Financial Cards in Russia
Euromonitor International's Financial Cards in Russia 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: 101 | 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
Effective Credit Rate Disclosure Puts Spotlight on Predatory Lending
Since 1 July 2007 credit organisations have been required to disclose effective interest rates for all credit products. This has brought the issue of predatory lending into focus. As of 15 August 2007 banks have been required to put an end to monthly commissions and other hidden charges. Major credit card issuers have dropped monthly commissions, but tightened their credit standards. This is likely to slow down the credit growth rate in the short term, but could be beneficial for the industry as a whole in the long term, as the banks will be able to attract responsible borrowers and reduce non-performing loan numbers.
Switch from Consumer Credit to Credit Cards and Payroll Projects Driving Growth
The main factor influencing the financial cards market in Russia in 2007 was the switch from consumer credit to credit cards. The banks and payment systems are investing a lot of money in advertising and sparing no effort to try and switch their clients to credit products. In the short term the growth will continue, albeit at a lower rate, while, from a longer-term perspective, the growth will slow down considerably.
Social Benefit Payments and Payroll Projects Driving Debit Card Growth
Growth drivers include such systems as pension cards with a transport card attached or social benefits cards for things like childcare money and student allowances etc. Among other contributory factors are further development of payroll projects and social benefit projects. All this is increasing the number of cardholders, with this area of the market experiencing steady growth. Pre-paid cards or payroll projects and credit cards are experiencing particularly dynamic growth, with the majority of credit cards being debit cards with a credit function. Credit card growth is still insignificant in absolute terms.
Smart Card Growth Is Sponsored by the State
Most smart cards are issued within the framework of government projects. These include pension cards, student cards and social benefits cards. Apart from having a debit function, such cards have a contactless transport function and various discount plans. Although many of the cards have both magnetic stripe and embedded chip, ATMs and point-of-sale terminals process only magnetic stripes. The major issuers of smart cards are Bank of Moscow and Sberbank. The cost of a smart card is six times more than the cost of a magnetic stripe card, which is the reason why this category is slow to develop outside of state-sponsored projects.
Banks Aggressively Grow Their Client Base While Service Standards Lag Behind
Over the review period the banks were rapidly increasing their client base. The increase in customer base and banked population share did not bring about a corresponding increase in transaction value. On the client side this can be attributed to the limited financial culture of the population, the predominance of cash payments and the large share of payroll cards. On the side of the banks it is the insufficient customer service technology and poor service standards.
Table of contents
FINANCIAL CARDS IN RUSSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Effective Credit Rate Disclosure Puts Spotlight on Predatory Lending
Switch from Consumer Credit to Credit Cards and Payroll Projects Driving Growth
Social Benefit Payments and Payroll Projects Driving Debit Card Growth
Smart Card Growth Is Sponsored by the State
Banks Aggressively Grow Their Client Base While Service Standards Lag Behind
KEY TRENDS AND DEVELOPMENTS
Favourable Economic Situation Drives Card Size Growth
Cards Are Losing Out to Money Transfer Services and Cash Payment Terminals
International and State Banks Grow by Acquiring Banks with Developed Regional Networks
Gradual Development and Rapid Growth Competing for Cardholders
Co-branding Is More Interesting for the Banks than for the Cardholders
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 - RUSSIA
BANK OF MOSCOW - FINANCIAL CARDS - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bank of Moscow: Key Facts
Summary 3 Bank of Moscow: Operational Indicators 2004-2006
COMPANY BACKGROUND
PLATEZHNAYA SYSTEMA ZOLOTAYA KORONA - FINANCIAL CARDS - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Platezhnaya Systema Zolotaya Korona: Key Facts
Summary 5 Platezhnaya Systema Zolotaya Korona: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
ROSBANK JSC - FINANCIAL CARDS - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Rosbank: Key Facts
Summary 7 Rosbank: Operational Indicators 2004-2006
COMPANY BACKGROUND
RUSSKY STANDART BANK ZAO - FINANCIAL CARDS - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Russky Standart Bank ZAO: Key Facts
Summary 9 Russky Standart Bank ZAO: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
VTB 24 BANK - FINANCIAL CARDS - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 VTB 24 Bank: Key Facts
Summary 11 VTB 24 Bank: Operational Indicators 2004-2006
COMPANY BACKGROUND
SMART CARDS IN RUSSIA
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
DEBIT TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 Debit Cards Sector Performance: 2002-2007
Table 31 Debit Cards Sector Performance: % Growth 2002-2007
Table 32 Debit Cards: Number of Cards by Issuer 2002-2006
Table 33 Debit Cards: Number of Cards by Operator 2002-2006
Table 34 Debit Cards Transactions by Acquirer 2002-2006
Table 35 Debit Cards Transaction Value by Operator 2002-2006
Table 36 Debit Cards: Forecast Sector Performance: 2007-2012
Table 37 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Credit Cards Sector Performance: 2002-2007
Table 39 Credit Cards Sector Performance: % Growth 2002-2007
Table 40 Personal Credit Cards Sector Performance: 2002-2007
Table 41 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 42 Corporate Credit Cards: Sector Performance: 2002-2007
Table 43 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 44 Credit Cards: Number of Cards by Issuer 2002-2006
Table 45 Credit Cards: Number of Cards by Operator 2002-2006
Table 46 Credit Cards Transactions by Acquirer 2002-2006
Table 47 Credit Cards Transaction Value by Operator 2002-2006
Table 48 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 49 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 50 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 51 Corporate 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
Table 56 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Charge Cards Sector Performance: 2002-2007
Table 59 Charge Cards Sector Performance: % Growth 2002-2007
Table 60 Personal Charge Cards Sector Performance: 2002-2007
Table 61 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 62 Corporate Charge Cards: Sector Performance: 2002-2007
Table 63 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 64 Charge Cards: Number of Cards by Issuer 2002-2006
Table 65 Charge Cards: Number of Cards by Operator 2002-2006
Table 66 Charge Cards Transactions by Acquirer 2002-2006
Table 67 Charge Cards Transaction Value by Operator 2002-2006
Table 68 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 69 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 70 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 71 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 72 Charge Cards: Forecast Sector Performance: 2007-2012
Table 73 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 74 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 75 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 76 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 78 Pre-paid Cards Sector Performance: 2002-2007
Table 79 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 80 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 81 Pre-paid Cards: Number of Cards by Operator 2002-2006
Table 82 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 83 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 84 Pre-paid Cards by Type 2004-2007
Table 85 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 86 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 87 Store Cards Sector Performance: 2002-2007
Table 88 Store Cards Sector Performance: % Growth 2002-2007
Table 89 Store Cards: Forecast Sector Performance: 2007-2012
Table 90 Store Cards: Forecast Sector Performance: % Growth 2007-2012