Financial Cards in Thailand
Euromonitor International's Financial Cards in Thailand 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: 106 | 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
Merchant Acceptance Yet to Reach Critical Mass: Cash Remains King
Despite a growing base of cards in circulation, the rate of penetration for merchant acceptance of financial cards still needs to be improved in Thailand. This is probably a result of a high proportion of traditional retail outlets failing to see the value of accepting financial cards that result in a proportion of the transaction value being paid in fees to acquirers and operators. As per capita card penetration remains low, cash will remain the main instrument within Thailand's payment system for some time.
Poor Consumer Confidence Weighs Down Financial Cards Market in 2007
Strong economic growth and low unemployment have led to growth in the disposable income of the average Thai in recent years. This has translated directly into more spending power and, by 2006, per capita consumer spending was up notably on 2001. As a result there has been a retail boom in recent years, with a rise in the number of western-style shopping centres, malls and department stores. A surge of domestic and foreign investment in Thailand's retail environment has opened up the market to new products, with major international operators competing with local players. However, uncertainty following the military coup, and the strong baht, led to consumer confidence dropping to a 5-year low in August 2007. Growth in private consumption slowed in the first half of 2007 as consumers held off on spending until the political situation and economic picture became clearer. This will have an impact on sales of high-ticket items in particular, as well as spending on leisure and recreation. With the election taking place, the situation looks likely to pick up in 2008, however.
Prepaid Cards the Star Performer
Prepaid cards have emerged as a star growth performer within financial cards. This is due to the rapid growth of prepaid cards within transportation, as well as prepaid retail cards through Thai Smart Card and OK Cash. Further to these, acceptance of prepaid gas cards is beginning to pick up, thanks to greater visibility for fleet owners on transactions. Further development of prepaid cards is expected to take place within the education, retail and financial services sectors – driving up both transaction value and volumes significantly. Moves by financial card operators to introduce prepaid credit cards are expected over the forecast period, with the purpose of gaining consumers who may not meet credit card eligibility requirements spelt out by the Bank of Thailand.
EMV Migration: POS Infrastructure Mostly Compliant
EMV migration was under way for most of 2007, with a significant proportion of merchants with POS infrastructure already EMV compliant. This result was thanks to a concerted effort by operators, issuers and acquirers to sell the benefits of EMV compliance to merchants – helped along by the passing of liabilities to merchants who do not comply with EMV standards at the point of sale. EMV compliant infrastructure is pushing issuers to roll out smart cards within the different card types – particularly debit and credit. This will help increase the visibility of multifunction cards such as Bangkok Bank's Be1st BTS Debit Card.
Contactless and NFC: First Steps Under Way
While the contactless card has traditionally been the stronghold of prepaid cards – namely for transportation and small value retail transactions – 2007 was the year in which transportation cards married with a debit card function became available in the Thai financial cards market. Provided that negotiations between transport operators bear fruit, contactless cards are expected to gain greater significance in the Thai market. NFC infrastructure hit a roadblock when Access M-Payments withdrew from the m-payments market. However, Thai Smart Card has announced its intention to enter the fray, and thus the outlook has improved dramatically for NFC development.
Table of contents
FINANCIAL CARDS IN THAILAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Merchant Acceptance Yet to Reach Critical Mass: Cash Remains King
Poor Consumer Confidence Weighs Down Financial Cards Market in 2007
Prepaid Cards the Star Performer
EMV Migration: POS Infrastructure Mostly Compliant
Contactless and NFC: First Steps Under Way
KEY TRENDS AND DEVELOPMENTS
Interim Government Threatened Prospect of Economic Growth
Strong Baht Boosts Consumer Spending on Import Goods, but Exports Suffer
Working Women Enhance Disposable Income and Boost Consumption
Central Bank Tightens Credit Card Regulations, Banks Respond With Promotions
Challenges in Payment Infrastructure to Continue
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 - THAILAND
BANGKOK BANK PCL - FINANCIAL CARDS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Bangkok Bank PCL: Key Facts
Summary 3 Bangkok Bank PCL: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
BANK OF AYUDHYA PCL - FINANCIAL CARDS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bank of Ayudhya PCL: Key Facts
Summary 5 Bank of Ayudhya PCL: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SIAM COMMERCIAL BANK PCL, THE - FINANCIAL CARDS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 6 The Siam Commercial Bank PCL: Key Facts
Summary 7 The Siam Commercial Bank PCL: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
THAI SMART CARD CO LTD - FINANCIAL CARDS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Thai Smart Card Company Limited: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
THAILAND POST CO LTD - FINANCIAL CARDS - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Thailand Post Co Ltd: Key Facts
Summary 10 Thailand Post Co Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN THAILAND
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 THAILAND
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 THAILAND
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 THAILAND
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 THAILAND
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 THAILAND
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 THAILAND
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