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Asia Credit Cards Market Outlook to 2025

By Commercial and Personal Credit Cards; By Transactions at ATM and POS Terminals; by Total Cards in Circulation; Transaction Value and Volume through Issuers and Operators; and by Countries (Japan, South Korea, India, China, Indonesia, Philippines, Singapore and Others

Region:Asia

Author(s):Dhruv Sharma

Product Code:KR928

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Published On

December 2019

Total pages

275

About the Report

The report titled "Asia Credit Cards Market Outlook to 2025 - By Commercial and Personal Credit Cards; By Transactions at ATM and POS Terminals; by Total Cards in Circulation; Transaction Value and Volume through Issuers and Operators; and by Countries (Japan, South Korea, India, China, Indonesia, Philippines, Singapore and Others" provides a comprehensive analysis of the credit cards industry within Asia covering various aspects including the introduction and genesis, market size of credit cards by value and volume of transaction, number of cards in circulation, segmentation by personal and commercial credit cards, transactions at ATM and POS terminals, transaction value of credit cards through operators and issuers and total cards in circulation by operators and issuers. It also covers issues and challenges, trends and developments, SWOT analysis, country profiles of major countries and regulatory framework of the industry. The report concludes with market projections and analyst recommendations highlighting major opportunities and cautions.
Asia Credit Cards Market
 

Asia Credit Cards Market Overview and Size

The rapidly increasing digital payments industry in Asia has scaled up rapidly over the last few years which has led to an increase in credit card usage. The total transaction value showcased high growth in Asia along with a CAGR of 14.2% for the period 2013-2018. The rise of affordable smartphones and subsequent internet and mobile penetration has led to significant growth in the digital payments space. The people in these mature markets are aware of digital payments and have steadily embraced non-cash methods over the years. The total number of credit cards in circulation increased at a CAGR of 12.9% during 2013-2018. The current usage of cash in emerging countries exceeds 90.0%. They have seen some traction in the last few years, primarily due to mobile and internet penetration and a focus on financial inclusion through mobile-based services. In most of the developed countries such as Singapore and Japan, more than 80.0% of adults have access to financial services. Regulators and governments of emerging and developing countries can set up a separate entity such as the National Payments Corporation of India (NPCI) to promote retail payments and further increase the usage and circulation of credit cards.
 

Asia Credit Cards Market Segmentation

Japan was leading in terms of total cards in circulation and also in the total transaction value of credit cards in the year 2018. Total credit cards in circulation had a CAGR of 0.9% in the period 2013-2018. Credit card POS transactions increased steadily over the last year within Asia thus, keeping with the government’s objective of promoting cashless payments in most of the countries. Japan was followed by South Korea, India and China in terms of the total number of credit cards in circulation respectively during the year 2018. Installation of a larger number of POS terminals at merchant locations and the higher number of cards in circulation, especially amongst urban residents, aided the growth of credit card transactions in countries such as China, India, Philippines, and others. ATM cash withdrawals by credit card are much lower than POS transactions because of high transaction charges in the case of ATM withdrawal. Banks tend to charge 2.5-3.0% of the withdrawn amount subject to a minimum amount.
 

Comparative Landscape in Asia Credit Cards Market

Competition within the Asia credit card market was observed as concentrated, showcasing the late growth stage. The competitive growth in the credit card industry of Asia was driven by deep client partnerships, strong cross-border growth, significant long-term growth opportunities, and tailored strategies. The major operators in the Asian credit card industry were UnionPay International Co. Ltd., Visa Inc., MasterCard International Inc., JCB Card Co., and Shinhan Financial Group Co. Ltd. in terms of total cards in circulation and total transaction value during the year 2018. Industrial and Commercial Bank of China Ltd dominated in terms of total cards in circulation in 2018. It was followed by China Merchants Bank Co Ltd, China Construction Bank Corp and Bank of China Ltd.
In order to attract larger customer base, there has been introduction of various types of credit cards as per the users need such as reward cards for rewards for shopping, traveling and even filling up the fuel in vehicles, there are cards where the design and the appearance of the credit cards can be customized as per the users need, credit cards with NFC technology or contactless technology which helps to make faster payments through POS terminals. All these customer attraction schemes have made the credit card market in Asia to be recognized as highly competitive, therefore, displaying huge barriers for new entrants in almost every country in Asia.
 

