Payment Cards in Russia 2007

Table of Contents

• EXECUTIVE SUMMARY
• INTRODUCTION
  • What is this report about?
  • Scope of the report
  • Structure of the report
• MARKET CONTEXT
  • Introduction
  • Country overview
    • Demographics
    • Economy
      • GDP growth in Russia has been steady
      • Inflation
      • Distribution of income (Gini coefficient)
  • Market size
    • Market penetration
    • Cards in issue
    • Number of transactions
      • Freguency of use
    • Value of card transactions
      • Average transaction value
  • Card acceptance
    • POS statistics
    • ATM statistics
  • Market structure
    • Historical background
      • The beginning of the 1990s brought the official collapse of the Soviet Union
      • In 1995, the Russian banking system experienced its first crisis
      • A number of factors contributed to the country' s financial collapse in 1998
      • The financial meltdown of 1998 had dramatic consequences for the domestic banking system
      • The steps taken by the central bank in the aftermath of the crisis were largely ineffective
      • The country' s political landscape was reconstructed by the 2000 elections
      • But the mini-crisis of 2004 underlined the continuing shortcomings in the country' s banking sector
      • The process of privatization in the Russian banking sector
      • The ' Loans-for-shares' privatization scheme of mid-1990s increased the power of large and well-connected banks
      • Foreign investors were shunned in the beginning of the 1990s
      • Sberbank dominates the Russian retail banking sector
    • Overview of the current banking system
    • Central Bank - the Central Bank of the Russian Federation (CBR)
      • The Russian banking sector has been growing strongly as a result of buoyant economy
    • Commercial banks
      • The market is dominated by large ' pocket banks' and state-owned institutions
      • There are a great number of tiny banking institutions
    • Credit unions
    • Credit bureaux
  • Regulatory environment
    • The current regulations governing banking activities in Russia
      • Enhanced bankruptcy regulation was passed in 1999
    • Current supervisory environment
  • Key issues
    • EMV migration
• COMPETITOR AND PRODUCT OVERVIEW
  • Introduction
  • Card scheme market shares
    • Pay now cards
      • Cards in issue
      • Value of transactions
    • Credit cards
      • Cards in issue
      • Value of transactions
    • Charge and deferred debit cards
      • Cards in issue
      • Value of transactions
  • Card issuer market shares
    • Pay now cards
    • Credit cards
    • Profiles of top domestic credit card issuers
      • Russian Standard Bank (RSB)
      • Alfa Bank
  • Competitor developments
    • Consolidation in the Russian market
      • Acquisitions by foreign players has picked up in 2004
      • Société Générale looks at other Russian banks for further expansion
      • Vneshtorbank is an example of a domestic bank looking to expand outside of Russia
  • Product analysis
    • Credit card design
    • Charge card design
    • Loyalty programs
      • Citibank is involved in loyalty programs
      • RSB also offers various loyalty programs
      • Some card issuers offer various incentives to promote their cards
    • Product innovation
      • Visa, Bank of Moscow and Rosan Finance introduce a revolutionary card program for payment of social benefits
      • Payment cards have been employed for payment of public transport in the Russian market
      • Citibank offers kiosk payments to Russian cardholders
      • GE Money offers Visa Instant credit card
• FORECASTING THE PAYMENT CARD MARKET IN RUSSIA
  • Introduction
  • Forecasting the pay now card market
  • Forecasting the credit card market
  • Forecasting the charge and deferred debit card market
  • SWOT Analysis
    • Strengths
    • Weaknesses
    • Opportunitites
    • Threats
• APPENDIX
  • Supplementary data
    • Market context
    • Forecasting the payment card market in Russia
  • Definitions
    • Affinity Card
    • Credit Card
    • Deferred debit/charge card
    • EMV
    • ePurse
    • Interchange
    • Merchant Service Charge
    • Pay now cards
