The Cards and Payments Industry in Bulgaria: Emerging Trends and Opportunities to 2020

GlobalData’s 'The Cards and Payments Industry in Bulgaria: Emerging Trends and Opportunities to 2020' report provides detailed analysis of market trends in the Bulgarian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cash, payment cards and direct debit during the review period (2012–2016).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review period and over the forecast period (2016–2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

Scope

• Contactless technology is gaining traction in Bulgaria, with leading banks such as UniCredit Bulbank, DSK Bank, UBB, Fibank, and Raiffeisen Bank now offering contactless cards in the country. By the end of 2015, UniCredit Bulbank had issued 500,000 contactless cards. Of the 20,000 POS terminal installations by the bank, 12,000 were enabled with contactless functionality. In 2015, the bank equipped six Sofia Metropolitan stations with 10 unattended ticketing machines, all enabled for contactless payments. The rising adoption of contactless technology is anticipated to drive payment card transaction volumes.

• Banks in Bulgaria are now launching mobile wallets to offer convenient banking services to consumers. Fibank launched its mobile wallet in April 2016, equipped with NFC contactless and Mastercard's certified Host Card Emulation (HCE) technology. Users can add their card details to the wallet for future transactions. In May 2016, Postbank launched the m-Postbank mobile wallet, allowing consumers to perform online transactions.

• Diners Club is expanding its presence in the country. The scheme partnered with DSK Bank in 2016 and Piraeus Bank in 2015. Previously, Fibank was the only bank in Bulgaria to offer Diners Club credit cards. To encourage card use, Diners Club card holders are offered benefits such as discounts, reward points, and cashback at retail outlets, free access to VIP airport lounges, and free medical travel insurance.

Reasons to buy

• Make strategic business decisions, using top-level historic and forecast market data, related to the Bulgarian cards and payments industry and each market within it.

• Understand the key market trends and growth opportunities in the Bulgarian cards and payments industry.

• Assess the competitive dynamics in the Bulgarian cards and payments industry.

• Gain insights into marketing strategies used for various card types in Bulgaria.

• Gain insights into key regulations governing the Bulgarian cards and payments industry.