Country Profiles of Major Countries in Asia credit Card Market

In India, banks tightened regulations to address rising defaults therefore; credit card issuance fell sharply in the early years of the current decade. The growth in credit cards in circulation picked up for both personal and commercial cards in 2018, as banks also looked to increase their revenue from the commercial space.
In Indonesia, the middle and upper-middle classes of credit card users are concerned about the disclosure of tax information due to credit cards being subject to investigation, causing inconvenience. Although subjects of interest are consumers whose transactions exceed IDR 1 billion a year, the public concern is still stirred because of it relating to consumers’ privacy. Hence, people are refraining from making purchases through credit cards, and prefer to use cash instead. The cashless revolution encouraged credit card transaction volume and value in Singapore.
In Malaysia, credit card issuers are extending services to include installment plans at interest-free or low rates as this type of credit provides convenience thus, eliminating all kinds of complicated paperwork. As a result, the credit card industry in Malaysia has little competition thus, allowing growth despite the rising popularity of mobile payments.
South Korea mobile payment platform drives personal credit card value growth, whilst commercial credit card value growth slows down due to government policy of eliminating corporate tax benefits.
In the Philippines, the regulations that implement the Philippine Credit Card Industry Regulation Law (Republic Act No 10870) were approved by the Monetary Board (MB) in May of 2018 to boost the credit cards in circulation and eventually improve the credit card transaction value. The new regulations aim to make credit cards readily available and easier to use for consumers.
In China, intense innovations in IT capabilities help drive the growth of credit cards whereas, in Japan, the government continues to encourage cashless payments as part of its economic growth strategy in 2018.
 

Asia Credit Cards Market Future Outlook and Projections

By the forecast period ending 2025, it is expected that the total number of credit cards in circulation in Asia will grow at a positive CAGR of 6.8% for the period 2018-2025. The expected growth in contactless payments through credit cards will be a major growth driver for the increase in the transaction value because of the ease and speed provided. The total transaction value of credit cards in Asia will have a CAGR of 7.4% during 2018-2025. Within Asia, major card networks are looking to tie up with banking partners for the issuance of contactless cards. The role of specific regulatory bodies in monitoring, regulating and promoting digital payments in Asia will have a great impact on the issuance of the credit cards in the future. Partnerships with FinTech will play a crucial role in the development of the digital payments ecosystem by promoting innovation and enabling open-loop payments that promote the adoption of digital payments. In countries such as the Philippines, Vietnam, China, Bangladesh, and others, increased remittance partnerships with international players have opened up the market for more such partnerships with money transfer companies to enable digital remittance transfers to accounts and wallets in Bangladesh. Thus, there will be more opportunities for FinTech / banks / international players as regulators and the government bodies are also encouraging new solutions that will boost digital payments.

Products

Credit cards

  • Value of transaction by Issuer and Operator
  • Volume of transaction by Issuer and Operator
  • Number of Credit Cards in Circulation by Issuer and Operator
  • Commercial and Personal Credit Cards
  • Transactions at ATM and POS

Companies

Companies Covered in Asia Credit Card Market:

Banks (Issuer)

  • HDFC, India
  • Bank Mandiri, Indonesia
  • Bank CIMB Niaga, Indonesia
  • UOB, Singapore
  • DBS, Singapore
  • Citibank BHD, Malaysia
  • Malaysian Banking , Malaysia
  • Shinhan Card , South Korea
  • KB Kookmin, South Korea
  • BDO Unibank, Philippines
  • Metropolitan Bank, Philippines
  • ICBC Bank, China
  • China Merchants Bank, China
  • JCB, Japan
  • Credit Saison, Japan
  • Others (SBI India, Bank CIMB Niaga Indonesia, Bank Mega, Citibank, HSBC Holdings Plc, Rizal Commercial Banking CORP (RCBC) and Rest)

