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

Taiwan is among the world’s most trade-dependent economies, with an export value of more than 60% of its gross domestic product (GDP), and is greatly affected by the global economic trends. The European debt crisis in 2012, the lacklustre recovery in the US and the slowdown in China’s economy resulted in a significant decrease in overseas sales. This greatly affected Taiwan’s GDP, which grew by just 1.5% over the last year, despite a growth projection of 4–5%.

Taiwan’s cards and payments industry is becoming more competitive every year, with banks and card-issuing companies being forced to offer more attractive products to retain their market positions. The growth of point-of-sale (POS) terminals is an important infrastructure driver. The number of POS terminals in Taiwan rose during the review period. With the increased number of POS terminal installations at retail outlets, the potential of card-based payments in Taiwan is also expected to grow. POS terminal penetration – calculated as the number of POS terminals per 100,000 inhabitants – also rose in 2009. The figure is expected to expand further over the forecast period to 2018.

EasyCard, a contactless smart card equipped with radio frequency identification (RFID), was introduced in Taiwan in 2002, and was initially used to pay bus, train and taxi fares. Second-generation cards were introduced in 2012, embedded with a chip similar to modern credit cards. These cards protect all user data and offer better security as they are much harder to hack. Customers can also integrate credit cards with the smart cards, which can also be used for tracking and ID purposes. By November 2014, the number of EasyCard users in the country had reached 50 million.

In July 2014, a near-field communication (NFC) mobile payment service was introduced in Taiwan, with support from 27 banks. It enables customers to make contactless payments at more than 30,000 terminals, and is proving to be a much more secure way to transact, leading to an increase in the number of POS terminals supporting NFC-based contactless payments.

This report provides detailed analysis of the market trends in Taiwan’s cards and payments industry, including values and volumes for key performance indicators (KPIs) such as credit transfers, check payments, cash transactions, payment cards and direct debits for the review period of 2009–2013.

Scope

Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and prepaid cards in Taiwan

Comprehensive analysis of consumer attitudes and buying preferences for cards

Current values for Taiwan's cards and payments industry for 2013, with forecast figures to 2018

Analyses of the different economic, infrastructural and business trends that drive growth in Taiwan's cards and payments industry

An examination of the current regulatory framework in the industry

Profiles of the major banks in Taiwan's cards and payments industry

Key Highlights

Which two factors, aside from the development of banking infrastructure, are crucial to the growth of transaction value and volume in Taiwan’s payment cards category?

What category offers the most significant growth potential? How have leading players targeted responses to the market as a result?

Which category has delivered the most significant increase in the number of cards in circulation?

How high is the frequency of card use in Taiwan? Where does this place Taiwan in comparison to Singapore, Indonesia and other key countries in the region?

What is forecast to be the most important driver in expanding the scope of card-based payments?

Reasons to buy

Exploit top-level historic and forecast market data to inform strategic decisions in each category of Taiwan's cards and payments industry.

Identify key market trends and growth opportunities which provide the best route to expand market share.

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

Analyze strategies used to market various payment card types in Taiwan, and identify those which offer the best opportunity to maximize returns on investment.

Investigate the key regulations governing Taiwan's cards and payments industry; assess potential issues that might arise from implementing the required compliance framework.

Companies mentioned

Bank of Taiwan

China Trust Commercial Bank

Taiwan Cooperative Bank

Cathay United Bank

Land Bank of Taiwan

First Commercial Bank

Citibank Taiwan

E Sun Commercial Bank

MasterCard

Visa

American Express

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 Web ATM

3.2.2 Alipay

3.2.3 ibon

3.2.4 Skrill

3.2.5 PayPal

3.2.6 Click2Pay

3.2.7 ClickandBuy

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 New Product Launches

6.3 Travel Spending

6.3.1 Outbound trips volume and spending

6.3.2 Inbound trips volume and 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 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

