Emerging Opportunities in Portugal’s Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Date: December 14, 2012
Pages: 84
Price:
US$ 4,495.00
License [?]:
Publisher: Timetric
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: E3294007D98EN
Leaflet:

Download PDF Leaflet

Emerging Opportunities in Portugal’s Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape
Synopsis

The report provides market analysis, information and insights into Portugal’s cards and payments industry, including:
  • Current and forecast values for each category of Portugal’s cards and payments industry including debit cards, credit cards, prepaid cards and charge cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Portugal’s cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by various bankers and other institutions in the market
  • Comprehensive analysis of consumer attitudes and their buying preferences for cards
  • Competitive landscape of Portugal’s cards and payments industry
Summary

The Portuguese financial system has been dramatically affected by the sovereign debt crisis. In order to stabilize the country’s economy, Portugal adopted austerity measures such as huge spending cuts, tax rises and a freeze on pensions. The total cards and payments industry exhibited nominal growth during the review period (2008–2012) with a CAGR of 0.28% and is expected to record a CAGR of 1.91% during the forecast period. Card volume grew from 20.8 million in 2008 to 21 million in 2012 while total cards in circulation are expected to grow from 21.6 million in 2013 to 23.3 million in 2017. In terms of payment channels, credit transfers held the highest market share of 78.5% in 2012, followed by check payments with the second-largest market share of 12.7% in 2012. Online shopping in Portugal is increasing as a result of improvements in telecommunications infrastructure and payment and security systems, as well as an increased consumer willingness and awareness towards online shopping. Increasing internet penetration was a key driver behind online retail sales in the country and the evolution of the modern retail sector, with emerging trends such as department stores, supermarkets, hypermarkets and specialty stores, also significantly impacted the purchasing decisions of consumers. Out of total mobile users, 72.5% had active mobile broadband subscriptions while internet penetration reached 50.8% in December 2011.

Scope
  • This report provides a comprehensive analysis of Portugal’s cards and payments industry
  • It provides current values for Portugal’s cards and payments industry for 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Portugal’s cards and payments industry
  • It outlines the current regulatory framework in the industry
  • It details the marketing strategies used by various bankers and other institutions
  • It profiles the major banks in Portugal’s cards and payments industry
Reasons To Buy
  • Make strategic business decisions using historic and forecast market data related to Portugal’s cards and payments industry and each market within it
  • Understand the key market trends and growth opportunities within Portugal’s cards and payments industry
  • Assess the competitive dynamics in Portugal’s cards and payments industry
  • Gain insights into the marketing strategies used for selling various types of cards in Portugal
  • Gain insights into key regulations governing Portugal’s cards and payment industry
Key Highlights
  • The Portuguese financial system has been dramatically affected by the sovereign debt crisis. In order to stabilize the country’s economy, Portugal adopted austerity measures such as huge spending cuts, tax rises and a freeze on pensions.
  • In May 2011, the economic adjustment program was agreed by the Ecofin Council and the International Monetary Fund (IMF) Executive Board and covers the period between 2011 and 2014. The program offers external financing by the European Union, Eurozone member states and the IMF of up to EUR78 billion, for possible fiscal financing needs and to provide support to Portugal’s banking sector.
  • Portugal’s key exports are clothing and footwear, machinery, chemicals, cork and paper products, and animal hides. The value of the country’s exports reached EUR3.3 billion in August 2012.
  • The internet penetration rate in Portugal is increasing. The country has a wide network of private internet cafés throughout the country and the government is encouraging people to use the internet via Espaço Internet, which allows free access to the internet to anyone in Portugal.
  • The majority of banks in Portugal have implemented EMV technology in their card products. Card fraud transaction value declined by 18.8% during the review period as a result of the improved security measures with EMV chip migration. Card fraud transaction values at POS decreased by 10%.
  • Improvements in telecommunications infrastructure and payment and security systems, as well as increased consumer awareness and willingness towards online shopping, resulted in the rapid growth of online retail in Portugal.
  • All card types posted positive growth during the review period, except debit cards. The highest growth in terms of number of cards issued was registered in the charge card category which had a CAGR of 11.94%. The second largest growth, in terms of total number of cards issued, was seen in the prepaid card category which recorded a CAGR of 11.01%. The debit cards category recorded a CAGR of -2.66% during the review period while the credit card category registered a CAGR of 3.03%.
1 EXECUTIVE SUMMARY

