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

The Swiss payment cards grew in value and volume terms during the review period (2009–2013). In terms of transaction value, payment cards grew from CHF111.3 billion (US$102.3 billion) in 2009 to CHF126.7 billion (US$136.8 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 3.31%, and is anticipated to post a forecast-period (2014–2018) CAGR of 2.85%, to reach to CHF146.3 billion (US$161.6 billion) in 2018. In terms of the number of cards in circulation, payment cards grew from 16.6 million in 2009 to 20.7 million in 2013, at a CAGR of 5.63%, and are anticipated to post a forecast-period CAGR of 3.65%, to reach 24.9 million in 2018.

Several mobile payments (m-payments) solutions were promoted in the country during the review period. Some charge amounts to mobile phone bills, while others are linked to bank accounts or credit cards. PostFinance offers an m-payment solution that is connected to the customer’s account. M-payments are currently used at parking facilities, vending machines and mountain cabs where there is mobile phone reception. M-payments grew significantly during the review period, and are anticipated to provide scope for card-based payments over the forecast period.

In terms of transaction value, both the credit and charge card markets recorded respective CAGRs of 4.84% and 4.24%. In 2013, the value of credit card transactions reported at point of sale (POS) terminals was significantly greater than that reported at ATMs, representing 94.4% of credit cards' total transaction value. Similarly, the charge cards transaction value reported at POS terminals was greater than that reported at ATMs, representing 95.1% of the total charge cards transaction value.

The increasing use of credit and charge cards at POS terminals for purchases – supported by banks offering bonus programs, reward points, cashback offers and discounts at partner retailers – will further increase card transaction values over the forecast period.

With growth in the payment cards instrument type, both in terms of the number of cards and transaction value, card fraud increased marginally at a review-period CAGR of 0.59%, going from CHF94.4 million (US$86.8 million) in 2009 to CHF96.7 million (US$104.3 million) in 2013. Banks and Swiss authorities carry out periodic card fraud awareness campaigns, as well as preventive measures to safeguard against card misuse. Banks also list “do’s and don’ts” on their websites and at ATMs to reduce card fraud.

Scope

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

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

• It details the different economic, infrastructural and business drivers affecting Switzerland'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 the industry.

Key Highlights

• The Swiss payment cards grew in value and volume terms during the review period (2009–2013). In terms of transaction value, payment cards grew from CHF111.3 billion (US$102.3 billion) in 2009 to CHF126.7 billion (US$136.8 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 3.31%, and is anticipated to post a forecast-period (2014–2018) CAGR of 2.85%, to reach CHF146.3 billion (US$161.6 billion) in 2018. In terms of the number of cards in circulation, payment cards grew from 16.6 million in 2009 to 20.7 million in 2013, at a CAGR of 5.63%, and are anticipated to post a forecast-period CAGR of 3.65%, to reach 24.9 million in 2018.

• Several mobile payment (m-payment) solutions were promoted in the country during the review period. Some charge amounts to mobile phone bills, while others are linked to bank accounts or credit cards. PostFinance offers an m-payment solution that is connected to the customer’s account. Currently, m-payments are used at parking facilities, vending machines and mountain cabs where there is a mobile phone reception. M-payments grew significantly during the review period, and are anticipated to provide scope for card-based payments over the forecast period.

• In terms of transaction value, both the credit and charge card markets recorded respective CAGRs of 4.84% and 4.24%. In 2013, the value of credit card transactions reported at point of sale (POS) terminals was significantly greater than that reported at ATMs, representing 94.4% of the total credit cards transaction value. Similarly, the charge cards transaction value reported at POS terminals was greater than that reported at ATMs, representing 95.1% of the total charge cards transaction value.

The increasing use of credit and charge cards at POS terminals for purchases, supported by banks offering bonus programs, reward points, cashback offers and discounts at partner retailers, will further increase card transaction values over the forecast period.

• With growth in the payment cards instrument type, in terms of both the number of cards and transaction value, card fraud increased marginally at a review-period CAGR of 0.59%, going from CHF94.4 million (US$86.8 million) in 2009 to CHF96.7 million (US$104.3 million) in 2013. Banks and Swiss authorities carry out periodic card fraud awareness campaigns and preventive measures to safeguard against card misuse. Banks also list “do’s and don’ts” on their websites and at ATMs in order to reduce card fraud.

