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

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

Synopsis

Bahrain has a diversified economy with well-developed infrastructural facilities, and is home to large number of multinational companies in the Middle-East and North Africa (MENA). The government has encouraged investment in the financial service and tourism sectors as part of its economic diversification plans, with special emphasis on Islamic banking. The country has the region’s highest density of Islamic financial institutions, including 24 dedicated banks. As the need for, and awareness levels of, sophisticated banking products and service offerings increase, banks operating in the country are launching new products to retain market share. Consequently, Bahrain’s cards and payments industry recorded healthy growth during the review period (2009–2013).

Credit transfers and check payments were the preferred payment instruments, having a combined industry share of 99.4% in 2013 in terms of transaction value. The share of payment cards increased from 0.4% in 2009 to 0.6% in 2013, as the government and banks are taking initiatives to increase benefits and awareness levels among consumers and merchants.

In terms of the number of cards in circulation, Bahrain’s payment cards – including debit and credit cards – registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 5.49%, increasing from 830,360 cards in 2009 to 1.0 million in 2013. In terms of transaction value, payment cards reached BHD1.1 billion (US$3 billion) in 2013, after registering a CAGR of 17.37%. Similarly in terms of transaction volume, payment cards registered a CAGR of 17.69%, reaching 16.1 million in 2013.

The average transaction value (ATV) in Bahrain was US$185.3 in 2013, which was higher than Saudi Arabia with US$131.3, but lower than other peer countries such as Kuwait, Oman and the UAE. Kuwait recorded the highest ATV with US$319.6, followed by the UAE with US$263.1 and Oman with US$207.4.

In terms of card penetration, Bahrain recorded 0.80 cards per inhabitant in 2013, while the UAE, Kuwait, Oman and Saudi Arabia recorded 1.96, 1.32, 1.03 and 0.69 respectively. In terms of frequency of use, Bahrain recorded 15.6 transactions per card in 2013, while Saudi Arabia recorded 95.3, Kuwait recorded 47.7, the UAE recorded 43.1 and Oman recorded 13.4.

The Bahraini government’s eGovernment project set out to promote electronic payments, improve banking infrastructure, introduce of Sharia-compliant payment cards, and raise consumer awareness of electronic payments, which were the main factors driving the payment card channel’s growth. The adoption of Europay, MasterCard and Visa (EMV) standards – as well as growth in the e-commerce and retail sectors – also supported this growth.

Summary

The report provides top-level market analysis, information and insights into Bahrain's cards and payments industry, including:

  • Current and forecast values for each category of Bahrain's cards and payments industry, including debit cards, credit cards and prepaid cards
  • Comprehensive analysis of the industry’s market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing Bahrain's cards and payments industry
  • Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks and other institutions in the market
  • Comprehensive analysis of consumer attitudes and buying preferences for cards
  • The competitive landscape of Bahrain's cards and payments industry
Scope
  • This report provides a comprehensive analysis of Bahrain's cards and payments industry.
  • It provides current values for Bahrain's cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Bahrain'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 Bahrain's cards and payments industry.
Reasons To Buy
  • Make strategic business decisions using top-level historic and forecast market data related to Bahrain's cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within Bahrain's cards and payments industry.
  • Assess the competitive dynamics in Bahrain's cards and payments industry.
  • Gain insights in to the marketing strategies used for selling various card types in Bahrain.
  • Gain insights into key regulations governing Bahrain's cards and payments industry.
Key Highlights
  • Credit transfers and check payments were the preferred payment instruments, having a combined industry share of 99.4% in 2013 in terms of transaction value. The share of payment cards increased from 0.4% in 2009 to 0.6% in 2013, as the government and banks are taking initiatives to increase benefits and awareness levels among consumers and merchants.
  • In terms of the number of cards in circulation, Bahrain’s payment cards – including debit and credit cards – registered positive growth during the review period, recording a compound annual growth rate (CAGR) of 5.49%, increasing from 830,360 cards in 2009 to 1.0 million in 2013. In terms of transaction value, payment cards reached BHD1.1 billion (US$3 billion) in 2013, after registering a CAGR of 17.37%. Similarly in terms of transaction volume, payment cards registered a CAGR of 17.69%, reaching 16.1 million in 2013.
  • The average transaction value (ATV) in Bahrain was US$185.3 in 2013, which was higher than Saudi Arabia with US$131.3, but lower than other peer countries such as Kuwait, Oman and the UAE. Kuwait recorded the highest ATV with US$319.6, followed by the UAE with US$263.1 and Oman with US$207.4.
  • The debit cards market dominated the payment card instrument during the review period, in terms of the number of cards in circulation, transaction value and volume. The share of debit cards stood at 75.5% in 2013, in terms of number of cards in circulation, while in terms of transaction value and volume at the shares were 76% and 61.8% respectively.
  • The Bahraini government’s eGovernment project set out to promote electronic payments, improve banking infrastructure, introduce of Sharia-compliant payment cards, and raise consumer awareness of electronic payments, which were the main factors driving the payment card channel’s growth. The adoption of Europay, MasterCard and Visa (EMV) standards – as well as growth in the e-commerce and retail sectors – also supported this growth.


  • Key Facts and Top Events
    • Table Bahrain - Key Facts, 2013
  • Executive Summary
  • Payment Instruments
    • Current Payments Environment
    • Alternative Payment Instruments
      • Cashu
      • Neteller
      • PayPal
      • Skrill
      • 2Checkout
      • Ukash
  • Market Attractiveness and Future Prospects of Cards and Payments
    • Table Regional Benchmarking of Bahrain Payment Cards Instrument, 2013
  • Analysis of Cards and Payments Industry Drivers
    • Demographic Drivers
    • Economic Drivers
    • Infrastructure Drivers
    • Business Drivers
  • Emerging Consumer Attitudes and Trends
    • Market Segmentation and Targeting
      • Consumer cards
        • Table Specialized Cards for High-Income Consumers, 2014
        • Table Specialized Cards for Frequent Travelers, 2014
        • Table Specialized Cards for Young Population, 2014
      • Commercial cards
        • Table Specialized Cards for Business Managers and Entrepreneurs, 2014
    • New Product Launches
      • Table Bahrain - New Product Launches
    • Travel Spending
      • Outbound trips volume and spending
      • Inbound trips volume and spending
  • Payment Cards
    • Payment Cards Instrument Analysis
      • Number of cards in circulation by card type
      • Transaction volume by card type
      • Transaction value by card type
      • Personal vs commercial cards
  • Debit Cards
    • Debit Cards Market Analysis
      • Table Regional Benchmarking of Bahraini Debit Cards Market, 2013
      • Number of debit cards in circulation
      • Debit cards transaction volume by channel
      • Debit cards transaction value by channel
      • Number of debit cards in circulation by scheme
      • Debit cards transaction value by scheme
      • Debit cards issuers market shares
      • Debit cards comparison
        • Table Bahrain - Debit Cards Comparison and Key Features
  • Credit Cards
    • Credit Cards Market Analysis
      • Table Regional Benchmarking of Bahraini Credit Cards Market, 2013
      • Number of credit cards in circulation
      • Credit cards transaction volume by channel
      • Credit cards transaction value by channel
      • Number of credit cards in circulation by scheme
      • Credit cards transaction value by scheme
      • Credit cards issuers market share
      • Credit cards comparison
        • Table Bahrain - Gold Credit Cards Comparison and Key Features
        • Table Bahrain - Premium Credit Cards Comparison and Key Features
  • Commercial Cards
    • Commercial Cards Market Analysis
      • Number of commercial cards in circulation
      • Commercial cards transaction value
      • Commercial cards comparison
        • Table Bahrain - Commercial Cards Comparison and Key Features
  • Regulations in the Cards and Payments Industry
    • Regulatory Framework
    • Anti-Money Laundering (AML)
    • Foreign Direct Investment (FDI) Regulations
      • Table Bahrain - Market-Entry Strategies of Foreign Banks and Institutions
  • Card Fraud Statistics
    • Card Fraud Analysis
  • Card Issuers
    • National Bank of Bahrain
    • Ahli United Bank
    • CrediMax
    • HSBC Bahrain
    • Standard Chartered Bank Bahrain
  • Card Schemes
    • Visa
    • MasterCard
    • American Express
  • Prepaid Cards
    • Prepaid Cards Market Analysis
      • Table Regional Benchmarking of Bahraini Prepaid Cards Market, 2013