2 MARKET ATTRACTIVENESS AND FUTURE PROSPECTS OF CARDS AND PAYMENTS INDUSTRY

3 ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS

3.1 Macroeconomic Fundamentals
  3.1.1 Exports lead the way for economic recovery
  3.1.2 Economic activity developments to improve the country’s GDP
  3.1.3 Economic adjustment program to support the banking sector
3.2 Infrastructure Drivers
  3.2.1 Increasing number of POS terminals
  3.2.2 Increasing number of internet users
  3.2.3 Growing number of ATMs
  3.2.4 Decrease in fraud losses due to the adoption of EMV technology
3.3 Business Drivers
  3.3.1 E-commerce
  3.3.2 Low penetration of credit cards
  3.3.3 Increasing competition
3.4 Consumer Drivers
  3.4.1 Growing consumer confidence expected to increase online sales
  3.4.2 Urban vs. rural population
  3.4.3 Changing consumer lifestyle and spending pattern
3.5 Card Fraud Statistics
  3.5.1 By channel
3.6 Regulatory Framework
  3.6.1 SEPA cards framework
  3.6.2 Framework for money laundering

4 EMERGING CONSUMER ATTITUDES AND TRENDS

4.1 Market Segmentation and Targeting
  4.1.1 Retail sector
  4.1.2 Corporate sector
4.2 Consumer Preference
  4.2.1 Price
  4.2.2 Service
  4.2.3 Convenience
4.3 Online Buying Behaviour

5 COMPETITIVE LANDSCAPE AND INDUSTRY DYNAMICS

5.1 Market Share Analysis by Payment Channels
  5.1.1 Overview of the payment channels
  5.1.2 Credit transfer
  5.1.3 Direct debit
  5.1.4 Card payments
  5.1.5 Check payments
5.2 Debit Cards Category Share
  5.2.1 By bank
  5.2.2 By scheme
5.3 Credit Card Category Share
  5.3.1 By bank
  5.3.2 By scheme
5.4 Charge Cards Category Share
  5.4.1 By card type

6 STRATEGIES ADOPTED BY KEY PLAYERS

6.1 Market Entry Strategies
6.2 Marketing/Product Strategy
  6.2.1 Debit cards
  6.2.2 Credit cards
6.3 Pricing Strategies

7 MARKET SIZE AND GROWTH POTENTIAL OF PAYMENT CARD INDUSTRY

7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Industry
  7.2.1 Analysis by number of cards
  7.2.2 Analysis by transaction value
  7.2.3 Analysis by transaction volume
7.3 Debit Card Category Size and Forecast
  7.3.1 Analysis by number of cards
  7.3.2 Analysis by transaction value
  7.3.3 Analysis by transaction volume
  7.3.4 Other key performance indicators
7.4 Prepaid Card Category Size and Forecast
  7.4.1 Analysis by number of cars – segment wise
  7.4.2 Analysis by transaction value
7.5 Charge Card Category Size and Forecast
  7.5.1 Analysis by number of cards
  7.5.2 Analysis by transaction value
  7.5.3 Analysis by transaction volume
  7.5.4 Analysis by frequency of use
7.6 Credit Card Category Size and Forecast
  7.6.1 Analysis by number of cards
  7.6.2 Analysis by transaction value
  7.6.3 Analysis by transaction volume
  7.6.4 Other key performance indicators

8 COMPANY PROFILES, PRODUCT, AND MARKETING STRATEGIES

8.1 Banif Financial Group
  8.1.1 Strategies
  8.1.2 Debit cards offered
  8.1.3 Credit cards offered
8.2 Banco Comercial Portugues S.A.
  8.2.1 Strategies
  8.2.2 Debit cards offered
  8.2.3 Prepaid card offered
  8.2.4 Credit card offered
8.3 Banco Português de Investimento (BPI)
  8.3.1 Strategies
  8.3.2 Debit cards offered
  8.3.3 Credit cards offered

