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

Belgian card payments registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 3.30% to reach 39.1 million cards in circulation by the end of 2013. In terms of transaction value, payment cards accounted for EUR121.7 billion (US$161.3 billion) in 2013, after registering a review-period CAGR of 5.95%. The transaction value is expected to grow over the forecast period (2014–2018), at a CAGR of 5.96%.

Improvements to banking infrastructure and the installation of point of sale (POS) terminals at merchant outlets were the payment cards instrument’s key growth drivers. In terms of transaction value, debit cards accounted for a market share of 89% in 2013, the highest among payment cards, a situation that is expected to continue over the forecast period. Charge cards accounted for the second-highest position, followed by credit cards, while prepaid cards accounted for the lowest share with 0.2% of the transaction value in 2013.

During the review period, card fraud in Belgium declined at a CAGR of -6.85% in terms of transaction value, from EUR28.8 million (US$40.0 million) in 2009 to EUR21.7 million (US$28.8 million) in 2013. One of the main drivers was the implementation of EMV (Europay, MasterCard and Visa) compliance. Belgium was one of the first single euro payments area (SEPA) countries to migrate to chip-embedded cards in 2001, and eradicated traditional magnetic strips completely. Moreover, from 2011, Belgian banks implemented geo-blocking which involves restricting Maestro functions or debit card use without chip-and-PIN verification in European countries. This helped reduce skimming activity and therefore, counterfeit card fraud declined at the highest CAGR of -18.30% of all card fraud types during the review period.

From the second half of 2008, the Belgian economy underwent a financial crisis which impacted consumer lending. In 2009, debit cards became more popular with consumers than credit cards. Although the credit card market grew at a review-period CAGR of 2.09% in terms of number of cards in circulation, it accounted for just 2.8% of Belgian payment cards in 2013.

In 2010, all forms of consumer lending began to show signs of recovery, with the exception of non-collateral credits. This was mainly due to the adoption of a conservative approach by credit card issuers, which led to fewer non-collateral loans being issued. Over the forecast period, the Belgian payment cards system is expected to remain dominated by non-credit instruments such as debit and prepaid cards.

In terms of value, a review-period CAGR of 125.61% indicates remarkable growth in mobile payments (m-payments) in Belgium. With rising internet penetration and the adoption of smartphones, m-payments are gaining popularity. During review period, they grew from EUR3.8 million (US$5.3 million) in 2009 to EUR98.9 million (US$131.1 million) in 2013, and are expected to grow significantly at a forecast-period CAGR of 40.11%, to reach EUR703.6 million (US$991.1 million) by 2018.

The increasing capabilities of smartphones and a substantial rise in mobile payment apps will further drive market growth. Belfius Bank developed an application called Bancontact/Mister Cash in collaboration with TagTagCity which enabled consumers to make payments with smartphones, tablets, and via quick-response (QR) codes. The app has been in service since July 2013.

The emergence of mobile wallets is also contributing to rising adoption rates. French financial service provider BNP Paribas launched a mobile wallet in March 2013 in Belgium in collaboration with Belgian telecoms operator Belgacom. The mobile wallet will integrate mobile payments, e-couponing, virtual ticketing and loyalty programs, and users will be able use the application on public transport to check timetables and purchase tickets.

Scope

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

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

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

Key Highlights

• Banks have increased their focus on adopting advanced technology to enhance consumers’ banking experience. Banks usually cater to diverse consumer segments including small and medium-sized enterprises (SMEs), large enterprises, and individual merchants such as plumbers and carpenters, and offer services for making and accepting payments through multiple channels. Since June 2013, KBC-Pay Me and CBC Xengo mobile payment services have been available in KBC Bank NV and CBC Bank branches respectively in Belgium, as part of a sales and marketing alliance between KBC Bank NV, its subsidiary CBC Bank, and Atos Worldline. The two mobile solutions have been developed to target retailers, enabling them to receive payments through smartphones and tablets.

• Proton was an electronic purse launched in Belgium in 1996 by Bancontact/Mister Cash for low-value payments such as car parking and vending machines. In 2012, Bancontact/Mister Cash announced that it was to deactivate Proton completely from Belgium due to its low user base. Specially designed prepaid cards such as the MoBiB transport and luncheon cards are now gaining popularity among Belgian consumers. Many payment methods now enable secure low-value payments as an alternative to prepaid cards.

• The issuance of EMV-compliant cards and growth in internet penetration will support the overall security and growth of card transactions. The number of EMV cards in circulation increased from 19.3 million in 2009 to 21.3 million in 2013, at a CAGR of 2.58%. The main driving factor for EMV migration was Belgium’s neighboring countries France and the UK. With EMV compliance in those countries, there was a possibility of fraud migration to Belgium. As a result, Belgium began to implement EMV compliance in 2001, with 100% EMV compliance achieved by 2012.

