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Research report on payment cards in singapore
Research report on payment cards in singapore
Research report on payment cards in singapore
Research report on payment cards in singapore
Research report on payment cards in singapore
Research report on payment cards in singapore
Research report on payment cards in singapore
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Research report on payment cards in singapore

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A total of 849.9 million transactions were made using payment cards in 2010, represents a CAGR of 11.4% from 2006. Credit card transactions accounted for 69.6% of the total, which in absolute terms …

A total of 849.9 million transactions were made using payment cards in 2010, represents a CAGR of 11.4% from 2006. Credit card transactions accounted for 69.6% of the total, which in absolute terms equated to 591.8 million transactions. Datamonitor forecasts the number of payment cards to increase at a CAGR of 5.0% between 2010 and 2015. One of the challenges faced by Singaporean card issuers are high credit card ownership, those owning more than one card, which has an adverse impact on the level of primary card only users. Among credit card customers in Singapore, only 15% are primary card only users, the lowest among the 21 countries monitored.

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  • 1. Research Report on Payment Cards in Singapore Singapore, one of the most advanced payment card markets in Asia, is now facing a new challenge in taking the next steps toward payment evolution. There has been substantial consumer demand for innovative forms of payment cards and there are now bright consumer prospects for new payment tools such as mobile payments. Features and benefits Market sizing, forecasting and competitor shares are an invaluable guide for any cards player building a business case for activity in Singapore. In-depth insight into contactless, mobile, prepaid and online payments highlights future opportunities for all industry stakeholders. Detailed analysis of consumer segmentation and key drivers allows issuers to target consumers with inside knowledge of their true behavior and needs. Highlights A total of 849.9 million transactions were made using payment cards in 2010, represents a CAGR of 11.4% from 2006. Credit card transactions accounted for 69.6% of the total, which in absolute terms equated to 591.8 million transactions. Datamonitor forecasts the number of payment cards to increase at a CAGR of 5.0% between 2010 and 2015. One of the challenges faced by Singaporean card issuers are high credit card ownership, those owning more than one card, which has an adverse impact on the level of primary card only users. Among credit card customers in Singapore, only 15% are primary card only users, the lowest among the 21 countries monitored. Two out of three Singaporean consumers are interested in using their mobile phone as a payment tool, which shows a clear message to the industry that there is a substantial level of demand among consumers. Indeed, 23% indicated they are very interested in paying in shops with their mobile phone, while 47% indicated they are quite interested. Your key questions answered Which card segments are showing the fastest growth in the Singapore payments market and why? Who are the key players in Singaporean card payments and what is their market share? How extensive are mobile, online, prepaid and contactless payments and where does future growth lie?
  • 2. Buy Your Copy of Report: http://www.reportsnreports.com/reports/175761-payment-cards-in-singapore.htmlPublished: July 2012No. of Pages: 114Price Single User License: US $ 5250 Price Corporate User License: US $ 13125Table of ContentsOVERVIEWCatalystSummaryEXECUTIVE SUMMARYSizing and forecasting the payment card market in SingaporeCompetitor and product developments in SingaporeSingaporean credit card consumersHigh credit card penetration but low revolve rates represent a challenge for issuersConsumer-issuer interactions are at risk due to low primacy levelsOnline, contactless, prepaid, and mobile paymentsOnline payments were an estimated $860m market in 2011Prepaid card: banks need to step in to target niche consumer needs on prepaid cardsContactless payments represent a $3.1bn opportunity in Singapore aloneIndustry collaboration sets to answer strong consumer demand for mobile paymentsSIZING AND FORECASTING THE PAYMENT CARD MARKET IN SINGAPOREOverviewKey macroeconomic and consumer dataMacroeconomic trends and performanceDemographic and consumer trendsSizing the payment card market in SingaporeSize and performance of the payment card marketNumber of payment card transactions
