Consumer Finance in Australia
Euromonitor International's Consumer Finance in Australia report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 139 | Publication date: May 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Cards Up, Cash Down
Tired of the need to carry around cash, and in particular small values of coins, in order to make day-to-day transactions, Australians are increasingly turning to more efficient, even if slightly more costly, card payment options. Card payments are increasingly being used for a wider variety of payments, with only small value payments still the realm of cash payments. However with m-commerce and contactless cards progressively encroaching into the micro-payments sphere, even these small transactions may not be facilitated by cash for long.
Australia’s Economy Begins to Crash
After a decade and a half of solid economic growth, Australia’s economy is beginning to sour, as the economy overheats and the economic cycle – which was almost believed to be a thing of the past – turns into recessionary mode. As rising incomes become less assured than they were in the past, and credit card debts become a greater concern due to rising interest rates, Australian consumers have stampeded for such products such as balance transfers, and are beginning to move from credit cards for a newly revitalised debit card segment.
Visa Debit Embraced
In 2006, two of Australia’s major banks entered the scheme debit segment. In 2007 a third bank joined them. These moves introduced scheme debit, primarily Visa Debit, into the mainstream market, where it has been embraced due to the ability to make on-line and overseas transactions, and the fact that, unlike credit cards, it does not attract interest; a large selling point in an environment of rising interest rates. Although the latter benefit is also true of the Australia-only EFTPOS system, which has served Australia well for decades, the lack of on-line and overseas capability is suddenly making EFTPOS looking rather old-fashioned.
Rewards Programmes Make a Comeback
Although the last few years were characterised by a shift in the market to low rate credit cards, this segment has now matured, and the focus is back on developing rewards programmes. This was partially in order to convince consumers who would have otherwise migrated to low rate cards of the value of a rewards programme. It was also a result of the increasingly extravagant charge card rewards programmes which American Express and Diners Club have been able to afford, due to being allowed to charge higher interchange fees. As a result, credit card reward programmes also had to be more generous, simply in order to compete.
Retailers Start to Add Surcharges
In 2003, the Reserve Bank of Australia introduced the ability for merchants to add a surcharge on consumers who choose to pay by credit card, therefore reflecting the higher price paid by merchants in terms of facilitating credit card payments. Whilst initially merchants were wary of introducing such fees, they are becoming increasingly common. The most widespread form of surcharging is to charge for the more costly Diner’s Club and American Express transactions, which therefore resulted in a decline in the popularity of these two operators amongst consumers in 2008.
Table of contents
CONSUMER FINANCE IN AUSTRALIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Cards Up, Cash Down
Australia’s Economy Begins to Crash
Visa Debit Embraced
Rewards Programmes Make a Comeback
Retailers Start to Add Surcharges
KEY TRENDS AND DEVELOPMENTS
Foreign Banks Enter the Market
Reserve Bank Reforms Keep Marching On
Access Increasing
Gen Y shapes up to be credit-friendly generation
Rewards Programmes Revitalised
Australian Consumers Flying Too Close To The Sun
Fraud Rates Rise
MARKET DATA
Table 1 Consumer Payments: Value 2003-2008
Table 2 Financial Cards: Number of Cards in Circulation 2003-2008
Table 3 Financial Cards Transactions: Value 2003-2008
Table 4 Financial Cards: Number of Transactions 2003-2008
Table 5 Financial Cards: Number of Accounts 2003-2008
Table 6 Financial Cards: Number of Cards by Issuer 2003-2007
Table 7 Financial Cards: Number of Cards by Operator 2003-2007
Table 8 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 9 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 10 Consumer Payments Forecast: Value 2008-2013
Table 11 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 12 Financial Cards Forecast: Value 2008-2013
Table 13 Financial Cards Forecast: Number of Transactions 2008-2013
Table 14 Financial Cards Forecast: Number of Accounts 2008-2013
MARKET INDICATORS
Table 15 Number of POS Terminals 2004-2008
Table 16 Number of ATMs 2004-2008
Table 17 Disposable Income 2003-2008
Table 18 Value Lost to Fraud 2003-2008
Table 19 Acquirer Fraud 2003-2008
Table 20 Card Expenditure by Location 2008
Table 21 Card Expenditure by Sector 2008
Table 22 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 23 Domestic versus Foreign Spend 2008
DEFINITIONS
Measures
Market Background
Summary 1 Research Sources
LOCAL COMPANY PROFILES - AUSTRALIA
ANZ BANKING GROUP LTD - FINANCIAL CARDS AND PAYMENTS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 ANZ Banking Group Ltd: Key Facts
Summary 3 ANZ Banking Group Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 ANZ Banking Group Ltd: Competitive Position 2007
BANKWEST - FINANCIAL CARDS AND PAYMENTS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Bank of Western Australia Limited (BankWest): Key Facts
Summary 6 Bank of Western Australia Limited (BankWest): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Bank of Western Australia (BankWest): Competitive Position 2007
BILL EXPRESS LTD - FINANCIAL CARDS AND PAYMENTS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Bill Express Ltd: Key Facts
Summary 9 Bill Express Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Bill Express Ltd: Competitive Position 2007
CUSCAL LTD - FINANCIAL CARDS AND PAYMENTS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Cuscal Ltd: Key Facts
