Financial Cards in Taiwan
Euromonitor International's Financial Cards in Taiwan 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: 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
Slow recovery in 2007 from bad debt situation
In 2007, the operating environment for Taiwan’s financial cards market has improved significantly compared with 2006. The mature ATM sector continues to grow, due to consumers who are no longer able to use credit cards as a result of high credit debt, and those who fear losing control of their cash flow. Bad debt problems which crippled many card issuers have started to show signs of relief, as players are focusing more on pushing card usage rates than on issuing new cards.
Target-specific issuing replaces mass issuing
With a slow recovery from credit card debt, card issuers are changing their financial card marketing to a highly targeted strategy aimed at increasing valid cards and value transactions through a smaller card holder base. The trend is to gain share through minimising cost and maximising profit. Rewards and card holder services, unlike in previous years, have been designed to attract only the right people.
Pre-paid cards the most dynamic
Pre-paid cards is the fastest developing sector in the financial cards market in Taiwan. In 2007, pre-paid cards expanded from just being an easy and convenient payment method for frequent purchases for specific retail purchases or services to become a payment solution which can be used on different platforms. The contactless feature has become widespread, and chained convenience store pre-paid cards combined with credit cards and/or other pre-paid cards, such as Easy Card, are set to change the financial cards market.
Cross-industry and cross-sector collaboration
Multi-function cards, which include ATM, credit, debit and pre-paid functions, offer greater convenience to target users and a more cost-effective operation model for card issuers. Co-branded credit cards have moved away from being a card issuer and a retail/service provider card to becoming a highly branded product with a theme designed for a specific group, whether be for its function, rewards or image.
Cathay overtakes Taishin to become the second most important credit card issuer
Taishin Financial Holding Co Ltd was one of the worst affected players by the bad debt problem. Taishin had the highest bad debt/credit card outstanding ratio in 2006 and stopped issuing new cards toward the end of that year. In 2007, Taishin become quiet in its promotions. In contrast, Cathay Financial Holding Co Ltd’s steady approach, along with the backing of its resource-rich parent group, enabled the company to move into second position.
Financial cards market to enter a new era
Over the forecast period, product features will be the key factors driving sales growth. Business operations are likely to focus on niche targeting to encourage card usage, improvements in bad debt and risk management processes and minimising operating costs. Although a continued unstable political situation is expected to hinder improvements in consumer confidence, a more diverse operational model for credit cards and pre-paid cards will see Taiwan’s financial cards market transformed to a new stage of development.
Table of contents
FINANCIAL CARDS IN TAIWAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Slow recovery in 2007 from bad debt situation
Target-specific issuing replaces mass issuing
Pre-paid cards the most dynamic
Cross-industry and cross-sector collaboration
Cathay overtakes Taishin to become the second most important credit card issuer
Financial cards market to enter a new era
KEY TRENDS AND DEVELOPMENTS
High bad debts move competition back to low risk operating models
Consumer spending culture changing
Cross-industry collaboration
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
Summary 1 Research Sources
LOCAL COMPANY PROFILES - TAIWAN
CATHAY FINANCIAL HOLDING CO LTD - FINANCIAL CARDS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Cathay Financial Holding Co Ltd: Key Facts
Summary 3 Cathay Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CHINATRUST FINANCIAL HOLDING CO LTD - FINANCIAL CARDS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Chinatrust Financial Holding Co Ltd: Key Facts
Summary 5 Chinatrust Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
E SUN FINANCIAL HOLDING CO LTD - FINANCIAL CARDS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 6 E.Sun Financial Holding Co Ltd: Key Facts
Summary 7 E.Sun Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
FUBON FINANCIAL HOLDING CO LTD - FINANCIAL CARDS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Fubon Financial Holding Co Ltd: Key Facts
Summary 9 Fubon Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
TAISHIN FINANCIAL HOLDING CO LTD - FINANCIAL CARDS - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Taishin Financial Holding Co Ltd: Key Facts
Summary 11 Taishin Financial Holding Co Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN TAIWAN
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 TAIWAN
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 TAIWAN
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 TAIWAN
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 TAIWAN
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 TAIWAN
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 TAIWAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS