Financial Cards in Germany
Euromonitor International's Financial Cards in Germany 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.
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Tables: 100 | Publication date: Mar 2008
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
Financial cards in circulation; Transactions
Executive summary
German Economy Hits High Note
In its annual spring assessment of the German economy in 2007, the five leading economic analysts anticipated the economy going from strength to strength in 2007 and 2008. The number of unemployed Germans is expected to fall, a trend which is universally expected to boost consumption. The saving ratio of German households in 2006 was slightly lower than in the previous year due to higher consumption in anticipation of the rise in VAT from 16% to 19% at the beginning of 2007. The trend in saving continued downwards in 2007, as Germans showed few signs of reining in consumption
Cash Remains Dominant Payment Method
A number of factors, such as shrinking unemployment figures, a strong (and solvent) government and a buoyant economy, contributed to the pessimistic climate in Germany turning positive. Spending has reached an unprecedented high since the turn of the decade, despite the higher rate of VAT. Use of electronic cash in the form of the ec-card is growing and is widely accepted, with an increasing number of terminals now EMV-compliant. Meanwhile, credit cards (a term that in Germany usually denotes the charge card) remain the more unusual means of payment, used principally for travel and hotel bookings. Cash remains the most popular method of payment in Germany, with some three-quarters of all payments made in cash in 2006.
Slight Upswing for Charge Cards
The number of credit and charge cards in circulation increased again in 2007. However, Germany's credit card market still has considerable potential for expansion, as the German Banking Federation (BDB) confirms that for consumer purchases, Germans still largely use their overdraft facility, "Dispokredit", which offers lower interest rates. Another alternative to the credit card is to take up a small loan offered by a bank, not necessarily the consumer's own bank. In terms of retail payments, the share for "credit cards" (primarily charge cards) remained static in 2007, while in e-commerce, cards with revolving credit are virtually unknown.
SEPA Goes "Live"
The rollout of the Single Euro Payments Area (SEPA) has been fraught with problems, principally agreement on how to convert national systems into a viable pan-European one. Many bankers and lenders were confused by the myriad of acronyms, such as SCF and EPC, EAPS, CIR and COS, which were introduced as facilitators in the run-up to SEPA. Furthermore, individual systems attempted to gain advantage within the wider system, evidenced by Euro Alliance of Payment Schemes (EAPS) setting out to strengthen acceptance of ec-Cash within SEPA with a European alternative to the two global debit systems, V-pay and Maestro. However, despite this and the slow pace of upgrading of ATMs and POS, SEPA went "live" for card payments and credit transfers in January 2008. For technical and legal reasons, the launch of the SEPA payment instrument for direct debits is not expected to take place until late 2008 or by the end of 2009 at the very latest.
Fraud Concentrated on the Internet
German card users are notoriously wary of non-established payment systems, particularly those which appear to demand too much personal information. This caution combined with the KUNO security system that allows merchants to check cards instantly against police data, means that fraud in Germany stands below the European average and is decreasing. Online card use is growing, but cards are still only the second most frequently used online payment method after bank transfers. Although e-commerce is gaining popularity and incidences of CNP fraud with it, this type of crime is not the burning issue it is in credit card fraud hotspots such as the UK.
Table of contents
FINANCIAL CARDS IN GERMANY : MARKET INSIGHT
EXECUTIVE SUMMARY
German Economy Hits High Note
Cash Remains Dominant Payment Method
Slight Upswing for Charge Cards
SEPA Goes "Live"
Fraud Concentrated on the Internet
KEY TRENDS AND DEVELOPMENTS
Consumer Lifestyles and Card Culture
Contactless Cards and m-Payment
SEPA (Single Euro Payments Area)
OPERATING ENVIRONMENT
Consumer Credit and Lending
Issuer Fraud
Acquirer Fraud
E-commerce
M-commerce
ATM and POS Terminals
Cash Withdrawal versus Card Purchase
Government Regulation and Legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - GERMANY
NETBANK AG - FINANCIAL CARDS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Netbank AG: Key Facts
Summary 3 Netbank AG: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
PAGO E-TRANSACTIONS SERVICES GMBH - FINANCIAL CARDS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Pago etransactions Services GmbH: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
PLUSCARD SERVICE-GESELLSCHAFT FüR KREDITKARTEN-PROCESSING MBH - FINANCIAL CARDS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Pluscard Service-Gesellschaft für Kreditkarten-Processing mbH: Key Facts
Summary 6 Pluscard Service-Gesellschaft für Kreditkarten-Processing mbH: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
POSTBANK AG - FINANCIAL CARDS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Postbank AG: Key Facts
Summary 8 Postbank AG: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
WINCOR NIXDORF AG - FINANCIAL CARDS - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Wincor Nixdorf AG: Key Facts
Summary 10 Wincor Nixdorf AG: Operational Indicators 2003/2004-2005/2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of Cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Credit Cards: Number of Cards by Issuer 2002-2006
Table 47 Credit Cards: Number of Cards by Operator 2002-2006
Table 48 Credit Cards Transactions by Acquirer 2002-2006
Table 49 Credit Cards Transaction Value by Operator 2002-2006
Table 50 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 51 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 52 Credit Cards: Forecast Sector Performance: 2007-2012
Table 53 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 54 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 55 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 56 Charge Cards Sector Performance: 2002-2007
Table 57 Charge Cards Sector Performance: % Growth 2002-2007
Table 58 Personal Charge Cards Sector Performance: 2002-2007
Table 59 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 60 Corporate Charge Cards: Sector Performance: 2002-2007
Table 61 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 62 Charge Cards: Number of Cards by Issuer 2002-2006
Table 63 Charge Cards: Number of Cards by Operator 2002-2006
Table 64 Charge Cards Transactions by Acquirer 2002-2006
Table 65 Charge Cards Transaction Value by Operator 2002-2006
Table 66 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 67 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 68 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 69 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 70 Charge Cards: Forecast Sector Performance: 2007-2012
Table 71 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 72 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 73 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 74 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 75 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 76 Pre-paid Cards Sector Performance: 2002-2007
Table 77 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 78 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 79 Pre-paid Cards: Number of Cards by Operator 2002-2006
Table 80 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 81 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 82 Pre-paid Cards by Type 2004-2007
Table 83 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 84 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Store Cards Sector Performance: 2002-2007
Table 86 Store Cards Sector Performance: % Growth 2002-2007
Table 87 Store Cards: Number of Cards by Issuer 2002-2006
Table 88 Store Cards Transactions by Acquirer 2002-2006
Table 89 Store Cards: Forecast Sector Performance: 2007-2012
Table 90 Store Cards: Forecast Sector Performance: % Growth 2007-2012