    • POS Terminal
  • Research methodology
    • Cards and Payments database
  • Future readings
  • Cards & Payments Team contact details
  • How to contact experts in your industry
  • List of Tables
    • Table 1: GDP per capita for selected European countries, 2005
    • Table 2: Inflation rates in a number of major European markets, 2001 - 2005
    • Table 3: GINI coefficients in Europe, 2001 - 2003
    • Table 4: Major foreign players participating in the Russian banking market, 2005
    • Table 5: Interest rates, credit limits, interest free periods and annual fees on selected credit cards in Russia, 2007
    • Table 6: Prices and benefits of charge cards in Russia, 2006
    • Table 7: A selection of credit card reward schemes offered by card issuers in Russia, 2007
    • Table 8: forecast for the pay now market, 2006f-2010f
    • Table 9: forecast for the credit card market, 2006f - 2010f
    • Table 10: forecast for the charge and deferred debit card market, 2006f-2010f
    • Table 11: Population numbers and demographic splits in Russia and other major European countries, 2005
    • Table 12: The percentage of people over the age of 20 in the major European countries, 2005
    • Table 13: GDP at current prices across major European countries, 2005
    • Table 14: Real GDP growth rates, 2001-2005
    • Table 15: POS terminals and population per terminal Russia, 2002-2005
    • Table 16: ATM terminals and population per terminal Russia, 2002-2005
    • Table 17: Card penetration in Europe, 2005
    • Table 18: Pay now card forecasts indexed to 2005
    • Table 19: Charge card forecasts indexed to 2005
    • Table 20: Charge card forecasts indexed to 2005
    • Table 21: Current relevant Datamonitor publications
    • Table 22: Future relevant Datamonitor publications, 2007
  • List of Figures
    • Figure 1: Overview of Russia, 2005
    • Figure 2: Russia has the largest population in Europe, 2005
    • Figure 3: Russia has the largest GDP in Central and Eastern Europe, 2005
    • Figure 4: Russia has a larger industrial sector than most European countries, 2006
    • Figure 5: Russia has seen steady economic growth, 2001 - 2005
    • Figure 6: Russia has the lowest level of market penetration in Europe, 2005
    • Figure 7: Pay now cards dominate the payment card market in Russia, 2001 - 2005
    • Figure 8: Pay now cards account for the majority of transaction volumes in Russia, 2001 - 2005
    • Figure 9: Frequency of use on pay now cards in low in Russia, 2001 - 2005
    • Figure 10: The value of card transactions has growth rapidly in Russia over 2001-2005
    • Figure 11: Credit cards have the highest average transaction value in Russia, 2001 - 2005
    • Figure 12: POS network in Russia, 2002-2005
    • Figure 13: ATM network in Russia, 2002 - 2005
    • Figure 14: Selected case studies of bankruptcy processes of large Russian banks during the aftermath of the 1998 crisis
    • Figure 15: Supervisory bodies and professional associations in Russia, 2006
    • Figure 16: Visa is the dominant scheme in terms of pay now numbers, 2001 -2005
    • Figure 17: Visa is also the dominant scheme in terms of pay now transaction values, 2001-2005
    • Figure 18: MasterCard has grown its market share drastically in 2005 in terms of credit card numbers, 2001-2005
    • Figure 19: Visa is dominant in terms of credit card transaction values, 2001 - 2005
    • Figure 20: MasterCard is dominant in terms of charge and deferred debit cards, 2001-2005
    • Figure 21: Visa is also dominant in terms of charge and deferred debit card transaction values, 2001-2005
    • Figure 22: Sberbank is the leading issuer of pay now cards in Russia, 2005
    • Figure 23: Russian Standard Bank is the top issuer of credit cards in Russia, 2005
    • Figure 24: A selection of social and transport cards in Russia, 2007
    • Figure 25: The pay now market is forecast to grow strongly in Russia, 2005 - 2010f
    • Figure 26: The credit card market is forecast to grow the fastest in Russia between 2006 and 2010
    • Figure 27: The charge and deferred debit card market is forecast to grow the slowest, 2005 - 2010f
    • Figure 28: The Russian payment card market, SWOT analysis, 2007