Consumer Finance in India
Euromonitor International's Consumer Finance in India 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: 149 | 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
India emerges as the fastest growing market in Asia-Pacific...
India has now become the third largest card market for Visa International in Asia-Pacific, after Japan and South Korea. With payment gateways becoming more secure and convenient, the confidence of people in using the Internet as a shopping channel has also been on the rise. Card-based Internet transactions are predominantly used for booking air and railway tickets, along with on-line bill payments. This trend is on the rise not only in the elite metropolitan cities but also in other high-income cities and towns.
... but usage and awareness have a long way to go
Overall consumer awareness of financial cards remains low. The use of point-of-sales terminals is also not as prevalent as in other markets. Total spending on cards accounts for only around 1% of the country’s personal consumption expenditure. Although the number of cards in circulation grew very strongly during the review period, this did not translate directly into higher revenue for companies, since the majority of the cards remain inactive. The dearth of point-of-sale terminals, especially in the smaller Tier II and Tier III cities, has also hampered industry growth, with the number of transactions using financial cards across India remaining low.
Debit-cum-ATM cards find far greater acceptance
India remains primarily a debt-averse economy. The Indian middle classes tend to view credit cards as a potential debt trap, and increasing the acceptance of credit cards among the middle class population is a major task for financial cards companies in India. The generally credit-averse nature of Indian consumers has given a tremendous boost to the debit-cum-ATM card segment, while the number of credit card holders has lagged far behind. Debit-cum-ATM card cards are mainly used for cash withdrawals at ATMs. Pre-paid cards are another category that is catching on well amongst the debt-averse middle-class Indian population, since pre-paid cards allow them to spend in accordance with a prescribed limit.
Retail transactions are a necessity
The profit and success of the card issuers continues to lie in increasing the number of transactions through financial cards, and as such, there have been aggressive efforts by the companies to encourage retail outlets to install point-of-sale terminals. Card companies have also encouraged card usage among customers through various discounts and promotions in restaurants and retail outlets.
Marketing efforts hold key to the future of the industry
Financial card companies are making aggressive marketing and advertising efforts to entice card owners to spend with their cards, by providing attractive benefits, rewards and privileges on card expenditure. Co-branding has proved to be a solution adding lustre to the financial cards industry. There has been a move away from plain “vanilla” cards in favour of co-branded credit cards. Most of the card-issuing companies now have co-branded cards, with airlines, petrol companies and retailers.
Table of contents
CONSUMER FINANCE IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
India emerges as the fastest growing market in Asia-Pacific...
... but usage and awareness have a long way to go
Debit-cum-ATM cards find far greater acceptance
Retail transactions are a necessity
Marketing efforts hold key to the future of the industry
KEY TRENDS AND DEVELOPMENTS
India is among the fastest growing markets for financial cards
Transactions by financial cards still remain very low
Significant growth in debit and pre-paid cards
The Indian “Youth Quake”
Rising defaults lead to a re-evaluation of the credit cards business
The Dangers of Defaulting
Indian Banks plan rival to Visa and MasterCard
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
FINANCIAL CARDS AND PAYMENTS
Measures
Market Background
Summary 1 Research Sources
CONSUMER LENDING IN INDIA
EXECUTIVE SUMMARY
Rising defaults slow consumer lending market
First casualty of recession: the housing market
Retail chains enter consumer lending market
Middle class aspirations stimulate Auto-lending
Future lending trends to withstand global recession
KEY TRENDS AND DEVELOPMENTS
Pre-recession economic growth created dynamic lending market
Changing consumer habits incites demand for loans
Housing Bubble Bursts
Consumer Loans at a store near you
Credit card use booms
MARKET DATA
Table 24 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 25 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 27 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 28 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 29 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 30 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 32 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 34 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - INDIA
FUTURE CAPITAL HOLDINGS LTD - FINANCIAL CARDS & PAYMENTS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Future Capital Holdings Ltd: Key Facts
Summary 4 Future Capital Holdings Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
HDFC BANK LTD - FINANCIAL CARDS & PAYMENTS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 HDFC Bank Ltd: Key Facts
Summary 6 HDFC Bank Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 HDFC Bank Ltd: Competitive Position 2007
ICICI BANK LTD - FINANCIAL CARDS & PAYMENTS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 ICICI Bank Ltd: Key Facts
Summary 9 ICICI Bank Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 ICICI Bank Ltd: Competitive Position 2007
INTREX INDIA - FINANCIAL CARDS & PAYMENTS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Intrex India Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 12 Intrex India Ltd: Competitive Position 2007
STATE BANK OF INDIA - FINANCIAL CARDS & PAYMENTS - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 State Bank of India: Key Facts
Summary 14 State Bank of India: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 15 State Bank of India: Competitive Position 2007
ATM TRANSACTIONS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 35 ATM Cards Sector Performance: 2003-2008
Table 36 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 37 ATM Cards Sector Performance: % Growth 2003-2008
Table 38 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 39 ATM Cards Forecast Sector Performance: 2008-2013
Table 40 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Debit Cards Sector Performance: 2003-2008
Table 44 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Debit Cards Sector Performance: % Growth 2003-2008
Table 46 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Debit Cards: Number of Cards by Issuer 2003-2007
Table 48 Debit Cards: Number of Cards by Operator 2003-2007
Table 49 Debit Cards Transactions by Acquirer 2003-2007
Table 50 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 51 Debit Cards Forecast Sector Performance: 2008-2013
Table 52 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 53 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 54 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Credit Cards Sector Performance: 2003-2008
Table 56 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 57 Credit Cards Sector Performance: % Growth 2003-2008
Table 58 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 59 Personal Credit Cards Sector Performance: 2003-2008
Table 60 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 61 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 62 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 63 Commercial Credit Cards Sector Performance: 2003-2008
Table 64 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 65 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 66 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 67 Credit Cards: Number of Cards by Issuer 2003-2007
Table 68 Credit Cards: Number of Cards by Operator 2003-2007
Table 69 Credit Cards Transactions by Acquirer 2003-2007
Table 70 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 73 Credit Cards Forecast Sector Performance: 2008-2013
Table 74 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 75 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 76 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 79 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 80 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 83 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 84 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Charge Cards Sector Performance: 2003-2008
Table 86 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 87 Charge Cards Sector Performance: % Growth 2003-2008
Table 88 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 89 Personal Charge Cards Sector Performance: 2003-2008
Table 90 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 91 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 92 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 93 Commercial Charge Cards Sector Performance: 2003-2008
Table 94 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 95 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 96 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 97 Charge Cards: Number of Cards by Issuer 2003-2007
Table 98 Charge Cards: Number of Cards by Operator 2003-2007
Table 99 Charge Cards Transactions by Acquirer 2003-2007
Table 100 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 101 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 102 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 103 Charge Cards Forecast Sector Performance: 2008-2013
Table 104 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 105 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 106 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 109 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 110 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 113 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 114 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 115 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 117 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 119 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 120 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 124 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 125 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 126 Store Cards Sector Performance: 2003-2008
Table 127 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 128 Store Cards Sector Performance: % Growth 2003-2008
Table 129 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 130 Store Cards: Number of Cards by Issuer 2003-2007
Table 131 Store Cards Forecast Sector Performance: 2008-2013
Table 132 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 133 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 134 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013