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

The Egyptian economy is the second-largest in the Middle East after Saudi Arabia. It is largely dependant on agriculture, tourism and cash remittances from Egyptians working abroad, mainly in Saudi Arabia and Gulf countries. With the government and banks striving to offer basic financial services to the unbanked population and banks expanding their presence in rural areas, the Egyptian cards and payments industry registered positive growth during the review period (2009–2013).

In July 2014, the newly elected President Abdel Fattah El-Sisi announced a wide range of reforms, introducing new taxes, increasing selected taxes, and reducing energy subsidies which are anticipated to spur economic growth over the forecast period (2014–2018). Other Arab countries including Saudi Arabia, the UAE and Kuwait have committed around US$20.0 billion to Egypt, through a mix of central bank deposits, cash grants, in-kind grants, and project aid, of which US$15.0–16.0 billion was received as of June 2014, according to the World Bank. The reforms are anticipated to have a positive effect on the cards and payments industry.

Credit transfers and payment cards were the preferred payment instruments, having a combined industry share of 94.6% in terms of transaction value in 2013. The share of payment cards is increasing as the government and banks are increasing the awareness levels and benefits among consumers and merchants.

In terms of the number of cards in circulation, Egyptian payment cards (including debit and credit cards) registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 11.17%. In terms of transaction value, payment cards registered a review-period CAGR of 9.07%.

Scope

GlobalData's 'Egypt's Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape' report provides a comprehensive analysis of Egypt's cards and payments industry:

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

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

Key Highlights

• In terms of the number of cards in circulation, Egyptian payment cards (including debit and credit cards) registered positive growth during the review period, recording a CAGR of 11.17%. In terms of transaction value, payment cards recorded a review-period CAGR of 9.07%.

• In 2013, the average transaction value (ATV) in Egypt was US$97.7, which was the lowest among Egypt’s peer countries: Oman, Kuwait, Saudi Arabia and the UAE. Kuwait recorded the highest ATV with US$919.6, followed by the UAE with US$263.1, Oman with 207.4 and Saudi Arabia with US$128.8.

• In terms of card penetration, Egypt recorded 0.18 cards per inhabitant in 2013, while the UAE recorded 1.96, Kuwait recorded 1.32, Oman recorded 1.03 and Saudi Arabia recorded 0.69. In terms of frequency of use, Egypt recorded 15.7 transactions per card in 2013, while Saudi Arabia recorded 91.1, Kuwait recorded 47.7, the UAE recorded 43.1 and Oman recorded 13.4.

• In 2010, the CBE selected GiroNil to co-develop the national Automated Clearing House (ACH) system in Egypt. The electronic network, built by the EBC and GiroNil Egypt, was launched in June 2010 when the CBE and all 38 banks operating in the market were successfully interlinked. The ACH system is designed to handle small-value retail payments and increase the use of cash substitutes, particularly cards. The growing payment infrastructure, with the CBE’s initiation, is forecast to increase card use and circulation in Egypt.

