The Cards and Payments Industry in Lithuania: Emerging Trends and Opportunities to 2021

GlobalData’s 'The Cards and Payments Industry in Lithuania: Emerging Trends and Opportunities to 2021' report provides detailed analysis of market trends in the Lithuanian cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, check payments, payment cards, cash transactions and direct debits 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, and transaction values and volumes during the review period and over the forecast period (2017–2021). It also offers information on the country's competitive landscape, including 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

• This report provides a comprehensive analysis of the Lithuanian cards and payments industry.

• It provides current values for the Lithuanian cards and payments industry for 2016, and forecast figures to 2021.

• It details the different demographic, economic, infrastructural and business drivers affecting the Lithuanian cards and payments industry.

• It outlines the current regulatory framework in the industry.

• It details marketing strategies used by various banks and other institutions.

Key Highlights

• Lietuvos Bankas – the central bank of Lithuania – has taken a number of initiatives to bring a larger proportion of the population into the formal financial system. In October 2016, it mandated banks in Lithuania to provide a basket of basic services – a checking account, payment card, and electronic banking facility with a minimum of 10 online transfers – for a maximum monthly fee of US$1.7 (EUR1.5). For low-income consumers, the monthly charges cannot exceed US$0.83 (EUR0.75).

• Lithuania became a member of the EU on January 1, 2015. Its accession means Lithuania is required to adopt the Single Euro Payments Area (SEPA) framework, and other regulations that apply to all member states, such as the capping of interchange fees for credit and debit cards at 0.3% and 0.2% respectively. SEPA requirements came into effect from January 2016, and are anticipated to have a major impact on profitability in Lithuania’s payment cards market. With interchange fee revenues reduced, issuers are likely to cut card offerings and consumer benefits, and look at new ways to generate revenue.

• To protect consumers from financial burdens, the central bank amended responsible lending regulations (RLR) in November 2015. According to the new guidelines, the maximum monthly credit repayment amount cannot exceed more than 40% of the borrower’s monthly income, and the maximum maturity of credit cannot exceed 30 years. The regulation was introduced following a survey conducted by the central bank in January 2016, according to which 75% of families with an income below US$388.8 (EUR350) were indebted to credit issuers, and 71.8% of indebted families were unable to save during the last quarter of 2015. The RLR regulation requires card issuers to assess borrowers’ credit repayment capabilities before issuing credit cards.

Reasons to buy

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

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

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

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

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

Companies mentioned

Swedbank

SEB Bank

DNB Bank

Danske Bank

Citadele Bank

Visa

MasterCard

Table of Contents

1 DEFINITIONS AND METHODOLOGY

1.1 Definitions

1.2 Methodology

2 KEY FACTS AND HIGHLIGHTS

3 EXECUTIVE SUMMARY

4 PAYMENT INSTRUMENTS

4.1 Current Payment Environment

5 E-COMMERCE AND ALTERNATIVE PAYMENTS

5.1 E-Commerce Market Analysis

5.2 Alternative Payment Solutions

5.2.1 Medicinos Bankas mobile wallet

5.2.2 Mokipay mobile wallet

5.2.3 Paysafecard

5.2.4 Boku

5.2.5 WoraPay

6 REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY

6.1 Regulatory Framework

6.1.1 SEPA cards framework

6.2 Anti-Money Laundering (AML)

6.3 Foreign Direct Investment (FDI) Regulations

7 ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS

8 PAYMENT CARDS

9 DEBIT CARDS

9.1 Debit Cards Market Analysis

9.2 Competition in Debit Cards Market

9.3 Debit Cards Comparison

10 PAY LATER CARDS

10.1 Pay Later Cards Market Analysis

10.2 Competition in Pay Later Cards Market

10.3 Pay Later Cards Comparison

11 APPENDIX

11.1 Tables

11.2 Contact GlobalData

11.3 About GlobalData

11.4 GlobalData’s Services

11.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: Annual Average Exchange Rate

Table 3: Lithuania – Key Facts, 2016

Table 4: Regional Benchmarking of Lithuanian Payment Cards, 2016

Table 5: Lithuania – Mode of Entry of Foreign Banks

Table 6: Lithuania – Debit Cards Comparison and Key Features, 2016

Table 7: Lithuania – Gold Credit Cards Comparison and Key Features, 2016

Table 8: Lithuania – Premium Credit Cards Comparison and Key Features, 2016

Table 9: Lithuania – Payment Instrument Transaction Values (EUR Billion), 2012–2016