Operators

  • Visa Inc.
  • MasterCard
  • American Express
  • Bank Central Asia
  • Union Pay International
  • Others (Shinhan Card, BC Card, Petron Corp, Taiwan Rakuten Card and Rest)

Table of Contents

1. Executive Summary

1.1Asia Credit cards Market Overview

1.2Competitive Landscape in Asia Credit Cards market

1.3Asia Credit Cards Market Future Prospects

2. Research Methodology

2.1. Market Definitions

2.2. Abbreviations

2.3. Market Sizing and Modeling

2.4Consolidated Research Approach

2.5Market Sizing Aproach– Asia Credit Cards Market

2.6Sample Size Inclusion Table

2.7Limitations

2.8Variables (Dependent and Independent)

2.9 Final Conclusion

3. Asia Credit Cards Market Overview and Genesis

3.1. Overview

3.2. Business Cycle Flowchart

3.3. Asia Credit Cards Regional Scenario

4. Asia Credit Cards Market Value Chain and Business Model Analysis

4.1. Working Process Flow Chart

4.2. Value Chain of Credit Cards Payments Market

4.2.1. Case of Transaction Failure in case of a Credit Card

4.2.2. Analysis of Traditional and Emerging Business Model
Ecosystem for Asia Credit Cards Payment Industry

4.3. Decision Making Parameters for Selecting a Credit Card Payment Gateway

4.4. Competition Landscape of Asia Credit cards Payment Industry

5. Asia Credit Cards Market Size, 2013-2018

5.1. Asia Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

6. Asia Credit Card Market Segmentation by Country, 2013-2018

Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

7. Asia Credit Cards Market Competitive Scenario

8. Trends and Developments in Asia Credit card Market

8.1. More Dining and Entertainment Rewards

8.2. More co-branded retail cards

8.3. Increased contactless Paying Options for Credit Card Holders in Asia

8.4. Introduction of Metal Credit Cards in Asian Market

9. Issues and Challenges in Asia Credit Cards Market

9.1. Security Issues With The Credit Card Companies

9.2. Vulnerable Online Systems

9.3. Issues related to Crypto-currencies

9.4. Fees Associated With Credit Cards

9.5. Disruption From FinTech has Forced Credit Card Networks to Take Collaborative and Compete Approach

10. SWOT Analysis

11. India Credit Cards Market

11.1. India Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

11.2. India Credit Cards Market Segmentation, 2013-2018

11.2.1. By Personal and Commercial Credit Cards, 2013-2018

11.2.2. By Shopping (POS) and ATM Withdrawals, 2013-2018

By Transaction Volume, 2013-2018

By Value of Transactions at POS/Shopping

11.3. Competitive Landscape

Strength and Weakness for Major Issuers in India Credit Cards Market
Cross Comparison Table for Issuers and Operators in India Credit Cards Market

11.3.1. Major Issuers (HDFC BANK LTD, STATE BANK OF INDIA, ICICI BANK LTD, AXIS BANK LTD, CITI BANK, KOTAK MAHINDRA BANK LTD, RATNAKAR BANK LIMITED and Others) Operating in India Credit Card Market, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value and Number of Transactions, 2017-2018

11.3.2. Major Operators (Visa Inc., MasterCard International Inc., American Express Co., Diners Club International Ltd. and Others), 2013-2018
By Cards in Circulation, 2013-2018
By Transaction Value, 2013-2018

11.4. Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

12. Indonesia Credit Cards Market

12.1. Indonesia Credit Cards Market Overview and Size

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

12.2. Indonesia Credit Cards Market Segmentation, 2013-2018

12.2.1. By Personal and Commercial Credit Card, 2013-2018

12.2.2. By Shopping (POS) and ATM Withdrawals, 2013-2018

By Value of Transactions, 2013-2018

By Volume of Transactions, 2013-2018

12.3. Competitive Landscape

Strength and Weakness for Major Players in Indonesia Credit Cards Market

Cross Comparison Table for Banks in Indonesia Credit Cards Market

12.3.1. Major Issuers (Bank Central Asia, Bank Negara Indonesia, Bank Mega, Bank Mandiri, Bank 
CIMB Niaga and Others) Operating in Indonesia Credit Card Market, 2013-2018

