Dallas, Texas (PRWEB) March 08, 2013
Sweden is moving fast towards being an electronic and cashless-driven economy. Its cards industry as a whole grew marginally at a CAGR of 1.23% during the review period, primarily driven by the debit and credit card categories. The slow growth in the cards industry was mainly due to global economic crises as well as the eurozone debt crisis that impacted the growth of major industries across Europe.
During the review period, debit cards occupied the largest share in the overall cards and payments industry, and recorded a CAGR of 3.38%. The overall card industry is expected to grow at a CAGR of 2.83% over the forecast period, driven primarily by the debit cards category, which is expected to grow at a CAGR of 2.81%.
The Swedish cards and payments industry presents positive growth potential
The Swedish cards and payments industry grew marginally both in volume and value terms during the review period. In terms of number of transactions, it grew moderately at a CAGR of 4.45%. Debit card transactions remained the key growth driver, followed by credit cards and charge cards. Over the forecast period the total cards transaction volume is expected to grow at a CAGR of 2.79%.
Strong growth of mobile commerce to drive the overall payments industry in Sweden
The increasing capabilities of smartphone devices, an exponential rise in mobile device applications and falling prices have been instrumental in driving m-commerce. According to estimates by Statistics Sweden in October 2012, 60% of customers aged between 16 and 74 years who use the internet own a smartphone, while 46% own a laptop and 14% own a tablet. In Sweden, 42% of retail purchases in 2012 were made on smartphones.
Consumer preferences play a key role in purchasing decisions
Consumer preferences such as price, convenience and associated services play an important role in customer card choice decisions. Banks in Sweden charge an annual fee for debit cards, despite card payments being very cost-efficient for banks. Overall, banks and card providers are making significant efforts to enhance product features and added benefits, including rewards points, discounts and cash back offers. Almost all leading banks in Sweden also offer supplementary insurance cover, card theft insurance and travel insurance when more than half of the amount of the trip is paid through the card.
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Vietnam’s card market witnessed strong growth during the review period (2008-2012). The overall cards industry recorded an impressive CAGR of 37.05%, rising from 14.0 million cards in 2008 to 49.4 million cards in 2012. Over the forecast period, the cards industry is forecast to grow at a CAGR of 10.79% from 57.3 million cards in 2013 to 86.4 million cards in 2017.
Steadily growing economy enables cards and payments industry growth
With a significant young population, changing spending pattern, advancements in e-banking services, and the emerging trend of online shopping, Vietnam has ample opportunities for card service providers. Vietnam’s GDP recorded a sustainable growth rate of 5.4% in the third quarter of 2012, after an expansion of 4.7% in the second quarter and 4% in the first quarter. The country’s GDP growth declined from 5.9% in 2011 to 5.0% in 2012, below the expected goals of 5.2% and 5.5% set by the government. One of the main reasons for GDP decline in 2012 in comparison with 2011 was the credit congestion situation which resulted in a strong decline in social investment capital and aggregate demand. In response to this, the government has taken steps to increase economic growth. In December 2012, the central bank lowered the minimum lending rate to 12%, and in September 2012 the government reduced corporate tax by 30% for SMEs, except those operating in the lottery, real estate and securities sectors, and producers of goods that are subject to luxury taxes.
Credit cards category to display strong growth while gaining market share from the debit cards category
The credit cards category recorded the highest growth rate of all card categories with a CAGR of 56.29% during the review period, growing from 228,700 cards in 2008 to 1.4 million cards in 2012. During the forecast period, this category is expected to register a strong CAGR of 23.16%, rising from 1.9 million cards in 2013 to 4.4 million cards in 2017. In 2012, the debit card category held the highest market share of 95.7% in terms of number of cards in circulation, followed by the credit card category with a market share of 2.8%. The prepaid cards category held the lowest market share of 1.5% in 2012.
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