Nigeria's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape On 3rd June 2014
Synopsis The report provides top-level market analysis, information and insights on Nigeria's cards and payments industry, including: • Current and forecast values for each category of Nigeria's cards and payments industry, including debit cards, credit cards and prepaid cards • Comprehensive analysis of the industrys market attractiveness and future growth areas • Analysis of various market drivers and regulations governing Nigeria's cards and payments industry • Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks and other institutions in the market • Comprehensive analysis of consumer attitudes and buying preferences for cards • The competitive landscape of Nigeria's cards and payments industry
Summary The Nigerian card payments channel recorded strong growth during the review period both in terms of volume and value. The card payments channel grew at a review-period CAGR of 12.89%, rising from 30.5 million cards in circulation in 2009 to 49.5 million in 2013. Over the forecast period, the card payments channel is forecast to register a CAGR of 9.76%, rising from 56.1 million cards in circulation 2014 to 81.4 million in 2018. The review-period growth was a result of the Nigerian governments efforts to move its cashbased economy towards non-cash payments. Projects such as Cash-Less Lagos have been launched to promote electronic payments and curb issues such as tax evasion and money laundering. In terms of transaction value, the card payments channel grew at a significant CAGR of 31.69% during the review period, from NGN1.1 trillion (US$7.1 billion) in 2009 to NGN3.2 trillion Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
(US$20.3 billion) in 2013. The channel is expected to post a forecast-period CAGR of 11.09%, from NGN3.6 trillion (US$22.4 billion) in 2014 to NGN5.5 trillion (US$31.1 billion) in 2018. Mobile payments (m-payments) registered an exponential review-period CAGR of 147.46%, from NGN1.3 billion (US$8.4 million) in 2009 to NGN47.1 billion (US$300.4 million) in 2013. Mpayments are anticipated to record a forecast-period CAGR of 23.24%. E-commerce also grew at a healthy review-period CAGR of 24.29%, from NGN38.6 billion (US$259.2 million) in 2009 to NGN92.1 billion (US$586.9 million) in 2013, and is anticipated to record a forecast-period CAGR of 12.63%. Outbound travel spending by retail and corporate consumers increased during the review period at a CAGR of 17.25%, and is anticipated to increase further over the forecast period at a CAGR of 9.31%, fueling the growth of travel cards. In 2012, the Central Bank of Nigeria (CBN) introduced a new policy stipulating a cash handling charge on daily cash withdrawals or deposits which exceed NGN500,000 (US$3,188.6) for individuals and NGN3,000,000 (US$19,131.5) for corporate bodies, in order to reduce the amount of physical cash in circulation. The policy is initially piloted in Lagos and will be gradually introduced in other Nigerian states. Consumers, financial institutions and the government are all expected to benefit from the policy.
Scope This report provides a comprehensive analysis of Nigeria's cards and payments industry. • It provides current values for Nigeria's cards and payments industry for 2013, and forecast figures for 2018. • It details the different economic, infrastructural and business drivers affecting Nigeria's cards and payments industry. • It outlines the current regulatory framework in the industry. • It details the marketing strategies used by various banks and other institutions. • It profiles the major banks in Nigeria's cards and payments industry.
Reasons To Buy • • • • •
Make strategic business decisions using top-level historic and forecast market data related to Nigeria's cards and payments industry and each market within it. Understand the key market trends and growth opportunities within Nigeria's cards and payments industry. Assess the competitive dynamics in Nigeria's cards and payments industry. Gain insights in to the marketing strategies used for selling various card types in Nigeria. Gain insights into key regulations governing Nigeria's cards and payments industry.
