DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/nq59gb/emerging) has announced the addition of the "Emerging Opportunities in the Indian Cards and Payments Market: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape" report to their offering.
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.
- 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.
- 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.
State Bank of India (SBI)
ICICI Bank Limited
ITZ Cash Card Ltd
American Express Company
Diners Club International Limited
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Source: Research and Markets