Companies mentioned

DSK Bank

UniCredit Bulbank

United Bulgarian Bank

The Central Cooperative Bank

First Investment Bank

Bulgarian Postbank

Raiffeisen Bank

Visa

Mastercard

Borica

Table of Contents

Table of Contents

1. EXECUTIVE SUMMARY 2

1.1. Market overview 2

1.2. Key facts 3

1.3. Top five industry events 4

2. PAYMENT INSTRUMENTS 10

2.1. Current payment environment 10

3. E-COMMERCE AND ALTERNATIVE PAYMENTS 12

3.1. E-commerce market analysis 12

3.2. Alternative payment solutions 13

3.2.1. PayPal 13

3.2.2. Paysafecard 13

3.2.3. G-Wallet 13

3.2.4. Fibank mobile wallet 13

3.2.5. iCARD multi-currency wallet 14

4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 15

4.1. Regulatory framework 15

4.1.1. SEPA Cards Framework 15

4.2. Anti-money laundering 16

4.3. Foreign direct investment (FDI) regulations 16

5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 17

6. PAYMENT CARDS 19

7. DEBIT CARDS 21

7.1. Debit cards market analysis 21

7.2. Competition in the debit cards market 23

7.3. Debit cards comparison 25

8. PAY-LATER CARDS 26

8.1. Pay-later cards market analysis 26

8.2. Competition in the pay-later cards market 28

8.3. Pay-later cards comparison 30

9. PREPAID CARDS 32

10. APPENDIX 33

11.1. Abbreviations and acronyms 33

11.2. Supplementary data 34

11.3. Definitions 41

11.4. Methodology 43

11.5. Bibliography 45

11.6. Further reading 45

List of Tables

List of Tables

Table 1: Bulgaria: key facts, 2016 3

Table 2: Regional benchmarking of payment cards, 2016 3

Table 3: Bulgaria: mode of entry of foreign banks 16

Table 4: Bulgaria: debit card comparison and key features, 2016 25

Table 5: Bulgaria: gold credit card comparison and key features, 2016 30

Table 6: Bulgaria: premium credit card comparison and key features, 2016 31

Table 7: Bulgaria: payment instrument transaction values (BGNbn), 2012–16 34

Table 8: Bulgaria: payment instrument transaction values ($bn), 2012–16 34

Table 9: Bulgaria: payment instrument transaction volumes (millions), 2012–16 34

Table 10: Bulgaria: payment cards in circulation by type (millions), 2012–20f 34

Table 11: Bulgaria: volume of payment card transactions (millions), 2012–20f 35

Table 12: Bulgaria: value of payment card transactions (BGNbn), 2012–20f 35

Table 13: Bulgaria: value of payment card transactions ($bn), 2012–20f 35

Table 14: Bulgaria: debit cards in circulation (millions), 2012–20f 35

Table 15: Bulgaria: debit card transaction volumes (millions), 2012–20f 35

Table 16: Bulgaria: debit card transaction values (BGN), 2012–20f 36

Table 17: Bulgaria: debit card transaction values ($), 2012–20f 36

Table 18: Bulgaria: debit cards in circulation by scheme (000s), 2012–16 36

Table 19: Bulgaria: debit card transaction values by scheme (BGNbn), 2012–16 36

Table 20: Bulgaria: debit card transaction values by scheme ($bn), 2012–16 37

Table 21: Bulgaria: debit card transaction values by issuer (BGNbn), 2012–16 37

Table 22: Bulgaria: debit card transaction values by issuer ($bn), 2012–16 37

Table 23: Bulgaria: pay-later cards in circulation (000s), 2012–20f 37

Table 24: Bulgaria: pay-later card transaction volumes (millions), 2012–20f 38

Table 25: Bulgaria: pay-later card transaction values (BGN), 2012–20f 38

Table 26: Bulgaria: pay-later card transaction values ($), 2012–20f 38

Table 27: Bulgaria: pay-later cards in circulation by scheme (000s), 2012–16 39

Table 28: Bulgaria: pay-later card transaction values by scheme (BGNm), 2012–16 39

Table 29: Bulgaria: pay-later card transaction values by scheme ($m), 2012–16 39

Table 30: Bulgaria: pay-later card transaction values by issuer (BGNm), 2012–16 39

Table 31: Bulgaria: pay-later card transaction values by issuer ($m), 2012–16 40

Table 32: Bulgaria: prepaid cards in circulation (000s), 2012–20 40

Table 33: Bulgaria: prepaid card transaction values (BGNm), 2012–20f 40

Table 34: Bulgaria: prepaid card transaction values ($m), 2012–20f 40

Table 35: Key definitions 41

List of Figures

List of Figures

Figure 1: Bulgaria: payment instrument shares by transaction value (%), 2012 vs 2016 10

Figure 2: Bulgaria: payment instrument shares by transaction volume (%), 2012 vs 2016 11

Figure 3: Bulgaria: e-commerce value ($m), 2012–20f 12

Figure 4: Bulgaria: population and economic indicators 17

Figure 5: Bulgaria: number of ATMs and POS terminals, and real household consumption 18

Figure 6: Bulgaria: payment cards transaction value and cards in circulation, 2012–20f 19

Figure 7: Bulgaria: debit card penetration and turnover per card 21

Figure 8: Bulgaria: debit card scheme and issuer transaction value share (%), 2016 23

Figure 9: Bulgaria: pay-later card penetration and turnover per card 26

Figure 10: Bulgaria: pay-later card scheme and issuer transaction value share (%), 2016 28

Figure 11: Bulgaria: prepaid cards in circulation (000s) and transaction value ($m), 2012–20f 32

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