Consumer Finance in South Africa
Euromonitor International's Consumer Finance in South Africa 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: 144 | Publication date: Mar 2009
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- 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
Solid Growth for Debit Cards
Debit card growth has continued to perform extraordinarily well in the South African market, especially when compared to credit-related financial cards. The debit function has been fairly under-utilised in recent years, but as perceptions around ease-of-use have changed, the sector has grown rapidly. A multifunctional debit card is the standard card issued when South Africans open any bank account. This combined with increased POS infrastructure, a gain in confidence, and general exposure has led to increased frequency of debit card payment. As debit cards make up the majority of cards on the market it is no surprise that there have been such large absolute volume increases in the sector. This trend is also partially helped by crime in the country as citizens generally feel unsafe carrying cash in major cities.
Gearing Up for 2010
Technological improvements in financial card systems and infrastructure have been accelerated in preparation for the 2010 FIFA World Cup. South Africa, as part of its hosting mandate, is expected to fall in line with Western financial card standards but still lacks a number of functionalities. These range from payment structures such as credit card acceptance at petrol stations, to superior technologies such as contactless smart cards and improved POS terminals. However, there is currently an effort by leading institutions and the government, to lay the foundation plans for a complete revamp before hosting a major event. It is therefore likely that financial card infrastructure, functionality and payment systems will be completely overhauled in the next two years.
Cashless Transactions Grow
Cashless transactions have grown tremendously over the review period. As infrastructure and technology grows around the country, consumers are becoming more aware of the potential of their financial cards for cashless transactions. Cashless culture is well developed in Western countries but it seems that South Africa lags behind the trend. Previously, South African consumers seemed to lack confidence in using their debit and credit cards in cashless transactions. However, through education, exposure and practice, South African consumers’ confidence to use a financial cards, rather than cash, has significantly changed in the last few years.
Gift Card Explosion
Gift cards witnessed explosive growth in 2008. Although the vast majority are retail store-related closed-loop cards, there are also MasterCard-backed open-loop cards which are predominantly being utilised by shopping centre networks. Among the most popular are the Edcon and Woolworths cards, which are primarily clothing-related. The success of gift cards has sparked interest in pre-paid applications in other areas, specifically in the public transport sector.
Credit-Related Cards Slow
As the global credit crunch continues to impact emerging markets, through limiting consumer access to credit, credit-related financial cards have also felt the adverse consequences of this economic slowdown. In South Africa, this has been compounded by the new national credit act and the tightening of credit-related facilities. It is likely based on global trends and predictions that this market will continue to produce poor results until the global economic recession has passed.
KEY TRENDS AND DEVELOPMENTS
Cashless Culture Matures
As an emerging market, South Africa does not yet have the same philosophies and social habits with regard to cashless transactions as Western countries. However, over the review period, South Africa has experienced a huge transition in payment culture among the middle- and upper-income groups, which has ultimately led to a more mature market and increased cashless transactions.
Current Impact
The impact of cashless culture can be seen throughout the entire financial cards industry in South Africa. The convenience factor, along with expanded payment infrastructure and technology are ultimately the driving force behind consumers switching to more cashless transactions. Furthermore in South Africa, market penetration, financial card education and exposure, and the high crime rate have all played a significant part in the market's growth. Industry players have been able to expand infrastructure networks and their consumer base to all parts of the country including the more rural, poorer areas. The South African consumer has responded well to exposure to technology and cards, and gained immense confidence in using financial cards, of all forms, for a variety of transactions. Over the review period, financial card transaction volumes and values have sky-rocketed. The levels of transactions, infrastructure and absolute growth are unprecedented in relation to the African continent. However, in global terms, South Africa is just following the general trend and still has a long way to go before it is considered a mature financial card market.
Outlook
The cashless culture is continuing to integrate itself into the South African market. The outlook is of course positive for the financial cards industry and consumers alike. With an increasing cashless culture, players and institutions involved in the industry will be able to focus on new products and services, as well is improving existing structures. Of course, the revenue generated by an increase in cashless transactions is also a substantial positive for players in the industry. For the consumer, further development of infrastructure and multifunctional cards means more convenience. It is also likely that as the market becomes larger, more players may enter, increasing competition, which in turn will lower the cost of financial card fees. Even outside the financial cards industry, the spin-offs are fantastic for a number of industries and of course if one were to look solely at convenient payments the economy would greatly benefit from increased cashless culture. The only people, it seems, that would not benefit from cashless transactions are the ones who do not have financial cards.
