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

Date: June 13, 2013
Pages: 89
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US$ 3,995.00
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Publisher: Timetric
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: EDC59D0F89AEN
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Emerging Opportunities in Croatia'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 Croatia’s cards and payments market, including:
  • Current and forecast values for each category of Croatia’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 Croatia’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 Croatia’s cards and payments industry
Summary

In terms of card in circulation, Croatia’s card payments channel recorded a CAGR of 4.13 % during the review period (2008–2012). The total number of cards in circulation grew from 9.2 million in 2008 to 10.8 million cards in 2012. Over the forecast period (2013–2017), the number is forecast to record a CAGR of 3.47%, rising from 11.3 million cards in 2013 to 13.0 million in 2017. Croatia’s economy is based largely on service sectors such as banking, trade and tourism, which collectedly account for nearly 70% of real gross domestic product (GDP) in the country. In 2009, Croatia’s overall economic activity decelerated due to the global financial crisis which adversely impacted banking, tourism, exports and foreign direct investment (FDI). Croatia will join the European Union (EU) on July 1, 2013, and the country will receive the equivalent of nearly 4% of its total GDP through the EU Cohesion Policy. This financial aid is expected to bring stability and investment to the country’s economy over the forecast period, creating a healthy and favorable climate for the cards and payments industry.

Scope
  • This report provides a comprehensive analysis of Croatia’s cards and payments industry
  • It provides current values for Croatia’s cards and payments industry for 2012 and forecast figures for 2017
  • It details the different macroeconomic, infrastructural, consumer and business drivers affecting Croatia’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 Croatia’s cards and payments industry
Reasons To Buy
  • Make strategic business decisions using historic and forecast market data related to Croatia’s cards and payments industry and each market within it
  • Understand the key market trends and growth opportunities within Croatia’s cards and payments industry
  • Assess the competitive dynamics in Croatia’s cards and payments industry
  • Gain insights into the marketing strategies used for selling various types of cards in Croatia
  • Gain insights into key regulations governing Croatia’s cards and payments industry
Key Highlights
  • Croatia had a population of 4.4 million in 2012 with high levels of card penetration. Debit cards had the highest penetration; with a penetration of 1.4 cards per person in 2008, which increased to 1.7 cards per person in 2012. Over the forecast period, the figure is projected reach 1.9 cards per person.
  • In September 2012, OTP Banka in association with MasterCard PayPass launched contactless payments for low-value transactions up to HRK100 (US$17.1). Similarly, PBZ also started issuing and replacing old debit cards with contactless payment cards. Contactless cards are expected to gain popularity over the forecast period and establish themselves as a mainstream payment platform.
  • Banks and retail outlets in Croatia expanded their infrastructure networks across the country during the review period. The number of ATMs installed in Croatia increased marginally, from 3,342 in 2008 to 4,144 in 2012, at a CAGR of 1.06%. The increasing acceptance of cards at retail outlets and a shift towards making purchases directly with cards resulted in an increasing number of POS transactions during the review period. The number of POS terminals in Croatia recorded a CAGR of 7.59% during the review period, rising from 79,994 in 2008 to 107,171 in 2012. With further increases in the volume of POSs and ATMs, the use of cards as a payment method is expected to grow further over the forecast period.
  • The growth in m-commerce has been enhanced by increased smartphone use in Croatia. The increasing capabilities of smartphone devices, a significant rise in mobile device applications and falling prices have been instrumental in driving m-commerce. Improved search engines and price comparison sites have also been key factors, benefiting the cards and payments industry in Croatia.
1 EXECUTIVE SUMMARY

2 MARKET ATTRACTIVENESS AND FUTURE PROSPECTS OF THE CARDS AND PAYMENTS INDUSTRY

3 ANALYSIS OF CROATIAN CARDS AND PAYMENTS INDUSTRY DRIVERS

3.1 Economic Fundamentals
  3.1.1 Rising per capita income
  3.1.2 GDP growth rate
  3.1.3 Low inflation
3.2 Infrastructure Drivers
  3.2.1 Advanced security measures
  3.2.2 Growing number of ATMs
  3.2.3 Increasing number of POS terminals
  3.2.4 Emergence of contactless payments
3.3 Business Drivers
  3.3.1 Growing m-commerce
  3.3.2 Increased focus on target product offerings
  3.3.3 Consumer shift towards cashless transactions
3.4 Card Fraud Statistics
3.5 Regulatory Framework
  3.5.1 Payment service providers
  3.5.2 Regulations with respect to issuance of credit cards
  3.5.3 Anti-money laundering and combating financing terrorism

