Payment Cards in Spain 2007

Published by: Datamonitor

Published: Feb. 6, 2008 - 72 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

Market context

Competitor and product overview

Forecasting the payment card market in Spain

Table of Contents

Table of figures

Table of tables

Market Context

Market overview

Demographics

Economy

GDP

Real GDP growth

GDP per capita

Sectoral composition of the economy

Inflation

Distribution of income

Segmentation of liquid assets

Unemployment

Market size

Payment cards in the context of consumer payments

Payment card statistics

Cards in issue

Number of transactions

Value of transactions

Card acceptance

POS statistics

ATM statistics

Market structure

Categories of banks

Private commercial banks

Cajas de Ahorros (savings banks)

Cooperativas de Crédito (co-operative banks)

Interbank structures for cards

Regulatory environment

Industry regulators

Banco de España

Industry associations

Asociación Española de Banca-AEB

Confederación Española de Cajas de Ahorros-CECA

Unión Nacional de Cooperativas de Crédito-UNACC

Asociación Nacional de Establecimientos Financieros de Crédito (ASNEF)

Asociación de Usuarios de Servicios Bancarios (AUSBANC)

Credit bureaux

The Banco de España manages a public registry

Equifax operates a private sector credit bureau in Spain

Experian entered the market in 2000

Regulatory issues in the market

European consumer credit directive

Interchange fees come under scrutiny in Spain

Key issues

Fraud and EMV

Spain is lagging behind in the conversion to EMV

Low fraud losses and high conversion costs are the key factors in the slow roll-out

SEPA

The main impact on Spain will be in terms of tackling fraud and ensuring cards can be used across the region.

Competitor and product Overview

Card scheme market shares

Pay now cards

Cards in issue

Value of transactions

Deferred debit and charge cards

Cards In issue

Transaction values

Credit cards

Number of cards

Value of transactions

Card issuer market shares

Pay now cards

Cards in issue

The pay later market

Cards in issue

The credit card market

Cards in issue

Balances outstanding

Competitor developments

Consolidation of the Spanish market has slowed considerably

Foreign lenders have a strong presence in the Spanish market

Product analysis

Pay later card design

Spanish consumers are often able to choose their repayment plan

Credit limits

Loyalty programs

Product innovation

La Caixa has introduced a "save the change" program

Card appearance continues to be an area of focus

Pre-paid Cards

The focus on innovation has limited results

Forecasting the payment card market in Spain

Forecasting the pay now card market

Forecasting the credit card market

Forecasting the deferred debit and charge card market

Conclusions

The Spanish payment card market is in a healthy state

Card penetration and use is high

Issuers continue to innovate

As a result of these factors, the outlook for the Spanish market is a positive one

However, there are challenges that are still to be faced

The market continues to face regulatory challenges

Consumers still prefer cash

The deferred debit and charge card market is set to decline

APPENDIX

Supplementary data

Market context

Forecasting the payment card market in Spain

Definitions

AAGR

Affinity card

CAGR

Co-branded card

Credit card

Deferred debit and charge card

EMV

EPC

ePurse

Merchant Service Charge

Pay now cards

PoS terminal

Private label cards

Methodology

Cards and Payments Database

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: GDP per capita for selected European countries, 2006

Table 2: GINI Coefficient for selected European countries

Table 3: Segmentation of liquid assets in Spain, 2006

Table 4: Falling interchange fees in Spain 2006-2009

Table 5: A selection of Spanish credit cards, 2007

Table 6: A selection of Spanish payment card loyalty schemes

Table 7: Datamonitor's forecast for the Spanish pay now market, 2007-2011

Table 8: Datamonitor's forecast for the Spanish credit card market, 2007-2011

Table 9: Datamonitor's forecast for the Spanish deferred debit and charge card market, 2007-2011

Table 10: Population numbers and demographic splits in Spain and other major European countries, 2006

Table 11: Population over 20 in Spain and other major European countries, 2006

Table 12: GDP at current rates across European countries, 2006

Table 13: Real GDP growth rates based on constant rates to 2000, 2002-06

Table 14: Inflation in selected European countries, 2002-06

Table 15: The total number of ATM terminals and the number of people per ATM, 2002-06

Table 16: The total number of POS terminals and the number of people per terminal, Spain 2002-06

Table 17: Penetration level of cards in selected European countries, 2006

Table 18: Credit card balances outstanding in Spain, 2004-2006

Table 19: Pay now card forecast forecasts indexed to 2006

Table 20: Credit card forecast forecasts indexed to 2006

Table 21: Charge card forecast forecasts indexed to 2006

Table 22: Current relevant Datamonitor publications, 2007

Table 23: Future relevant Datamonitor publications, 2008

List of Figures

Figure 1: Country view of Spain, 2007

Figure 2: Spain has the fifth largest population in Western Europe, 2006

Figure 3: Spain has the highest proportion of adults out of the Western European nations

Figure 4: Spain has the fifth largest GDP in Western Europe, 2006

Figure 5: Spain has enjoyed a period of accelerating economic growth, 2002-2006

Figure 6: The service sector dominates the Spanish economy, 2006

Figure 7: The rate of inflation in Spain continues to accelerate, 2002-2006

Figure 8: Cash remains the payment tool of choice for Spanish consumers, 2002-2006

Figure 9: The number of payment cards in Spain continues to grow, 2002-2006

Figure 10: Spain has the second highest level of card penetration in Europe.

Figure 11: Debit cards continue to account for the majority of card transaction volumes, Spain, 2002-2006

Figure 12: Debit cards are the most frequently used type of payment card, Spain, 2002-2006

Figure 13: Debit cards account for the majority of the value of card transactions in Spain, 2002-2006

Figure 14: Credit cards have the highest average transaction value in Spain, 2002-2006

Figure 15: Spain has the most extensive POS coverage in Europe, 2002-2006

Figure 16: Spain also has the largest ATM network, 2002-2006

Figure 17: The three pillars of Spanish banking, 2006

Figure 18: Banks in Spain in the three pillars, 2005

Figure 19: Regulatory overview of Spain, 2006

Figure 20: Visa is increasingly dominant in the Spanish pay now market, 2002-2006

Figure 21: Visa's dominance in debit card transaction value is increasing, 2002-2006

Figure 22: Visa is also the dominant scheme in the deferred debit and charge card market, 2002-2006

Figure 23: Visa is also the dominant scheme in deferred debit and charge card transaction values, 2002-2006

Figure 24: The majority of Spanish credit cards are issued on the Visa scheme, 2002-2006

Figure 25: Visa accounts for more than half of the value of transactions on credit cards, 2002-2006

Figure 26: The Spanish pay now market is dominated by four major players

Figure 27: The Spanish pay later card market is somewhat fragmented, 2006

Figure 28: The Spanish credit card market is dominated by BBVA and Caja Madrid, 2006

Figure 29: La Caixa is the leading Spanish credit card issuer by outstandings, 2006

Figure 30: Mergers and acquisitions in the Spanish banking market, 1998-2005

Figure 31: La Caixa has a wide range of rewards for collectors of Puntos Estellas loyalty points

Figure 32: The La Caixa "Ahorra la Cambio" product helps cardholders build up a savings account

Figure 33: La Caixa allows cardholders to personalize cards with their own photographs

Figure 34: Growth in the Spanish debit card market will be driven by increased card use driving transaction values, 2006-2011

Figure 35: Datamonitor forecasts the Spanish credit card market to grow strongly, 2006-2011

Figure 36: The Spanish deferred debit and charge card market is expected to peak in 2010

Abstract

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