Kuwait’s Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

The Kuwaiti card payments channel grew strongly in terms of transaction value during the review period (2009−2013). The card payments channel valued KWD16.0 billion (US$56.4 billion) in 2013, after registering a compound annual growth rate (CAGR) of 12.02%. Improved banking infrastructure and the increased installation of point of sale (POS) terminals in merchant outlets were the channel’s key growth factors. In terms of transaction value, debit cards accounted for a channel share of 60.0% in 2013, and situation which is expected to be maintained over the forecast period.

Due to the emergence of contactless payment systems, enhanced security features and the convenience of electronic payments, Kuwait’s population has been encouraged to perform more card-based transactions. In 2013, the 3D password feature was added to credit cards by Ahli United Bank Kuwait, and helped to increase customer confidence in card-based transactions. An integrated POS service is being installed across all Gulf Cooperation Council (GCC) countries to promote debit card use.

The growing market for online shopping in Kuwait is a primary factor contributing to the rise of Kuwait’s cards and payments industry. E-commerce value increased from KWD57.3 million (US$199.1 million) in 2009 to KWD221.3 million (US$779.5 million) in 2013, at a review-period CAGR of 40.21%. The value of e-commerce is expected to record a forecast-period (2014−2018) CAGR of 23.92%. The primary reason behind Kuwait’s high online commerce value is the country’s high internet penetration rate (users per 100 inhabitants), which grew from 50.8 in 2009 to 84.9 in 2013, and is expected to grow further over the forecast period.

Scope

• This report provides a comprehensive analysis of Kuwait's cards and payments industry.

• It provides current values for Kuwait's cards and payments industry for 2013, and forecast figures for 2018.

• It details the different economic, infrastructural and business drivers affecting Kuwait's cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details the marketing strategies used by various banks and other institutions.

• It profiles the major banks in Kuwait's cards and payments industry.

Key Highlights

• The Kuwaiti card payments channel grew strongly in terms of transaction value during the review period (2009−2013). The card payments channel valued KWD16.0 billion (US$56.4 billion) in 2013, after registering a compound annual growth rate (CAGR) of 12.02%. Improved banking infrastructure and the increased installation of point of sale (POS) terminals in merchant outlets were the channel’s key growth factors. In terms of transaction value, debit cards accounted for a channel share of 60.0% in 2013, and situation which is expected to be maintained over the forecast period.

• Banks design specialized products to meet the demands of specific target groups. The National Bank of Kuwait has developed new product strategies targeting niche segments such as women and premium customers. In partnership with telecoms company Zain, the bank offers co-branded cards for mobile users, which give customers a free SMS for every Kuwaiti Dinar spent using the card. Upon applying for the Zain Visa Card, the cardholder also gets 100 free introductory bonus local text messages for every KWD1 (US$3.5) spent. The bank has also partnered with Diners Club to offer a co-branded card for travelers, which provides complimentary travel insurance.

• The growing market for online shopping in Kuwait is one of the primary factors contributing for the rise of Kuwait’s cards and payments industry. E-commerce value increased from KWD57.3 million (US$199.1 million) in 2009 to KWD221.3 million (US$779.5 million) in 2013, at a review-period CAGR of 40.21%. The value of e-commerce is expected to record a forecast-period (2014−2018) CAGR of 23.92%. The primary reason behind Kuwait’s high online commerce value is the country’s high internet penetration rate. Internet penetration (users per 100 inhabitants) grew from 50.8 in 2009 to 84.9 in 2013, and is expected to grow over the forecast period.

•Near-field communication (NFC) technology is being increasingly adopted by payment network providers, service providers, merchants and mobile network operators in Kuwait. Visa, for example, partnered with the National Bank of Kuwait and Zain to launch an NFC trial in October 2009. This was the first instance of NFC technology being provided in Kuwait, and offered a convenient low-value payment solution to customers. The technology is accepted by most retailers, and enables cardholders to pay for purchases at Visa PayWave terminals.

Reasons to buy

• Make strategic business decisions using top-level historic and forecast market data related to Kuwait's cards and payments industry and each market within it.

• Understand key market trends and growth opportunities in Kuwait's cards and payments industry.

• Assess the competitive dynamics in Kuwait's cards and payments industry.

• Gain insights in to the marketing strategies used for various card types in Kuwait.

• Gain insights into key regulations governing Kuwait's cards and payments industry.