9 APPENDIX

9.1 Methodology
9.2 Definitions
9.3 Contact Us
9.4 About Timetric
  9.4.1 Our Approach
9.5 Services
9.6 Disclaimer



LIST OF FIGURES

Figure 1: Current and Future Prospects of Various Cards in Portugal, 2008–2017
Figure 2: Growth Potential of Portugal’s Cards and Payments Industry by Area of Usage
Figure 3: Portugal’s Cards and Payments Industry Drivers
Figure 4: Portugal GDP Growth (%), 2008–2017
Figure 5: Number of POS Terminals in Portugal (Thousand), 2008–2017
Figure 6: Portugal Internet Users, 2008–2012
Figure 7: Number of ATMs in Portugal (Thousand), 2008–2017
Figure 8: Portugal Urban and Rural Population (Million), 2008–2012
Figure 9: Portugal Disposable Income (EUR Million), 2008–2012
Figure 10: Portugal Card Fraud Statistics (EUR Million), 2008–2012
Figure 11: ‘Free Junior’ Card for Children
Figure 12: Barclaycard and Cepsa Co-Branded Card
Figure 13: European Landscape of Co-Branded Cards With Number of Programs
Figure 14: Consumer Preferences on Various Types of Cards
Figure 15: Online Shopping Penetration of European Countries, 2011
Figure 16: Share of Different Payment Channels in Portugal (%), 2008 and 2012
Figure 17: Portugal Value and Growth of Credit Transfer (EUR Million), 2008–2012
Figure 18: Portugal Value and Growth of Direct Debit (EUR Million), 2008–2012
Figure 19: Portugal Value and Growth of Card Payments (EUR Million), 2008–2012
Figure 20: Portugal Value and Growth of Check Payments (EUR Million), 2008–2012
Figure 22: Portugal Debit Card Category Share by Schemes (%), 2011
Figure 23: Portugal Credit Card Category Share by Bank (%), 2011
Figure 24: Portugal Credit Card Category Share by Schemes (%), 2011
Figure 26: Marketing/Product Strategies Based on Card Type
Figure 27: Portugal Cards and Payments Industry, Number of Debit Cards (Thousands), 2008–2017
Figure 28: Portugal Credit Card Product Portfolio (Thousands), 2007–2011
Figure 29: Credit Cards Offered by Barclays Bank for Businesses
Figure 30: Portugal Cards Industry by Type of Card (%), 2008–2017
Figure 31: Portugal Cards Industry Size by Volume (Thousands), 2008–2017
Figure 32: Portugal Cards Market Size by Transaction Value (EUR Million), 2008–2017
Figure 33: Portugal Cards Market Size by Transaction Volume (Million), 2008–2017
Figure 34: Portugal Debit Card Category Size (Thousands), 2008–2017
Figure 35: Portugal Debit Card Category Size (EUR Million), 2008–2017
Figure 36: Portugal Debit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 37: Portugal Card Category Size by Frequency of Use (Transaction/Card/Year), 2008–2017
Figure 38: Debit Card Usage ATMs and POS Terminals (Million), 2008–2017
Figure 39: Portugal Prepaid Card Category Size (Thousands), 2008–2017
Figure 40: Portugal Open-Loop Prepaid Cards Category Size (Thousands), 2008–2017
Figure 41: Portugal Closed-Loop Prepaid Cards Category Size (Thousands), 2008–2017
Figure 42: Portugal Prepaid Cards Category Size (EUR Million), 2007–2016
Figure 43: Portugal Charge Card Category Size (Thousands), 2008–2017
Figure 44: Portugal Charge Card Category Size (EUR Million), 2008–2017
Figure 45: Portugal Charge Card Category Size by Transaction Volume (Million), 2008–2017
Figure 46: Portugal Charge Card Category Size by Frequency of Use (Transaction/Card/Year), 2008–2017
Figure 47: Portugal Credit Card Category Market Size by Volume (Thousands), 2008–2017
Figure 48: Portugal Credit Card Category Size by Transaction Value (EUR Million), 2008–2017
Figure 49: Portugal Credit Card Category Size by Transaction Volume (Million), 2008–2017
Figure 50: Portugal Credit Card Category Size by Frequency of Use (Transaction/Card/Year), 2008–2017
Figure 51: Portugal Credit Card Category Market Size by Average Transaction Value (EUR), 2008–2017
Figure 52: Banif Financial Group Market Segmentation of Cards Offered
Figure 53: Banco Comercial Portugues Market Segmentation of Cards Offered
Figure 54: Banco Portugues de Investimento Market Segmentation of Cards Offered