Reasons to buy

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

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

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

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

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

Companies mentioned

National Bank of Egypt

Commercial International Bank

Qatar National Bank Egypt

Banque Misr

Crédit Agricole Egypt

123 Network

MasterCard

Visa

Table of Contents

1 Key Facts and Events

2 Executive Summary

3 Payment Instruments

3.1 Current Payments Environment

3.2 Alternative Payment Instruments

3.2.1 PayPal

3.2.2 Cashu

3.2.3 Wallety

3.2.4 Click2Pay

3.2.5 ClickandBuy

3.2.6 Ukash

3.2.7 Neteller

3.2.8 Skrill

4 Market Attractiveness and Future Prospects of Cards and Payments

5 Analysis of Cards and Payments Industry Drivers

5.1 Demographic Drivers

5.2 Economic Drivers

5.3 Infrastructure Drivers

5.4 Business Drivers

6 Emerging Consumer Attitudes and Trends

6.1 Market Segmentation and Targeting

6.1.1 Consumer cards

6.1.2 Corporate cards

6.2 Travel Spending

6.2.1 Outbound trips volume and spending

6.2.2 Inbound trips volume and spending

7 Payment Cards

7.1 Payment Cards Analysis

7.1.1 Number of cards in circulation by card type

7.1.2 Transaction volume by card type

7.1.3 Transaction value by card type

7.1.4 Personal vs commercial cards

8 Debit Cards

8.1 Debit Cards Market Analysis

8.1.1 Number of debit cards in circulation

8.1.2 Debit cards transaction volume by channel

8.1.3 Debit cards transaction value by channel

8.1.4 Number of debit cards in circulation by scheme

8.1.5 Debit cards transaction value by scheme

8.1.6 Debit cards issuers market shares

8.1.7 Debit cards comparison

9 Credit Cards

9.1 Credit Cards Market Analysis

9.1.1 Number of credit cards in circulation

9.1.2 Credit cards transaction volume by channel

9.1.3 Credit cards transaction value by channel

9.1.4 Number of credit cards in circulation by scheme

9.1.5 Credit cards transaction value by scheme

9.1.6 Credit cards issuers market share

9.1.7 Credit cards comparison

10 Commercial Cards

10.1 Commercial Cards Market Analysis

10.1.1 Number of commercial cards in circulation

10.1.2 Commercial cards transaction value

11 Regulations in the Cards and Payments Industry

11.1 Regulatory Framework

11.1.1 123 Network

11.1.2 Regulations governing provision of payment orders through mobile phones

11.2 Anti-Money Laundering (AML)

11.3 Foreign Direct Investment (FDI) Regulations

12 Card Fraud Statistics

12.1 Card Fraud Analysis

13 Card Issuers

13.1 National Bank of Egypt

13.2 Commercial International Bank

13.3 Qatar National Bank

13.4 Banque Misr

13.5 Crédit Agricole Egypt

14 Card Schemes

14.1 Visa

14.2 MasterCard

14.3 123 Network

15 Prepaid Cards

15.1 Prepaid Cards Market Analysis

15.1.1 Number of prepaid cards in circulation

15.1.2 Prepaid cards transaction value

15.1.3 Open-loop prepaid cards

15.1.4 Closed-loop prepaid cards

15.1.5 Prepaid cards comparison

16 Appendix

16.1 Tables

16.2 Methodology

16.3 Contact GlobalData

16.4 About GlobalData

16.5 GlobalData’s Services

16.6 Definitions

16.7 Disclaimer

List of Tables

Table 1: Egypt – Key Facts, 2013

Table 2: Regional Benchmarking of Egyptian Payment Cards, 2013

Table 3: Cards for High-Income Customers, 2014

Table 4: Cards for Online Shoppers, 2014

Table 5: Cards for Students and Young Population, 2014

Table 6: Cards for Frequent Travelers, 2014

Table 7: Egypt – Commercial Cards Comparison and Key Features, 2014

Table 8: Regional Benchmarking of Egyptian Debit Cards, 2013

Table 9: Egypt – Debit Cards Comparison and Key Features, 2014

Table 10: Regional Benchmarking of Egyptian Credit Cards, 2013

Table 11: Egypt – Gold Credit Cards Comparison and Key Features, 2014

Table 12: Egypt – Premium Credit Cards Comparison and Key Features, 2014

Table 13: Egypt – Market Entry Strategies of Foreign Banks

Table 14: Regional Benchmarking of Egyptian Prepaid Cards, 2013

Table 15: Egypt – Prepaid Cards Comparison and Key Features, 2014

Table 16: Egypt – Payment Instruments Transaction Value (EGP Billion), 2009–2013

Table 17: Egypt – Payment Instruments Transaction Value (US$ Billion), 2009–2013

Table 18: Egypt – Payment Instruments Transaction Volume (Million), 2009–2013

Table 19: Egypt – Number of Cards in Circulation by Card Type (Million), 2009–2018

Table 20: Egypt – Transaction Volume by Card Type (Million), 2009–2018

Table 21: Egypt – Transaction Value by Card Type (EGP Billion), 2009–2018

Table 22: Egypt – Transaction Value by Card Type (US$ Billion), 2009–2018

Table 23: Egypt – Personal and Commercial Cards Transaction Value (EGP Billion), 2009–2018

Table 24: Egypt – Personal and Commercial Cards Transaction Value (US$ Billion), 2009–2018

Table 25: Egypt – Number of Debit Cards in Circulation (Million), 2009–2018

Table 26: Egypt – Debit Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 27: Egypt – Debit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 28: Egypt – Debit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 29: Egypt – Number of Debit Cards in Circulation By Scheme (Million), 2009–2013

Table 30: Egypt – Debit Cards Transaction Value By Scheme (EGP Billion), 2009–2013

Table 31: Egypt – Debit Cards Transaction Value By Scheme (US$ Billion), 2009–2013

Table 32: Egypt – Debit Cards Transaction Value By Issuer (EGP Billion), 2009–2013

Table 33: Egypt – Debit Cards Transaction Value By Issuer (US$ Billion), 2009–2013

Table 34: Egypt – Number of Credit Cards in Circulation (Million), 2009–2018

Table 35: Egypt – Credit Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 36: Egypt – Credit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 37: Egypt – Credit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 38: Egypt – Number of Credit Cards in Circulation By Scheme (Thousand), 2009–2013