Future Impact
If South Africa continues along this road of solid growth and follows the trends occurring within Western culture, the future holds even more opportunity for the financial cards industry. South Africa may move away from its largely cash-based economic model and turn to the convenience financial cards provide. Furthermore, if companies exploit the opportunities in the market, payment infrastructure and technology will continue to improve, POS terminals will increase, card functionality will increase and of course further growth will be experienced in the market. However, it should be noted, that the South African market remains largely untapped and that the increasing cashless culture is predominantly among the middle- and upper-income groups. The market will still take many years to mature to the standards of Western countries. Either way, companies involved in the market will benefit, the economy and the government running it will certainly benefit, and of course last but not least, consumers will benefit. Cashless transactions offer a lot of opportunity in the country and the future impact of this trend is certainly optimistic.
Technology Collaboration
In July 2010, South Africa hosts the FIFA World Cup. Due to the sheer size of the event and volume of fans that will attend, South Africa has had to extensively upgrade infrastructure in many spheres of the country, including payment and card infrastructure. The goal is to boost South Africa to Western standards, with advanced technologies (e.g. contactless smart cards) which would have otherwise taken a longer time in being introduced to the market.
Current Impact
It seems that nearly all major players, organisations and stakeholders have enthusiastically accepted the challenge of getting South Africa on track to host this prestigious event. The “big four” banks in a joint initiative with the government and payment associations are spearheading the drive and appear to be committing substantial resources in order to streamline the process. At the time of writing, nearly all plans had been finalised and implementation was in its infancy stage. The major payment associations along with the relevant institutions involved are really excited about the prospects of these new technologies. Most of them have already started planning their offerings and are gearing up to accept these technologies with open arms. It is interesting to note that by being given an ultimatum, these companies and the government have worked more effectively together than previously thought possible.
Outlook
Whether organisations involved are able to meet their mandate by the time of the 2010 FIFA World Cup is a matter of much debate. At present, they have streamlined processes that would have otherwise taken months or even years, to effectively a few weeks. If this is the precedent set for the rest of the implementation programme, it is certainly likely that they will meet their required deadline. The question remains whether they will be able to have fully implemented these new technologies and tested them within the next year and a half. Ultimately, they must achieve this goal, but in the unlikely event that they should fail, they would have already made a huge step towards having better technologies in the country and South Africa will benefit from this well into the future.
Future Impact
The future impact of these technologies is certainly an exciting prospect. South Africa will fall in line with all Western payment standards and could be one step closer to being classified as a developed market. The financial cards industry ultimately revolves around ease-of-payment and streamlining of payment structures. The better the technology the easier it is to pay, thereby adding significant intrinsic value and potential to the financial cards industry. Another spin-off that new technologies will have on the financial cards market relates to crime and card fraud. As these new systems and cards are introduced, it will be much harder to commit card fraud and related crimes and it is likely that these figures, which are currently phenomenally high, will diminish on introduction.
Continued Domination by the Big Four Banks
The “big four” is the name given to the conglomerate of the four major banks in the country: Amalgamated Banks of South Africa Ltd (ABSA), First National Bank Ltd (FNB), Nedbank Ltd, and Standard Bank of South Africa Ltd (Standard Bank). These four banks represent almost the entire financial cards market in South Africa.
Current Impact
Due to the lack of other major participants in the market, they have the ability to influence any aspect of the market they choose. There have been continual complaints over the review period with regard to the exorbitant fees and charges that consumers pay for retail banking services. The Competition Commission, a neutral government-funded organisation that looks into unfair competition practices, held a major enquiry into the South African banking market and it was established that the market needed some reform in terms of price setting. However, not only are the big four banks well established, but none of the smaller banks in the country even compare in terms of available capital and market capitalisation.
Outlook
It would be extremely hard for any company to enter the South African retail banking environment. Firstly, the capital outlay required remains the primary barrier to entry. Secondly, all aspects of the market including the ever important consumer base, has already been snapped up by one of the big four banks. The outlook certainly does not look good for consumers as thanks to the level of competition in the market, they have to pay more in terms of fees and charges than nearly any other country in the world. Conversely, the outlook for the banks is wholly positive. They are in a position where they can make extremely good margins in the South African market. It could be said however, that the exorbitant fees that the banks charge with regard to financial cards, inhibits the market to a certain extent. However, as there are no other retail banks in the country that offer the same facilities, South African consumers have no choice but to pay.
