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

Lebanese payments cards (including debit, credit and charge cards) registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 3.41%, increasing from 1.6 million cards in circulation in 2009 to 1.8 million by the end of 2013. In terms of transaction value, payment cards registered a review-period (2009–2013) CAGR of 12.07%. The introduction of rising consumer awareness with regards to electronic payments, and the adoption of advanced technology such as PayWave and PayPass feature, EMV and contactless cards all contributed towards the growth of payment cards.

In 2013, the average transaction value (ATV) in Lebanon was the fifth highest in the Middle East and North Africa (MENA) region.

The prepaid cards market is growing rapidly, and is expected to surpass debit, credit and charge cards in terms of number of cards in circulation by 2018. In terms of the number of cards in circulation, the prepaid cards market in Lebanon increased with 107,702 cards in circulation in 2013, which is anticipated to increase to 2.3 million cards in 2018. To promote such cards, Byblos Bank and Blom Bank are offering cards at different prices ranging from LBP12,060–376,875 (US$8–250), targeting the young population (from the age of 12 years) and regular internet surfers who prefer to make purchases online. These cards include offers such as the redemption of reward points that are attached with it.

Prepaid cards are also popular for the remittance facility. IRemit, a global remittance company, issues the I-remit Visa Prepaid Card which ensures faster and safer remittance facilities from Lebanon to the beneficiary in the Philippines. This card also offers facilities such as online payment for utility bills and online shopping.

Smart cards with contactless technology features are an emerging trend across the globe, with the same case in Lebanon. Contactless technology was introduced to the country in association with Visa. Bank Audi and Visa launched PayWave contactless payment technology in June 1, 2014, and the bank also issues cards with PayPass contactless features in association with MasterCard.

Similarly, contactless technology is being used for mobile payments. In April 15, 2014, Bank Audi launched the Tap2pay NFC Mobile Payment service, which allows mobile phone users to use their mobile phone as a credit card. This was launched in partnership with MasterCard and the mobile operators Alfa and Touch.

Scope

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

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

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

Key Highlights

• Lebanese payments cards (including debit, credit and charge cards) registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 3.41%, increasing from 1.6 million cards in circulation in 2009 to 1.8 million by the end of 2013. In terms of transaction value, payment cards valued LBP15.5 trillion (US$10.3 billion) in 2013, after registering a review-period (2009–2013) CAGR of 12.07%.

• In 2013, ATV in Lebanon was US$177.6, which was the fifth highest in the Middle East and North Africa (MENA) region. Kuwait recorded the highest ATV, with US$319.6, followed by the UAE (US$263.1), Oman (US$207.1) and Bahrain (US$185.3). In terms of card penetration, Lebanon had the ninth highest level of 0.4 cards per inhabitant, followed by Iran (2.4), the UAE (2), South Africa (1.3), Kuwait (1.3), Israel (1.1), Oman (1.0), Bahrain (0.8) and Saudi Arabia (0.7).

• Lebanon ranked seventh among the other MENA countries in the frequency of use of payment cards, with 31.9 transactions per card. Israel recorded the highest frequency with 131.2, followed by Saudi Arabia (95.3), Kuwait (47.4), Iran (46.5), the UAE (43.1) and Nigeria (38.2).

• The prepaid cards market is growing rapidly, and is expected to surpass debit, credit and charge cards in terms of number of cards in circulation by 2018. In terms of the number of cards in circulation, the prepaid cards market in Lebanon increased with 107,702 cards in circulation in 2013, which is anticipated to increase to 2.3 million cards in 2018. To promote such cards, Byblos Bank and Blom Bank are offering cards at different prices ranging from LBP12,060–376,875 (US$8–250), targeting the young population (from the age of 12 years) and regular internet surfers who prefer to make purchases online. These cards include offers such as the redemption of reward points that are attached with it.

• Smart cards with contactless technology features are an emerging trend across the globe, with the same case in Lebanon. Contactless technology was introduced to the country in association with Visa. Bank Audi and Visa launched PayWave contactless payment technology in June 1, 2014, and the bank also issues cards with PayPass contactless features in association with MasterCard.

• Similarly, contactless technology is being used for mobile payments. In April 15, 2014, Bank Audi launched the Tap2pay NFC Mobile Payment service, which allows mobile phone users to use their mobile phone as a credit card. This was launched in partnership with MasterCard and the mobile operators Alfa and Touch.

Reasons to buy

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

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

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

• Gain insights in to the marketing strategies used to sell various card types in Lebanon.

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

Companies mentioned

Bank Audi

Blom Bank

Credit Libanais

Byblos Bank

MasterCard

Visa

American Express

Table of Contents

1 Key Facts and Top Events

2 Executive Summary

3 Payment Instruments

3.1 Current Payments Environment

3.2 Alternative Payment Instruments

3.2.1 Click2pay

3.2.2 Skrill

3.2.3 ClickandBuy

3.2.4 Neteller

3.2.5 CashU

3.2.6 NetCommerce

3.2.7 Paymo

3.2.8 DaoPay

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

6.1.3 New product launches

6.2 Travel Spending

6.2.1 Outbound spending

6.2.2 Inbound spending

7 Payment Cards

7.1 Payment Cards Instrument 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 card transaction volume by channel

8.1.3 Debit card 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 card 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 card comparison

10 Charge Cards

10.1 Charge Cards Market Analysis

10.1.1 Number of charge cards in circulation

10.1.2 Charge cards transaction volume by channel

10.1.3 Charge cards transaction value by channel

10.1.4 Number of charge cards in circulation by scheme

10.1.5 Charge cards transaction value by scheme

10.1.6 Charge card comparison

11 Commercial Cards

11.1 Commercial Cards Market Analysis

11.1.1 Number of commercial cards in circulation

11.1.2 Commercial cards transaction value

11.1.3 Commercial credit cards

11.1.4 Commercial charge cards

11.1.5 Commercial card comparison

12 Regulations in the Cards and Payments Industry

12.1 Regulatory Framework

12.2 Anti-Money Laundering (AML)

12.3 Foreign Direct Investment (FDI) Regulations

13 Card Fraud Statistics

13.1 Card Fraud Analysis

14 Card Issuers

14.1 Bank Audi

14.2 Blom Bank

14.3 Credit Libanais

14.4 Byblos Bank

15 Card Schemes

15.1 Visa

15.2 MasterCard

15.3 American Express

16 Prepaid Cards

16.1 Prepaid Cards Market Analysis

16.1.1 Number of prepaid cards in circulation

16.1.2 Prepaid cards transaction value

16.1.3 Open-loop prepaid cards

16.1.4 Closed-loop prepaid cards

16.1.5 Prepaid card comparison

17 Appendix

17.1 Tables

17.2 Methodology

17.3 Contact GlobalData

17.4 About GlobalData

17.5 GlobalData’s Services

17.6 Definitions

17.7 Disclaimer

List of Tables

Table 1: Lebanon – Key Facts, 2013

Table 2: Regional Benchmarking of Lebanon Payment Cards Instrument, 2013

Table 3: Specialized Cards for High-Income Customers

Table 4: Specialized Cards for Shoppers and Vehicle Owners

Table 5: Specialized Cards for Young Population and Students

Table 6: Specialized Cards for the Female Population

Table 7: Specialized Cards for Frequent Flyers

Table 8: Specialized Cards for Business Managers and Entrepreneurs

Table 9: Lebanon – New Product Launches

Table 10: Regional Benchmarking of Lebanon Debit Cards, 2013

Table 11: Lebanon – Debit Card Comparison

Table 12: Regional Benchmarking of Lebanon Credit Cards, 2013

Table 13: Lebanon – Gold Cards Comparison

Table 14: Lebanon – Premium Cards Comparison

Table 15: Regional Benchmarking of Lebanon Charge Cards, 2013

Table 16: Lebanon – Charge Cards Comparison

Table 17: Lebanon – Commercial Cards Comparison

Table 18: Lebanon – Market Entry Strategies of Foreign Banks

Table 19: Regional Benchmarking of Lebanon Prepaid Cards, 2013

Table 20: Lebanon – Prepaid Cards Comparison

Table 21: Lebanon – Payment Instruments Transaction Value (LBP Trillion), 2009–2013

Table 22: Lebanon – Payment Instruments Transaction Value (US$ Billion), 2009–2013

Table 23: Lebanon – Payment Instruments Transaction Volume (Million), 2009–2013

Table 24: Lebanon – Number of Cards in Circulation by Card Types (Thousand), 2009–2018

Table 25: Lebanon – Transaction Volume by Card Type (Million), 2009–2018

Table 26: Lebanon – Transaction Value by Card Type (LBP Billion), 2009–2018

Table 27: Lebanon – Transaction Value by Card Type (US$ Million), 2009–2018

Table 28: Lebanon – Personal and Commercial Cards Transaction Value (LBP Billion), 2009–2018

Table 29: Lebanon – Personal and Commercial Cards Transaction Value (US$ Million), 2009–2018

Table 30: Lebanon – Number of Debit Cards in Circulation (Million), 2009–2018

Table 31: Lebanon – Debit Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 32: Lebanon – Debit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 33: Lebanon – Debit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 34: Lebanon – Number of Debit Cards in Circulation By Scheme (Thousand), 2009–2013

Table 35: Lebanon – Debit Cards Transaction Value By Scheme (LBP Trillion), 2009–2013

Table 36: Lebanon – Debit Cards Transaction Value By Scheme (US$ Billion), 2009–2013

Table 37: Lebanon – Debit Cards Transaction Value By Issuer (LBP Billion), 2009–2013

Table 38: Lebanon – Debit Cards Transaction Value By Issuer (US$ Million), 2009–2013