• The total value of retail sales in Belgium increased from EUR80.1 billion (US$111.3 billion) in 2009 to EUR87.5 billion (US$116.0 billion) in 2013, at a review-period CAGR of 2.22%. Over the forecast period, the value of retail sales is anticipated to increase from EUR89.0 billion (US$120.0 billion) in 2014 to EUR98.3 billion (US$138.5 billion) in 2018, at a CAGR of 2.52%. Despite a decrease in consumer confidence levels following the financial crisis of 2009, the retail industry managed to grow during the review period. Developments such as out-of-town retail parks with exclusive offers and schemes encouraged consumers to spend and revive growth in 2013.

Reasons to buy

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

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

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

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

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

Companies mentioned

BNP Paribas Fortis

KBC Bank NV

Belfius Bank

ING Belgium

Beobank

Bancontact/Mister Cash

MasterCard

Visa

American Express

Diners Club

Table of Contents

1 Executive Summary

2 Analysis of Market Environment, Key Trends and Drivers

2.1 Payment Infrastructure and Emerging Technology

2.1.1 Automatic teller machines (ATMs)

2.1.2 Point of sale (POS) terminals

2.1.3 Rising internet penetration

2.1.4 Europay, MasterCard and Visa (EMV)

2.1.5 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 Real GDP growth

2.3.2 GDP per capita

2.3.3 Consumer price inflation

3 Cards and Payments Industry Share Analysis

3.1 Industry Overview

3.1.1 Credit transfers

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 SEPA Cards Framework

4.1.2 Anti-money laundering

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 fraud

4.2.4 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

9.5.2 Issuer 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 BNP Paribas Fortis

12.1.1 Key financials

12.1.2 Card portfolio

12.1.3 Strategies

12.2 KBC Bank NV

12.2.1 Key financials

12.2.2 Card portfolio

12.2.3 Strategies

12.3 Belfius Bank

12.3.1 Key financials

12.3.2 Card portfolio

12.3.3 Strategies

12.4 ING Belgium

12.4.1 Key financials

12.4.2 Card portfolio

12.4.3 Strategies

12.5 Beobank

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: Belgium – Payment Instruments (EUR Billion), 2009–2013

Table 2: Market Entry Strategies of Foreign Banks

Table 3: Belgium – Card Fraud Value (EUR Million), 2009–2013

Table 4: Belgium – Cards for Premium Customers, 2014

Table 5: Belgium – Cards for Students, 2014

Table 6: Belgium – Cards for Travelers, 2014

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

Table 8: Belgium – Payment Cards Instrument by Card Market (Million), 2009–2018

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Table 33: Belgium – Personal Charge Cards Segment Size by Transaction Value (EUR Billion), 2009–2018

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

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

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

Table 37: Belgium – Commercial Charge Cards Segment Size by Transaction Value (EUR Billion), 2009–2018

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

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

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

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

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

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

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

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

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

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

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

Table 49: BNP Paribas Fortis – Key Financial Indicators (EUR Billion), Year Ended December, 2012–2013

Table 50: BNP Paribas Fortis – Card Portfolio and Key Features

Table 51: KBC Bank Group – Key Financial Indicators (EUR Billion), Year Ended December, 2012–2013

Table 52: KBC Bank NV – Card Portfolio and Key Features

Table 53: Belfius Bank – Key Financial Indicators (EUR Billion), Year Ended December, 2012–2013

Table 54: Belfius Bank – Card Portfolio and Key Features

Table 55: ING Belgium – Key Financial Indicators (EUR Billion), Year Ended December, 2012–2013

Table 56: ING Belgium – Card Portfolio and Key Features

Table 57: Beobank – Key Financial Indicators (EUR Billion), Year Ended December, 2012–2013

Table 58: Beobank – Card Portfolio and Key Features

Table 59: Key Definitions

List of Figures

Figure 1: Benchmarking the Belgian Payment Cards Instrument Against Other European Markets

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

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

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

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

Figure 6: Belgium – Number of EMV Cards (Million), 2009–2013

Figure 7: Belgium – Value of M-Payments (EUR Million), 2009–2018

Figure 8: Belgium – Retail Sales Value (EUR Billion), 2009–2018

Figure 9: Belgium – E-Commerce Value (EUR Billion), 2009–2018

Figure 10: Belgium – Real GDP Growth (%), 2009–2018

Figure 11: Belgium – Nominal GDP Per Capita (US$ Thousand), 2009–2018

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

Figure 13: Belgium – Shares of Payment Instruments (%), 2009 and 2013

Figure 14: Belgium – Card Fraud Type Shares by Transaction Value (%), 2009 and 2013