4 EMERGING CONSUMER ATTITUDES AND TRENDS

4.1 Market Segmentation and Targeting
  4.1.1 Retail customers
  4.1.2 Corporate customers
4.2 Consumer Preference
  4.2.1 Price
  4.2.2 Convenience
  4.2.3 Services

5 COMPETITIVE LANDSCAPE AND INDUSTRY DYNAMICS

5.1 Industry Share Analysis by Payment Channels
  5.1.1 Overview of payment channels
  5.1.2 Cash transactions
  5.1.3 Direct debits
  5.1.4 Card payments
  5.1.5 Checks
5.2 Debit Cards Category Share
  5.2.1 By bank
  5.2.2 By scheme
5.3 Credit Cards Category Share
  5.3.1 By bank
  5.3.2 By scheme
5.4 Charge Cards Category Share

6 STRATEGIES ADOPTED BY KEY OPERATORS

6.1 Market Entry Strategies
6.2 Marketing and Product Strategies
  6.2.1 Debit cards
  6.2.2 Credit cards
  6.2.3 Prepaid cards
6.3 Pricing Strategies

7 SIZE AND GROWTH POTENTIAL OF THE CARD PAYMENTS CHANNEL

7.1 Channel Share Analysis by Category of Card
7.2 Size and Forecast of the Card Payments Channel
  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 segment – open- and closed-loop cards
  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 number of transactions
  7.5.4 Analysis by frequency of use
7.6 Credit Cards Category Size and Forecast
  7.6.1 Analysis by number of cards
  7.6.2 Analysis by transaction value
  7.6.3 Analysis by number of transactions
  7.6.4 Other key performance indicators

8 COMPANY PROFILES, PRODUCT, AND MARKETING STRATEGIES

8.1 Privredna Banka Zagreb
  8.1.1 Strategies
8.2 Zagrebačka Banka
  8.2.1 Strategies
8.3 Erste&Steiermärkische Bank d.d.
  8.3.1 Strategies