Key Highlights The Nigerian card payments channel recorded strong growth during the review period both in terms of volume and value. The card payments channel grew at a review-period CAGR of Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
12.89%, rising from 30.5 million cards in circulation in 2009 to 49.5 million in 2013. Over the forecast period, the card payments channel is forecast to register a CAGR of 9.76%, rising from 56.1 million cards in circulation 2014 to 81.4 million in 2018. In terms of transaction value, the card payments channel grew at a significant CAGR of 31.69% during the review period, from NGN1.1 trillion (US$7.1 billion) in 2009 to NGN3.2 trillion (US$20.3 billion) in 2013. The channel is expected to post a forecast-period CAGR of 11.09%, from NGN3.6 trillion (US$22.4 billion) in 2014 to NGN5.5 trillion (US$31.1 billion) in 2018. Mobile payments (m-payments) registered an exponential review-period CAGR of 147.46%, from NGN1.3 billion (US$8.4 million) in 2009 to NGN47.1 billion (US$300.4 million) in 2013. Mpayments are anticipated to record a forecast-period CAGR of 23.24%. E-commerce also grew at a healthy review-period CAGR of 24.29%, from NGN38.6 billion (US$259.2 million) in 2009 to NGN92.1 billion (US$586.9 million) in 2013, and is anticipated to record a forecast-period CAGR of 12.63%. Outbound travel spending by retail and corporate consumers increased during the review period at a CAGR of 17.25%, and is anticipated to increase further over the forecast period at a CAGR of 9.31%, fueling the growth of travel cards. In 2012, the Central Bank of Nigeria (CBN) introduced a new policy stipulating a cash handling charge on daily cash withdrawals or deposits which exceed NGN500,000 (US$3,188.6) for individuals and NGN3,000,000 (US$19,131.5) for corporate bodies, in order to reduce the amount of physical cash in circulation. The policy is initially piloted in Lagos and will be gradually introduced in other Nigerian states. Consumers, financial institutions and the government are all expected to benefit from the policy.
Other industries we cover: • • • • • • • • •
Advertising and Media Automotive and Parts Consumer Goods Healthcare and Medical Finance and Banking Food and Beverages Travel and Tourism Textiles and Clothing SWOT Analysis
Table of Content 1 Summary 2 Analysis of Market Environment, Key Trends and Drivers 2.1 Payment Infrastructure and Emerging Technologies 2.1.1 Rising internet penetration 2.1.2 Rising mobile penetration and m-payments Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
2.1.3 Adoption of EMV infrastructure 2.1.4 Point of sale (POS) terminals 2.1.5 Automated teller machines (ATMs) 2.2 Business Drivers 2.2.1 Growth in retail industry 2.2.2 Growth in e-commerce 2.3 Economic Drivers 2.3.1 Sustainable GDP growth 2.3.2 GDP per capita 2.3.3 Inflation 2.3.4 Financial inclusion strategy 3 Cards and Payments Industry Share Analysis 3.1 Industry Overview 3.1.1 Credit transfers 3.1.2 Cash transactions 3.1.3 Check payments 3.1.4 Card transactions 4 Regulatory Framework and Card Fraud Statistics 4.1 Regulatory Framework 4.1.1 Oversight 4.1.2 Guidelines on prepaid card issuance and operations 4.1.3 Regulations on credit cards 4.1.4 Anti-money laundering measures 4.1.5 Foreign direct investment (FDI) regulations 4.2 Card Fraud Statistics 4.2.1 Counterfeit card 4.2.2 Card-not-present fraud 4.2.3 Lost or stolen card fraud 4.2.4 Card ID theft 5 Emerging Consumer Attitudes and Trends 5.1 Industry Segmentation and Targeting 5.1.1 Retail segment 5.1.2 Corporate segment 5.2 Travel and Tourism Spending 5.2.1 Outbound tourist trips 5.2.2 Outbound tourist spending Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