10.1.3 Commercial cards comparison

11 Regulations in the Cards and Payments Industry

11.1 Regulatory Framework

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 Bank of Taiwan

13.2 Chinatrust Commercial Bank

13.3 Taiwan Cooperative Bank

13.4 Cathay United Bank

13.5 Land Bank of Taiwan

14 Card Schemes

14.1 Visa

14.2 MasterCard

14.3 American Express

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: Taiwan – Key Facts, 2013

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

Table 3: Specialized Cards for High-Income Consumers

Table 4: Specialized Cards for Frequent Travelers

Table 5: Specialized Cards for Young Population

Table 6: Specialized Cards for Business Managers and Entrepreneurs

Table 7: Taiwan – New Product Launches

Table 8: Regional Benchmarking of Taiwanese Debit Cards, 2013

Table 9: Taiwan – Debit Cards Comparison and Key Features

Table 10: Regional Benchmarking of Taiwanese Credit Cards, 2013

Table 11: Taiwan – Premium Credit Cards Comparison and Key Features

Table 12: Taiwan – Commercial Cards Comparison and Key Features

Table 13: Taiwan – Market Entry Strategies of Foreign Banks

Table 14: Regional Benchmarking of Taiwanese Prepaid Cards, 2013

Table 15: Taiwan – Prepaid Cards Comparison and Key Features

Table 16: Taiwan – Payment Instruments Transaction Value (TWD Trillion), 2009–2013

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

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

Table 19: Taiwan – Number of Cards in Circulation by Card Types (Thousand), 2009–2018

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

Table 21: Taiwan – Transaction Value by Card Type (TWD Trillion), 2009–2018

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

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

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

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

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

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

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

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

Table 30: Taiwan – Debit Cards Transaction Value By Scheme (TWD Million), 2009–2013

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

Table 32: Taiwan – Debit Cards Transaction Value by Issuer (TWD Billion), 2009–2013

Table 33: Taiwan – Debit Cards Transaction Value by Issuer (US$ Million), 2009–2013

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

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

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

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

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

Table 39: Taiwan – Credit Cards Transaction Value By Scheme (TWD Billion), 2009–2013

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

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

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

Table 43: Taiwan – Credit Cards Balance Outstanding By Issuer (TWD Billion), 2009–2013

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

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

Table 46: Taiwan – Commercial Cards Transaction Value (TWD Billion), 2009–2018

Table 47: Taiwan – Commercial Cards Transaction Value (US$ Billion), 2009–2018

Table 48: Taiwan – Card Fraud (TWD Million), 2009–2013

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

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

Table 51: Taiwan – Prepaid Cards Transaction Value (TWD Billion), 2009–2018

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

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

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

Table 55: Key Definitions

List of Figures

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

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

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

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

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

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

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

Figure 8: Taiwan – E-Commerce Value (TWD Billion), 2009–2018

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

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

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

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

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

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

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

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

Figure 17: Taiwan – Debit Card Transaction Volumes by Channel (Million), 2009–2018

Figure 18: Taiwan – Debit Card Transaction Values by Channel (TWD Trillion), 2009–2018

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

Figure 20: Taiwan – Debit Card Scheme Market Shares in Terms of Transaction Value (%), 2013

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

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

Figure 23: Taiwan – Credit Card Transaction Volumes by Channel (Million), 2009–2018

Figure 24: Taiwan – Credit Card Transaction Values by Channel (TWD Billion), 2009–2018

Figure 25: Taiwan – Credit Card Scheme Market Shares in Terms of Number of Cards in Circulation (%), 2013

Figure 26: Taiwan – Credit Card Scheme Market Shares in Terms of Transaction Value (%), 2013

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

Figure 28: Taiwan – Credit Card Issuers’ Market Shares in Terms of Outstanding Balance (%), 2013

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

Figure 30: Taiwan – Commercial Card Transaction Values (TWD Billion), 2009–2018

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

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

Figure 33: Taiwan – Prepaid Cards Transaction Value (TWD Billion), 2009–2018

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