Credit Card Issuance in Australia Industry Market Research Report now updated by IBISWorld
The Credit Card Issuance industry in Australia has performed relatively well over the past decade, underpinned by the willingness of households and businesses to take on debt, despite turbulent economic conditions. Debit cards are expected to become increasing competition for credit cards, but consumers will continue to use credit cards to purchase goods and services they cannot afford at the time. For these reasons, industry research firm IBISWorld has updated its report on the Credit Card Issuance industry in Australia.
Melbourne, Australia (PRWEB) October 29, 2012
The Credit Card Issuance industry in Australia has performed relatively well over the past decade, underpinned by the willingness of households and businesses to take on debt, despite turbulent economic conditions. Prior to the financial crisis, credit card use surged, underpinned by robust economic conditions and a credit boom. According to IBISWorld analyst Steven Connell, “the onset of the financial crisis had a major influence on the industry, with the sudden collapse of financial markets and predictions of a global recession leading consumers to increase savings and attempt to pay down debt.” Since then, growth in transaction volumes, balances outstanding and the number of credit card accounts has fallen sharply. During 2012-13, the industry is forecast to grow by 2.3%, with the rising popularity of online shopping expected to drive growth in the face of weak consumer conditions. Industry revenue is estimated to grow at a compound annual rate of 1.6% during the five years through 2012-13 to reach $10 billion.
The industry should record solid growth over the next five years, with supportive economic conditions and growing demand for online payment systems stimulating credit card use. “Having taken the opportunity to increase savings and pay down debt in the wake of the global financial crisis, Australian consumers are expected to return to their spendthrift ways over the next five years, resulting in strong growth in credit card transactions and debt outstanding”, Connell adds. This will be aided by robust growth in online retailing, although debt cards and EFTPOS are expected to improve their acceptability online. Debit cards will pose increasing competition for credit cards over the period, but consumers will continue to use credit cards to purchase goods and services they cannot afford at the time.
The market share concentration of the Credit Card Issuance industry in Australia is high. The four major banks dominate the industry: Commonwealth Bank of Australia, ANZ Bank, Westpac Banking Corporation and National Bank of Australia. The level of concentration in the industry rose over the past five years. The financial crisis accelerated the pace of concentration as it forced the hand of many lenders to undergo merger and acquisition activity. Since the emergence of the crisis, the industry has undergone drastic structural changes following the merger of Westpac and St. George, Australia's fifth-largest bank at the time. This gave the consolidated entity a greater dominance of the credit card issuance market, rivalling the Commonwealth Bank as Australia's largest credit card lender.
For more information, visit IBISWorld's Credit Card Issuance report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry issue credit and charge cards to businesses and consumers. These cards provide users with a line of credit to use for purchases or a cash advance. Credit card balances roll over month to month. The balances can be repaid in full or on by instalment. Charge card balances must be paid in full each month. Cards are not issued directly by Visa, MasterCard, Diners Club or American Express, instead, these companies provide the transaction processing networks.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/10/prweb10060314.htmView Comments and Join the Discussion!