Payment Cards in Australia 2006

Content

• Chapter 1 Introduction
  • What is this report about?
  • Who is the target reader?
  • How to use this report?
  • Definitions
  • Datamonitor's Cards and Payments Knowledge Centre
• Chapter 2 Market Context
  • Key findings:
  • The Economy
  • GDP and GDP per capita
  • Inflation
  • Distribution of income (GINI Coefficient)
  • Sectoral composition of the economy
  • Demographics
  • Market size
  • Payment cards in the context of consumer credit
  • Housing and consumer credit have grown rapidly in recent years at a combined rate of more than 16% compounded annually
  • Credit card debt is growing more slowly than household debt
  • 'Pay-later' card statistics
  • The number of credit cards in Australia reached 14.8 million in 2005
  • Transactions on credit cards in Australia exceeded A$140 billion at the end of 2005
  • 'Pay-now' statistics
  • There were 27.8 million debit cards in Australia in 2005
  • The number of purchases made via debit cards exceeded the 1.2 billion mark at the end of 2005
  • Market Infrastructure
  • ATM statistics
  • POS statistics
  • Branches
  • Regulatory environment
  • Industry regulators
  • Australian Prudential Regulation Authority (APRA)
  • The Reserve Bank of Australia (RBA)
  • Australian Competition and Consumer Commission (ACCC)
  • Industry associations
  • Australian Payments and Clearing Association (APCA)
  • Credit bureaux
  • Regulatory issues in the market
  • Credit card interchange
  • Debit card interchange
• Chapter 3 Competitor And Product Overview
  • Key findings
  • Card scheme market shares
  • In terms of the number of cards, EFTPOS is the dominant player in the 'pay now' card market while Visa leads the 'pay later' market
  • EFTPOS dominates the debit card market although Visa debit exhibits strong growth in the number of cards issued
  • Visa dominates the 'pay later' market
  • Card issuer market shares
  • Debit card market shares
  • Credit card market shares
  • In terms of the number of cards issued, CBA was the clear market leader
  • In terms of the balances outstanding on credit cards, the major banks continued to dominate the market although domestic banks face stiff competition from international players
  • Competitor developments
  • Competitive developments in the credit card market
  • The co-branded cards
  • The low-rate cards
  • Co-branded and low-rate card combination
  • Competitive developments in the debit card market
  • Competitive developments in the private-label card market
  • Competitive developments in the prepaid card market
  • The Bopo prepaid card has several advantages over the existing payment card options in Australia
  • The Bopo card is likely to be popular if it exploits its advantages
• Chapter 4 Forecasting The Payment Card Market
  • Forecasts for the debit card market
  • Forecasts for the credit card market
• Chapter 5 Appendix
  • Supplementary data
  • Definitions
  • Balances outstanding
  • AAGR
  • CAGR
  • Charge card
  • Credit card
  • Debit card
  • EFTPOS
  • Interchange
  • Visa Debit
  • Future readings
  • Relevant links
  • Datamonitor's custom research capabilities
  • SPP writing team
• List of Tables
  • Table 1: The GINI Index indicates that Australia and New Zealand have a more equal income distribution than Singapore and Hong Kong although they are behind major Eastern and Western European countries
  • Table 2: The interchange fee for the four-party schemes at October 2000 and September 2006
  • Table 3: In terms of balances outstanding, HSBC was the biggest gainer while naB lost the most ground in the market. This refers to the December 2004 - June 2006 period
  • Table 4: 16 credit cards were launched over the last twelve months with most being introduced over the October 2005 - February 2006 period
  • Table 5: Macroeconomic variables, 2006-2010 period
  • Table 6: GDP of Australia, Hong Kong, New Zealand and Singapore, 2001-2005
  • Table 7: Inflation rates for Australia, Hong Kong, New Zealand and Singapore, 2001-2005
  • Table 8: Australia's population by age, 2001-2005
  • Table 9: Australian lending, 2001-2005
  • Table 10: Credit card and household credit aggregates, 2001-2005
