Region:Europe
Author(s):Madhur Chopra and Harsh Mittal
Product Code:KR910
The report titled "Turkey Cards and Payments Market Outlook to 2023 - Rapid Acceptance of TROY Cards and Contactless Cards Coupled with Rising Penetration of Credit Cards to Drive Market Growth" provides a comprehensive analysis on the cards and payments industry covering various aspects including the introduction and genesis, market size of debit and credit card by value and volume of transaction, number of cards in circulation and average transaction size, segmentation by domestic transactions by domestic card, International transactions with domestic cards, domestic transactions with international cards, further segmented into cash withdrawals and shopping purchases. It also covers market challenges, growth drivers, trends and developments, issues, comparative landscape in cards and payments market by issuer and operator and regulatory framework of the industry. The report concludes with market projections and analyst recommendations highlighting major opportunities and cautions.
The credit and debit card business of Turkey has witnessed strong growth owing to increasing value of transactions, volume of transaction and cards in circulation. The debit card value of transaction grew at a rate faster than that of credit cards, even when both posed double digit growth rate. Adoption of specific payment methods in Turkey will inevitably be influenced by the fact that a large proportion of Turkish citizens remains without a bank account – just over a third of the population is unbanked. The use of cash is particularly prevalent for micropayments including the small and daily expenditures such as newspapers, taxi journeys and coffees. The payments industry of Turkey will have to work hard to mitigate Turkish shoppers over to digital methods of paying for these items.
Domestic Transaction with Domestic Credit Card (Cash Withdrawals and Shopping Purchases): Volume of domestic transaction with domestic credit card witnessed 4 year CAGR of 4.8% and 8.7% for cash withdrawals and shopping purchases respectively during 2014-2018. However, the Value of domestic transaction with domestic credit card witnessed a four year CAGR for cash withdrawals and shopping purchases of 14.4% and 12.3% respectively. This happened majorly due to higher value of transaction on limited or same number of credit card transactions.
International Transaction with Domestic Credit Card (Cash Withdrawals and Shopp-ing Purchases): Volume of International transactions using a domestic credit card peaked to an all-time high in 2018, with a four year CAGR (2014-2018) of 15.7%. The volume of cash withdrawals on international transaction using domestic credit card reported a negative four year CAGR (2014-2018) of -2.9% as the transaction fee levied by ATMs is very high, because of which cardholders have preferred shopping purchases over cash withdrawals. Consumer familiarity with credit cards has increased and cards are often the preferred means of meeting credit needs of Turkish consumers and play a valuable role in domestic financial management, by making installment purchases with their cards for the things they cannot pay in one go.
Domestic Transaction with International Credit Cards (Cash withdrawals and Shopping Purchases): The volume and value of domestic transaction with international credit card is growing at a rapid four year CAGR of 24.9% and 20.4% respectively. This shows a lot of growing potential in international credit card business.
Domestic Transaction with Domestic Debit Card (Cash withdrawals and Shopping Purchases): Volume of domestic transaction with domestic debit card witnessed a four year CAGR of 7.8% and 25.8% for cash withdrawals and shopping purchases respectively. On the other hand, the Value of domestic transaction with domestic debit card witnessed a four year CAGR for cash withdrawals and shopping purchases of 16.3% and 35.0% respectively. The value of shopping purchases showed an exorbitant growth because debit card holders are in the process of majorly switching from cash withdrawals to direct merchant swipes.
International Transaction with Domestic Debit Card (Cash withdrawals and Shopping Purchases): Volume of International transactions using a domestic debit card peaked to an all-time high in 2018, with a four year CAGR (2014-2018) of 47.1%. The volume of cash withdrawals on international transaction using domestic credit card reported a single four year CAGR (2014-2018) of only 5.9% as the foreign exchange rate fluctuations come into picture, because of which cardholders have preferred shopping purchases over cash withdrawals.
Domestic Transaction with International Debit Card (Cash withdrawals and Shopping Purchases): The international travelers are spending more in Turkey on business trips or tourism. The volume and value of domestic transaction with international debit card is growing at rapid four year CAGR of 28.7% and 39.9% respectively during 2014-2018. Rising incomes and economic stability in recent years however has started to turn the tide in debit card use. In line with most European banking markets, debit cards are issued in conjunction with a bank account and were primarily used for cash withdrawal, serving as a cost-efficient alternative for branch-based cash withdrawals.
Average Value of Transaction for Debit and Credit Card: Since the citizens of Turkey are mediocre risk takers hence, they prefer to do less of credit card transactions. It has been observed that the average value of transaction on debit card has been higher than credit card.