Future Impact
It is likely that at some point in the future there must be some form of government intervention if the market is to be free and fair. However, it is unlikely that this will happen any time soon. The future impact of this oligopoly is certainly negative for the financial cards market as it will inhibit market growth in the long term. Furthermore, the typical South African consumer is starting to lose faith in the retail banks altogether. Although, they have no choice but to continue using their financial cards, they are starting to do so unwillingly, and this will detract from cashless culture in general. If the banks were to lower their charges in line with Western standards, the financial cards industry would certainly benefit from increased consumer confidence. The Competition Commission's suggestion was that an intermediary body should be created in order to control the levels of profit that banks may make from their customers. It is unlikely as the country prepares for 2010 that this will happen as it will only slow down progress.
Bankserv, MasterCard and Visa
The operating environment in South Africa is fairly interesting as most people in the country think that the market is dominated by MasterCard and Visa. However, Bankserv is the dominant operator in the country and holds a near monopoly on the South African market. MasterCard and Visa, although branded on the vast majority of financial cards, represent a near insignificant proportion of the total operating value, and function predominantly as card associations in South Africa.
Current Impact
Bankserv is an automated clearing house that provides interbank electronic transaction switching and settlement services. The company was started in 1993 and is the result of consolidation by a number of bank operators in the country. It operates close on 90% of all ATM, POS and interbank transfers in the country. The company was originally started by the big four banks with the strategy to maintain a hold on the South African operating environment. Bankserv is licensed by PASA (Payments Association of South Africa) and together they are largely responsible for the growth of payment infrastructure in the country. Unfortunately for MasterCard and Visa, it has been very hard to gain a foothold market, as the big four banks wholly own Bankserv and obviously have a major interest in ensuring the company's dominance of the operating environment. However, MasterCard and Visa are definitely growing in share in the country, as some of the other banks, as well as the big four banks, are starting to use them for certain card products.
Outlook
It is unlikely that MasterCard and Visa will ever dominate the South African market as they do in other countries but all is not lost for these two global giants. They are still necessary in order to give financial cards, issued by South African banks, credibility through international acceptance. Both companies are still prominent in the country and have much to compete for as the only two card associations in the country. Furthermore, they are starting to operate various segments within the “big four” and slowly but surely are gaining market share in South Africa. Therefore, one could see such growth as positive but with such a minimal starting base in absolute terms they still hold a very small proportion of the South African market. Bankserv, although having lost a small proportion of its market share to these global giants, still completely dominates the market. However, with this being the case, and ownership of Bankserv by the “big four”, the only people who lose out at present are the South African consumers. As the market is fairly monopolistic, Bankserv is able to charge exorbitant fees for switches, transfers, ATM usage and POS transactions.
Future Impact
The future impact of Bankserv domination is not fully clear as there are a number of changes going on in the company. Firstly, Bankserv has decided to move its equity base from the big four banks to private shareholders. This intrinsically means that the banks will not have the same interest in the operations of the company (at least not to the same extent), and it might open up competition in the operating environment. MasterCard and Visa, regardless, are likely to grow in the South African market over the next few years. These operating juggernauts are likely to gain market share if the banks do not have as much of an interest in the operating environment. This would change the entire dynamic of the South African operating environment, in that it would lose its monopolistic edge. This would be good for the entire financial cards industry, as fees would become more competitive with lower prices and the market would become more diversified. Ultimately it would be the consumers that benefited the most from increased competition in the operating environment. With the number of different players, companies would have to provide both premium services and lower fees which will entice consumers to make more card transactions and increase cashless culture.
Lifestyle Cards
Financial cards are starting to transcend from being purely functional to becoming fashionable accessories. No longer are institutions merely selling you product; they are selling you a lifestyle. The financial card one carries has to reflect both the institution and the customer, giving the latter a feeling of security, professionalism, and above all, status. Therefore, the literal face of financial cards has changed significantly in recent years, not only in South Africa but as part of an ongoing, evolving global trend that has added an interesting dynamic to cashless culture.
