DUBLIN–(BUSINESS WIRE)–The “Payments
Landscape in Iran: Opportunities and Risks to 2022” report has
been added to ResearchAndMarkets.com’s offering.
Payments Landscape in Iran: Opportunities and Risks to 2022
provides detailed analysis of market trends in the Iranian cards and
payments industry.
It provides values and volumes for a number of key performance
indicators in the industry, including cards and cheques during the
review-period (2014-18e). 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 (2018e-22f). It
also offers information on the country’s competitive landscape,
including the market shares of issuers and schemes.
The report brings together 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.
Market Insights
Iran’s payment card market is developed, with penetration of 4.3 cards
per individual in 2018 – the highest in comparison to peers Israel,
Kuwait, the UAE, Bahrain, Saudi Arabia, Lebanon, and Oman. The high
penetration is a result of the country’s strong banked population and
various government initiatives to encourage electronic payments.
Meanwhile, the overall payment card market registered robust growth in
terms of transaction volume and value at respective compound annual
growth rates (CAGRs) of 17.9% and 15.8% over the review period. The
country’s improved payments infrastructure, growth in the number of
retailers accepting payment cards, and a consumer shift towards
card-based payments supported this growth.
Debit cards remain the preferred card type among Iranian consumers, with
every individual holding more than four debit cards in 2018, aided by
the country’s high banked population. Growth was also supported by
government efforts to encourage retailers to accept card-based payments,
as well as banks’ promotional activities. Consumers’ preference for
debt-free payments and prudent spending have resulted in the dominance
of debit cards for payments, which accounted for 99.1% of total card
payment value in 2018. Debit cards will continue to lead the Iranian
payment card market, supported by the gradual migration of low-value
cash payments to payment cards.
Credit card adoption in Iran stood at 2.5 cards per 100 individuals in
2018, the lowest in the region (primarily due to cultural and religious
factors). But the market registered strong growth in terms of payment
volume and value at respective CAGRs of 16.6% and 17.2%. This was mainly
supported by government initiatives, in addition to banks offering
flexible payment options and other incentives on card purchases.
The number of point of sale (POS) terminals recorded a CAGR of 17.6%,
rising from 3.8 million in 2014 to 7.2 million in 2018. Iran’s card
acceptance infrastructure is highly developed, with one POS terminal for
every 11 individuals. This can be attributed to the strong domestic
payment system Shaparak, which enables merchants to accept payment cards
at lower costs. Growth was also supported by the increasing preference
for mobile POS (mPOS) terminals among merchants.
The report provides:
-
Current and forecast values for each market in the Iranian cards and
payments industry, including debit and credit cards -
Detailed insights into payment instruments including cards and
cheques. It also, includes an overview of the country’s key
alternative payment instruments -
Analysis of various market drivers and regulations governing the
Iranian cards and payments industry -
Detailed analysis of strategies adopted by banks and other
institutions to market debit and credit cards
The report enables the user to:
-
Make strategic business decisions, using top-level historic and
forecast market data, related to the Iranian cards and payments
industry and each market within it -
Understand the key market trends and growth opportunities in the
Iranian cards and payments industry -
Assess the competitive dynamics in the Iranian cards and payments
industry -
Gain insights into marketing strategies used for various card types in
Iran -
Gain insights into key regulations governing the Iranian cards and
payments industry
Select Findings
-
To increase the adoption of credit cards, the Iranian government has
undertaken several initiatives. For instance, in May 2017 the central
bank introduced a scheme called Yarakart. Under the scheme, banks are
required to issue credit cards for low-income individuals, providing
an alternative to bank loans. The card is only issued to individuals
who are eligible to receive government subsidies, which also acts as
collateral. In September 2016 the central bank started allowing
domestic financial institutions to issue credit cards in three
variants with predefined credit limits: Bronze with a credit limit of
IRR100m ($2,381.21), Silver with a IRR300m ($7,143.63) limit, and Gold
with a IRR500m ($11,906.05) limit. Extending this concept, in April
2018 the government announced a new scheme in which credit cards are
offered at a lower interest rate when the card is used to purchase
domestic products. The aim of this scheme is to boost consumption of
local products. -
Iranian banks are downsizing their branch networks to reduce
operational costs, instead focusing on alternative channels to offer
banking and payment services such as banking kiosks. In June 2017,
Bank Mellant installed 500 new non-cash banking terminals in addition
to its existing fleet of 2,000. These kiosks provide a range of
services including fund transfers, installment payments, utility bill
payments, donations, and viewing account balances and statements. -
The Central Bank of Iran – in association with Shaparak – launched a
nationwide NFC-based system in May 2017 in an attempt to increase
mobile payment uptake. Named Tap-and-Go, the service enables users to
make contactless payments of up to IRR200,000 ($4.76) at merchant
stores using NFC-enabled mobile devices. Users can scan and add their
payment cards to their mobile banking apps and use them for
contactless payments.
Reasons to Buy
-
Make strategic business decisions, using top-level historic and
forecast market data, related to the Iranian cards and payments
industry and each market within it. -
Understand the key market trends and growth opportunities in the
Iranian cards and payments industry. -
Assess the competitive dynamics in the Iranian cards and payments
industry. -
Gain insights into marketing strategies used for various card types in
Iran. -
Gain insights into key regulations governing the Iranian cards and
payments industry.
Key Topics Covered
- Market Overview
- Executive Summary
- Card-based Payments
- Alternative Payments
- Payment Innovations
- Payments Infrastructure & Regulation
- Appendix
Companies Mentioned
- Tejarat Bank
- Bank Saderat Iran
- Bank Sepah
- Bank Mellat
- Bank Melli Iran
- Bank Maskan
- Refah Bank
- Bank Keshavarzi
- Parsian Bank
- EN Bank
- Post Bank of Iran
For more information about this report visit https://www.researchandmarkets.com/r/vrd3cg
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Related
Topics: Bank
Cards, Mobile
and Contactless Payments