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

Figure 16: Belgium – Counterfeit Card Fraud Value (EUR Million), 2009–2013

Figure 17: Belgium – Lost or Stolen Card Fraud Value (EUR Million), 2009–2013

Figure 18: Belgium – Card ID Theft Value (EUR Thousand), 2009–2013

Figure 19: Belgian Cards and Payments Industry – Segmentation by Card Type

Figure 20: Belgium – Volume of Outbound Tourist Trips (Million), 2009–2018

Figure 21: Belgium – Outbound Tourist Spending (EUR Billion), 2009–2018

Figure 22: Belgium – Payment Cards Instrument by Card Market (%), 2009–2018

Figure 23: Belgium – Payment Cards Instrument Size by Volume of Cards (Million), 2009–2018

Figure 24: Belgium – Payment Cards Instrument Size by Transaction Value (EUR Billion), 2009–2018

Figure 25: Belgium – Credit Cards Market Volume and Penetration, 2009–2018

Figure 26: Belgium – Credit Cards Market Size by Volume of Cards (Thousand), 2009–2018

Figure 27: Belgium – Credit Cards Market Size by Transaction Value (EUR Billion), 2009–2018

Figure 28: Belgium – Credit Cards Market Size by Transaction Volume (Million), 2009–2018

Figure 29: Belgium – Credit Cards Market Transaction Value Share Analysis by Channel (EUR Million), 2009–2018

Figure 30: Belgium – Credit Cards Market Transaction Volume Share Analysis by Channel (Million), 2009–2018

Figure 31: Belgium – Personal Credit Cards Segment Size by Volume of Cards (Thousand), 2009–2018

Figure 32: Belgium – Personal Credit Cards Segment Size by Transaction Value (EUR Billion), 2009–2018

Figure 33: Belgium – Personal Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

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

Figure 35: Belgium – Commercial Credit Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Figure 36: Belgium – Commercial Credit Cards Segment Size by Transaction Volume (Million), 2009–2018

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

Figure 38: Belgium – Credit Cards Market Share by Issuer in Terms of Transaction Value (%), 2013

Figure 39: Belgium – Debit Cards Market Volume and Penetration, 2009–2018

Figure 40: Belgium – Debit Cards Market Size by Volume of Cards (Million), 2009–2018

Figure 41: Belgium – Debit Cards Market Size by Transaction Value (EUR Billion), 2009–2018

Figure 42: Belgium – Debit Cards Market Size by Transaction Volume (Billion), 2009–2018

Figure 43: Belgium – Debit Cards Market Transaction Value Share Analysis by Channel (EUR Billion), 2009–2018

Figure 44: Belgium – Debit Cards Market Transaction Volume Share Analysis by Channel (Million), 2009–2018

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

Figure 46: Belgium – Debit Cards Market Share by Issuer in Terms of Transaction Value (%), 2013

Figure 47: Belgium – Charge Cards Market Volume and Penetration, 2009–2018

Figure 48: Belgium – Charge Cards Market Size by Volume of Cards (Million), 2009–2018

Figure 49: Belgium – Charge Cards Market Size by Transaction Value (EUR Billion), 2009–2018

Figure 50: Belgium – Charge Cards Market Size by Transaction Volume (Million), 2009–2018

Figure 51: Belgium – Charge Cards Market Transaction Value Share Analysis by Channel (EUR Billion), 2009–2018

Figure 52: Belgium – Charge Cards Market Transaction Volume Share Analysis by Channel (Million), 2009–2018

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

Figure 54: Belgium – Personal Charge Cards Segment Size by Transaction Value (EUR Billion), 2009–2018

Figure 55: Belgium – Personal Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 56: Belgium – Commercial Charge Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 57: Belgium – Commercial Charge Cards Segment Size by Transaction Value (EUR Billion), 2009–2018

Figure 58: Belgium – Commercial Charge Cards Segment Size by Transaction Volume (Million), 2009–2018

Figure 59: Belgium – Charge Cards Market Share by Scheme in Terms of Transaction Value (%), 2013

Figure 60: Belgium – Charge Cards Market Share by Issuer in Terms of Transaction Value (%), 2013

Figure 61: Belgium – Prepaid Cards Market Volume and Penetration, 2009–2018

Figure 62: Belgium – Prepaid Cards Market Size by Volume of Cards (Million), 2009–2018

Figure 63: Belgium – Prepaid Cards Market Size by Transaction Value (EUR Million), 2009–2018

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

Figure 65: Belgium – Open-Loop Prepaid Cards Segment Size by Transaction Value (EUR Million), 2009–2018

Figure 66: Belgium – Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Million), 2009–2018

Figure 67: Belgium – Closed-Loop Prepaid Cards Segment Size by Transaction Value (EUR Million), 2009–2018

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