Companies mentioned

Kuwait Finance House

National Bank of Kuwait

Commercial Bank of Kuwait

Gulf Bank

Ahli United Bank Kuwait

MasterCard

Visa

American Express

Diners Club

Table of Contents

1 Executive Summary

2 Analysis of Industry Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technology

2.1.1 ATMs

2.1.2 POS terminals

2.1.3 Internet penetration

2.1.4 Contactless technology

2.1.5 EMV

2.1.6 M-payments

2.2 Business Drivers

2.2.1 Growth of e-commerce

2.2.2 Outbound travel and tourism

2.2.3 Growing retail industry

2.3 Economic Drivers

2.3.1 Nominal GDP per capita

2.3.2 Real GDP growth

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Checks

3.1.2 Credit transfers

3.1.3 Card transactions

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 Guidelines regarding credit cards issued by local and Islamic banks

4.1.2 Anti-money laundering framework

4.1.3 Foreign direct investment (FDI) regulations

4.2 Card Fraud Statistics

4.2.1 Card-not-present fraud

4.2.2 Counterfeit card fraud

4.2.3 Lost or stolen card

4.2.4 Card ID theft

5 Emerging Consumer Attitudes and Trends

5.1 Market Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

6 Analysis of Card Payments and Growth Prospects

6.1 Channel Share Analysis by Card Category

6.2 Size and Forecast of the Card Payments Channel

6.2.1 Analysis by volume of cards in circulation

6.2.2 Analysis by transaction value

7 Analysis of Credit Card Payments and Growth Prospects

7.1 Overall Category Size and Forecast

7.1.1 Analysis by volume of cards in circulation

7.1.2 Analysis by transaction value

7.1.3 Analysis by transaction volume

7.2 Transaction Share Analysis by Channel

7.2.1 Analysis by transaction value

7.2.2 Analysis by transaction volume

7.3 Personal Credit Cards Size and Forecast

7.3.1 Analysis by volume of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Size and Forecast

7.4.1 Analysis by number of cards in circulation

7.4.2 Analysis by transaction value

7.4.3 Analysis by transaction volume

7.5 Competitive Landscape

7.5.1 Scheme share analysis

7.5.2 Issuer share analysis

8 Analysis of Debit Card Payments and Growth Prospects

8.1 Overall Category Size and Forecast

8.1.1 Analysis by volume of cards in circulation

8.1.2 Analysis by transaction value

8.1.3 Analysis by transaction volume

8.2 Transaction Share Analysis by Channel

8.2.1 Analysis by transaction value

8.2.2 Analysis by transaction volume

8.3 Competitive Landscape

8.3.1 Scheme share analysis

8.3.2 Issuer share analysis

9 Analysis of Charge Card Payments and Growth Prospects

9.1 Overall Category Size and Forecast

9.1.1 Analysis by volume of cards in circulation

9.1.2 Analysis by transaction value

9.1.3 Analysis by transaction volume

9.2 Transaction Share Analysis by Channel

9.2.1 Analysis by transaction value

9.2.2 Analysis by transaction volume

9.3 Personal Charge Cards Size and Forecast

9.3.1 Analysis by number of cards in circulation

9.3.2 Analysis by transaction value

9.3.3 Analysis by transaction volume

9.4 Commercial Charge Cards Size and Forecast

9.4.1 Analysis by volume of cards in circulation

9.4.2 Analysis by transaction value

9.4.3 Analysis by transaction volume

9.5 Competitive Landscape

9.5.1 Scheme share analysis

10 Analysis of Prepaid Card Payments and Growth Prospects

10.1 Overall Category Size and Forecast

10.1.1 Analysis by volume of cards in circulation

10.1.2 Analysis by transaction value

10.2 Open-Loop Prepaid Cards Segment Size and Forecast

10.2.1 Analysis by number of cards in circulation

10.2.2 Analysis by transaction value

10.3 Closed-Loop Prepaid Cards Segment Size and Forecast

10.3.1 Analysis by volume of cards in circulation

10.3.2 Analysis by transaction value

11 Merchant Acquiring

12 Company Profiles of Card Issuers

12.1 Kuwait Finance House

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 National Bank of Kuwait

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 Commercial Bank of Kuwait

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 Gulf Bank

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 Ahli United Bank Kuwait

12.5.1 Key financials

12.5.2 Card portfolio

12.5.3 Strategies

13 Appendix

13.1 Methodology

13.2 Contact GlobalData

13.3 GlobalData

13.4 GlobalData’s Services

13.5 Definitions

13.6 Disclaimer

List of Tables

Table 1: Kuwaiti Payment Channels (KWD Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks in Kuwait

Table 3: Kuwaiti Card Fraud Value (KWD Thousand), 2009–2013

Table 4: Cards for Premium Customers, 2014

Table 5: Cards for Frequent Travelers, 2014

Table 6: Cards for Frequent Travelers, 2014

Table 7: Kuwaiti Card Payments Channel by Card Category in Terms of Volume of Cards (Thousand), 2009–2018

Table 8: Kuwaiti Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Table 9: Kuwaiti Card Payments Channel Size by Transaction Value (KWD Billion), 2009–2018

Table 10: Kuwaiti Card Payments Channel Size by Transaction Value (US$ Billion), 2009–2018

Table 11: Kuwaiti Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 12: Kuwaiti Credit Cards Category Size by Transaction Value (KWD Million), 2009–2018

Table 13: Kuwaiti Credit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 14: Kuwaiti Credit Card Category Size by Transactions Volume (Million), 2009–2018

Table 15: Kuwaiti Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 16: Kuwaiti Personal Credit Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Table 17: Kuwaiti Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 2009–2018

Table 18: Kuwaiti Personal Credit Cards Segment Size by Transactions Volume (Million), 2009–2018

Table 19: Kuwaiti Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 20: Kuwaiti Commercial Credit Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Table 21: Kuwaiti Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 22: Kuwaiti Commercial Credit Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Table 23: Kuwaiti Debit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 24: Kuwaiti Debit Cards Category Size by Transaction Value (KWD Billion), 2009–2018

Table 25: Kuwaiti Debit Cards Category Size by Transaction Value (US$ Billion), 2009–2018

Table 26: Kuwaiti Debit Cards Category Size by Transactions Volume (Million), 2009–2018

Table 27: Kuwaiti Charge Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 28: Kuwaiti Charge Cards Category Size by Transaction Value (KWD Million), 2009–2018

Table 29: Kuwaiti Charge Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 30: Kuwaiti Charge Cards Category Size by Transactions Volume (Thousand), 2009–2018

Table 31: Kuwaiti Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 32: Kuwaiti Personal Charge Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Table 33: Kuwaiti Personal Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 34: Kuwaiti Personal Charge Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Table 35: Kuwaiti Commercial Charge Cards Segment Size by Volume of Cards, 2009–2018

Table 36: Kuwaiti Commercial Charge Cards Segment Size by Transaction Value (KWD Thousand), 2009–2018

Table 37: Kuwaiti Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 38: Kuwaiti Commercial Charge Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Table 39: Kuwaiti Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Table 40: Kuwaiti Prepaid Cards Category Size by Transaction Value (KWD Million), 2009–2018

Table 41: Kuwaiti Prepaid Cards Category Size by Transaction Value (US$ Million), 2009–2018

Table 42: Kuwaiti Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 43: Kuwaiti Open-Loop Prepaid Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Table 44: Kuwaiti Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 45: Kuwaiti Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 46: Kuwaiti Closed-Loop Prepaid Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Table 47: Kuwaiti Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 48: Kuwait Finance House – Key Financial Indicators (KWD Billion), Years Ended December 2012 and 2013

Table 49: Kuwait Finance House – Card Product Offerings and Key Features

Table 50: NBK – Key Financial Indicators (KWD Million), Years Ended December 2012 and 2013

Table 51: NBK – Card Product Offerings and Key Features

Table 52: Commercial Bank of Kuwait – Key Financial Indicators (KWD Million), Years Ended December 2012 and 2013

Table 53: Commercial Bank of Kuwait – Card Product Offerings and Key Features

Table 54: Gulf Bank – Key Financial Indicators (KWD Million), Year Ended December 2012 and 2013

Table 55: Gulf Bank – Card Product Offerings and Key Features

Table 56: Ahli United Bank Kuwait– Key Financial Indicators (KWD Million), Years Ended December 2012 and 2013

Table 57: Ahli United Bank – Card Product Offerings and Key Features

Table 58: Key Definitions

List of Figures

Figure 1: Benchmarking the Kuwaiti Card Payments Channel Against Other Key Middle East and African Markets

Figure 2: Kuwait – Growth of Various Card Categories (%), 2009–2018

Figure 3: Kuwaiti ATM Penetration, 2009–2018

Figure 4: Kuwaiti POS Terminals Penetration, 2009–2018

Figure 5: Kuwaiti Internet Penetration (Internet Users per 100 Inhabitants), 2009–2018

Figure 6: Kuwaiti M-Payment Value (KWD Million), 2009–2018

Figure 7: Kuwaiti E-Commerce Value (KWD Million), 2009–2018

Figure 8: Kuwaiti Outbound Tourist Spending (KWD Billion), 2009–2013

Figure 9: Retail Sales Value in Kuwait (KWD Billion), 2009–2018

Figure 10: Kuwaiti Nominal GDP Per Capita (US$ Thousand), 2009–2018

Figure 11: Kuwaiti Real GDP Growth Rate (%), 2009–2018

Figure 12: Kuwaiti Inflation (Consumer Price Inflation) Rate, 2009–2018

Figure 13: Share of Kuwaiti Payment Channels in Terms of Transaction Value (%), 2009 and 2013

Figure 14: Shares of Various Types of Card Fraud in Terms of Transaction Value in Kuwait (%), 2009 and 2013

