Report: Payment Cards in Germany 2007 TOC

Overview
- Catalyst
- Summary
Executive Summary
- Market context
- Competitor and product overview
- Forecasting the payment card market in Germany
Table of Contents
Table of figures
Table of tables
Market Context
- Market overview
  - Demographics
  - Economy
    - GDP
    - GDP per capita
    - Sectoral composition of the economy
    - Inflation
    - Distribution of income (GINI Coefficient)
    - 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
  - Private commercial banks
    - Private commercial banks mainly concentrate on corporate banking rather than retail banking
  - Sparkassen Group (savings banks)
  - Volks- und Raiffeisenbanken (co-operative banks)
- Regulatory environment
  - Industry regulators
    - Bundesbank
    - BaFin
  - Industry associations
    - Zentraler Kreditausschuss - ZKA
    - Deutsche Sparkassen- und Giroverband - DSGV (German savings banks association)
    - Bundesverband deutscher Banken - German Bankers Association
    - Bundesverband der Deutschen Volksbanken und Raiffeisenbanken - BVR
    - Bundesverband Offentlicher Banken Deutschlands - VOB
    - Bankenfachverband
  - Credit bureaus
    - Schufa
    - Infoscore
  - Regulatory issues in the market
    - European Consumer Credit Directive (CCD)
    - Private commercial banks are not allowed to acquire Sparkassen under current legislation
    - Landesbanken lose state guarantees
    - A change to the way the maximum interest rate is calculated has caused confusion for German lenders
- Key issues
  - Fraud and EMV
  - SEPA
competitor and product overview
- Card scheme market shares
  - Pay now cards
    - Value of transactions
  - Deferred debit and charge cards
    - Value of transactions
  - Credit cards
    - Value of transactions
- Card issuer market shares
  - Leading card issuers in Germany
  - Pay now issuer market shares
  - Pay later competitor market shares
  - Credit card issuer market shares
    - Balances outstanding
- Competitor developments
  - Consolidation in the German market has been limited
    - Most recently, Commerzbank announced it is to take control of Eurohypo
    - June 2006 saw FORTIS announce the launch of a chain of credit shops
  - New entrants
    - ING entered the card market through its DiBa brand
- Product analysis
  - Pay later card design
    - Credit card design
  - Product innovation
    - There are three major payment card loyalty programs in Germany
    - The success of these programs has seen loyalty become an ever more important feature of the market
    - Citibank offers free cash withdrawals for credit card holders
    - Prepaid cards are also being developed
Forecasting the payment card market in Germany
- Forecasting the pay now card market
- Forecasting the credit card market
- Forecasting the charge and deferred debit card market
Conclusions
- The German payment card market faces several challenges
  - It could prove hard to alter consumer habits
  - This is not helped by the limited infrastructure in Germany
- The German market also presents significant opportunities for issuers
APPENDIX
- Supplementary data
  - Market context
  - Forecasting the payment card market in Germany
- 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 Germany, 2006
Table 4: Credit card offering of Barclaycard and Citibank in Germany, January 2008
Table 5: Datamonitor' s forecast for the German pay now market, 2007-2011
Table 6: Datamonitor' s forecast for the German credit card market, 2007-2011
Table 7: Datamonitor' s forecast for the German deferred debit and charge card market, 2007-2011
Table 8: Population numbers and demographic splits in Germany and other major European countries, 2006
Table 9: Population over 20 in Germany and other major European countries, 2006
Table 10: GDP at current rates across European countries, 2006
Table 11: Real GDP growth rates based on constant rates to 2000, 2002-06
Table 12: Inflation in selected European countries, 2002-06
Table 13: The total number of ATM terminals and the number of people per ATM, Germany 2002-06
Table 14: The total number of POS terminals and the number of people per terminal, Germany 2002-06
Table 15: Penetration level of cards in selected European countries, 2006
Table 16: Credit card balances outstanding in Germany, 2004-2006
Table 17: Pay now card forecasts indexed to 2006
Table 18: Credit card forecasts indexed to 2006
Table 19: Charge card forecasts indexed to 2006
Table 20: Current relevant Datamonitor publications, 2007
Table 21: Future relevant Datamonitor publications, 2008

List of Figures

Figure 1: Country overview of Germany, 2007
Figure 2: Germany has the largest population in Europe, 2006
Figure 3: Germany has a relatively high proportion of adults, 2006
Figure 4: Germany has the largest economy in Europe, 2006
Figure 5: Germany has suffered from sluggish economic growth but growth rates have improved, 2002-2006
Figure 6: The service sector dominates the German economy, 2006
Figure 7: Inflation in Germany has been kept well in control, 2002-2006
Figure 8: Card based payments are not popular in Germany, 2002-2006
Figure 9: Pay now cards are by far the most popular type of payment card in Germany, 2002-2006
Figure 10: Germany has 1.4 cards per person, about the European average
Figure 11: The number of card transactions in Germany has risen slightly, 2002-2006
Figure 12: Pay now cards are used most frequently in Germany, 2002-2006
Figure 13: Pay now cards account for the majority of transaction values in Germany, 2002-2006
Figure 14: Debit cards have the highest average transaction value in Germany, 2002-2006
Figure 15: Germany has a limited but slowly growing POS network, 2002-2006
Figure 16: Germany has a slowly growing ATM network, 2002-2006
Figure 17: The three pillars of German banking, 2007
Figure 18: Banking groups in the three pillars, 2007
Figure 19: Regulatory overview of Germany, 2007
Figure 20: Maestro is the dominant scheme for pay now cards in Germany, 2002-2006
Figure 21: Maestro accounts for 99% of pay now transactions in Germany, 2006
Figure 22: An increasing proportion of deferred debit and charge cards are being issued on the Visa scheme in Germany, 2002-2006
Figure 23: MasterCard still accounts for the majority of transaction values on deferred debit and charge cards, 2002-2006
Figure 24: MasterCard has a slight edge over Visa in the credit card market in terms of cards in issue, 2002-2006
Figure 25: The majority of credit card transaction value in Germany is on the MasterCard scheme, 2002-2006
Figure 26: The Sparkassen are the biggest issuers of debit cards in Germany, 2006
Figure 27: The Sparkassen and Volks- und Raiffeisenbanken are the two leading players in the pay later card market, 2006
Figure 28: Barclaycard is the top player in the credit card market in terms of cards in issue, 2006
Figure 29: Barclaycard is by far the biggest issuer of credit cards in Germany in terms of outstanding balances, 2006
Figure 30: Overview of main mergers, 2007
Figure 31: The Payback loyalty scheme has a wide range of merchant partners
Figure 32: HappyDigits has a popular co-branded card
Figure 33: The German pay now market will experience slow growth to 2011
Figure 34: The German credit card market will grow rapidly, 2007-2011
Figure 35: Growth in the German deferred debit and charge card market is expected to slow, 2006-2011

Payment Cards in Germany 2007

Table of Contents

List of Tables

List of Figures