Table 39: Lebanon – Number of Credit Cards in Circulation (Thousand), 2009–2018

Table 40: Lebanon – Credit Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 41: Lebanon – Credit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 42: Lebanon – Credit Cards Total and Average Transaction Value by Channel, 2009–2018

Table 43: Lebanon – Number of Credit Cards in Circulation By Scheme (Thousand), 2009–2013

Table 44: Lebanon – Credit Cards Transaction Value By Scheme (LBP Billion), 2009–2013

Table 45: Lebanon – Credit Cards Transaction Value By Scheme (US$ Million), 2009–2013

Table 46: Lebanon – Credit Cards Transaction Value By Issuer (LBP Billion), 2009–2013

Table 47: Lebanon – Credit Cards Transaction Value By Issuer (US$ Million), 2009–2013

Table 48: Lebanon – Number of Charge Cards in Circulation (Thousand), 2009–2018

Table 49: Lebanon – Charge Cards Transaction Volume and Frequency by Channel, 2009–2018

Table 50: Lebanon – Charge Cards Total and Average Transaction Value by Channel, 2009–2018

Table 51: Lebanon – Charge Cards Total and Average Transaction Value by Channel, 2009–2018

Table 52: Lebanon – Number of Charge Cards in Circulation By Scheme (Thousand), 2009–2013

Table 53: Lebanon – Charge Cards Transaction Value By Scheme (LBP Billion), 2009–2013

Table 54: Lebanon – Charge Cards Transaction Value By Scheme (US$ Million), 2009–2013

Table 55: Lebanon – Number of Commercial Cards in Circulation (Thousand), 2009–2018

Table 56: Lebanon – Commercial Cards Transaction Value (LBP Billion), 2009–2018

Table 57: Lebanon – Commercial Cards Transaction Value (US$ Million), 2009–2018

Table 58: Lebanon – Commercial Credit Cards, 2009–2018

Table 59: Lebanon – Commercial Charge Cards, 2009–2018

Table 60: Lebanon – Card Fraud (LBP Million), 2009–2013

Table 61: Lebanon – Card Fraud (US$ Thousand), 2009–2013

Table 62: Lebanon – Number of Prepaid Cards in Circulation (Thousand), 2009–2018

Table 63: Lebanon – Prepaid Cards Transaction Value (LBP Billion), 2009–2018

Table 64: Lebanon – Prepaid Cards Transaction Value (US$ Million), 2009–2018

Table 65: Lebanon – Open-Loop Prepaid Cards, 2009–2018

Table 66: Lebanon – Closed-Loop Prepaid Cards, 2009–2018

Table 67: Key Definitions

List of Figures

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

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

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

Figure 4: Lebanon – Total Population (Million) and Proportion Over 65 (%) for 2009–2018

Figure 5: Lebanon – Nominal GDP Per Capita (US$) and Real GDP (%) for 2009–2018

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

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

Figure 8: Lebanon – E-Commerce Value (LBP Billion), 2009–2018

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

Figure 10: Lebanon – Outbound Spending (LBP Billion), 2009–2013

Figure 11: Lebanon – Inbound Spending (LBP Trillion), 2009–2013

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

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

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

Figure 15: Lebanon – Personal and Commercial Cards, Transaction Value (LBP Billion), 2009–2018

Figure 16: Lebanon – Number of Debit Cards in Circulation (Thousand), 2009–2018

Figure 17: Lebanon – Debit Card Transaction Volume by Channel (Million), 2009–2018

Figure 18: Lebanon – Debit Card Transaction Value by Channel (LBP Trillion), 2009–2018

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

Figure 20: Lebanon – Debit Card Scheme Market Share in Terms of Transaction Values (%), 2013

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

Figure 22: Lebanon – Number of Credit Cards in Circulation (Thousand), 2009–2018

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

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

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

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

Figure 27: Lebanon – Credit Cards Issuers Market Share in Terms of Transaction Value (%), 2013

Figure 28: Lebanon – Number of Charge Cards in Circulation (Thousand), 2009–2018

Figure 29: Lebanon – Charge Cards Transaction Volume by Channel (Thousand), 2009–2018

Figure 30: Lebanon – Charge Cards Transaction Value by Channel (LBP Billion), 2009–2018

Figure 31: Lebanon – Charge Cards Scheme Market Share in Terms of Number of Cards in Circulation (%), 2013

Figure 32: Lebanon – Charge Cards Scheme Market Share in Terms of Transaction Value (%), 2013

Figure 33: Lebanon – Number of Commercial Cards in Circulation (Thousand), 2009–2018

Figure 34: Lebanon – Commercial Cards Transaction Value (LBP Billion), 2009–2018

Figure 35: Lebanon – Shares of Various Types of Card Fraud in Terms of Transaction Value (%), 2009 and 2013

Figure 36: Lebanon – Number of Prepaid Cards in Circulation (Thousand), 2009–2018

Figure 37: Lebanon – Prepaid Cards Transaction Value (LBP Billion), 2009–2018

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