The Cards and Payments Industry in Bahrain: Emerging Trends and Opportunities to 2021
GlobalData’s "The Cards and Payments Industry in Bahrain: Emerging Trends and Opportunities to 2021", report provides detailed analysis of market trends in the Bahraini cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, payment cards and checks during the review period (2012-2016).
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 (2017-2021). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.
The report brings together GlobalData’s 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.
The report provides top-level market analysis, information and insights into the Bahraini cards and payments industry, including -
- Current and forecast values for each market in the Bahraini cards and payments industry, including debit and credit cards.
- Detailed insights into payment instruments including credit transfers, checks and payment cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis .
- Analysis of various market drivers and regulations governing the Bahraini cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
- To encourage consumers to use credit cards, the Industry, Commerce and Tourism minister of Bahrain issued a directive in January 2016, preventing banks and merchants from imposing surcharges to credit card users. According to the country’s Consumer Protection Law, a fine of up to US$26,595.7 (BHD10,000) can be charged to companies violating this directive.
- Direct carrier billing is gaining traction in Bahrain. Telecoms Company Viva Bahrain, for instance, partnered with Google to launch its direct carrier billing service in the country in October 2016. It can be used by both prepaid and postpaid customers of Viva Bahrain to buy apps, games and eBooks on the Google Play store. The transaction amount is charged to the customer’s mobile phone bill. Similarly, the telecom operator Zain Bahrain partnered with the mobile solutions provider SLA Mobile and Microsoft to launch a direct carrier billing service, Zain Pay, in Bahrain in March 2015. Furthermore, mobile payment provider Fortumo launched direct carrier billing services in Bahrain in June 2014.
- Government and payment participants are making concentrated efforts to develop e-commerce in the country. For instance, the government organized the third edition of the e-commerce Forum/Exhibition in March 2016. The event featured an exhibition for both public and private sector companies to help them become e-businesses. Similarly, Credimax-BBK (Credimax) organized an e-commerce workshop in April 2015, which focused on the government’s role in supporting various e-commerce initiatives, and the importance of new technology, innovations and business opportunities to develop e-commerce in Bahrain.
Reasons to buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Bahraini cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Bahraini cards and payments industry.
- Assess the competitive dynamics in the Bahraini cards and payments industry.
- Gain insights into marketing strategies used for various card types in Bahrain.
- Gain insights into key regulations governing the Bahraini cards and payments industry.
Table of Contents
1 EXECUTIVE SUMMARY 2
1.1 Market overview 2
1.2 Key facts 3
1.3 Top five industry events 4
2 PAYMENT INSTRUMENTS 10
2.1 Current payment environment 10
3 E-COMMERCE AND ALTERNATIVE PAYMENTS 12
3.1 E-Commerce market analysis 12
3.2 Alternative payment solutions 13
3.2.1 PayPal 13
3.2.2 Viva Bahrain - Direct Carrier Billing 13
3.2.3 Zain Pay 13
3.2.4 Fortumo 13
3.2.5 CashU 13
4 REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 14
4.1 Regulatory framework 14
4.2 Anti-money laundering (AML) 14
4.3 Foreign direct investment (FDI) regulations 15
5 ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 16
6 PAYMENT CARDS 18
7 DEBIT CARDS 20
7.1 Debit cards market analysis 20
7.2 Competition in the debit cards market 22
7.3 Debit cards comparison 23
8 PAY LATER CARDS 24
8.1 Pay later cards market analysis 24
8.2 Competition in the pay later cards market 26
8.3 Pay later cards comparison 28
9 PREPAID CARDS 30
10 APPENDIX 32
10.1 Tables 32
10.2 Definitions 45
10.3 Methodology 46
List of Figures
Figure 1: Bahrain - Payment Instrument Shares by Transaction Value (%), 2012 vs 2016 10
Figure 2: Bahrain - Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016 11
Figure 3: Bahrain - E-Commerce Value, 2012-2021 12
Figure 4: Bahrain - Population 16
Figure 5: Bahrain - Economic Indicators 16
Figure 6: Bahrain - ATMs and POS Terminals 17
Figure 7: Bahrain - Household Consumption 17
Figure 8: Bahrain - Growth in Payment Cards Transaction Values, 2012-2021 18
Figure 9: Bahrain - Number of Cards in Circulation by Type, 2011-2021 18
Figure 10: Bahrain - Debit Card Penetration, 2016 20
Figure 11: Bahrain - Turnover Per Debit Card, 2016 20
Figure 12: Bahrain - Debit Card Scheme Share in Terms of Transaction Value, 2016 22
Figure 13: Bahrain - Debit Card Issuer Share in Terms of Transaction Value, 2016 22
Figure 14: Bahrain - Pay Later Cards Penetration, 2016 24
Figure 15: Bahrain - Turnover Per Pay Later Card, 2016 24
Figure 16: Bahrain - Pay Later Cards Scheme Share in Terms of Transaction Value, 2016 26
Figure 17: Bahrain - Pay Later Cards Issuer Share in Terms of Transaction Value, 2016 26
Figure 18: Bahrain - Number of Prepaid Cards in Circulation, 2012-2021 30
Figure 19: Bahrain - Prepaid Cards Transaction Value, 2012-2021 30
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.