COMPANIES MENTIONED

Banif Financial Group
Banco Comercial Portugues S.A.
Banco Português de Investimento (BPI)
Banco Santander Totta
Gemalto

The Portuguese financial system has been dramatically affected by the sovereign debt crisis. In order to stabilize the country’s economy, Portugal adopted austerity measures such as huge spending cuts, tax rises and a freeze on pensions which is expected to encourage positive growth over the forecast period (2013–2017). The total cards and payments industry exhibited a nominal growth during the review period (2008–2012) with a CAGR of 0.28% and is expected to record a CAGR of 1.91% during the forecast period. Card volume grew from 20.8 million in 2008 to 21.0 million in 2012 while the total cards in circulation are expected to grow from 21.6 million in 2013 to 23.3 million in 2017. In terms of payment channels, credit transfers held the highest market share of 78.5% in 2012, followed by check payments with the second-largest market share of 12.7% in 2012.

Online shopping in Portugal is increasing as a result of improvements in telecommunications infrastructure and payment and security systems, as well as an increased consumer willingness and awareness towards online shopping. Increasing internet penetration was a key driver behind online retail sales in the country and the evolution of the modern retail sector, with emerging trends such as department stores, supermarkets, hypermarkets and specialty stores, also significantly impacted the purchasing decisions of consumers. Out of the total mobile users, 72.5% had active mobile broadband subscriptions while internet penetration reached 50.8% in December 2011.

The material was prepared in June, 2013.

LIST OF TABLES

Table 1: Portugal Payment Channels (EUR Million), 2008 and 2012
Table 2: Market Entry Strategies of Foreign Banks in Portugal
Table 3: Portugal Credit Card Product Portfolio (Thousands), 2007–2011
Table 4: Portugal Cards Industry by Type of Card (Thousands), 2008–2017
Table 5: Portugal Cards Industry Size by Volume (Thousands), 2008–2017
Table 6: Portugal Cards Market Size by Transaction Value (EUR Million), 2008–2017
Table 7: Portugal Cards Market Size by Transaction Value (USD Million), 2008–2017
Table 8: Portugal Cards Market Size by Transaction Volume (Million), 2008–2017
Table 9: Portugal Debit Card Category Size (Thousands), 2008–2017
Table 10: Portugal Debit Card Category Size (EUR Million), 2008–2017
Table 11: Portugal Debit Card Category Size (USD Million), 2008–2017
Table 12: Portugal Debit Card Category Size by Transaction Volume (Million), 2008–2017
Table 13: Portugal Card Category Size by Frequency of Use (Transaction/Card/Year), 2008–2017
Table 14: Portugal Prepaid Card Category Size (Thousands), 2008–2017
Table 15: Portugal Open-Loop Prepaid Cards Category Size (Thousands), 2008–2017
Table 16: Portugal Closed-Loop Prepaid Cards Category Size (Thousands), 2008–2017
Table 17: Portugal Prepaid Cards Category Size (EUR Million), 2008–2017
Table 18: Portugal Prepaid Cards Category Size (USD Million), 2008–2017
Table 19: Portugal Charge Card Category Size (Thousands), 2008–2017
Table 20: Portugal Charge Card Category Size (EUR Million), 2008–2017
Table 21: Portugal Charge Card Category Size (USD Million), 2008–2017
Table 22: Portugal Charge Card Category Size by Transaction Volume (Million), 2008–2017
Table 23: Portugal Charge Card Category Size by Frequency of Use (Transaction/Card/Year), 2008–2017
Table 24: Portugal Credit Card Category Size by Volume (Thousands), 2008–2017
Table 25: Portugal Credit Card Category Size by Transaction Value (EUR Million), 2008–2017
Table 26: Portugal Credit Card Category Size by Transaction Value (USD Million), 2008–2017
Table 27: Portugal Credit Card Category Size by Transaction Volume (Million), 2008–2017
Table 28: Portugal Credit Card Category Size by Frequency of Use (Transaction/Card/Year), 2008–2017
Table 29: Portugal Credit Card Category Size by Average Transaction Value (EUR), 2008–2017
Table 30: Portugal Credit Card Category Size by Average Transaction Value (USD), 2008–2017
Table 31: Cards and Payments Key Definitions

Ask Your Question

Emerging Opportunities in Portugal’s Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape
Company name*:
Contact person*:
Phone/fax*:
Email*:
Request invoice
Your enquiry: