Consumer Finance in Turkey
Euromonitor International's Consumer Finance in Turkey 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: 95 | Publication date: Apr 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
Strong Growth in Debit Card Payments Encouraged by Banks
The number of ATM cards with debit function issued in Turkey is high. However, Turkish consumers typically only used these for their ATM function at the start of the review period. During the review period, consumers became more aware of the benefits of debit card, due to informative marketing by Interbank Card Center (ICC), an association founded by the leading banks in Turkey. ICC conducted its first awareness-raising campaign for debit cards in 2004 and launched frequent campaigns for the remainder of the review period. Banks also focused on encouraging the use of debit cards, while widening in merchant acceptance for financial cards in general also boosted interest.
Consumers Respond to Convenient Credit Offered by Credit Cards
Credit cards rapidly gained popularity during the review period and continued to see the most dynamic growth in financial cards in terms of card volume in 2008. Apart from the convenience of credit cards, Turkish people appreciate the credit function offered by these cards, which helps users to defer payments for their expenses. Turkish banks also drove growth by focusing on attractive payment instalment plans and reward points.
Leading Banks Strengthen Position in Financial Cards
The leading banks increasingly focused on financial cards towards the end of the review period, thus gaining a stronger position in terms of cards issued. Turkiye Cumhuriyeti Ziraat Bankasi AS has the widest bank network and largest number of deposit accounts in Turkey. However, the bank initially proved reticent in developing financial cards in the review period, due to its risk-averse strategies and state ownership. Towards the end of the review period, however, the bank notably focused on boosting its issued volume of financial cards, in line with government strategies to encourage a shift from cash to card payments.
Credit Card Issuers Concerned About Proposed Legislation
In 2008, a new law was proposed in parliament, with this set to limit interest rates for credit cards to two times weighted deposit interest rates. The current legislation, the Credit and Debit Cards Law, encompasses looser limitations, with these determined by the Central Bank each month. If the proposed law is approved, the ceiling on interest rates will be 50-70% lower. Therefore, all banks are concerned about this proposal, claiming it will prevent a free competitive environment. Industry observers also believe that the legislation would prevent growth in credit cards.
Continuing Strong Growth As Financial Cards Move Further Into Mainstream
Financial cards is expected to see continued strong growth during the forecast period. Debit cards will be boosted by consumers' increasing comfort in using financial cards, along with widening merchant acceptance and the strong presence of ATMs across the country. However, credit cards will continue to drive growth, with many consumers viewing these primarily as a credit facility. Commercial credit cards is expected to see particularly strong growth, with banks increasingly targeting small and mid-sized businesses as customers.
Table of contents
CONSUMER FINANCE IN TURKEY : MARKET INSIGHT
EXECUTIVE SUMMARY
Strong Growth in Debit Card Payments Encouraged by Banks
Consumers Respond to Convenient Credit Offered by Credit Cards
Leading Banks Strengthen Position in Financial Cards
Credit Card Issuers Concerned About Proposed Legislation
Continuing Strong Growth As Financial Cards Move Further Into Mainstream
KEY TRENDS AND DEVELOPMENTS
Rise of Contactless Cards
Internet Retailing Boosts Use of Financial Cards
Security Measures Improve for Financial Cards in Turkey
Pre-paid Cards Benefit from Offering Convenience
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 Card Expenditure by Location 2008
Table 20 Card Expenditure by Sector 2008
Table 21 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 22 Domestic versus Foreign Spend 2008
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - TURKEY
AKBANK TAS - FINANCIAL CARDS AND PAYMENTS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Akbank TAS: Key Facts
Summary 3 Akbank TAS: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Akbank TAS: Competitive Position 2007
GARANTI BANKASI AS - FINANCIAL CARDS AND PAYMENTS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Garanti Bankasi AS: Key Facts
Summary 6 Garanti Bankasi AS: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Garanti Bankasi AS: Competitive Position 2007
TURKIYE CUMHURIYETI ZIRAAT BANKASI AS - FINANCIAL CARDS AND PAYMENTS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Turkiye Cumhuriyeti Ziraat Bankasi AS: Key Facts
Summary 9 Turkiye Cumhuriyeti Ziraat Bankasi AS: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 Turkiye Cumhuriyeti Ziraat Bankasi AS: Competitive Position 2007
TURKIYE IS BANKASI AS (ISBANK) - FINANCIAL CARDS AND PAYMENTS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Turkiye Is Bankasi AS (Isbank): Key Facts
Summary 12 Turkiye Is Bankasi AS (Isbank): Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 Turkiye Is Bankasi AS (Isbank): Competitive Position 2007
YAPI VE KREDI BANKASI AS - FINANCIAL CARDS AND PAYMENTS - TURKEY
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Yapi ve Kredi Bankasi AS: Key Facts
Summary 15 Yapi ve Kredi Bankasi AS: Operational Indicators 2005-2007
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 16 Yapi ve Kredi Bankasi AS: Competitive Position 2007
ATM TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 23 ATM Cards Sector Performance: 2003-2008
Table 24 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 25 ATM Cards Sector Performance: % Growth 2003-2008
Table 26 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 27 ATM Cards Forecast Sector Performance: 2008-2013
Table 28 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 29 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 30 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 31 Debit Cards Sector Performance: 2003-2008
Table 32 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 33 Debit Cards Sector Performance: % Growth 2003-2008
Table 34 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 35 Debit Cards: Number of Cards by Issuer 2003-2007
Table 36 Debit Cards: Number of Cards by Operator 2003-2007
Table 37 Debit Cards Transactions by Acquirer 2003-2007
Table 38 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 39 Debit Cards Forecast Sector Performance: 2008-2013
Table 40 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 41 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 42 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Credit Cards Sector Performance: 2003-2008
Table 44 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 45 Credit Cards Sector Performance: % Growth 2003-2008
Table 46 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 47 Personal Credit Cards Sector Performance: 2003-2008
Table 48 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 49 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 50 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 51 Commercial Credit Cards Sector Performance: 2003-2008
Table 52 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 53 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 54 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 55 Credit Cards: Number of Cards by Issuer 2003-2007
Table 56 Credit Cards: Number of Cards by Operator 2003-2007
Table 57 Credit Cards Transactions by Acquirer 2003-2007
Table 58 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 59 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 60 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 61 Credit Cards Forecast Sector Performance: 2008-2013
Table 62 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 63 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 64 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 65 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 66 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 67 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 68 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 69 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 70 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 71 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 72 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 73 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 74 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 75 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 76 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 77 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 78 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 79 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS