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

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For more information:



Sarah Smith



Research Advisor at Reportbuyer.com



Email: query@reportbuyer.com



Tel: +44 208 816 85 48



Website: http://ift.tt/ORNIX1

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