Current Impact
If one were to look at financial cards in South Africa a few years ago, there would certainly be a feeling of blandness or conservatism when compared to some of the more recent financial cards on the market. No longer can companies get away with a purely functional card. Although previously, cards were not exactly distasteful, they were certainly not as aesthetically pleasing as some of the financial cards currently on the market. These days, companies take a lot more care with their cards as this represents an institution’s brand image. Cards have become sleeker, more colourful and representative of various themes. South African institutions have become much more aware of what it is to sell a complete lifestyle package. Furthermore, changing the style of the card, allows companies to target certain segments of the market. For example, Virgin Money issues colourful cards with the slogans “Bling” or “Use me” printed in large shiny letters. This would not be aimed at the corporate executive but rather the younger target market that Virgin seeks to attract. Interestingly, companies that seem to have made the biggest impact in this regard are not necessarily banks. Co-branded credit cards and gift cards seem to be among the most unique in terms of aesthetics and design.
Outlook
Certain cards and companies have already set the standard in making their cards both trendy and appealing, and it has certainly made a difference to their sales. Many consumers, particularly in the big cities, want to be seen as fashionable and want to show off their status. Having a certain brand of credit card, for example, has become similar to owning a new stylish car. Again, this trend appeals far more to younger generations than it does to older professionals who are in general more conservative. Companies that seem to be leading the way in terms of aesthetic cards geared towards youth include Virgin Money, Woolworths, Kulula and Musica. However this is not to say that banks are not bringing out aesthetically pleasing cards as well. All the banks (chiefly the big four) are starting to customise their cards depending on what accounts are being opened. For example, gold or platinum cards have a much more professional look in terms of colour, font and general elegance. A student card, on the other hand, will be geared towards having a much more funky, hip design in order to be noticeable to cardholders’ friends.
Future Impact
Stylish cards have already brought an interesting dynamic to the financial cards industry. In South Africa, this dynamic is still in its infancy stage and it is likely that it will develop well into the future. Virgin Money, for example, sends all its customers regular surveys in order to determine what card they may be interested in. Most institutions want to give their customers a high level of service and a feeling of satisfaction with their cards, as not only will this be good for their brand image, but consumers might be more inclined to use their cards more regularly. In the future, South Africans are more likely to see a whole host of customised, financial cards. It is a perfect marketing tool that, although geared more towards youth, has applications in many market segments. Over the next few years, companies that have not already responded to this trend are likely to do so in a significant way. Brand image, marketing, advertising and lifestyle are all part of a complete package which all companies would want to offer their customer base.
High Levels of Fraud
South Africa has one of the highest crime rates in the world and is considered among the most dangerous places to live. Unfortunately, fraud and card-related crime is no exception. South Africa's levels of card fraud have grown astronomically over the review period in a number of segments through lack of security features on cards.
Current Impact
Crime has affected the financial cards industry to a fair extent and is one of the key reasons for lack of confidence in the market. This relates to all forms of card-related crime and not only affects consumer but also store owner confidence. At present, the most prominent form of crime is identity fraud. According to the lead fraud prevention institution in the country, identity fraud occurs due to massive gaps and loopholes in the government's home affairs department. Apparently, consumers are able to acquire credit-related cards, particularly store cards, and use up all the available credit immediately. Instead of paying back this credit, they acquire a police affidavit stating that the year of birth on their ID is incorrect. This is then sent off with an application to the Department of Home Affairs where it is changed without checking relevant particulars. The fraudster then acquires a new ID, with a fresh credit history and the process starts again. Other financial card-related crimes include ATM fraud and more recently credit card skimming. Both of these are serious problems in the country, with the latter growing at a fast rate.
Outlook
The high levels of crime can be considered a direct consequence of the lack of policing and crime prevention structures. Furthermore, the corruption levels within certain government departments, along with a lack of training and skills of involved officials, greatly compounds the problem. The banks and leading institutions cannot possibly keep up with the levels of fraud being committed in the country at present. Furthermore, much of the fraud being committed could only be happening with inside information from banking structures and related institutions. In fairness, when a corrupt employee is caught by the banks, dismissal is instant. However, this has not reduced the levels of card-related crime in the country. Furthermore, due to the lack of general financial card understanding among the South African consumer base, many of these crimes are easier to commit undetected. However, there is a glimmer of hope for the honest hard-working citizen - the introduction of smart cards. EMV smart cards have been introduced but have failed to take off significantly as a customer only receives one with a new account. Banks however, are now actively encouraging customers to replace their magnetic strip cards and have a plan to get the whole country smart card compliant within the next few years. This however, does not help with ID fraud as this is a problem that is directly related to break down of government structures.
Future Impact
Fraud in the country is an ongoing battle between institutions and fraudsters. When a new fraud-prevention technology is introduced, it is only a matter of time before the fraudsters find a new way around it or a new method of fraud altogether. In terms of fraud related to skimming or cardholder not present, smart cards will make a big difference in the market. However, with regard to crimes such as ATM hold ups and of course ID fraud, there is a lot less that institutions can do except actively protest the loopholes in the ineffectively-run government bureaucracy. It is only a matter of time before consumers become worried about the levels of fraud and confidence in financial cards decreases. However, as financial cards have become so much a part of the South African society, it is unlikely that this lack of confidence will lead to diminishing transactions, with the exception of Internet transactions. Furthermore, with the major players playing such an active role in card fraud prevention, the movement towards a safer, crime-free environment has a bit of capital support behind it. Overall, it would therefore be safe to say that card-related crime will have a limited impact on the industry in general, but it is nevertheless a problem that needs to be resolved.
Internet Transactions Show Positive Growth
The growth of the Internet has sparked a worldwide phenomenon in online transactions. In South Africa, online transactions are relatively undeveloped but have shown significant growth over the review period. There are a number of reasons that have contributed to this growth, as well as a number of reasons that have prohibited further growth.
Current Impact
Currently, the Internet is growing at a rapid rate in the South Africa. This is predominantly due to the widespread introduction of broadband in many provinces and cities around the county. Although broadband is not entirely new in the country, it has traditionally been limited to big cities and due to the proportionally small number of users, cost has traditionally been quite high. Over the review period, broadband has exploded all over the country and growth in number of Internet users has spurred online transactions. This includes both local online transactions and foreign transactions as South Africans are becoming accustomed to ordering products from overseas giants such as Amazon. Although the vast majority of these online purchases are processed with a credit card, debit card growth in online transactions has also been impressive. Another main factor in the growth of Internet transactions is consumers gaining confidence in the Internet and how it works. Previously, consumers, particularly of an older generation, lacked a general understanding of the various facets of the Internet, which was further compounded by security concerns.
Outlook
The outlook is hugely positive for Internet transactions as South Africa seems to be falling in line with growth across the globe. However, there are a number of factors which have been hampering the growth of online transactions. Firstly, Internet fraud and security remains one of the primary reasons holding back further Internet growth. Consumers have heard a number of scare stories relating to a host of different frauds and the mere possibility of having all their funds siphoned from an account has kept many well away from online transactions. Conversely, as more reputable security companies have become involved in the market such as VeriSign and Thawte, people have felt a bit more secure providing their details on certain sites. Secondly, the big four banks are currently the only providers for doing online switches. This has hampered online development severely. However, apart from these two factors, the outlook is very positive for the South African Internet market as it is still in its relative infancy and has major capabilities for growth.
Future Impact
The future impact that online transactions will have on the South African financial cards market will become more significant as the country develops its technology culture. Already, online transactions are starting to account for a considerably larger proportion of credit card value and to a lesser extent debit card value. There is no question as to whether the Internet will be a growth industry, but how fast it grows and to what extent depends on a number of external factors. Market penetration of broadband Internet is still low in the country compared to first world countries. With market penetration and exposure, consumers will gain confidence and it is likely that the financial cards industry will benefit. Also, the financial cards industry will definitely evolve to meet the requirements of growing Internet transaction demand. Already, some of the major online stores, such as Woolworths, are allowing consumers to make purchases online with pre-paid gift cards. As the Internet grows, and online transactions become more secure, the possibilities for the financial cards industry become greater.
Financial Card Misunderstanding
There is a general lack of understanding surrounding financial cards in the country among both consumers and retail stores alike. Although this lack of understanding does not necessarily create problems, there are many instances where consumers can be taken advantage of and this is detrimental to the financial cards industry.