Table 10: Lithuania – Payment Instrument Transaction Values (US$ Billion), 2012–2016

Table 11: Lithuania – Payment Instrument Transaction Volumes (Million), 2012–2016

Table 12: Lithuania – Number of Payment Cards in Circulation by Type (Million), 2012–2021

Table 13: Lithuania – Volume of Payment Card Transactions by Type (Million), 2012–2021

Table 14: Lithuania – Value of Payment Card Transactions by Type (EUR Billion), 2012–2021

Table 15: Lithuania – Value of Payment Card Transactions by Type (US$ Billion), 2012–2021

Table 16: Lithuania – Number of Debit Cards in Circulation (Million), 2012–2021

Table 17: Lithuania – Debit Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 18: Lithuania – Debit Card Total and Average Transaction Values by Channel, 2012–2021

Table 19: Lithuania – Debit Card Total and Average Transaction Values by Channel, 2012–2021

Table 20: Lithuania – Number of Debit Cards in Circulation by Scheme (Million), 2012–2016

Table 21: Lithuania – Debit Card Transaction Values by Scheme (EUR Billion), 2012–2016

Table 22: Lithuania – Debit Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 23: Lithuania – Debit Card Transaction Values by Issuer (EUR Billion), 2012–2016

Table 24: Lithuania – Debit Card Transaction Values by Issuer (US$ Billion), 2012–2016

Table 25: Lithuania – Number of Pay Later Cards in Circulation (Thousand), 2012–2021

Table 26: Lithuania – Pay Later Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 27: Lithuania – Pay Later Card Total and Average Transaction Values by Channel, 2012–2021

Table 28: Lithuania – Pay Later Card Total and Average Transaction Values by Channel, 2012–2021

Table 29: Lithuania – Number of Pay Later Cards in Circulation by Scheme (Thousand), 2012–2016

Table 30: Lithuania – Pay Later Card Transaction Values by Scheme (EUR Million), 2012–2016

Table 31: Lithuania – Pay Later Card Transaction Values by Scheme (US$ Million), 2012–2016

Table 32: Lithuania – Pay Later Card Transaction Values by Issuer (EUR Million), 2012–2016

Table 33: Lithuania – Pay Later Card Transaction Values by Issuer (US$ Million), 2012–2016

Table 34: Lithuania – Personal and Commercial Pay Later Card Transaction Volumes (Million), 2012–2021

Table 35: Lithuania – Personal and Commercial Pay Later Card Transaction Values (EUR Million), 2012–2021

Table 36: Lithuania – Personal and Commercial Pay Later Card Transaction Values (US$ Million), 2012–2021

Table 37: Lithuania – Number of Commercial Pay Later Cards in Circulation (Thousand), 2012–2021

Table 38: Lithuania – Commercial Pay Later Card Transaction Volumes (Million), 2012–2021

Table 39: Lithuania – Commercial Pay Later Card Transaction Values (EUR Million), 2012–2021

Table 40: Lithuania – Commercial Pay Later Card Transaction Values (US$ Million), 2012–2021

List of Figures

Figure 1: Lithuania – Payment Instrument Shares by Transaction Value (%), 2012 vs 2016

Figure 2: Lithuania – Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016

Figure 3: E-Commerce Value, 2012–2021

Figure 4: Lithuania – Population

Figure 5: Lithuania – Economic Indicators

Figure 6: Lithuania – ATMs and POS Terminals

Figure 7: Lithuania – Real Household Consumption

Figure 8: Lithuania – Growth in Payment Cards Transaction Values, 2012–2021

Figure 9: Lithuania – Number of Cards in Circulation by Type, 2012–2021

Figure 10: Lithuania – Debit Card Penetration, 2016

Figure 11: Lithuania – Turnover Per Debit Card, 2016

Figure 12: Lithuania – Debit Card Scheme Shares in Terms of Transaction Value (%), 2016

Figure 13: Lithuania – Debit Card Issuer Shares in Terms of Transaction Value (%), 2016

Figure 14: Lithuania – Pay Later Card Penetration, 2016

Figure 15: Lithuania – Turnover Per Pay Later Card, 2016

Figure 16: Lithuania – Pay Later Cards Scheme Shares in Terms of Transaction Value (%), 2016

Figure 17: Lithuania – Pay Later Cards Issuer Shares in Terms of Transaction Value (%), 2016

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