By Cards in Circulation, 2013-2018

By Credit Cards Transaction value, 2013-2018

12.3.2. Major Operators (VISA Worldwide, MasterCard, Bank Central Asia, JCS International, 
American Express and Others), 2013-2018

By Cards in Circulation, 2013-2018

Transaction Value by, 2013- 2018

12.4. Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

13. Singapore Credit Cards Market

13.1. Singapore Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

13.2. Singapore Credit Cards Market Segmentation, 2013-2018

13.2.1. By Personal and Commercial Credit Cards, 2013-2018

By Credit Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Transaction Volume, 2013-2018

13.3. Competitive Landscape

Strength and Weakness for Major Issuers in Singapore Credit Cards Market

Cross Comparison Table for Issuers/Banks in Singapore Credit Cards Market

13.3.1. Major Issuers (United Overseas Bank Ltd., DBS Group Holdings Ltd, Oversea-Chinese 
Banking Corp Ltd (OCBC Bank), Citibank Singapore Ltd., HSBC Holdings, and Others) Operating in 
Singapore Credit Card Market, 2013-2018

By Cards in Circultaion, 2013-2018

Total Number of Credit Cards Transaction Value, 2013-2018

13.3.2. Major Operators (Visa Inc, MasterCard International Inc, American express Co., Diners 
Club (Singapore) Pie Ltd, Union Pay International Co Ltd, JCB Co Ltd and Others), 2013-2018

By Cards in Circulation, 2013-2018

Transaction Value by Different Operators, 2013- 2018

13.4. Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

14. Malaysia Credit Cards Market

14.1. Malaysia Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

14.2. Malaysia Credit Cards Market Segmentation, 2013-2018

14.2.1. By Personal and Corporate Credit Cards, 2013-2018

By Total Number of Cards in Circulation, 2013-2018

By Total Transaction Value, 2013-2018

By Total Transaction Volume, 2013-2018

14.3. Competitive Landscape

Strength and Weakness for Major Issuers in Malaysia Credit Cards Market

Cross Comparison Table for Issuers/Banks in Malaysia Credit Cards Market

14.3.1. Major Issuers (Citibank Bhd, Malayan Banking Bhd, HSBC Holdings Plc, Hong Leong Bank 
Bhd, CIMB Bank Bhd and Others) Operating in Malaysia Credit Card Market, 2013-2018

By Cards in Circultaion, 2013-2018

Cards in Circulation by Major Issuers, 2013-2018

By Transaction Value, 2013-2018

14.3.2. Major Operators (Shinhan Card Co Ltd, BC Card Co Ltd, KB Kookmin Card Co Ltd, Samsung 
Card Co Ltd, Hyundai Card Co Ltd and Others), 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013- 2018

14.4. Forecast Period Trends, 2019-2025

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

15. South Korea Credit Cards Market

15.1. South Korea Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

15.2. Credit Cards Market Segmentation, 2013-2018

15.2.1. By Bank Affiliated and Non-bank Affiliated Cards, 2013-2018

By Transaction Volume, 2013-2018

By Transaction Value, 2013-2018

By Total Number of Cards in Circulation, 2013-2018

15.2.2. By Personal and Corporate Cards, 2013-2018

By Transaction Volume, 2013-2018

By Transaction Value, 2013-2018

By Cards in Circulation, 2013-2018

15.3. Competitive Landscape

Strength and Weakness for Major Issuers in South Korea Credit Cards Market

Cross Comparison Table for Issuers and Operators in South Korea Credit Cards Market

15.3.1. Major Issuers (Shinhan Card Co Ltd, KB Kookmin Card Co Ltd, Samsung Card Co Ltd, 

Hyundai Card Co Ltd, Lotte Card Co Ltd and Others) Operating in South Korea Credit Card Market, 

2013-2018

By Cards in Circultaion, 2013-2018

By Transaction Value, 2013-2018

15.3.2. Major Operators (Shinhan Card Co Ltd, BC Card Co Ltd, KB Kookmin Card Co Ltd, Samsung 
Card Co Ltd, Hyundai Card Co Ltd and Others), 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

