Financial Cards in Malaysia
Euromonitor International's Financial Cards in Malaysia 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: 102 | Publication date: Mar 2008
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- Get insight into trends in market performance
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- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
Cash dominates, credit cards grow steadily, debit and pre-paid cards still nascent
Cash is still king in Malaysia, with the cash in circulation being about 6% of GDP. However, e-money transactions are steadily growing, with credit cards value of total non-cash payment being around 2.8% in 2005. Although the value of ATM transactions is the highest among e-money transactions, these are largely for cash withdrawals and fund transfers, rather than retail purchases. Within retail purchases, credit card transactions form the largest category, and record double digit growth. Although Malaysia has a very secure and convenient card, Bankcard, a single card for multiple functions, debit and pre-paid, its use is low, mainly due to low consumer awareness of its benefits and also due to low merchant acceptance. The only popular pre-paid card is the toll collection/transportation ‘Touch ‘n Go’ card. Other cards, such as store cards and pre-paid store cards are virtually absent. With increasing consumerism and the growing image of cards as a trendier payment type, increasing awareness of the convenience of a multi-function debit and pre-paid card and advertising and promotion by issuers, cash usage is expected to gradually decline at the expense of financial cards.
Given high penetration, credit card competition intensifies
While card penetration looks low, at about 25% of the total Malaysian population, it is already high within the income-eligible population, hence issuers are fiercely competing for growth through increased spend by existing customers, rather than acquiring new customers. Credit cards are estimated to have a penetration of 25% to 28% of the total population, but there are actually two to three cards per “eligible population” (as per 9th Malaysia Plan income distribution statistics, only 40% households or an estimated 3.9 million individuals are income-eligible for credit cards). Hence issuers are fiercely competing for growth via an increase in spend, by using a wide range of measures. Waiving the joining fee and annual fee is now a staple competitive feature. In addition, issuers are providing a wide range of benefits, rewards, privileges, and many other innovative packages such as low interest balance transfers, easy/zero percentage repayment plans and generous cash advance facilities. Consumers are being offered the latest products, such as contactless cards and ‘mini’ cards in a bid to attract and retain customers. Co-branded cards, which offer joint benefits from issuers and the co-branded partner, are also being offered to be competitive and offer superior consumer benefits.
Advanced technology offers secure payments, contactless and mobile payment
Malaysia is the first country in the world to deploy EMV compliance and implement chip based smart cards in its commitment to reduce fraud and provide a secure payment environment to consumers. These initiatives have resulted in a dramatic reduction in fraud. Counterfeit fraud, formerly the largest fraud category, is now negligible. In addition to EMV and smart cards, Malaysia has achieved nationwide implementation of data encryption to secure transfers of data from POS to acquirer, and thus also reduce fraud in this area. This secure environment made it the ideal choice for the roll-out of Visa’s first contactless smart card on EMV technology. For the same reason it was Visa’s choice of country in which to conduct the mobile payment experiment in 2006 and 2007. Technology has not only helped reduce fraud, but smart cards have also made advanced functionality possible, thus enabling consumers to have access to superior products and services, for instance the multi-function capability of Bankcard-ATM, e-debit, e-purse, IBG, inter-regional ATM network sharing, e-commerce and m-commerce capability.
Credit for toll collection/transportation does well; expansion in other small value purchases likely
Until recently toll collection/transportation was the only ‘small value routine purchase’ category on pre-paid cards, with the ‘Touch ‘n Go’ card. However recently ‘Zing’ Touch ‘n Go contactless cards linked to credit cards were launched, thus making toll payment faster, more convenient and trendier, as well as offering a credit facility. Use of credit for such small value routine purchases signals a strong possibility of use of credit for payment of other similar items, such as grocery purchases, to use at convenience stores and vending machines, thus opening a potentially large segment for credit. Issuers have started to look seriously at such expansion, to gain an early mover advantage and be ahead of Bankcard, which is MEPS cash (pre-paid) enabled, but hardly used in this segment, where cash still rules.
Table of contents
FINANCIAL CARDS IN MALAYSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Cash dominates, credit cards grow steadily, debit and pre-paid cards still nascent
Given high penetration, credit card competition intensifies
Advanced technology offers secure payments, contactless and mobile payment
Credit for toll collection/transportation does well; expansion in other small value purchases likely
KEY TRENDS AND DEVELOPMENTS
A faster growing economy expected to positively impact finance
Malaysia continues to be an early adopter of state-of-the-art card technology
Gradually growing consumer appetite for non-cash as well as credit payments
Stiff competition in credit cards, but other categories just starting out
OPERATING ENVIRONMENT
Consumer credit and lending
Issuer Fraud
Acquirer fraud
E-commerce
M-commerce
ATM and POS terminals
Cash Withdrawal vs Card purchase
Governmental 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 - MALAYSIA
CITIBANK MALAYSIA - FINANCIAL CARDS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Citibank Malaysia: Key Facts
Summary 3 Citibank Malaysia: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
MALAYAN BANKING BHD - FINANCIAL CARDS - MALAYSIA
STRATEGIC DIRECTION
Summary 4 Malayan Bank Bhd : Key Facts
Summary 5 Malayan Bank Bhd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
MBF CARDS (MALAYSIA) SDN BHD - FINANCIAL CARDS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 MBF Cards (Malaysia) Sdn Bhd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
PUBLIC BANK BHD - FINANCIAL CARDS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Public Bank Bhd: Key Facts
Summary 8 Public Bank Bhd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
RANGKAIAN SEGAR SDN BHD - FINANCIAL CARDS - MALAYSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Rangkaian Segar Sdn Bhd (RSSB): Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN MALAYSIA
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 MALAYSIA
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 MALAYSIA
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 MALAYSIA
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 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
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 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 53 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 54 Credit Cards: Forecast Sector Performance: 2007-2012
Table 55 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 56 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 60 Charge Cards Sector Performance: 2002-2007
Table 61 Charge Cards Sector Performance: % Growth 2002-2007
Table 62 Personal Charge Cards Sector Performance: 2002-2007
Table 63 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Corporate Charge Cards: Sector Performance: 2002-2007
Table 65 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 66 Charge Cards: Number of Cards by Issuer 2002-2006
Table 67 Charge Cards Transactions by Acquirer 2002-2006
Table 68 Charge Cards Transaction Value by Operator 2002-2006
Table 69 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 70 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 71 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 72 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 73 Charge Cards: Forecast Sector Performance: 2007-2012
Table 74 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 75 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 76 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 77 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 78 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 79 Pre-paid Cards Sector Performance: 2002-2007
Table 80 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 81 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 82 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 83 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 84 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 85 Pre-paid Cards by Type 2004-2007
Table 86 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 87 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN MALAYSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 88 Store Cards Sector Performance: 2002-2007
Table 89 Store Cards Sector Performance: % Growth 2002-2007
Table 90 Store Cards: Number of Cards by Issuer 2002-2006
Table 91 Store Cards Transactions by Acquirer 2002-2006
Table 92 Store Cards: Forecast Sector Performance: 2007-2012
Table 93 Store Cards: Forecast Sector Performance: % Growth 2007-2012