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

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

Synopsis

The global economic crisis in 2009–2010 had a severe effect on the Bulgarian economy, with gross domestic product (GDP) contracting by 5.5% in 2009. The Bulgarian government and World Bank entered into a memorandum of understanding (MoU) in January 2012 in response. This represented an important step taken by the country’s government to draw on the World Bank’s expertise in developing and implementing strategies and programs to revive the country’s economy. GDP grew by 0.9% in 2013, and is anticipated to rise to 3.0% in 2018, which will be beneficial for Bulgaria’s cards and payments industry over the forecast period (2014–2018).

Bulgarian payment cards (including debit and credit cards) registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 2.08%, and increasing from 7.7 million cards in circulation in 2009 to 8.5 million in 2013. In terms of transaction value, payment cards valued BGN15.1 billion (US$10.7 billion) in 2013, after registering a review-period CAGR of 7.33%. Rising consumer awareness for electronic payments and the adoption of advanced technologies such as contactless cards and EMV technology contributed towards the growth in payment cards during the review period, in terms of transaction value, volume and the number of cards in circulation.

In 2013, the average transaction value (ATV) in Bulgaria was US$85.5, which ranked fifteenth in the overall European region. Greece recorded the highest ATV, with US$227.6, while Estonia recorded the lowest with US$37.3. Bulgaria ranked twenty-first in terms of card penetration, with 1.2 cards per inhabitant, while Luxembourg recorded the highest rate with 4.4 and Romania recorded the lowest with 0.6. Bulgaria ranked the lowest among other European countries in terms of frequency of use, with 18.7 transactions per card, while Finland recorded the highest frequency with 172.8.

Prepaid cards recorded a CAGR of 24.99% during the review period, increasing from 461,513 cards in 2009 to 1.1 million in 2013. These cards are more beneficial to the country’s unbanked population, as they do not require a bank account to use. Central Cooperative issues virtual prepaid cards that do not require an individual to have a physical card. This card is created online, and can be used for the payment of goods and services. This removes the requirement for customers to visit a bank to collect the card. The bank also issues Prepaid Gift Cards to customers, which can be personalized and can be used to give gifts on different occasions. With the increasing number of prepaid cards being distributed in the country, this segment is anticipated to undergo positive growth, with 2.1 million cards estimated to be distributed by the end of 2018.

Card fraud is increasing at a CAGR of 0.31% in Bulgaria, with various technological innovations to combat and prevent it. Banks in association with MasterCard and Visa now offer contactless credit cards, called PayPass and PayWave respectively. These cards provide more convenience at the time of the payment, as they require tapping the card in front of the card reader instead of entering the PIN. DSK Bank, Fibank and UniCredit Bulbank offer contactless cards.

Summary

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

  • Current and forecast values for each category of Bulgaria'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 Bulgaria's cards and payments industry
  • Detailed analysis of 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 Bulgaria's cards and payments industry
Scope
  • This report provides a comprehensive analysis of Bulgaria’s cards and payments industry.
  • It provides current values for Bulgaria’s cards and payments industry for 2013, and forecast figures for 2018.
  • It details the different economic, infrastructural and business drivers affecting Bulgaria’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 major banks in Bulgaria’s cards and payments industry.
Reasons To Buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to Bulgaria’s cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities within Bulgaria’s cards and payments industry.
  • Assess the competitive dynamics in Bulgaria’s cards and payments industry.
  • Gain insights into marketing strategies used for selling various card types in Bulgaria.
  • Gain insights into key regulations governing of Bulgaria’s cards and payments industry.
Key Highlights
  • Bulgarian payment cards (including debit and credit cards) registered positive growth during the review period (2009–2013), recording a compound annual growth rate (CAGR) of 2.08%, and increasing from 7.7 million cards in circulation in 2009 to 8.5 million in 2013. In terms of transaction value, payment cards valued BGN15.1 billion (US$10.7 billion) in 2013, after registering a review-period CAGR of 7.33%. Rising consumer awareness for electronic payments and the adoption of advanced technologies such as contactless cards and EMV technology contributed towards the growth in payment cards during the review period, in terms of transaction value, volume and the number of cards in circulation.
  • In 2013, the average transaction value (ATV) in Bulgaria was US$85.5, which ranked fifteenth in the overall European region. Greece recorded the highest ATV, with US$227.6, while Estonia recorded the lowest with US$37.3. Bulgaria ranked twenty-first in terms of card penetration, with 1.2 cards per inhabitant, while Luxembourg recorded the highest rate with 4.4 and Romania recorded the lowest with 0.6. Bulgaria ranked the lowest among other European countries in terms of frequency of use, with 18.7 transactions per card, while Finland recorded the highest frequency with 172.8.
  • Prepaid cards recorded a CAGR of 24.99% during the review period, increasing from 461,513 cards in 2009 to 1.1 million in 2013. These cards are more beneficial to the country’s unbanked population, as they do not require a bank account to use.
  • Card fraud is increasing at a CAGR of 0.31% in Bulgaria, with various technological innovations to combat and prevent it. Banks in association with MasterCard and Visa now offer contactless credit cards, called PayPass and PayWave respectively. These cards provide more convenience at the time of the payment, as they require tapping the card in front of the card reader instead of entering the PIN. DSK Bank, Fibank and UniCredit Bulbank offer contactless cards.


  • Key Facts and Top Events
    • Table Bulgaria - Key Facts, 2013
  • Executive Summary
  • Payment Instruments
    • Current Payments Environment
    • Alternative Payment Instruments
      • Mobile payments
      • PayPal
      • ClickandBuy
      • Click2Pay
      • PaySafeCard
      • Skrill
  • Market Attractiveness and Future Prospects of Cards and Payments
    • Table Regional Benchmarking of Bulgarian 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 Customers
        • Table Specialized Cards for Young Population and Students
        • Table Specialized Cards for Shoppers and Vehicle Owners
        • Table Specialized Cards for Female Population
      • Corporate cards
        • Table Specialized Cards for Business Managers and Entrepreneurs
    • 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 Bulgarian Debit Cards, 2013
      • Table Bulgaria - Visa Domestic Interchange Reimbursement Fees
      • Table Bulgaria - MasterCard Consumer Card Domestic Interchange Reimbursement Fees
      • Table Bulgaria - MasterCard Commercial Card Interchange Fees
      • 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 Bulgaria - Debit Cards Comparison and Key Features
  • Credit Cards
    • Credit Cards Market Analysis
      • Table Regional Benchmarking of Bulgarian Credit Cards, 2013
      • Table Bulgaria - Visa Domestic Interchange Reimbursement Fees
      • Table Bulgaria - MasterCard Consumer Card Interchange Fees, 2014
      • Table Bulgaria - MasterCard Commercial Card Interchange Fees
      • 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 Bulgaria - Gold Credit Cards Comparison and Key Features
        • Table Bulgaria - 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 Bulgaria - Commercial Cards Comparison and Key Features
  • Regulations in the Cards and Payments Industry
    • Regulatory Framework
    • Anti-Money Laundering
    • Foreign Direct Investment Regulations
      • Table Bulgaria - Market Entry Strategies of Foreign Banks
  • Card Fraud Statistics
    • Card Fraud Analysis
  • Card Issuers
    • United Bulgarian Bank
    • DSK Bank
    • UniCredit Bulbank
    • First Investment Bank
    • Raiffeisenbank
  • Card Schemes
    • Visa
    • MasterCard
    • Borica
    • American Express
    • Diners Club
  • Prepaid Cards
    • Prepaid Cards Market Analysis
      • Table Regional Benchmarking of Bulgaria Prepaid Cards, 2013
      • Number of prepaid cards in circulation
      • Prepaid cards transaction value
      • Open-loop prepaid cards
      • Closed-loop prepaid cards
      • Prepaid cards comparison
        • Table Bulgaria - Prepaid Cards Comparison and Key Features
  • Appendix
    • Tables
      • Table Bulgaria - Payment Instruments Transaction Value (BGN Billion), 2009-2013
      • Table Bulgaria - Payment Instruments Transaction Value (US$ Million), 2009-2013
      • Table Bulgaria - Payment Instruments Transaction Volume (Million), 2009-2013
      • Table Bulgaria - Number of Cards in Circulation by Card Types (Thousand), 2009-2018
      • Table Bulgaria - Transaction Volume by Card Type (Million), 2009-2018
      • Table Bulgaria - Transaction Value by Card Type (BGN Billion), 2009-2018
      • Table Bulgaria - Transaction Value by Card Type (US$ Million), 2009-2018
      • Table Bulgaria - Personal and Commercial Cards Transaction Value (BGN Million), 2009-2018
      • Table Bulgaria - Personal and Commercial Cards Transaction Value (US$ Billion), 2009-2018
      • Table Bulgaria - Number of Debit Cards in Circulation (Million), 2009-2018
      • Table Bulgaria - Debit Cards Transaction Volume and Frequency by Channel, 2009-2018
      • Table Bulgaria - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
      • Table Bulgaria - Debit Cards Total and Average Transaction Value by Channel, 2009-2018
      • Table Bulgaria - Number of Debit Cards in Circulation By Scheme (Thousand), 2009-2013
      • Table Bulgaria - Debit Cards Transaction Value By Scheme (BGN Million), 2009-2013
      • Table Bulgaria - Debit Cards Transaction Value By Scheme (US$ Million), 2009-2013
      • Table Bulgaria - Debit Cards Transaction Value by Issuer (BGN Million), 2009-2013
      • Table Bulgaria - Debit Cards Transaction Value by Issuer (US$ Million), 2009-2013
      • Table Bulgaria - Number of Credit Cards in Circulation (Thousand), 2009-2018
      • Table Bulgaria - Credit Cards Transaction Volume and Frequency by Channel, 2009-2018
      • Table Bulgaria - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
      • Table Bulgaria - Credit Cards Total and Average Transaction Value by Channel, 2009-2018
      • Table Bulgaria - Number of Credit Cards in Circulation By Scheme (Thousand), 2009-2013
      • Table Bulgaria - Credit Cards Transaction Value By Scheme (BGN Million), 2009-2013
      • Table Bulgaria - Credit Cards Transaction Value By Scheme (US$ Million), 2009-2013
      • Table Bulgaria - Credit Cards Transaction Value By Issuer (BGN Million), 2009-2013
      • Table Bulgaria - Credit Cards Transaction Value By Issuer (US$ Million), 2009-2013
      • Table Bulgaria - Credit Cards Balance Outstanding By Issuer (BGN Million), 2009-2013
      • Table Bulgaria - Credit Cards Balance Outstanding By Issuer (US$ Million), 2009-2013
      • Table Bulgaria - Number of Commercial Cards in Circulation (Thousand), 2009-2018
      • Table Bulgaria - Commercial Cards Transaction Value (BGN Million), 2009-2018
      • Table Bulgaria - Commercial Cards Transaction Value (US$ Million), 2009-2018
      • Table Bulgaria - Card Fraud (BGN Thousand), 2009-2013
      • Table Bulgaria - Card Fraud (US$ Thousand), 2009-2013
      • Table Bulgaria - Number of Prepaid Cards in Circulation (Thousand), 2009-2018
      • Table Bulgaria - Prepaid Cards Transaction Value (BGN Million), 2009-2018
      • Table Bulgaria - Prepaid Cards Transaction Value (US$ Million), 2009-2018
      • Table Bulgaria - Open-Loop Prepaid Cards, 2009-2018
      • Table Bulgaria - Closed-Loop Prepaid Cards, 2009-2018
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Definitions
      • Table Key Definitions
    • Disclaimer

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