New Financial Services research report from Timetric is now available from Fast Market Research

Boston, MA -- (ReleaseWire) -- 11/10/2012 --The Indian cards and payments market registered significant growth during the review period (2007-2011) as combined card volume recorded a growth of 28.6% in 2011 over figures from 2010. Changing lifestyle demographics, the need for more sophisticated products, the increasing popularity of online shopping and increases in per capita disposable income supported the growth of this market. During the review period, the cards and payment industry increased at a CAGR of 27.67% in volume terms.

The Reserve Bank of India (RBI) has established a set of operating guidelines for the issuing of credit, prepaid and debit cards in India under the Payment Systems and Settlements (PSS) Act of 2007. Revised PSS Regulations in 2008 detailed the requirements that must be met for the authorization of payment systems, instructions on payment types and a framework for determining standards. A large section of the Indian population remains unbanked (according to 2011 RBI estimates, around 485.9 million of the total Indian population remained unbanked) and relies heavily on cash transactions. Out of the total unbanked population, 41% live in urban areas and 59% reside in the rural area. RBI regulations relating to financial inclusion mean that banks are presented with a significant opportunity to target and market their prepaid cards products, especially in rural areas.

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Key Highlights

- Although the issuance of all card types increased during the review period, debit cards accounted for the largest market share. The market share of debit cards grew at a CAGR of 28.38% during 2007 and 2011 and is forecast to increase at a CAGR of 17.72% over the forecast period.
- The growing market for online trade and e-commerce is one of the key growth drivers of the Indian cards and payments market.
- In March 2012, the National Payment Corporation of India (NPCI) launched RuPay, India's own card payment network. Established at the request of the RBI, RuPay will compete with existing companies such as Visa and MasterCard.
- The entry of non-banking companies into the prepaid card category will further support the growth of prepaid cards in India. During the review period many non-bank companies entered the prepaid card market, which had the effect of expanding the products and services on offer.
- Banks are segmenting their customer base in order to maximize the potential of expanding their market shares in each card category. Banks such as ICICI, HDFC and IDBI have launched debit cards specifically targeting Indian women.

Scope

- This report provides a comprehensive analysis of the Indian cards and payments market
- It provides current values for the Indian cards and payments market for 2011 and forecast figures to 2016
- It details the different macroeconomic, infrastructural, consumer and business drivers affecting the Indian cards and payments industry

Companies Mentioned in this Report: State Bank of India (SBI), ICICI Bank Limited, HDFC Bank, Axis Bank, IDBI Bank, ITZ Cash Card Ltd, American Express Company, Diners Club International Limited

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