Financial Cards in Turkey
Euromonitor International's Financial Cards in Turkey 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.
Get immediate access to strategic market analysis when you buy reports online
Tables: 78 | Publication date: May 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
Financial card transactions entered a phase of slower growth
After the financial crisis in 2001, credit card usage jumped, leading to very high growth rates in the subsequent years. This was unexpected for the authorities and companies in the financial cards industry. Companies, especially issuer companies, started to conduct huge promotional and advertising campaigns and they considerably increased financial card usage and numbers until 2005. At the end of the review period both card transactions and card numbers entered a phase of slower growth. ATM volume transactions recorded a higher growth rate than credit cards in 2006, but the gap between these rates closed significantly in 2007. Debit card transactions recorded the highest growth rate and did not slow as much as the other types, even if they did show signs of slower growth as well.
Internet transactions of financial cards continued to see high growth rates
Internet shopping started to be highly popular in Turkey at the end of the review period. Increasing usage of the internet also affected banking as people increasingly did their shopping on the internet using their financial cards. Since internet shopping provided a wider range of products and consumed less time, more people started to benefit from such opportunities. New security precautions made the internet a more attractive shopping option. Issuer companies started to make agreements with internet shopping websites for promotions, discounts and better payment and delivery options for consumers using their credit cards. This resulted in continuous strong growth in internet transactions using financial cards at the end of the review period.
Increasing use of credit cards at supermarkets/hypermarkets
Increased visits to super-/hypermarkets positively affected credit cards. Issuer companies started to make agreements with super-/hypermarkets and gas stations in order to provide gift promotions, installation options and discounts to their credit card consumers. Unlike independent food outlets or bazaars, consumers can purchase goods in supermarkets with credit cards. Other than retail services, motoring was the second highest beneficiary of credit card consumption. Increased automobile sales as a result of lower taxes led to increasing gas and spare parts consumption. Increased petrol prices in particular forced banks to make promotional agreements with petrol companies. Moreover, the increased number of gas stations and super-/hypermarket also positively affected credit card transactions.
ATM value growth rate slowed sharply at the end of the review period
With the increased internet banking and telephone banking services, people started to visit ATMs less and to use other alternative channels. Issuer companies increased their spending on upgrading the technological advancements of their internet and telephone banking options. On the other hand, ATMs started to be used for many different applications. For example, people could buy GSM accounts from ATMs or they could conduct operations without having a card. ATMs also started to be fully automatic by accepting cash, which was not accepted directly before 2006.
Pre-paid cards to see very strong growth
Pre-paid cards are mostly KGS (Highway Pass) Cards. These cards started to be issued by private banks after state banks took the first step in 2005. KGS cards are used for paying highway and bridge pass fees, offering 20% discounts. This attracted the attention of many consumers after Bogaziçi Bridge, which is one of Istanbul’s two bridges, stopped accepting cash payments. Consumers wanting to use this bridge had to apply for KGS cards or OGS devices, which were small in-car devices. Over the forecast period KGS card usage is estimated to record a boom and transactions are expected to reach very high numbers. Issuer companies are planning to combine KGS cards with credit cards, which would provide a boost to credit card transactions as well.
Table of contents
FINANCIAL CARDS IN TURKEY : MARKET INSIGHT
EXECUTIVE SUMMARY
Financial card transactions entered a phase of slower growth
Internet transactions of financial cards continued to see high growth rates
Increasing use of credit cards at supermarkets/hypermarkets
ATM value growth rate slowed sharply at the end of the review period
Pre-paid cards to see very strong growth
KEY TRENDS AND DEVELOPMENTS
Positive economic conditions increased financial card spending
Huge increase in promotion and advertising raised credit card consumption
Security concerns increased the prevalence of smart cards in credit cards
Increased number of mergers brought dynamism and stability to financial cards
Increased number of instalments provided by credit cards changed consumer spending habits
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 - TURKEY
ANADOLU KREDI KARTLARI AS - FINANCIAL CARDS - TURKEY
Strategic Direction
Key Facts
Summary 2 Anadolu Kredi Kartlari AS: Key Facts
Company Background
Competitive Positioning
E-KART - FINANCIAL CARDS - TURKEY
Strategic Direction
Key Facts
Summary 3 E-Kart: Key Facts
Summary 4 E-Kart: Operational Indicators
Company Background
Competitive Positioning
GARANTI ÖDEME SISTEMLERI AS - FINANCIAL CARDS - TURKEY
Strategic Direction
Key Facts
Summary 5 Garanti Ödeme Sistemleri AS: Key Facts
Company Background
Competitive Positioning
TURKIYE CUMHURIYETI ZIRAAT BANKASI AS - FINANCIAL CARDS - TURKEY
Strategic Direction
Key Facts
Summary 6 Turkiye Cumhuriyeti Ziraat Bankasi AS: Key Facts
Company Background
Competitive Positioning
YAPI VE KREDI BANKASI AS - FINANCIAL CARDS - TURKEY
Strategic Direction
Key Facts
Summary 7 Yapi ve Kredi Bankasi AS: Key Facts
Summary 8 Yapi ve Kredi Bankasi AS: Operational Indicators
Company Background
Competitive Positioning
SMART CARDS IN TURKEY
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 TURKEY
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 TURKEY
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 TURKEY
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
PRE-PAID CARD TRANSACTIONS IN TURKEY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Pre-paid Cards Sector Performance: 2002-2007
Table 63 Pre-paid Cards Sector Performance: % Growth 2002-2007
Table 64 Pre-paid Cards: Number of Cards by Issuer 2002-2006
Table 65 Pre-paid Cards: Number of cards by Operator 2002-2006
Table 66 Pre-paid Cards Transactions by Acquirer 2002-2006
Table 67 Pre-paid Cards Transaction Value by Operator 2002-2006
Table 68 Pre-paid Cards by Type 2004-2007
Table 69 Pre-paid Cards: Forecast Sector Performance: 2007-2012
Table 70 Pre-paid Cards: Forecast Sector Performance: % Growth 2007-2012