5.3 Retail Card Spending 5.3.1 Analysis by product categories 5.3.2 Analysis by retail channels 6 Analysis of Card Payments and Growth Prospects 6.1 Channel Share Analysis by Card Category 6.2 Size and Forecast of the Card Payments Channel 6.2.1 Analysis by number of cards in circulation 6.2.2 Analysis by transaction value 7 Analysis of Credit Card Payments and Growth Prospects 7.1 Overall Category Size and Forecast 7.1.1 Analysis by number of cards in circulation 7.1.2 Analysis by transaction value 7.1.3 Analysis by transaction volume 7.2 Transaction Share Analysis by Channel 7.2.1 Analysis by transaction value 7.2.2 Analysis by transaction volume 7.3 Personal Credit Cards Segment Size and Forecast 7.3.1 Analysis by number of cards in circulation 7.3.2 Analysis by transaction value 7.3.3 Analysis by transaction volume 7.4 Commercial Credit Cards Segment Size and Forecast 7.4.1 Analysis by number of cards in circulation 7.4.2 Analysis by transaction value 7.4.3 Analysis by transaction volume 7.5 Competitive Landscape 7.5.1 Scheme share analysis 7.5.2 Issuer share analysis 8 Analysis of Debit Card Payments and Growth Prospects 8.1 Overall Category Size and Forecast 8.1.1 Analysis by number of cards in circulation 8.1.2 Analysis by transaction value 8.1.3 Analysis by transaction volume 8.2 Transaction Share Analysis by Channel 8.2.1 Analysis by transaction value 8.2.2 Analysis by transaction volume 8.3 Competitive Landscape Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
8.3.1 Scheme share analysis 8.3.2 Issuer share analysis 9 Analysis of Prepaid Card Payments and Growth Prospects 9.1 Overall Category Size and Forecast 9.1.1 Analysis by number of cards in circulation 9.1.2 Analysis by transaction value 9.2 Open-Loop Prepaid Cards Segment Size and Forecast 9.2.1 Analysis by number of cards in circulation 9.2.2 Analysis by transaction value 9.3 Closed-Loop Prepaid Cards Segment Size and Forecast 9.3.1 Analysis by number of cards in circulation 9.3.2 Analysis by transaction value 10 Merchant Acquiring 11 Company Profiles of Card Issuers 11.1 Standard Chartered Bank Nigeria (SCBN) 11.1.1 Key financials 11.1.2 Card portfolio 11.1.3 Strategies 11.2 United Bank of Africa (UBA) 11.2.1 Key financials 11.2.2 Card portfolio 11.2.3 Strategies 11.3 Zenith Bank 11.3.1 Key financials 11.3.2 Card portfolio 11.3.3 Strategies 11.4 Guaranty Trust Bank (GTB) 11.4.1 Key financials 11.4.2 Card portfolio 11.4.3 Strategies 11.5 Access Bank 11.5.1 Key financials 11.5.2 Card portfolio 11.5.3 Strategies 12 Appendix 12.1 Methodology Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
12.2 Contact Timetric 12.3 About Timetric 12.4 Timetric's Services 12.5 Definitions 12.6 Disclaimer List of Tables Table 1: Nigerian Payment Channels (NGN Trillion), 2009-2013 Table 2: Market Entry Strategies of Foreign Banks Table 3: Nigerian Card Fraud (NGN Million), 2009-2013 Table 4: Cards Offered to Nigerian High-Income Individuals by Bank Table 5: Card Offerings for Unbanked Nigerians by Bank Table 6: Nigerian Travel Cards by Bank Table 7: Nigerian Student Cards by Bank Table 8: Cards Offered for Nigerian Business Customers by Bank Table 9: Nigerian Card Spending by Retail Product Category (NGN Million), 2008-2012 Table 10: Nigerian Card Spending by Retail Channel (NGN Million), 2008-2012 Table 11: Nigerian Card Payments Channel by Card Category (Thousand), 2009-2018 Table 12: Nigerian Card Payments Channel Size by Volume of Cards (Million), 2009-2018 Table 13: Nigerian Card Payments Channel Size by Transaction Value (NGN Trillion), 2009-2018 Table 14: Nigerian Card Payments Channel Size by Transaction Value (US$ Billion), 2009-2018 Table 15: Nigerian Credit Cards Category Size by Volume of Cards (Thousand), 2009-2018 Table 16: Nigerian Credit Cards Category Size by Transaction Value (NGN Billion), 2009-2018 Table 17: Nigerian Credit Cards Category Size by Transaction Value (US$ Million), 2009-2018 Table 18: Nigerian Credit Cards Category Size by Transaction Volume (Million), 2009-2018 Table 19: Nigerian Personal Credit Cards Segment Size by Volume of Cards (Thousand), 20092018 Table 20: Nigerian Personal Credit Cards Segment Size by Transaction Value (NGN Billion), 20092018 Table 21: Nigerian Personal Credit Cards Segment Size by Transaction Value (US$ Million), 20092018 Table 22: Nigerian Personal Credit Cards Segment Size by Transaction Volume (Million), 20092018 Table 23: Nigerian Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018 Table 24: Nigerian Commercial Credit Cards Segment Size by Transaction Value (NGN Million), 2009-2018 Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
Table 25: Nigerian Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009-2018 Table 26: Nigerian Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018 Table 27: Nigerian Debit Cards Category Size by Volume of Cards (Million), 2009-2018 Table 28: Nigerian Debit Cards Category Size by Transaction Value (NGN Billion), 2009-2018 Table 29: Nigerian Debit Cards Category Size by Transaction Value (US$ Billion), 2009-2018 Table 30: Nigerian Debit Cards Category Size by Transaction Volume (Million), 2009-2018 Table 31: Nigerian Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018 Table 32: Nigerian Prepaid Cards Category Size by Transaction Value (NGN Billion), 2009-2018 Table 33: Nigerian Prepaid Cards Category Size by Transaction Value (US$ Billion), 2009-2018 Table 34: Nigerian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 20092018 Table 35: Nigerian Open-Loop Prepaid Cards Segment Size by Transaction Value (NGN Billion), 2009-2018 Table 36: Nigerian Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Billion), 2009-2018 Table 37: Nigerian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 20092018 Table 38: Nigerian Closed-Loop Prepaid Cards Segment Size by Transaction Value (NGN Billion), 2009-2018 Table 39: Nigerian Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009-2018 Table 40: SCBN - Key Financial Indicators (NGN Million), Year Ended December, 2011-2012 Table 41: SCBN - Card Portfolio and Key Features Table 42: UBA - Key Financial Indicators (NGN Million), Year Ended December, 2012-2013 Table 43: UBA - Card Portfolio and Key Features Table 44: Zenith Bank - Key Financial Indicators (NGN Million), Year Ended December, 20122013 Table 45: Zenith Bank - Card Portfolio and Key Features Table 46: GTB - Key Financial Indicators (NGN Billion), Year Ended December, 2012-2013 Table 47: GTB - Card Portfolio and Key Features Table 48: Access Bank - Key Financial Indicators (NGN Billion), Year Ended December, 20112012 Table 49: Access Bank - Card Portfolio and Key Features Table 50: Key Definitions List of Figures Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
Figure 1: Benchmarking the Nigerian Payment Cards Channel Against Other Regional Markets Figure 2: Growth of Various Card Categories in Nigeria (%), 2009-2018 Figure 3: Nigerian Internet Users per 100 Inhabitants, 2009-2018 Figure 4: Nigerian M-Payments (NGN Million), 2009-2018 Figure 5: Nigerian EMV Card Volumes (Thousand), 2011-2013 Figure 6: Nigerian POS Volume and Penetration, 2009-2018 Figure 7: Nigerian ATM Volumes and Penetration, 2009-2018 Figure 8: Nigerian Value of Retail Sales (NGN Billion), 2009-2018 Figure 9: Nigerian Value of E-Commerce (NGN Billion), 2009-2018 Figure 10: Nigerian Real GDP Growth (%), 2009-2018 Figure 11: Nigerian Nominal GDP Per Capita (US$), 2009-2018 Figure 12: Nigerian Inflation (Consumer Price Inflation) Rate (%), 2009-2018 Figure 13: Nigerian Shares of Different Payment Channels (%), 2009 and 2013 Figure 14: Nigerian Card Fraud (%), 2009 and 2013 Figure 15: Nigerian Counterfeit Card Fraud Value (NGN Million), 2009-2013 Figure 16: Nigerian Card-Not-Present Fraud Value (NGN Million), 2009-2013 Figure 17: Nigerian Lost or Stolen Card Fraud Value (NGN Million), 2009-2013 Figure 18: Nigerian Card ID Theft Value (NGN Million), 2009-2013 Figure 19: Nigerian Cards and Payments Industry Segmentation by Card Type, 2014 Figure 20: Nigerian Volume of Outbound Trips (Thousand), 2009-2018 Figure 21: Nigerian Outbound Tourist Spending (NGN Billion), 2009-2018 Figure 22: Nigerian Retail Card Spending by Retail Product Category (%), 2012 Figure 23: Nigerian Retail Card Spending by Retail Channel (%), 2012 Figure 24: Nigerian Card Payments Channel by Card Category (%), 2009-2018 Figure 25: Nigerian Card Payments Channel Size by Volume of Cards (Million), 2009-2018 Figure 26: Nigerian Card Payments Channel Size by Transaction Value (NGN Trillion), 2009-2018 Figure 27: Nigerian Credit Cards Category Volume and Penetration (Thousand), 2009-2018 Figure 28: Nigerian Credit Cards Category Size by Volume of Cards (Thousand), 2009-2018 Figure 29: Nigerian Credit Cards Category Size by Transaction Value (NGN Billion), 2009-2018 Figure 30: Nigerian Credit Cards Category Size by Transaction Volume (Million), 2009-2018 Figure 31: Nigerian Credit Cards Category Transaction Value Share by Channel (NGN Billion), 2009-2018 Figure 32: Nigerian Credit Cards Transaction Volume Share by Channel (Thousand), 2009-2018 Figure 33: Nigerian Personal Credit Cards Segment Size by Volume of Cards (Thousand), 20092018 Email ID- contact@jsbmarketresearch.com Tel No- 91 2241236650 Published by- http:/www.jsbmarketresearch.com/
Figure 34: Nigerian Personal Credit Cards Segment Size by Transaction Value (NGN Billion), 2009-2018 Figure 35: Nigerian Personal Credit Cards Segment Size by Transaction Volume (Million), 20092018 Figure 36: Nigerian Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009-2018 Figure 37: Nigerian Commercial Credit Cards Segment Size by Transaction Value (NGN Million), 2009-2018 Figure 38: Nigerian Commercial Credit Cards Segment Size by Transaction Volume (Thousand), 2009-2018 Figure 39: Nigerian Credit Cards Category Share by Scheme (%), 2013 Figure 40: Nigerian Credit Cards Category Share by Issuer (%), 2013 Figure 41: Nigerian Debit Cards Category Volume and Penetration, 2009-2018 Figure 42: Nigerian Debit Cards Category Size by Volume of Cards (Million), 2009-2018 Figure 43: Nigerian Debit Cards Category Size by Transaction Value (NGN Billion), 2009-2018 Figure 44: Nigerian Debit Cards Category Size by Transaction Volume (Million), 2009-2018 Figure 45: Nigerian Debit Cards Category Transaction Value Share by Channel (NGN Billion), 2009-2018 Figure 46: Nigerian Debit Cards Transaction Volume Share by Channel (Million), 2009-2018 Figure 47: Nigerian Debit Cards Category Share by Scheme (%), 2013 Figure 48: Nigerian Debit Cards Category Share by Issuer (%), 2013 Figure 49: Nigerian Prepaid Cards Category Volume and Penetration, 2009-2018 Figure 50: Nigerian Prepaid Cards Category Size by Volume of Cards (Million), 2009-2018 Figure 51: Nigerian Prepaid Cards Category Size by Transaction Value (NGN Billion), 2009-2018 Figure 52: Nigerian Open-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 20092018 Figure 53: Nigerian Open-Loop Prepaid Cards Segment Size by Transaction Value (NGN Billion), 2009-2018 Figure 54: Nigerian Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009-2018 Figure 55: Nigerian Closed-Loop Prepaid Cards Segment Size by Transaction Value (NGN Billion), 2009-2018 Figure 56: Nigerian POS Terminals Market Shares (%), 2013
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