Synopsis
The economic reforms introduced by the Pakistani government during the review period (2009-2013) had a positive impact on the country's GDP growth rate. This rate increased from 2.8% in 2009 to 6.1% in 2013; a trend that is expected to continue over the forecast period (2014-2018). The improved economic conditions are expected to positively impact the country's cards and payments industry. Pakistani payment cards (including debit and credit cards) registered a positive growth during the review period, recording a compound annual growth rate (CAGR) of 25.93%, and increasing from 9.2 million cards in circulation in 2009 to 23.1 million by the end of 2013. In terms of transaction value, payment cards valued PKR1.9 trillion (US$18.8 billion) in 2013, after registering a review-period CAGR of 24.37%. With the development of alternative delivery channels, the launch of biometric ATMs and the availability of fund transfer facilities online and at ATM terminals, banks are able to reach a large volume of the population. Furthermore, the improvement in banking infrastructure, the development of the new products, government initiatives and stable economic conditions are all factors which led to the growth of payment cards. Read Complete Report With TOC @ http://www.radiantinsights.com/research/pakistan-s-cards-and-payments-industry-emerging-opportunities-trends-size-drivers-strategies-products-and-competitive-landscape While cash remains the most popular payment format among Pakistani consumers, they are gradually making use of payment cards for payments for purchases and utility bill payments. Rising consumer awareness of the benefits of payment cards, government initiatives and the introduction of innovative products and marketing campaigns by card issuers are expected to drive consumers towards card-based payments. Banks are implementing various marketing strategies to offer benefits to cardholders, in the form of discounts and rewards points on card use. The government's initiative to issue Watan Cards for the disbursement of funds to flood victims also contributed to the growth of payment cards. Growth in retail outlets and e-commerce activities, supported by rising POS terminals and online payment gateways, also aided the growth. Banks are also introducing branchless banking concepts so that customers can carry out their banking transactions via a mobile phone. Debit cards are considered to be the most favorable mode of payment card instrument in Pakistan. The debit card market was very strong in 2013, accounting for 94.4% of the entire cards and payment market, followed by credit cards, with a 5.6% share in terms of transaction value. The same trend is anticipated to follow over the forecast period. Debit cards are generally used by customers to pay utility bills, transfer funds online, to make payments at retail outlets and to withdraw cash. In order to offer debit cards, banks are targeting niche segments of society. The Pakistani prepaid card market is recording positive and steady growth. In terms of the number of cards in circulation, the market grew at a CAGR of 18.11%, increasing from 1.4 million in 2009 to 2.7 million in 2013. This is anticipated to record a CAGR of 5.62% over the forecast period, with 3.5 million cards in 2018. With a large unbanked population and outbound tourism growth, these cards have significant growth potential over the forecast period. UBL issued Wiz cards targeting females, the young and frequent travelers. Furthermore, the Pakistani government has also used prepaid cards to disperse funds among citizens as part of its social benefits scheme. The government also issued Watan cards in association with HBL, in order to distribute relief funds to flood affected victims. About Radiant Insights Radiant Insights is a platform for companies looking to meet their market research and business intelligence requirements. We assist and facilitate organizations and individuals procure market research reports, helping them in the decision making process. We have a comprehensive collection of reports, covering over 40 key industries and a host of micro markets. In addition to over extensive database of reports, our experienced research coordinators also offer a host of ancillary services such as, research partnerships/ tie-ups and customized research solutions. For more information visit, Radiant Insights Contact Details: Michelle Thoras Corporate Sales Specialist, USA Radiant Insights, Inc Phone: 1-415-349-0054 Toll Free: 1-888-202-9519 Blog: http://www.radiantinsightsinc.blogspot.com
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