      • Number of prepaid cards in circulation
      • Prepaid cards transaction value
      • Prepaid cards comparison
        • Table Bahrain - Prepaid Cards Comparison and Key Features
  • Appendix
    • Tables
      • Table Bahrain - Payment Instruments Transaction Value (BHD Million), 2009-2013
      • Table Bahrain - Payment Instruments Transaction Value (US$ Million), 2009-2013
      • Table Bahrain - Payment Instruments Transaction Volume (Million), 2009-2013
      • Table Bahrain - Number of Cards in Circulation by Card Types (Thousand), 2009-2018
      • Table Bahrain - Transaction Volume by Card Type (Million), 2009-2018
      • Table Bahrain - Transaction Value by Card Type (BHD Million), 2009-2018
      • Table Bahrain - Transaction Value by Card Type (US$ Billion), 2009-2018
      • Table Bahrain - Personal and Commercial Cards Transaction Value (BHD Million), 2009-2018
      • Table Bahrain - Personal and Commercial Cards Transaction Value (US$ Million), 2009-2018
      • Table Bahrain - Number of Debit Cards in Circulation (Thousand), 2009-2018
      • Table Bahrain - Debit Cards Transaction Volume and Frequency by Channel, 2009-2018
      • Table Bahrain - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
      • Table Bahrain - Number of Debit Cards in Circulation By Scheme (Thousand), 2009-2013
      • Table Bahrain - Debit Cards Transaction Value By Scheme (BHD Million), 2009-2013
      • Table Bahrain - Debit Cards Transaction Value By Scheme (US$ Million), 2009-2013
      • Table Bahrain - Debit Cards Transaction Value by Issuer (BHD Million), 2009-2013
      • Table Bahrain - Debit Cards Transaction Value by Issuer (US$ Million), 2009-2013
      • Table Bahrain - Number of Credit Cards in Circulation (Thousand), 2009-2018
      • Table Bahrain - Credit Cards Transaction Volume and Frequency by Channel, 2009-2018
      • Table Bahrain - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
      • Table Bahrain - Number of Credit Cards in Circulation by Scheme (Thousand), 2009-2013
      • Table Bahrain - Credit Cards Transaction Value by Scheme (BHD Million), 2009-2013
      • Table Bahrain - Credit Cards Transaction Value by Scheme (US$ Million), 2009-2013
      • Table Bahrain - Credit Cards Transaction Value by Issuer (BHD Million), 2009-2013
      • Table Bahrain - Credit Cards Transaction Value by Issuer (US$ Million), 2009-2013
      • Table Bahrain - Credit Cards Balance Outstanding by Issuer (BHD Million), 2009-2013
      • Table Bahrain - Credit Cards Balance Outstanding by Issuer (US$ Million), 2009-2013
      • Table Bahrain - Number of Commercial Cards in Circulation (Thousand), 2009-2018
      • Table Bahrain - Commercial Cards Transaction Value (BHD Million), 2009-2018
      • Table Bahrain - Commercial Cards Transaction Value (US$ Million), 2009-2018
      • Table Bahrain - Card Fraud (BHD Million), 2009-2013
      • Table Bahrain - Card Fraud (US$ Million), 2009-2013
      • Table Bahrain - Number of Prepaid Cards in Circulation (Million), 2009-2018
      • Table Bahrain - Prepaid Cards Transaction Value (BHD Million), 2009-2018
      • Table Bahrain - Prepaid Cards Transaction Value (US$ Million), 2009-2018
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Definitions
      • Table Key Definitions
    • Disclaimer

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