Abstract
Boston, MA - Nov. 1, 2009 -- A combination of new global banking
environment and the emerging demand for Islamic products and services are
creating historic opportunities for Islamic card products around the world.
As consumers and credit card issuers worldwide are rethinking about their ways
of using and offering consumer credits through credit cards at a time of
global economic crisis and credit crunch, more and more are turning to the
Islamic credit cards who offer credits at competitive terms without incurring
interest. Though Islamic credit cards, together with other Islamic card
products and general banking products, were initially created to meet the
payment and banking needs of billion of Muslim consumers worldwide, today they
offer a new perspective and approach towards offering credit to the general
consumers.
“Islamic credit cards and the Islamic banking concepts behind them offer
new ways of how credit is structured and marketed to consumers with risks and
profits shared among parties involved. And the implications are by no means
limited to the 1.6 billion Muslims worldwide who spend more than US$2.6
trillion a year. Credit card issuers worldwide are facing mounting challenges
in a difficult economic climate and credit environment,” Terry
Xie, Director of Mercator Advisory Group's International Advisory Service
and principal analyst on the report, comments.
A Different Way of Offering Credit: Islamic Payment Cards' Potential in the
Global Economy 2009, the latest report from Mercator provides a
comprehensive overview and introduction to the concepts and practices of
Islamic banking and payment cards. Opportunities in the global Muslim markets,
Islamic view of money, concepts of modern Islamic banking, structure of modern
Islamic financial institutions, the status of Islamic banking worldwide, as
well as Islamic banking's outlook in today's global banking industry are
discussed. The report's focus is on Islamic payment cards, especially credit
cards. The Muslim consumer's need for convenient payment methods, financing
and business models for Islamic credit cards, recent trends in different
Islamic card segments and their growth potentials are examined in depth. The
report concludes with issues and challenges facing Islamic banking and cards,
as well as strategic advice for new players entering these markets.
Highlights of the report include:
- The 1.6 billion Muslims in developing and developed countries around the
world and their about US$2.6 trillion annual spending power represent a huge
market largely untapped by the global banking industry.
- Islamic banking products and services, such as Islamic cards, are facing a
historic opportunity to evolve into the next level even in today's global
credit crunch. However, it requires worldwide resources and coordination and
cannot be done solely by banks in Muslim countries.
- Lack of global standards for Islamic banking, together with other
regulatory, cultural, and political challenges are among the major barriers
for Islamic banking industry world-wide.
- The concept behind Islamic banking is not limited to Muslim consumers and
is attracting attention and interest from non-Muslim consumers and banks due
to their inherently stronger risk controls and transparency.
- Financial institutions and other companies interested in the Islamic
banking opportunities need to set the right expectations and strategic
objectives.
One of the 5 Exhibits included in this report:
This report contains 35 pages and 5 exhibits.Companies covered in this
report include MasterCard, Visa, Bank Islam (Malaysia), Emirates Islamic Bank
(UAE), SABB (Saudi Arabia), Danamon BNI (Indonesia), Abu Dhabi Islamic Bank
(Saudi Arabia), Devon Bank (U.S.), HSBC Amanah, Citibank, First Data, TSYS,
ACI Worldwide, and BPC, among others.
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