Current Impact
In general, the greatest lack of understanding is among lower-income groups who, due to apartheid, were not as exposed to financial cards and banking services. In many instances, lower-income black groups have no idea how to use their financial cards, which includes ATM withdrawals and certainly POS transactions. Most of the banks, in the more rural lower-income areas, have a number of staff who are there to assist with ATM transactions. However, it is not only the lower-income groups that lack an understanding about financial card use. A perfect example is the way in which debit cards are processed at POS terminals. When a customer makes a purchase at a POS terminal he or she enters a PIN in order to authorise the transaction, effectively making it similar to an ATM withdrawal. The merchant, therefore, technically does not need the customer's signature on the merchant copy of the invoice; however, nearly every merchant in the country insists that they sign. Although one may think this is to prevent any legal issues, most merchants truly do not know that you need not sign for any debit card purchase. In a related example, by law, one has to sign for credit card purchases and the merchant is required to check the copy of the signature against the back of the card; this rarely happens.
Outlook
In all instances mentioned above, the transaction is processed; however, this still illustrates a major lack of understanding of financial cards. Obviously, some instances may have more serious repercussions than others, but in general they all require the same solution – financial card education. Interestingly, the banks involved in the market (particularly the “big four”) suggest that they are doing everything in their power to help educate people with regard to financial card use, yet these misunderstandings continue. It seems they will do little more as long as the transactions are being processed and their revenues are up. It should also be up to shopkeepers and companies to make sure they understand the laws regarding financial cards before they have POS terminals installed in stores. In general, this lack of understanding, apart from the possibility of more serious repercussions, leads to lower consumer usage due to lack of confidence. Furthermore, once such habits have formed, they are a lot harder to break and will certainly negatively affect the financial cards industry in the long run.
Future Impact
If merchants and consumers are not educated about the proper use of financial cards, this misunderstanding will merely perpetuate. The reason why there has not been a huge drive towards correcting these issues is because they are currently deemed not very serious. However, the amount of fraud, both credit card and at ATMs, could be significantly reduced if merchants and consumers strictly adhered to the laws surrounding transactions. Although there have been no immediate effects, once the breaking of laws is excused, regardless of how inconsequential they are, it is a slippery slope to the breaking of further laws and a breakdown of wider card culture. Although the future impact of this trend is nowhere near as severe as this, an important point needs to be illustrated now. With greater financial card understanding comes greater consumer use and positive growth. In the long run, the financial cards industry will be much better off for the education.
Table of contents
CONSUMER FINANCE IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Solid Growth for Debit Cards
Gearing Up for 2010
Cashless Transactions Grow
Gift Card Explosion
Credit-Related Cards Slow
KEY TRENDS AND DEVELOPMENTS
Cashless Culture Matures
Technology Collaboration
Continued Domination by the Big Four Banks
Bankserv, MasterCard and Visa
Lifestyle Cards
High Levels of Fraud
Internet Transactions Show Positive Growth
Financial Card Misunderstanding
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
Summary 1 Research Sources
CONSUMER LENDING IN SOUTH AFRICA
EXECUTIVE SUMMARY
The global credit crunch impacts South Africa
Inexperienced borrowers cause more problems
New legislation offers short- and long-term effects
Interest rates squeeze disposable income
The leading players set to continue dominance
KEY TRENDS AND DEVELOPMENTS
Consumer Finance Legislation - New National Credit Act
Black middle-income consumers - first time credit users
Rising living costs hit consumer confidence
Crackdown on micro lending malpractice
Unprecedented levels of debt
Rising inflation and interest rates
Mortgages/housing crash looms
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 - SOUTH AFRICA
AMALGAMATED BANKS OF SOUTH AFRICA (ABSA) - FINANCIAL CARDS AND PAYMENTS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 3 ABSA: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 ABSA: Competitive Position 2007
FIRST NATIONAL BANK (FNB) - FINANCIAL CARDS AND PAYMENTS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 First National Bank Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 6 First National Bank Ltd: Competitive Position 2007
NEDBANK GROUP LTD - FINANCIAL CARDS AND PAYMENTS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Nedbank Group Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Nedbank Group Ltd: Competitive Position 2007
STANDARD BANK OF SOUTH AFRICA - FINANCIAL CARDS AND PAYMENTS - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Standard Bank of South Africa Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Standard Bank of South Africa Ltd: Competitive Position 2007
ATM TRANSACTIONS IN SOUTH AFRICA
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 SOUTH AFRICA
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 SOUTH AFRICA
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 SOUTH AFRICA
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 SOUTH AFRICA
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 SOUTH AFRICA
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