  • 3. Value of payment card transactionsCredit card balances outstanding, revolve rates, and repayment behaviorForecasting the payment card market in SingaporeForecasting the pay now card marketForecasting the revolving credit card marketForecasting the charge card marketCOMPETITOR AND PRODUCT DEVELOPMENTS IN SINGAPOREOverviewKey competitorsDBS BankOCBC BankUOBCard issuer market shares and performanceCredit card market sharesCredit card branding and usageFrequency of use by brandCredit card product featuresLeading revolving credit products and price pointsConsumer satisfaction by credit card brandPay now card market sharesCharge/deferred debit card market sharesCard scheme market shares and developmentsPay now card scheme sharesRevolving credit card scheme sharesCharge card scheme sharesSINGAPOREAN CREDIT CARD CONSUMERSDatamonitor has defined two Singaporean credit card consumer profilesTransactors: consumers who primarily pay their balances in fullRevolvers: consumers who frequently borrow on their cardsHigh credit card penetration but low revolve rates represent a challenge for issuersCredit cards have become the second most owned financial product in SingaporeCredit cards are highly popular across all working age groupsTransactors dominate Singaporean credit card consumersThe emergence of the online channel for researching and applying for new cards is changing themarketOnline has become the dominant source of information for new credit card customersOnline has emerged as the main channel for credit card applicationConsumer-issuer interactions are at risk due to low primacy levelsGlobally, Singapore ranks last in term of credit card primacy levelYoung and multi-card users are the segment most likely to switch
  • 4. ONLINE, CONTACTLESS, PREPAID, AND MOBILE PAYMENTSOverviewOnline payments were an estimated $860m market in 2011Singapores online payments market is relatively small on a per capita basis, representing extraroom for growthCredit cards account for the majority of online transactions in Singapore, in line with global trendsPrepaid cards: banks need to step in to target niche consumer needs on prepaid cardsNon-banks card issuers dominate the offering of prepaid cards in SingaporeBanks should explore opportunities related to three niche consumer needsContactless payments represent a $3.1bn opportunity in Singapore aloneHigh usage of EZ-Link and NETS cards drives further demand for open loop contactless cardsSingapore is the seventh largest market in terms of potential opportunity per person for contactlesspayments in Asia PacificConvenience stores offer the biggest opportunity for contactless paymentsIndustry collaboration set to answer strong consumer demand for mobile paymentsNFC payments are expected to arrive in Singapore in 2012The concept of mobile as a payment tool is well-received by Singaporean consumersSingapore has one of the highest proportions of early adopters in mobile payments, if thetechnology is available todayAPPENDIXSupplementary dataDefinitions(Untitled sub-section)MethodologyDatamonitor NFC Adoption ModelCards and payments databaseDatamonitors FSCI Survey has been expanded, providing improved, new, and valuable insightForecasting methodologyFurther readingAsk the analystDisclaimerList of TablesTable: Singapore: macroeconomic indicatorsTable: Singapore: demographic and consumer trendsTable: Pay now cards, 2010–15fTable: Credit cards, 2010–15fTable: Charge and deferred debit cards, 2010–15fTable: Fees and APRs applicable to revolving credit cards in SingaporeTable: Customer service satisfaction by card issuersTable: Credit card product satisfaction by card issuers
  • 5. Table: Responses to the question "before you took out your last credit card did you take any of thefollowing actions?Table: Responses to the question "how did you apply for your card/s?"Table: Consumers likelihood of looking for a new credit card in the next six months, by segmentTable: Prepaid cards: responses to the question "what did you get this card/s for, or what do youuse it for most often?"Table: Contactless opportunity market size in Singapore, by transaction value bandList of FiguresFigure: Singapores GDP in 2010 was $161.8bnFigure: Singapores economy has recovered strongly following recession in 2009Figure: The use of cards in paying for goods and services is increasing in SingaporeFigure: Singapore has the lowest unemployment rate in the Asia Pacific regionFigure: Inflation in Singapore reached a peak in 2007 at 6.9%Figure: Singapore has the fourth highest payment card penetration rate in the Asia Pacific regionFigure: Singapore experienced the fourth lowest growth in pay now card penetration between 2006and 2010Figure: Singapore had the fourth highest growth in penetration in the Asia Pacific region between2006 and 2010Figure: The number of credit cards in Singapore increased continuously between 2006 and 2010Figure: The number of payment card transactions in Singapore increased rapidly between 2006 and2010Figure: The use of POS steadily increased between 2006 and 2010Figure: Consumers in Singapore are more likely to use pay now cards to purchase food and drinkFigure: Charge/deferred debit cards are the most frequently used card types in SingaporeFigure: The frequency of use of cards at POS grew by 5.1% between 2006 and 2010Figure: The value of credit card transactions in Singapore increased rapidly between 2006 and2010Figure: In 2010, POS accounted for 77.4% of the total value of transactionsFigure: Flights and hotels were the highest value items paid for using both pay now and pay latercardsFigure: Transactions using pay now cards are of the highest value on averageFigure: The value of POS transactions are on average higher than the value of withdrawals fromATMsFigure: Consumers in Singapore use their pay now cards less frequently than the Asia PacificaverageFigure: Singapores total turnover per pay now card was $1,831.50 in 2010Figure: Singapore has the lowest average pay later transaction value at the POS in the Asia PacificregionFigure: Total turnover per pay later card in Singapore was $3,018.90 in 2010Figure: Payment for flights and hotels is the most popular use for pay later cardsFigure: 39.2% of credit cards in Singapore are considered primary cards
