Boston, MA -- (SBWire) -- 08/16/2013 --Steady economic growth, a rise in the banked population, and improvements in payment infrastructure are resulting in the growing popularity of card payments in Bahrain. In terms of number of cards, Bahrain's card payments channel recorded strong growth at a CAGR of 11.08% during the review period (2008-2012). This was mainly driven by growth in the prepaid and debit card categories. The total number of cards in circulation increased from 654,118 in 2008 to 996,028 in 2012. Over the forecast period (2013-2017), the card payments channel is forecast to grow at a CAGR of 5.20%, from 1.1 million cards in 2013 to 1.3 million cards in 2017. The prepaid cards category is growing rapidly in Bahrain. Although prepaid cards held a low share of 8.8% in 2012, it recorded a CAGR of 28.29% in terms of number of cards in circulation during the review period. The number of prepaid cards in circulation grew from 32,321 in 2008 to 87,558 in 2012. It is projected to record a CAGR of 17.27% over the forecast period. The increasing preference for Islamic banking provides high growth potential for prepaid cards as it is compliant with Islamic Sharia law.
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Key Highlights
- The total number of cards in Bahrain increased from 654,118 in 2008 to 996,028 in 2012, at a review-period CAGR of 11.08%. Over the forecast period, the number of cards in circulation is anticipated to increase at a CAGR of 5.20%, from 1.1 million in 2013 to 1.3 million in 2017.
- E-commerce is gaining popularity due to the increasing number of internet users. The value of e-commerce increased at a CAGR of 13.16% during the review period to reach US$212.8 million in 2012. As more customers use cards for e-commerce payments, growth in this sector will have a positive impact on card payments.
- The Central Bank of Bahrain (CBB) enforced the adoption of enhanced security standards and compliance with Europay MasterCard Visa (EMV) requirements. Banks in Bahrain have completed migration of their card products from the traditional magnetic stripe to EMV chip technology in accordance with the regulation.
- Retail sales increased from US$5.0 billion in 2011 to US$5.4 billion in 2012. During the review period, retail sales in Bahrain increased at a CAGR of 6.28%, from US$4.2 billion in 2008 to US$5.4 billion in 2012. This growth was mainly driven by rising disposable income, stable economic growth and growing organized retail. Steady growth in retail is encouraging companies to expand their retail outlets in the country.
Scope
- This report provides a comprehensive analysis of Bahrain's cards and payments industry
- It provides current values for Bahrain's cards and payments industry for 2012 and forecast figures for 2017
- It details the different macroeconomic, infrastructural, consumer and business drivers affecting Bahrain's cards and payments industry
- It outlines the current regulatory framework in the industry
Companies Mentioned in this Report: HSBC Bahrain, Standard Chartered Bank Bahrain, BMI Bank, Ahli United Bank, Citibank
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