Market Research Report
Pakistan Cards & Payments: Opportunities and Risks to 2023
|Published by||GlobalData||Product code||914209|
|Published||Content info||47 Pages
Delivery time: 1-2 business days
|Pakistan Cards & Payments: Opportunities and Risks to 2023|
|Published: October 9, 2019||Content info: 47 Pages||
Pakistan is a cash-dominated society. Use of cash for day-to-day transactions remains prevalent among Pakistanis due to factors such as a high unbanked population, limited financial awareness, and inadequate payment infrastructure. Financial inclusion remains a top priority, with the government and other commercial banks introducing initiatives to improve banking penetration. The government launched the National Financial Inclusion Strategy (NFIS) in May 2015, aiming to bring 50% of the adult population into the formal banking system by 2020.
Adoption of basic bank accounts, increasing the number of bank branches, offering banking services via banking agents, expanding ATMs and point of sale (POS) terminals, and promoting financial awareness are the key objectives. The rise of Islamic banking is also expected to support payment card growth. Branchless banking is among the main drivers of financial inclusion in the country. The number of accounts opened via branchless banking channels increased from 37.3 million in 2017 to 47.2 million in 2018.
Debit cards account for 96.3% of total payment card transaction value in 2019, including ATM withdrawals. The introduction of low-cost "Asaan" accounts and an expanded agent banking network have driven debit card adoption. Banks are increasingly using banking agents to reach out to the unbanked population in rural areas. There were 425,199 agents operating in Pakistan as of December 2018.
Credit cards are not popular among Pakistani consumers, accounting for only 3.7% of total payment card transaction value in 2019. This is due to both banks following stringent application procedures and religious reasons, as Islam forbids interest. With the growing popularity of Islamic banking, banks are offering Sharia-compliant credit cards.
E-commerce grew significantly from PKR6.3bn ($45.1m) in 2015 to PKR28.9bn ($206.6m) in 2019 at a review-period compound annual growth rate (CAGR) of 46.3%. This growth was mainly supported by the expansion of internet access and rising smartphone penetration. New e-commerce merchants and government initiatives have also supported growth. Online retailers conduct various shopping events to boost their online sales. Meanwhile, the availability of alternative payment solutions such as Easypaisa, JazzCash, MCB Lite , and FonePay also benefits the e-commerce space.
The report "Pakistan Cards & Payments: Opportunities and Risks to 2023" provides detailed analysis of market trends in the Pakistani cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cash, cards, direct debits, and cheques during the review-period (2015-19e). The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2019e-23f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.
The report brings together research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.
The report "Pakistan Cards & Payments: Opportunities and Risks to 2023" provides -
The report "Pakistan Cards & Payments: Opportunities and Risks to 2023" enables the user to -
Companies Mentioned - HBL, UBL, MCB Bank, Askari Bank, Allied Bank, Bank Alfalah, Faysal Bank, Standard Charted, Visa, Mastercard, UnionPay, American Express