The card market in Turkey was moderately concentrated with presence of major banks capturing a larger market share and other handful of banks which do not have a dedicated cards business. The cards market is further segmented in debit and credit cards. Turkey market has fierce competition, i.e., the credit card players have been highly competitive and experimental in product offerings and follow business strategies to expand their reach to untapped audience and retain existing clients. On the other hand, the debit card market was also observed to be competitive as the players are highly prone to lose out market share because of continuous technological advancement in the financial technologies leading to obsolescence of existing technologies. The players continuously tend to develop new technologies and keep in increasing their network with member merchants in order capture more and more target audience. The major parameters on the basis of which they compete are technological advancement- financial technology such as faster transaction service provider, contactless card, virtual cards, chip and pin enabled cards, reward points and benefits on shopping limits, personalized banking services and customer support.
Credit Cards: The overall credit card market future by volume of card in circulation is expected to rise at a slow growth rate due to time taken by people to subscribe for a credit card is comparatively high. The volume and value of credit card transaction is expected to surge at a pace higher than the previous five years because of the increased spending limits, better reward point program and technological advancement leading to ease of doing transactions.
Debit Cards: The overall debit card market by volume and value of transaction is expected to get double by 2023. The growth rate projected is higher than the credit cards due faster adaptability of debit cards in the economy. Also, as and when the untapped population actively participates in the economic activity, they would be first exposed to bank cards instead of credit cards leading to surge in value and volume of debit card transaction in next five years.
Credit cards
Debit Cards
Companies Covered in Turkey Card Market:
Issuers
Operators
Market Size and Overview
Market Segmentation
Competitive Analysis
Future Outlook and Projections
2.1. Market Definitions
2.2. Abbreviations
2.3. Market Size and Modeling
2.4Consolidated Research Approach
2.5Market Sizing Turkey Card Market
2.6Variables (Dependent and Independent)
2.7Multi Factor Based Sensitivity Model for Credit Card Market
2.8Multi Factor Based Sensitivity Model for Debit Card Market
2.9Regression Matrix- Credit Card Market by Value of Transaction
2.10Limitations-Credit Card Market by Value of Transaction
2.11Final Conclusion- Credit Card Market
2.12Regression Matrix- Debit Card Market by Value of Transaction
2.13Limitations- Debit Card Market by Value of Transactions
2.14Final Conclusion- Debit Card Market
3.1. Card Issuer Side (Entity, Number of Entities in the Ecosystem and Major Players)
3.2. Card Operator Side (Entity, Number of Entities in the Ecosystem and Major Players)
4.1. Incubation Phase
Launch of Turkey’s First Credit Card
Inception of Interbank card center
4.2. Infrastructure phase (including stakeholders in business cycle of EMV Migration)
Introduction of Contactless card
Full chip and pin migration
4.3. Digital Phase (including Comparative Analysis on the Basis of Mobile Device Owners Using
Mobile Payments)
Launch of first national digi wallet
Online Payments (including Number of Unique Debit and Credit Cards used for Online Payments and
Turkey Distribution of Online Payment by Payment Amount Range)
Contactless Cards (including transaction volume and value, 2016-2018)
Troy card
5.1Debit Card Ownership Rate
5.2Debit and Credit Cards in Circulation
5.3Number of POS and ATM Terminals in Circulation
5.4Country Based Payment Transactions
5.5Region Wise Card Distribution in turkey
Annual Charges, Shopping Interest Rate, Cash Withdrawal Interest Rate, Cash Advance Fee (Same
Bank), Card Renewal Fee, Card Printing and Shipping Fee, Overseas Transaction and Delay
Interest; and Payment Card Transaction Flow Structure)
7.1. Market Size (Cards in Circulation, Transaction Value and Transaction Volume), 2014-2018
Number of Credit Cards in Circulation, 201-2018
Credit card Transaction Volume, 2014-2018
Credit Card Transaction value, 2014-2018
Credit Card Average Value of Transaction, 2014- 2018
Sector wise Credit Card Spending, 2018
Number of POS Machines in Turkey
Volume and Transaction Value per Month per Active Credit Card
7.2. Market Segmentation, 2014-2018
7.2.1. By Value of transaction, Volume of Transaction, Cash Withdrawals and Shopping Purchases,
2014-2018
Domestic Transaction Value and Volume - Domestic Credit Card, 2014-2018