Reasons to buy

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

• Understand the key market trends and growth opportunities within Switzerland's cards and payments industry.

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

• Gain insights into the marketing strategies used for selling various card types in Switzerland.

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

Companies mentioned

PostFinance

Union Bank of Switzerland

Raiffeisen Switzerland

Credit Suisse

Cornèr Bank

American Express

Diners Club

Viseca

MasterCard

Visa

Table of Contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technologies

2.1.1 Growing number of ATMs

2.1.2 Growing number of POS terminals

2.1.3 Rising internet penetration

2.1.4 Growing mobile payments

2.2 Business Drivers

2.2.1 Growth in retail industry

2.2.2 Growth in e-commerce

2.3 Economic Drivers

2.3.1 GDP growth

2.3.2 GDP per capita

2.3.3 Inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Credit transfer

3.1.2 Payment cards

3.1.3 Direct debits

3.1.4 Cash transactions

3.1.5 Check payments

4 Regulatory Framework and Card Fraud Statistics

4.1 Regulatory Framework

4.1.1 Overview

4.2 SEPA Cards Framework

4.2.1 Anti-money laundering and counter terrorism financing (AML/CTF)

4.2.2 Foreign direct investment (FDI) regulations

4.3 Card Fraud Statistics

4.3.1 Card-not-present fraud

4.3.2 Counterfeit card fraud

4.3.3 Lost or stolen card fraud

4.3.4 Card ID theft

5 Emerging Consumer Attitudes and Trends

5.1 Industry Segmentation and Targeting

5.1.1 Retail segment

5.1.2 Corporate segment

5.2 Travel and Tourism Spending

5.2.1 Outbound tourist trips

5.2.2 Outbound tourist spending

6 Analysis of Payment Cards and Growth Prospects

6.1 Payment Cards Share Analysis by Card Market

6.2 Size of and Forecast for the Card Market

6.2.1 Analysis by number of cards in circulation

6.2.2 Analysis by transaction value

7 Analysis of Credit Cards Market and Growth Prospects

7.1 Overall Market Size and Forecast

7.1.1 Analysis by number 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 Segment Size and Forecast

7.3.1 Analysis by number of cards in circulation

7.3.2 Analysis by transaction value

7.3.3 Analysis by transaction volume

7.4 Commercial Credit Cards Segment 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 Cards Market and Growth Prospects

8.1 Overall Market Size and Forecast

8.1.1 Analysis by number 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 Cards Market and Growth Prospects

9.1 Overall Market Size and Forecast

9.1.1 Analysis by number 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 Segment 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 Segment Size and Forecast

9.4.1 Analysis by number 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 Cards Market and Growth Prospects

10.1 Overall Market Size and Forecast

10.1.1 Analysis by number 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 number of cards in circulation

10.3.2 Analysis by transaction value

11 Merchant Acquiring

12 Company Profiles of Card Issuers

12.1 PostFinance

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 Union Bank of Switzerland

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 Raiffeisen Switzerland

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 Credit Suisse

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 Cornèr Bank

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 About GlobalData

13.4 GlobalData’s Services

13.5 Definitions

13.6 Disclaimer

List of Tables

Table 1: Switzerland – Payment Instruments (CHF Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks

Table 3: Switzerland – Card Fraud Value (CHF Million), 2009–2013

Table 4: Switzerland – Cards for High-Income Customers, 2014

Table 5: Switzerland – Cards for Students and Young Population, 2014

Table 6: Switzerland – Cards for Travelers, 2014

Table 7: Switzerland – Cards Offered for Corporate Customers, 2014

Table 8: Switzerland – Payment Cards Instrument by Card Market (Thousand), 2009–2018

Table 9: Switzerland – Payment Cards Instrument Size by Volume of Cards (Million), 2009–2018

Table 10: Switzerland – Payment Cards Instrument Size by Transaction Value (CHF Billion), 2009–2018

Table 11: Switzerland – Payment Cards Instrument Size by Transaction Value (US$ Billion), 2009–2018

Table 12: Switzerland – Credit Cards Market Size by Volume of Cards (Million), 2009–2018

Table 13: Switzerland – Credit Cards Market Size by Transaction Value (CHF Billion), 2009–2018

Table 14: Switzerland – Credit Cards Market Size by Transaction Value (US$ Billion), 2009–2018

Table 15: Switzerland – Credit Cards Market Size by Transaction Volume (Million), 2009–2018

Table 16: Switzerland – Personal Credit Cards Segment Size by Volume of Cards (Million), 2009–2018

Table 17: Switzerland – Personal Credit Cards Segment Size by Transaction Value (CHF Billion), 2009–2018

Table 18: Switzerland – Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 2009–2018

Table 19: Switzerland – Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 20: Switzerland – Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 21: Switzerland – Commercial Credit Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Table 22: Switzerland – Commercial Credit Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 23: Switzerland – Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 24: Switzerland – Debit Cards Market Size by Volume of Cards (Million), 2009–2018

Table 25: Switzerland – Debit Cards Market Size by Transaction Value (CHF Billion), 2009–2018

Table 26: Switzerland – Debit Cards Market Size by Transaction Value (US$ Billion), 2009–2018

Table 27: Switzerland – Debit Cards Market Size by Transaction Volume (Million), 2009–2018

Table 28: Switzerland – Charge Cards Market Size by Volume of Cards (Thousand), 2009–2018

Table 29: Switzerland – Charge Cards Market Size by Transaction Value (CHF Billion), 2009–2018

Table 30: Switzerland – Charge Cards Market Size by Transaction Value (US$ Billion), 2009–2018

Table 31: Switzerland – Charge Cards Market Size by Transaction Volume (Million), 2009–2018

Table 32: Switzerland – Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 33: Switzerland – Personal Charge Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Table 34: Switzerland – Personal Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 35: Switzerland – Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 36: Switzerland – Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Table 37: Switzerland – Commercial Charge Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Table 38: Switzerland – Commercial Charge Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 39: Switzerland – Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Table 40: Switzerland – Prepaid Cards Market Size by Volume of Cards (Million), 2009–2018

Table 41: Switzerland – Prepaid Cards Market Size by Transaction Value (CHF Million), 2009–2018

Table 42: Switzerland – Prepaid Cards Market Size by Transaction Value (US$ Million), 2009–2018

Table 43: Switzerland – Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

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

Table 45: Switzerland – Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 46: Switzerland – Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

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

Table 48: Switzerland – Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 2009–2018

Table 49: PostFinance – Key Financial Indicators (CHF Million), Year Ended December, 2012–2013

Table 50: PostFinance – Card Portfolio and Key Features, 2014

Table 51: UBS – Key Financial Indicators (CHF Million), Year Ended December, 2012–2013

Table 52: UBS – Card Portfolio and Key Features

Table 53: Raiffeisen Switzerland – Key Financial Indicators (CHF Million), Year Ended December 2012–2013

Table 54: Raiffeisen Switzerland – Card Portfolio and Key Features

Table 55: Credit Suisse – Key Financial Indicators (CHF Million), Year Ended December, 2012–2013

Table 56: Credit Suisse – Card Portfolio and Key Features

Table 57: Cornèr Bank – Key Financial Indicators (CHF Million), Year Ended December, 2012–2013

Table 58: Cornèr Bank – Card Portfolio and Key Features

Table 59: Key Definitions

List of Figures

Figure 1: Benchmarking the Swiss Payment Cards Instrument Against Other Regional Markets

Figure 2: Switzerland – Growth of Various Card Markets in Terms of Number of Cards in Circulation (%), 2009–2018

Figure 3: Switzerland – ATM Volume and Penetration, 2009–2018

Figure 4: Switzerland – POS Volume and Penetration, 2009–2018

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

Figure 6: Switzerland – Value of M-Payments (CHF Million), 2009–2018

Figure 7: Switzerland – Retail Sales Value (CHF Billion), 2009–2018

Figure 8: Switzerland – E-Commerce Value (CHF Billion), 2009–2018

Figure 9: Switzerland – Real GDP Growth (%), 2009–2018

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

Figure 11: Switzerland – Inflation (Consumer Price Inflation) Rate (%), 2009–2018

Figure 12: Switzerland – Shares of Payment Instruments (%), 2009 and 2013

Figure 13: Switzerland – Card Fraud Transaction Values by Type of Fraud (%), 2009 and 2013

Figure 14: Switzerland – Card-Not-Present Fraud Value (CHF Million), 2009–2013

Figure 15: Switzerland – Counterfeit Card Fraud Value (CHF Million), 2009–2013

Figure 16: Switzerland – Lost or Stolen Card Fraud Value (CHF Million), 2009–2013