9 APPENDIX

9.1 Methodology
9.2 Contact Timetric
9.3 About Timetric
9.4 Disclaimer



LIST OF FIGURES

Figure 1: Croatia – Growth of Various Card Categories (%), 2008–2017
Figure 2: Growth Potential of Croatia’s Card Payments Channel by Area of Use
Figure 3: Prepaid Cards Category Share by Number of Cards (%), 2012–2017
Figure 4: Croatian Cards and Payments Industry Drivers
Figure 5: Per Capita Income (HRK Thousand) in Croatia, 2008–2017
Figure 6: GDP Growth Rate (%), 2008–2017
Figure 7: Croatia Inflation Rate (%), 2008–2017
Figure 8: Number of ATM Terminals (Thousands) in Croatia, 2008–2017
Figure 9: Number of POS Terminals (Thousands) in Croatia, 2008–2017
Figure 10: Croatian Smartphone Penetration (%), 2011 and 2012
Figure 11: Penetration of 3G Mobile Service in Croatia 2008–2012
Figure 12: Types of Card Offered by Banks in Croatia
Figure 13: Croatian Payment Channels (%), 2008 and 2012
Figure 14: Croatian Card Fraud Statistics (HRK Million), 2008–2012
Figure 15: Croatian Card Payments – Customer Segmentation
Figure 16: Cards Offered to Specialist Professionals in Croatia
Figure 17: The Croatian Young Population (%), 2012
Figure 18: Student Cards Offered by Banks in Croatia
Figure 19: Croatian Population Aged Above 55 Years (Million), 2008–2012
Figure 20: Cards for Retired People by Erste&Steiermärkische Bank in Croatia
Figure 21: Cards Targeting HNWIs by Banks
Figure 22: Corporate Cards Offered in Croatia
Figure 23: Consumer Preferences on Various Card Categories
Figure 24: Issuance Fees for Cards in Croatia
Figure 25: Instalment Facility Offered on Visa Classic Card by OTP Banka
Figure 26: Travel Inconvenience Cover by Erste&Steiermärkische Bank
Figure 27: Shares of Different Payment Channels in Croatia (%), 2012
Figure 28: Value of Croatian Cash Transactions (HRK Billion), 2008–2012
Figure 29: Value of Croatian Direct Debit Transactions (HRK Billion), 2008–2012
Figure 30: Value of Croatian Card Payments (HRK Billion), 2008–2012
Figure 31: Value of Croatian Check Payments (HRK Billion), 2008–2012
Figure 32: Croatian Debit Card Category Shares by Bank (%), 2011
Figure 33: Croatian Debit Card Category Shares by Scheme (%), 2011
Figure 34: Croatia Credit Card Category Shares by Bank (%), 2011
Figure 35: Croatia Credit Card Category Shares by Scheme (%), 2011
Figure 36: Croatia Charge Card Category Shares by Scheme (%), 2011
Figure 37: List of Foreign Banks Operating in Croatia
Figure 38: Marketing Strategies by Card Categories
Figure 39: Discounts offered by Erste&Steiermärkische Bank d.d. via Debit Cards
Figure 40: PBZ Inspire Card and its Features
Figure 41: Monthly Fees for Debit Cards by Croatian Banks
Figure 42: Erste&Steiermärkische Bank’s Credit Card Loyalty Points Program
Figure 43: Co-Branded and Affinity Cards Offered in Croatia
Figure 44: Complementary Insurance Services on Credit Cards Provided by Croatian Banks
Figure 45: Prepaid Gift Cards Offered by PBZ in Croatia
Figure 46: Charges on Debit Cards by Various Banks in Croatia
Figure 47: Corporate Card Pricing of Hypo Alpe Adria Bank
Figure 48: Croatian Card Payments Channel by Card Category (%), 2008–2017
Figure 49: Croatian Card Payments Channel Size by Number of Cards (Thousands), 2008–2017
Figure 50: Croatian Card Payments Channel Size by Transaction Value (HRK Billion), 2008–2017
Figure 51: Croatian Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Figure 52: Croatian Debit Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 53: Croatian Debit Card Category Size by Value of Transaction (HRK Billion), 2008–2017
Figure 54: Croatian Debit Card Category Size by Number of Transactions (Million), 2008–2017
Figure 55: Croatian Debit Card Category Frequency of Use, 2008–2017
Figure 56: Debit Card Use at ATMs and POS Terminals (Million), 2008–2017
Figure 57: Croatian Prepaid Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 58: Croatian Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousands)
Figure 59: Croatian Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousands), 2008–2017
Figure 60: Croatian Prepaid Cards Category Size by Transaction Value (HRK Million), 2008–2017
Figure 61: Croatian Charge Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 62: Croatian Charge Cards Category Size by Transaction Value (HRK Million), 2008–2017
Figure 63: Croatian Charge Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 64: Croatian Charge Cards Category Frequency of Use, 2008–2017
Figure 65: Croatian Credit Card Category Size by Number of Cards (Thousands), 2008–2017
Figure 66: Croatian Credit Cards Category Size by Transaction Value (HRK Billion), 2008–2017
Figure 67: Croatian Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Figure 68: Croatian Credit Cards Category Frequency of Use, 2008–2017
Figure 69: Croatian Credit Cards Category Average Transaction Value (HRK), 2008–2017
Figure 70: Privredna Banka Zagreb – Market Segmentation of Cards Offered
Figure 71: Cards Offered by Privredna Banka Zagreb
Figure 72: The My Way Classic Visa Card
Figure 73: Zagrebačka Banka – Segmentation of Cards Offered
Figure 74: Cards Offered by Zagrebačka Banka
Figure 75: Erste&Steiermärkische Bank d.d. – Segmentation of Cards Offered
Figure 76: Strategies by Erste&Steiermärkische Bank d.d.
Figure 77: Customized Card Format of Erste&Steiermärkische Bank

COMPANIES MENTIONED

Privredna Banka Zagreb
Zagrebačka Banka
Erste & Steiermärkische Bank d.d.
OTP Banka

In terms of card circulation, Croatia’s card payments channel recorded a CAGR of 4.13% between 2008 and 2012 when the total number of cards in circulation grew from 9.2 million to 20.8 million. This number is forecast to continue to grow all the way to 2017 at a CAGR of 3.47% and eventually reach 13.0 million.

