8: Banking sector in India
Figure 9: Biggest banks in India by assets
Figure 10: Share of PSBs in total assets
Figure 11: All banks: distribution
Figure 12: PSB banks: distribution
Figure 13 Private banks: distribution
Figure 14: Foreign banks: distribution
Figure 15: Interest rates and debit card spending
Figure 16: Debit cards: volume of cards and transactions
Figure 17: Debit cards: value of transactions
Figure 18: Debit/prepaid card market
Figure 19: Prepaid market segments
Figure 20: Target population for debit/prepaid cards
Figure 21: Bank accounts vs telephones
Figure 22: Financial: average figures for 2005-9
Read the full report:
The Indian Prepaid Card Market
For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +44 208 816 85 48
Website: http://www.reportbuyer.com
Sarah Smith, Research Advisor at Reportbuyer.com, +44 208 816 85 48, [email protected]
Share this article