Figure 17: Switzerland – Card ID Theft Value (CHF Million), 2009–2013

Figure 18: Switzerland – Cards and Payments Industry Segmentation by Card Type

Figure 19: Switzerland – Volume of Outbound Tourist Trips (Thousand), 2009–2018

Figure 20: Switzerland – Outbound Tourist Spending (CHF Billion), 2009–2018

Figure 21: Switzerland – Payment Cards Instrument by Card Market (%), 2009–2018

Figure 22: Switzerland – Payment Cards Instrument Size by Volume of Cards (Million), 2009–2018

Figure 23: Switzerland – Payment Cards Instrument Size by Transaction Value (CHF Billion), 2009–2018

Figure 24: Switzerland – Credit Cards Market Volume and Penetration, 2009–2018

Figure 25: Switzerland – Credit Cards Market Size by Volume of Cards (Million), 2009–2018

Figure 26: Switzerland – Credit Cards Market Size by Transaction Value (CHF Billion), 2009–2018

Figure 27: Switzerland – Credit Cards Market Size by Transaction Volume (Million), 2009–2018

Figure 28: Switzerland – Credit Cards Market Transaction Value Share Analysis by Channel (CHF Billion), 2009–2018

Figure 29: Switzerland – Credit Cards Market Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 30: Switzerland – Personal Credit Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 31: Switzerland – Personal Credit Cards Segment Size by Transaction Value (CHF Billion), 2009–2018

Figure 32: Switzerland – Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 33: Switzerland – Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 34: Switzerland – Commercial Credit Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Figure 35: Switzerland – Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 36: Switzerland – Credit Cards Market Share by Scheme in Terms of Transaction Value (%), 2013

Figure 37: Switzerland – Credit Cards Market Share by Issuer in Terms of Transaction Value (%), 2013

Figure 38: Switzerland – Debit Cards Market Volume and Penetration, 2009–2018

Figure 39: Switzerland – Debit Cards Market Size by Volume of Cards (Million), 2009–2018

Figure 40: Switzerland – Debit Cards Market Size by Transaction Value (CHF Billion), 2009–2018

Figure 41: Switzerland – Debit Cards Market Size by Transaction Volume (Million), 2009–2018

Figure 42: Switzerland – Debit Cards Market Transaction Value Share Analysis by Channel (CHF Billion), 2009–2018

Figure 43: Switzerland – Debit Cards Market Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 44: Switzerland – Debit Cards Market Share by Scheme in Terms of Transaction Value (%), 2013

Figure 45: Switzerland – Debit Cards Market Share by Issuer in Terms of Transaction Value (%), 2013

Figure 46: Switzerland – Charge Cards Market Volume and Penetration, 2009–2018

Figure 47: Switzerland – Charge Cards Market Size by Volume of Cards (Thousand), 2009–2018

Figure 48: Switzerland – Charge Cards Market Size by Transaction Value (CHF Billion), 2009–2018

Figure 49: Switzerland – Charge Cards Market Size by Transaction Volume (Million), 2009–2018

Figure 50: Switzerland – Charge Cards Market Transaction Value Share Analysis by Channel (CHF Million), 2009–2018

Figure 51: Switzerland – Charge Cards Market Transaction Volume Share Analysis by Channel (Thousand), 2009–2018

Figure 52: Switzerland – Personal Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 53: Switzerland – Personal Charge Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Figure 54: Switzerland – Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 55: Switzerland – Commercial Charge Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 56: Switzerland – Commercial Charge Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Figure 57: Switzerland – Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 58: Switzerland – Charge Card Market Shares by Scheme in Terms of Transaction Value (%), 2013

Figure 59: Switzerland – Prepaid Cards Market Volume and Penetration, 2009–2018

Figure 60: Switzerland – Prepaid Cards Market Size by Volume of Cards (Million), 2009–2018

Figure 61: Switzerland – Prepaid Cards Market Size by Transaction Value (CHF Million), 2009–2018

Figure 62: Switzerland – Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 63: Switzerland – Open-Loop Prepaid Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Figure 64: Switzerland – Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 65: Switzerland – Closed-Loop Prepaid Cards Segment Size by Transaction Value (CHF Million), 2009–2018

Figure 66: Switzerland – Share of Merchant Acquirers in Terms of Transaction Volume at POS Terminals, 2013

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