Summary 12 Cuscal Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Cuscal Limited: Competitive Position 2007
WESTPAC BANKING CORP LTD - FINANCIAL CARDS AND PAYMENTS - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Westpac Banking Corp Ltd: Key Facts
Summary 15 Westpac Banking Corp Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 16 Westpac Banking Corp Ltd: Competitive Position 2007
ATM TRANSACTIONS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 ATM Cards Sector Performance: 2003-2008
Table 25 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 26 ATM Cards Sector Performance: % Growth 2003-2008
Table 27 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 28 ATM Cards Forecast Sector Performance: 2008-2013
Table 29 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 30 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 31 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 32 Debit Cards Sector Performance: 2003-2008
Table 33 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 34 Debit Cards Sector Performance: % Growth 2003-2008
Table 35 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 36 Debit Cards: Number of Cards by Issuer 2003-2007
Table 37 Debit Cards: Number of Cards by Operator 2003-2007
Table 38 Debit Cards Transactions by Acquirer 2003-2007
Table 39 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 40 Debit Cards Forecast Sector Performance: 2008-2013
Table 41 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 42 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 43 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Credit Cards Sector Performance: 2003-2008
Table 45 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 46 Credit Cards Sector Performance: % Growth 2003-2008
Table 47 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 48 Personal Credit Cards Sector Performance: 2003-2008
Table 49 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 50 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 51 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 52 Commercial Credit Cards Sector Performance: 2003-2008
Table 53 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 54 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 55 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 56 Credit Cards: Number of Cards by Issuer 2003-2007
Table 57 Credit Cards: Number of Cards by Operator 2003-2007
Table 58 Credit Cards Transactions by Acquirer 2003-2007
Table 59 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 60 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 61 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 62 Credit Cards Forecast Sector Performance: 2008-2013
Table 63 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 64 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 65 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 66 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 67 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 68 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 69 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 70 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 71 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 72 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 73 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 74 Charge Cards Sector Performance: 2003-2008
Table 75 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 76 Charge Cards Sector Performance: % Growth 2003-2008
Table 77 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 78 Personal Charge Cards Sector Performance: 2003-2008
Table 79 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 80 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 81 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 82 Commercial Charge Cards Sector Performance: 2003-2008
Table 83 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 84 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 85 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 86 Charge Cards: Number of Cards by Issuer 2003-2007
Table 87 Charge Cards: Number of Cards by Operator 2003-2007
Table 88 Charge Cards Transactions by Acquirer 2003-2007
Table 89 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 90 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 91 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 92 Charge Cards Forecast Sector Performance: 2008-2013
Table 93 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 94 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 95 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 96 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 97 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 98 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 99 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 100 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 101 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 102 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 103 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 104 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 105 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 106 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 107 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 108 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 109 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 110 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 111 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 112 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 Store Cards Sector Performance: 2003-2008
Table 116 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 Store Cards Sector Performance: % Growth 2003-2008
Table 118 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 Store Cards: Number of Cards by Issuer 2003-2007
Table 120 Store Cards Forecast Sector Performance: 2008-2013
Table 121 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 122 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 123 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013