Financial Cards in Singapore
Euromonitor International's Financial Cards in Singapore 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: 105 | 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
Booming economy supports popularity of financial cards
Singapore economy continued to perform well in 2007, expanding by a better-than-expected 6% in the first quarter. The government raised its full year growth forecast for 2007 to between 5% and 7%. Almost 48,000 jobs were created and this growth was coupled with a rise in basic wages, even amongst the lowest paid workers. With rising salaries and generous bonus payouts, disposable incomes rose and consumers increased their credit and debit card usage for purchases of clothing and food amongst other items as issuers undertook aggressive promotions to encourage spending on their cards. This government and industry push for cashless transactions further ensured that the number of financial cards continued to grow rapidly in Singapore in 2007.
Card operators undertake aggressive promotional strategies
Both domestic and multinational operators became aggressive in their eagerness to improve shares in a saturated market. Visa, a key player in premium travel industry, chalked out several initiatives for affluent consumers. MasterCard, continued to strengthen its hold as a preferred choice for everyday spending, operating several consumer programmes. American Express also broadened its rewards programmes tying up with over 600 outlets across the small island city in its bid to expand its cardholder base, while still being perceived as “exclusive”. NETS, the domestic debit/pre-paid card operator rebranded itself to a more trendy image while EZ-link continued to spread its network outside the transit industry putting many more readers in merchants.
Co-branding drives popularity of credit/debit cards while store cards decline
As competition intensified, the issuing banks engaged in one-upmanship, each trying to entice its cardholders with exclusive privileges and benefits over and above sales discounts. Card members were offered a host of exclusive treats, such as, complimentary upgrades to business class flights, and an array of dining and golfing privileges, as banks continue to innovate and offer products to maximise their returns on card usage. Two-year annual fee waivers were fairly common as was multiple reward points. Issuers aggressively vied for new applications through several road-shows across major malls during peak hours. Existing users were encouraged to spend through their particular card through tie-ups with several merchants for exclusive benefits. With increasing co-branded cards present in the market, store cards began to wane.
NETS fee hike considered monopolistic
NETS, Singapore’s most extensive cashless payment system, used for paying from groceries, utility bills to even parking fines created a furore amongst heartland retailers and consumers alike when it announced its decision to increase its fee. Retailers threatened to pass the hike onto their consumers. NETS, on the other hand, is justifying its fourfold price hike as the only way to survive the rising popularity of international debit cards, fearing that if it does not make its fee income lucrative enough to the issuing banks, it may go out of the system. While it remains to be seen how this will pan out in the future, the situation seems favourable for competitive domestic debit systems such as EZ-link to gain a foothold in the non-transit area and present itself as a lucrative alternative. NETS, on the other hand, will need to aggressively offer a loyalty programme to counter the lucrative rewards programmes rolled out by the international debit cards.
Singaporeans to enjoy the convenience of one card for electronic payments
Smart cards slowly, but surely, crept into the system in Singapore during the review period. Low value lost due to fraud and high cost of the chip and merchant readers are acting as key deterrents in quick replacement of all cards to adapt EMV technology. However, industry players continue to experiment with technology in order to improve their offerings. In June 2006, the world’s first nationwide interoperable micro-payment platform using open standard SS 518 CEPAS was launched. In November 2006, Citibank introduced a new cardless biometric payment service in partnership with US biometric service specialist Pay By Touch, enabling cardholders to pay for goods and services with the touch of their finger and eliminating the need for cardholders to present their credit card when paying for purchases.
Table of contents
FINANCIAL CARDS IN SINGAPORE : MARKET INSIGHT
EXECUTIVE SUMMARY
Booming economy supports popularity of financial cards
Card operators undertake aggressive promotional strategies
Co-branding drives popularity of credit/debit cards while store cards decline
NETS fee hike considered monopolistic
Singaporeans to enjoy the convenience of one card for electronic payments
KEY TRENDS AND DEVELOPMENTS
Employee demand raises basic salaries to the benefit of financial cards
Domestic debit card system stirred
Niche and premium consumers targeted due to increased saturation
Smart financial cards on the rise
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 - SINGAPORE
DBS BANK LTD - FINANCIAL CARDS - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 DBS Bank Limited: Key Facts
Summary 3 DBS Bank Limited: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
EZ-LINK PTE LTD (EZL) - FINANCIAL CARDS - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 4 EZ-link Pte Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
OVERSEA-CHINESE BANKING CORP LTD (OCBC BANK) - FINANCIAL CARDS - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 5 OCBC Bank: Key Facts
Summary 6 OCBC Bank: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
QB PTE LTD - FINANCIAL CARDS - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 7 QB Pte Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
UNITED OVERSEAS BANK LTD - FINANCIAL CARDS - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 8 United Overseas Bank Ltd: Key Facts
Summary 9 United Overseas Bank Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN SINGAPORE
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 SINGAPORE
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 SINGAPORE
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 SINGAPORE
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: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Credit Cards Transaction Value by Operator 2002-2006
Table 52 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 53 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 54 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 55 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 56 Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 60 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 61 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN SINGAPORE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Charge Cards Sector Performance: 2002-2007
Table 63 Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Personal Charge Cards Sector Performance: 2002-2007
Table 65 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 66 Corporate Charge Cards: Sector Performance: 2002-2007
Table 67 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 68 Charge Cards: Number of Cards by Issuer 2002-2006
Table 69 Charge Cards: Number of cards by Operator 2002-2006
Table 70 Charge Cards Transactions by Acquirer 2002-2006
Table 71 Charge Cards Transaction Value by Operator 2002-2006
Table 72 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 73 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 74 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 75 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 76 Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 78 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 79 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 80 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 81 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN SINGAPORE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 82 Pre-paid Cards Sector Performance: 2002-2007
Table 83 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 84 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 85 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 86 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 87 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 88 Pre-paid Cards by Type 2004-2007
Table 89 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 90 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012
STORE CARD TRANSACTIONS IN SINGAPORE
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 91 Store Cards Sector Performance: 2002-2007
Table 92 Store Cards Sector Performance: % Growth 2002-2007
Table 93 Store Cards: Number of Cards by Issuer 2002-2006
Table 94 Store Cards Transactions by Acquirer 2002-2006
Table 95 Store Cards: Forecast Sector Performance: 2007-2012
Table 96 Store Cards: Forecast Sector Performance: % Growth 2007-2012