Table 39: Egypt – Credit Cards Transaction Value By Scheme (EGP Million), 2009–2013

Table 40: Egypt – Credit Cards Transaction Value By Scheme (US$ Million), 2009–2013

Table 41: Egypt – Credit Cards Transaction Value By Issuer (EGP Billion), 2009–2013

Table 42: Egypt – Credit Cards Transaction Value By Issuer (US$ Billion), 2009–2013

Table 43: Egypt – Credit Cards Balance Outstanding By Issuer (EGP Million), 2009–2013

Table 44: Egypt – Credit Cards Balance Outstanding By Issuer (US$ Million), 2009–2013

Table 45: Egypt – Number of Commercial Cards in Circulation (Thousand), 2009–2018

Table 46: Egypt – Commercial Cards Transaction Value (EGP Million), 2009–2018

Table 47: Egypt – Commercial Cards Transaction Value (US$ Million), 2009–2018

Table 48: Egypt – Card Fraud (EGP Million), 2009–2013

Table 49: Egypt – Card Fraud (US$ Million), 2009–2013

Table 50: Egypt – Number of Prepaid Cards in Circulation (Million), 2009–2018

Table 51: Egypt – Prepaid Cards Transaction Value (EGP Billion), 2009–2018

Table 52: Egypt – Prepaid Cards Transaction Value (US$ Billion), 2009–2018

Table 53: Egypt – Open-Loop Prepaid Cards, 2009–2018

Table 54: Egypt – Closed-Loop Prepaid Cards, 2009–2018

Table 55: Key Definitions

List of Figures

Figure 1: Egypt – Payment Instrument Shares by Transaction Value (%), 2009 and 2013

Figure 2: Egypt – Payment Instrument Shares by Transaction Volume (%), 2009 and 2013

Figure 3: Egypt – Payment Cards Transaction Value and Growth, 2009–2018

Figure 4: Egypt – Total Population (Million) and Proportion Aged Over 65 Years, 2009–2018

Figure 5: Egypt – Nominal GDP per Capita (US$) and Real GDP Growth Rate (%), 2009–2018

Figure 6: Egypt – Volume of ATMs and Penetration, 2009–2018

Figure 7: Egypt – Volume of POS Terminals and Penetration, 2009–2018

Figure 8: Egypt – Retail Sales Value (EGP Billion), 2009–2018

Figure 9: Egypt – Cards and Payments Industry Segmentation by Card Type

Figure 10: Egypt – Outbound Trips Volume and Spending, 2009–2018

Figure 11: Egypt – Inbound Trips Volume and Spending, 2009–2018

Figure 12: Egypt – Card Shares In Terms of Numbers in Circulation (%), 2009–2018

Figure 13: Egypt – Card Shares in Terms of Transaction Volume (%), 2009–2018

Figure 14: Egypt – Card Shares in Terms of Transaction Value (%), 2009–2018

Figure 15: Egypt – Personal and Commercial Cards, Transaction Value (%), 2009–2018

Figure 16: Egypt – Number of Debit Cards in Circulation (Million), 2009–2018

Figure 17: Egypt – Debit Cards Transaction Volume by Channel (Million), 2009–2018

Figure 18: Egypt – Debit Cards Transaction Value by Channel (EGP Billion), 2009–2018

Figure 19: Egypt – Debit Cards Scheme Shares in Terms of Number of Cards in Circulation (%), 2013

Figure 20: Egypt – Debit Cards Scheme Market Share in Terms of Transaction Value (%), 2013

Figure 21: Egypt – Debit Cards Issuers’ Market Shares in Terms of Transaction Value (%), 2013

Figure 22: Egypt – Number of Credit Cards in Circulation (Million), 2009–2018

Figure 23: Egypt – Credit Cards Transaction Volume by Channel (Million), 2009–2018

Figure 24: Egypt – Credit Cards Transaction Value by Channel (EGP Billion), 2009–2018

Figure 25: Egypt – Credit Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013

Figure 26: Egypt – Credit Cards Scheme Market Share in Terms of Transaction Value (%), 2013

Figure 27: Egypt – Credit Card Issuers’ Market Share in Terms of Transaction Value (%), 2013

Figure 28: Egypt – Credit Cards Issuers’ Market Share in Terms of Outstanding Balance (%), 2013

Figure 29: Egypt – Number of Commercial Cards in Circulation (Thousand), 2009–2018

Figure 30: Egypt – Commercial Cards Transaction Value (EGP Million), 2009–2018

Figure 31: Egypt – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013

Figure 32: Egypt – Number of Prepaid Cards in Circulation (Million), 2009–2018

Figure 33: Egypt – Prepaid Cards Transaction Value (EGP Billion), 2009–2018

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