  • Table 11: Credit card statistics, 2002-2005
  • Table 12: Number of debit cards, 2002-2005
  • Table 13: Debit card transactions, value and number, 2001-2005
  • Table 14: Market infrastructure statistics, June 2001-June 2005 period
  • Table 15: Number of top 13 banks offering low-rate credit cards and when the cards were introduced
  • Table 16: Visa and EFTPOS debit card statistics, 2002-2005
  • Table 17: Credit card market shares by scheme, 2002-2005
  • Table 18: Market shares of debit cards, 2003-2005 period
  • Table 19: Market share of issuers in terms of the number of credit cards
  • Table 20: Market shares of balances outstanding per bank, 2004-June 2006
  • Table 21: Balances outstanding per bank, 2004 - June 2006
  • Table 22: Forecasted statistics for the debit and credit card markets, 2006-2010
• List of Figures
  • Figure 1: Real GDP grew steadily over the 2001-2004 period although since then it has dropped away - in some cases significantly
  • Figure 2: Across the four countries, GDP per capita grew at a steadier rate than real GDP
  • Figure 3: Over the 2001-2005 period, inflation rates have varied across the region with Australia and New Zealand experiencing similar inflationary trends. Hong Kong's inflation was mostly negative, while Singapore's inflation was mostly positive over most of the period
  • Figure 4: Australia's population remained relatively steady over the 2001-2005 period, with a slight trend towards the aging population
  • Figure 5: Over the 2001-2005 period, consumer credit increased by 16.2% compounded annually. Consumer credit is made up of both housing and 'other personal' lending, of which housing grew at 17.1% and personal lending grew by 11.6% compounded annually
  • Figure 6: Credit card balances as a proportion of total household credit aggregates have fallen over the 2001-2005 period
  • Figure 7: The number of credit cards increased by 20.7% over the 2002-2005 period
  • Figure 8: The value of transactions increased from A$105.0 million in 2002 to A$140.9 million in 2005
  • Figure 9: The number of debit card accounts have grown at an average annual rate of 2.0% over the 2002-2005 period
  • Figure 10: The average annual growth rate of debit card transactions was 9.8% over the 2002-2005 period
  • Figure 11: Over the 2001-2005 period, the average annual growth rate for the number of ATMs was 16.1% compared to 8.2% for EFTPOS terminals. There was an increase of just 50 ADI branches over the same period
  • Figure 12: Visa debit cards have seen strong growth, increasing by 24.2% over 2004-2005 period, while EFTPOS cards have grown at a rate of 2.4% over the same period
  • Figure 13: Over the 2002-2005 period, Visa and Bankcard lost market share of credit cards while MasterCard and American Express increased their shares
  • Figure 14: At the end of 2005, CBA was the largest issuer of debit cards in Australia, followed by Westpac and naB
  • Figure 15: In terms of the number of cards, CBA was the dominant player in the credit card market at the end of 2005
  • Figure 16: In terms of balances outstanding, the biggest gainer was HSBC which increased its market share by 55.9%, while the biggest loser was naB which lost 12.9% of its market over the December 2004 - June 2006 period
  • Figure 17: naB's two Velocity cards are too expensive and the point redemption is far lower than that available on the Velocity program which is free to join
  • Figure 18: The advertising on the Earth cards' website highlights that this card is cheaper and better value than those already in the same market such as ANZ's Frequent Flyer card
  • Figure 19: The 'Bopo' card is expected to fill a gap in the Australian cards market
  • Figure 20: The number of debit cards will rise from 27.8 million in 2005 to 30.7 million in 2010
  • Figure 21: The number of credit cards are expected to grow from 14.8 million in 2005 to 17.4 million at the end of 2010
  • Figure 22: Balances outstanding are expected to increase from A$31.3 bn in 2005 to A$53.0 bn in 2010
  • Figure 23: The value of credit card transactions is expected to rise from A$140.9 bn in 2005 to A$195.0 bn in 2010
  • Figure 24: Datamonitor's core consulting capabilities