Figure 15: Kuwaiti Card-Not-Present Fraud Value (KWD Million), 2009–2013

Figure 16: Kuwaiti Counterfeit Card Fraud Value (KWD Thousand), 2009–2013

Figure 17: Kuwaiti Lost or Stolen Card Fraud Value (KWD Thousand), 2009–2013

Figure 18: Kuwaiti Card ID Theft Value (KWD Thousand), 2009–2013

Figure 19: Kuwaiti Cards and Payments Industry Segmentation by Card Type, 2014

Figure 20: Kuwaiti Card Payments Channel by Card Category in Terms of Volume of Cards (%), 2009–2018

Figure 21: Kuwaiti Card Payments Channel Size by Volume of Cards (Million), 2009–2018

Figure 22: Kuwaiti Card Payments Channel Size by Transaction Value (KWD Billion), 2009–2018

Figure 23: Kuwaiti Credit Cards Volume and Penetration, 2009–2018

Figure 24: Kuwaiti Credit Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 25: Kuwaiti Credit Cards Category Size by Transaction Value (KWD Million), 2009–2018

Figure 26: Kuwaiti Card Category Size by Transactions Volume (Million), 2009–2018

Figure 27: Kuwaiti Credit Card Transactions Value by Channel (KWD Million), 2009–2018

Figure 28: Kuwaiti Credit Card Transactions Volume by Channel (Million), 2009–2018

Figure 29: Kuwaiti Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 30: Kuwaiti Personal Credit Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Figure 31: Kuwaiti Personal Credit Cards Segment Size by Transactions Volume (Million), 2009–2018

Figure 32: Kuwaiti Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 33: Kuwaiti Commercial Credit Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Figure 34: Kuwaiti Commercial Credit Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Figure 35: Kuwaiti Credit Cards Schemes Shares in Terms of Transaction Value (%), 2013

Figure 36: Kuwaiti Credit Cards Issuers Shares in Terms of Transaction Value (%), 2013

Figure 37: Kuwaiti Debit Cards Category Volume and Penetration, 2009–2018

Figure 38: Kuwaiti Debit Card Category Size by Volume of Cards (Million), 2009–2018

Figure 39: Kuwaiti Debit Cards Category Size by Transaction Value (KWD Billion), 2009–2018

Figure 40: Kuwaiti Debit Cards Category Size by Transactions Volume (Million), 2009–2018

Figure 41: Kuwaiti Debit Cards Category Transactions Value by Channel (KWD Billion), 2009–2018

Figure 42: Kuwaiti Debit Card Transactions Volume by Channel (Million), 2009–2018

Figure 43: Kuwaiti Debit Cards Category Schemes Shares in Terms of Transaction Value (%), 2013

Figure 44: Kuwaiti Debit Cards Issuers Shares in Terms of Transaction Value (%), 2013

Figure 45: Kuwaiti Charge Cards Category Volume and Penetration, 2009–2018

Figure 46: Kuwaiti Charge Card Category Size by Volume of Cards (Thousand), 2009–2018

Figure 47: Kuwaiti Charge Cards Category Size by Transaction Value (KWD Million), 2009–2018

Figure 48: Kuwaiti Charge Cards Category Size by Transactions Volume (Thousand), 2009–2018

Figure 49: Kuwaiti Charge Card Transactions Value by Channel (KWD Million), 2009–2018

Figure 50: Kuwaiti Charge Card Transactions Volume by Channel (Thousand), 2009–2018

Figure 51: Kuwaiti Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 52: Kuwaiti Personal Charge Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Figure 53: Kuwaiti Personal Charge Cards Segment Size by Transactions Volume (Thousand), 2009–2018

Figure 54: Kuwaiti Commercial Charge Cards Segment Size by Volume of Cards, 2009–2018

Figure 55: Kuwaiti Commercial Charge Cards Segment Size by Transaction Value (KWD Thousand), 2009–2018

Figure 56: Kuwaiti Commercial Charge Cards Segment Size by Transaction Volume (Thousand), 2009–2018

Figure 57: Kuwaiti Charge Cards Category Schemes Shares in Terms of Transaction Value (%), 2013

Figure 58: Kuwaiti Prepaid Cards Category Volume and Penetration, 2009–2018

Figure 59: Kuwaiti Prepaid Cards Category Size by Volume of Cards (Thousand), 2009–2018

Figure 60: Kuwaiti Prepaid Cards Category Size by Transaction Value (KWD Million), 2009–2018

Figure 61: Kuwaiti Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 62: Kuwaiti Open-Loop Prepaid Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Figure 63: Kuwaiti Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 64: Kuwaiti Closed-Loop Prepaid Cards Segment Size by Transaction Value (KWD Million), 2009–2018

Figure 65: Market Shares of Key Acquirers’ POS Terminals in Kuwait (%), 2013

    Pricing

Discounts available for multiple purchases.

reportstore@globaldata.com
+44 20 7947 2745

Join our mailing list

Saved reports