15.4. Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

16. Philippines Credit Card Market

16.1. Philippines Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

16.2. Philippines Credit Cards Market Segmentation

16.2.1. By Personal and Commercial Credit Cards, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Transaction Volume, 2013-2018

16.3. Competitive Landscape

Strength and Weakness for Major Issuers in Philippines Credit Cards Market

Cross Comparison Table for Banks in Philippines Credit Cards Market

16.3.1. Major Issuers (BDO Unibank Inc, Metropolitan Bank & Trust Co. - Metrobank (MBTC), Bank 

of the Philppine Islands – BPI, East West BankingCorp, Citibank NA and Others) Operating in 

Philippines Credit Card Market, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

16.3.2. Major Operators (Mastercard International Inc, Visa Inc, Petron Corp, JCB Co ltd, 

American Express Co, Chevron Philippines Inc and Pilipinas Shell Petroloum Corp) Operating in 

Philippines Credit Card Market, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013- 2018

16.4. Forecast Period Trends, 2019-2025

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

17. China Credit Cards Market

17.1. China Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

17.2. China Credit Cards Market Segmentation, 2013-2018

17.2.1. By Local and Overseas Transactions, 2013-2018

By Transaction Value, 2013-2018

17.2.2. By Personal and Commercial Cards, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

17.2.3. By Domestic and International Banks, 2018-2019

By Credit Cards in Force, 2018-2019

By Active Cards in Force, 2018-2019

17.3. Competitive Landscape

Strength and Weakness for Major Issuers in China Credit Cards Market

Cross Comparison Table for Issuers/Banks in China Credit Cards Market

17.3.1. Major Issuers (CTBC Bank Co., Ltd, Cathay United Bank, E.Sun Commercial Bank ltd, 
Taishin International Bank and Others) Operating in China Credit Card Market, 2018-2019

17.3.2. Major Operators (Taiwan Rakuten Card Inc, American Express International Inc and 
Others) Operating in China Credit Card Market, 2018-2019

17.4. Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

18. Japan Credit Cards Market

18.1. Japan Credit Cards Market Overview and Size, 2013-2018

By Number of Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Number of Transactions, 2013-2018

18.2. Japan Credit Cards Market Segmentation, 2013-2018

18.2.1. By Personal Cards and Commercial Cards, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

By Transaction Volume, 2013-2018

18.3. Competitive Landscape

Strength and Weakness for Major Players in Japan Credit Cards Market

Cross Comparison Table for Banks in Japan Credit Cards Market

18.3.1. Major Issuers (JCB Co Ltd, Credit Saison Co Ltd, Sumitomo Mitsui Card Co Ltd, Aeon 

Credit Service Co Ltd, Mitsubishi UFJ Nicos Co Ltd and Others) Operating in Japan Credit Card Market, 2013-2018

By Cards in Circulation, 2013-2018

By Transaction Value, 2013-2018

18.3.2. Major Operators (Visa Inc, Mastercard International Inc, JCS Co Ltd, American Express 

Co and Union Pay International Co Ltd) Operating in Japan Credit Card Market, 2013-2018

18.4. Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

By Number of Transactions, 2019-2025

19. Asia Credit Cards market Forecast Period Trends

By Number of Cards in Circulation, 2019-2025

By Total Transaction Value, 2019-2025

19.1. Asia Credit Card Market Segmentation by Country (India, Indonesia, Singapore, Malaysia, 
South Korea, Philippines, China, Japan, Vietnam, Thailand, Hong Kong and Taiwan), 2019-2025

By Cards in Circulation, 2019-2025

By Transaction Value, 2019-2025

20. Analyst Recommendations

Adopting Digital Payments

Focusing on Diners Club Cards

Use of Biometric Technology

Personalised Credit Cards for Different Age Groups

Introduction of Virtual Cards in Mobile Banking Apps

Untapped Potential In Credit Card- Reward Points

Reduce Intercharge commision on and Credit Card

Initiative of Women’s centric credit card

Positive Growth Potential for Commercial Credit Cards

21. Success Case Study

21.1. Troy Card, Turkey

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