  • 6. Figure: 23.6% of credit cards in Singapore are used all the timeFigure: Singapores total balance outstanding is $4,193mFigure: 76.5% of consumers in Singapore pay their credit cards off in full each monthFigure: The population per terminal in Singapore has been gradually decreasingFigure: The number of POS terminals increased between 2006 and 2010Figure: The number of pay now cards is expected to increase at a CAGR of 3.6% between 2010 and2015Figure: The number of credit card transactions is forecast to increase at a CAGR of 8.5% between2010 and 2015Figure: The number of charge/deferred debit card transactions is expected to grow at a CAGR of3.8% between 2010 and 2015Figure: Citibank was the largest credit card provider in Singapore as of 2010Figure: DBS had the highest number and value of credit card transactions in Singapore in 2010Figure: RHB had the highest average balance per card at $895.70 in 2010Figure: Platinum credit cards are the most popular form of branding in Singapore for the majorityof issuersFigure: Citibank has the highest primacy level among its customersFigure: Customers of Citibank use their credit cards with the highest frequencyFigure: Reward and loyalty points are the most popular benefits among the majority of providersFigure: 50.0% of HSBCs customers were very satisfied with their banks customer serviceFigure: HSBC had the highest proportion of customers who were very satisfied with their creditcard product at 47.9%Figure: 63.9% of Maybank credit card holders would recommend their credit card to othersFigure: In 2010 DBS led the pay now market in terms of number of cards in issueFigure: DBS had the largest number and value of pay now transactions in Singapore in 2010Figure: DBS issued 15.9% of all charge/deferred debit cards in Singapore in 2010Figure: UOB had the largest number and value of charge/deferred debit card transactions in 2010Figure: MasterCard had the largest number of pay now cards in issue in 2010Figure: In 2010, MasterCard had the largest value of pay now transactionsFigure: Visa dominated the credit card market between 2006 and 2010Figure: MasterCard experienced the highest levels of growth in value of credit card transactionsbetween 2006 and 2010Figure: MasterCard was the largest charge/deferred debit card scheme in Singapore as of 2010Figure: Visa experienced the fastest growth in the value of charge/deferred debit card transactionsbetween 2006 and 2010Figure: Credit cards have become the second most owned financial product in SingaporeFigure: Credit cards are popular across all working age groupsFigure: Transactors dominate Singaporean credit card consumersFigure: Face-to-face channels still provide the main source of information for new credit cardcustomersFigure: One in three credit card consumers obtained their product information from multiplechannels
  • 7. Figure: Online has emerged as an important credit card application channel for consumersFigure: Singapore ranked last in terms of credit card primacy levelFigure: Multi-card users show the highest likelihood to switch to a new credit cardFigure: The value of online payments per adult in Singapore is the seventh smallestFigure: Flight and hotel purchases account for the largest share of transaction values onlineFigure: Credit cards are the most popular method of transaction in SingaporeFigure: Relative to other countries, the use of credit cards for online payments is considerably highFigure: The most common reason for consumers choosing not to shop online is the fear of fraudFigure: Consumers use their prepaid cards for regular spending and online shoppingFigure: Singapore consumers show a strong interest in contactless paymentsFigure: Contactless payments represent a $3.1bn opportunity in SingaporeFigure: Convenience stores offer the biggest opportunity for contactless payments in SingaporeFigure: The IDA has committed to the deployment of an interoperable NFC mobile payment systemthrough a TTP infrastructureFigure: Singaporean consumers are familiar with using their mobile to access digital contentFigure: Two out of three Singaporean consumers are interested in using their mobile as a paymenttoolFigure: 3.9% of Singaporeans are high likely to adopt NFC paymentsBrowse more Research Reports @ http://www.reportsnreports.com/market-research/banking-services/Contact Us:TX, Dallas North - Dominion Plaza,17304, Preston Road,Suite 800, Dallas 75252.+ 1 888 391 5441Email: sales@reportsandreports.comConnect With Us:

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