Croatia had a population of 4.4 million in 2012, with high levels of card penetration. Debit cards have the highest penetration and saw an increase from 1.4 cards per person in 2008 to 1.7. This is expected to reach 1.9 cards per person by 2017. 

Croatia’s economy is based largely on service sectors such as banking, trade and tourism, which collectedly account for nearly 70% of real gross domestic product (GDP) in the country. In 2009, Croatia’s overall economic activity decelerated due to the global financial crisis which adversely impacted banking, tourism, exports and foreign direct investment (FDI). Croatia will join the European Union (EU) on July 1, 2013, and the country will receive the equivalent of nearly 4% of its total GDP through the EU Cohesion Policy. This financial aid is expected to bring stability and investment to the country’s economy between now and 2017, creating a healthy and favorable climate for the cards and payments industry.

Commercial banks and retail organizations have been promoting contactless payment technology to increase speed and convenience of payments for consumers throughout the world. The technology also offers improves security to control fraudulent transactions. In Croatia, banks have started to introduce contactless payment systems such as Visa’s payWave, and MasterCard’s PayPass.

The growth in m-commerce has been enhanced by increased smartphone use in Croatia. The increasing capabilities of smartphone devices, a significant rise in mobile device applications and falling prices have been instrumental in driving m-commerce. Improved search engines and price comparison sites have also been kay factors, benefiting the cards and payments industry in Croatia.

The material was prepared in July, 2013.

LIST OF TABLES

Table 1: Croatian Payment Channels (HRK Billion), 2008–2012
Table 2: Croatian Card Payments Channel by Card Category (Thousands), 2008–2017
Table 3: Croatian Card Payments Channel Size by Number of Cards (Thousands), 2008–2017
Table 4: Croatian Card Payments Channel Size by Transaction Value (HRK Billion), 2008–2017
Table 5: Croatian Card Payments Channel Size by Transaction Value (US$ Billion), 2008–2017
Table 6: Croatian Card Payments Channel Size by Number of Transactions (Million), 2008–2017
Table 7: Croatian Debit Card Category Size by Number of Cards (Thousands), 2008–2017
Table 8: Croatian Debit Card Category Size by Value of Transaction (HRK Billion), 2008–2017
Table 9: Croatian Debit Card Category Size by Value of Transaction (US$ Billion), 2008–2017
Table 10: Croatian Debit Card Category Size by Number of Transactions (Million), 2008–2017
Table 11: Croatian Debit Card Category Frequency of Use, 2008–2017
Table 12: Croatian Prepaid Card Category Size by Number of Cards (Thousands), 2008–2017
Table 13: Croatian Open-Loop Prepaid Cards Segment Size by Number of Cards (Thousands)
Table 14: Croatian Closed-Loop Prepaid Cards Segment Size by Number of Cards (Thousands)
Table 15: Croatian Prepaid Cards Category Size by Transaction Value (HRK Million), 2008–2017
Table 16: Croatian Prepaid Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 17: Croatian Charge Card Category Size by Number of Cards (Thousands), 2008–2017
Table 18: Croatian Charge Card Category Size by Transaction Value (HRK Million), 2008–2017
Table 19: Croatian Charge Cards Category Size by Transaction Value (US$ Million), 2008–2017
Table 20: Croatian Charge Cards Category Size by Number of Transactions (Million), 2008–2017
Table 21: Croatian Charge Cards Category Frequency of Use, 2008–2017
Table 22: Croatian Credit Card Category Size by Number of Cards (Thousands), 2008–2017
Table 23: Croatian Credit Cards Category Size by Transaction Value (HRK Billion), 2008–2017
Table 24: Croatian Credit Cards Category Size by Transaction Value (US$ Billion), 2008–2017
Table 25: Croatian Credit Cards Category Size by Number of Transactions (Million), 2008–2017
Table 26: Croatian Credit Cards Category Frequency of Use, 2008–2017
Table 27: Croatian Credit Cards Category Average Transaction Value (HRK), 2008–2017
Table 28: Croatian Credit Cards Category Average Transaction Value (US$), 2008–2017

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