International value and volume of transaction- Domestic Credit Card
Domestic and International Transaction Value using a Domestic credit card
Market Segmentation of Cash Withdrawal and Shopping Purchases on Volume and Value
Market Segmentation of Cash Withdrawal and Shopping Purchases on Volume and Value - Domestic
Transaction with Domestic Credit Card
Market Segmentation of Cash Withdrawal and Shopping Purchases on Volume and Value –
International Transaction with Domestic Credit Card
Market Segmentation of Cash Withdrawal and Shopping Purchases on Volume and Value – Domestic
Transaction with International Credit Card
7.2.2. Segment Breakdown of Credit Card
7.3. Competition Landscape
7.3.1. Revenue Streams in a Credit Card System (Revenue Sources for a Credit Card Issuer -
Issuing Bank, Revenue Sources for an Acquiring Bank and Revenue Sources for a Payment Operator)
7.3.2. Revenue Stream and Requirements for American Express Credit Cards
7.3.3. Competition Scenario by Issuer (Competition Stage, Revenue Streams, Company Position,
Competing Parameters, Revenue Earned by Banks from Credit Cards issued in Turkey and Business
Model)
7.4. Market Share of Major Credit Card Operators by Number of Cards in Circulation, 2018 (including strengths and weaknesses)
7.5. Market Share of Major Credit Card Operators by Value of Transaction, 2018 (including
customer acquisition strategies)
7.6. Future Outlook and Projections, 2018– 2023
8.1. Market Size (Number of Cards in Circulation, By Transaction Value and By Volume of
Transaction, 2014-2018
Number of Debit Cards in Circulation
Debit Card Transaction Volume, 2014-2018
Debit Card Transaction Value, 2014-2018
Debit Card average value of transaction, 2014- 2018
Sector wise credit card spending, 2018
Number of ATM Terminals in Turkey
Transactions per Active Debit Card
Debit Card Transaction Ticket Size
8.2. Market Segmentation, 2014-2018
8.2.1. By Value of transaction, Volume of Transaction, Cash Withdrawals and Shopping Purchases,
2014-2018
Domestic Transaction Value and Transaction Volume - Domestic Debit Card, 2014-2018
International Transaction Value and Transaction Volume- Domestic Debit Card
Domestic And International Value and Transaction Volume using A Local Debit Card
Market Share of Cash Withdrawal and Shopping Purchases on Volume and Value - Domestic
Transaction with Domestic Debit card, 2014-2018
Market Share of Cash Withdrawal and Shopping Purchases on Volume and Value – International
Transaction with Local Debit Card
8.3. Comparative Landscape
8.3.1. Competition Scenario by Issuer (Competition Stage, Company Position, Leading Debit Card
Issuers and Leading Debit Card Operators)
8.3.2. Market Share of Major Debit Card Issuers by Number of Cards in Circulation, 2013-2018
Number of Debit Cards in circulation, 2013-2018
8.3.3. Market Share of Major Debit Card Issuer by Value of Transaction
Value of Transactions by Issuer, 2013-2018
8.3.4. Market Share by Number of Cards in Circulation by Operator
8.4. Future Outlook and Projections, 2019E- 2023E
9.1. Trends and Recent Developments
Introduction of Troy card as a Local Operator
Pivot towards Credit Cards for Shopping Purchases
Potential to become Cashless by 2023
Influx of Domestic Transactions Via foreign Cards
Eased Repayment Rules on Credit card Debt
Rapid Adaption of EMV Technology
Rapid Acceptance of Contactless Cards
9.2. Growth Drivers
E-commerce Spending Leading to a spur in Cards market
PAYBACK programs on Card spending
Potential of Unbanked Population
Share of Card Payments in Household Consumption
9.3. Issues and Challenges
Decline in Debit Card Sector Specific Transaction Share
Transformation to Cashless Economy
Surging Credit Card Interest Rate
Security Breach on Mass Usage of Contactless Cards
10.1. Turkeiye Garanti Bankasi A.S.
10.2. Yapi ve Kredi Bankasi AS
10.3. Turkiye IS Bankasi A.S.
10.4. AK Bank Turk A.S
10.5. Deniz Bank
11.1. American Express Turkey
11.2. MasterCard Turkey
11.3. Visa Turkey
11.4. Troy, Turkey
12.1. Debit and Credit Card Recommendation Based on Case Study
Government Initiative
12.2Targeting Specific groups
12.3Reduce Interchange commission on debit card and Credit Card
12.4Integration of Troy cards
12.5Untapped Potential in Debit and Credit CARD- reward points
12.6Initiative of Women centric credit card/ Debit card
12.7Association with Diners Club International
12.8Adoption of Artificial Intelligence
12.9Introduction of virtual cards in mobile banking apps
12.10Technology Driven Initiatives:
12.11Strong Growth Prospects for Commercial Debit Cards
12.12Increase in Mobile and Online Shopping Having a Positive Impact
12.13Growth for Card Payments in High Potential Sectors
12.14Leading Players’ Reward Programmes Boost Dynamism of Debit Cards
12.15Strong Growth Potential of Commercial Credit Card
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