Financial Cards in Sweden
Euromonitor International's Financial Cards in Sweden 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: 107 | 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
General Increase in Usage of Financial Cards
In 2007, the numbers of cards, transaction value and volume have continued to increase in Sweden. The use of cash is decreasing, while the point-of-sale infrastructure is continuing to develop, facilitating increased card usage. The number of ATM transactions is expected to decrease in the forecast period in favour of financial cards. All types of financial cards showed an increase in both value and volume over the review period.
Fees for Smaller Payments Are Slowing Down the Growth of Financial Cards
While larger shops have adopted the point-of-sale infrastructure allowing the customers to pay freely with financial cards, small shops and kiosks usually do not favour small payments, typically under SEK100, with financial cards. This is due to the cost for the outlet associated with the financial card transaction. Despite the fact that outlets have agreements with the acquirers not to make a charge for a payment with financial card, it became customary for small outlets to do so in Sweden.
Increasing Competition in Credit Cards
The credit cards landscape is likely to be reshaped in the forecast period. The big four Swedish banks started competing with each other more intensely some three years ago. The entrance of international companies into the market, such as EnterCard, shows that these players see the Scandinavian market as an interesting source of potential revenue. The credit cards market in Scandinavia and in Sweden in particular, is underdeveloped due to the population's general scepticism towards borrowing for small purchases at high interest rates which are charged on credit cards. Furthermore, a large percentage of the population is unaware about how credit cards function and the benefits of splitting up the payments, which gives companies issuing credit cards the opportunity to tap into new market segments.
Contactless Cards Mainly Limited to Transportation Companies
The promising RFID technology, which allows payments to be made with smart cards, without any physical contact with a point-of-sale (POS) terminal is now being tested by several public transportation companies, such as Stockholm's public transportation company. Currently, the technology is limited to transportation companies. The main reason is that transportation companies are providing large enough orders for international providers to become interested in implementing the RFID technology.
Debit Cards Remain the Main Instrument of Payment
Debit cards remained the main instrument of choice when it comes to payments with financial cards in Sweden in 2007. Debit cards is the largest financial cards sector in Sweden and still growing. Credit and charge cards remain underdeveloped in comparison with debit cards, due mainly to the general scepticism towards borrowing. Another reason is the way these products are marketed by banks. Credit and charge cards are generally significantly more expensive than debit cards with regard to the annual fee. Debit cards are offered by several banks as a part of a package, which includes a savings account and internet connection. Going forward, credit and charge cards are expected to develop further.
Table of contents
FINANCIAL CARDS IN SWEDEN : MARKET INSIGHT
EXECUTIVE SUMMARY
General Increase in Usage of Financial Cards
Fees for Smaller Payments Are Slowing Down the Growth of Financial Cards
Increasing Competition in Credit Cards
Contactless Cards Mainly Limited to Transportation Companies
Debit Cards Remain the Main Instrument of Payment
KEY TRENDS AND DEVELOPMENTS
Credit Cards Market Expects Wave of Foreign Entrants
Internet Shopping Will Fuel Growth in Online Transactions
Fraud Has Minimal Impact on Financial Card Usage
Large Players Benefit the Most in Financial Cards
High Disposable Incomes and Booming Property Prices Fuel Lending
OPERATING ENVIRONMENT
Consumer Credit and Lending
Issuer Fraud
Acquirer Fraud
E-commerce
M-commerce
ATM and POS Terminals
Cash Withdrawal versus 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 - SWEDEN
ENTERCARD SVERIGE AB - FINANCIAL CARDS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 SwedBank AB/EnterCard AB: Key Facts
Summary 3 SwedBank AB/EnterCard AB: Operational Indicators 2005-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
GE MONEY BANK AB - FINANCIAL CARDS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 GE Money Bank AB: Key Facts
Summary 5 GE Money Bank AB: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SEB KORT AB - FINANCIAL CARDS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 6 SEB Kort AB: Key Facts
Summary 7 SEB Kort AB: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SVENSKA HANDELSBANKEN AB - FINANCIAL CARDS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Svenska Handelsbanken AB: Key Facts
Summary 9 Svenska Handelsbanken AB: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
XPON CARDS AB - FINANCIAL CARDS - SWEDEN
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Xpon Cards AB: Key Facts
Summary 11 Xpon Cards AB: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN SWEDEN
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 SWEDEN
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 SWEDEN
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 SWEDEN
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 SWEDEN
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 SWEDEN
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 SWEDEN
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