Fuel card industry shifts gear to steer through 2009
THE FUEL CARDS industry has evolved as more major oil companies now see issuing fuel cards as a profit driver, rather than a ‘necessary evil’ that serves to maintain customer loyalty to a particular brand. This focus on card issuing and acceptance has further opened up outsourcing opportunities for third-party providers in the industry, but also poses a threat to other players. These pressures, combined with falling oil prices and an economic recession that is battering businesses, means that there is a shifting landscape of who is going to profit – or lose out – as a result of the changing business conditions.
Letter from the editor
Most payments providers will be glad to see the back of 2008, but not many will be looking forward to 2009 either. Aside from the obvious difficulties that issuers will face from within their own businesses, pressure will also come from the effect of the wider downturn. So what can the payments industry expect 2009 to bring?
Indonesia credited with great potential
Research has shown that the Indonesian credit cards market, although progressing healthily in terms of profit and consumer confidence, still has a large potential for growth. New regulations have somewhat altered the playing field, but with a growing number of eligible customers not yet banked, there is ample scope for expansion
The only way is up for cross-border acquiring
Cross-border acquiring is set to be a growth area in the global cards and payments industry in the next five years. This is due to international expansion by retailers, the growing importance of e-commerce, and the implementation of the Single Euro Payments Area (SEPA). Ronan McCaughey reports
Relishing the challenge
Vietnam’s payment cards market is still in a nascent stage of development in terms of the number of cards in issue, product maturity and consumer uptake. Philip Murphy, head of cards, consumer assets and acquiring at Vietnam’s Techcombank – in which HSBC is a shareholder – talks to Ronan McCaughey about the bank’s ambitions and strategy
The profit fountain of youth
A largely unexplored customer base is a welcome prospect at the best of times, and so in the current challenging financial environment, underdeveloped market segments are certainly worth a second look. Cards for the youth segment offer room for growth, but the nature of the target market brings with it some unique challenges for product development. Nina Kelly reports
Low usage hinders Polish market
Poland’s cards market echoes its neighbours in terms of the challenges faced through low usage, which in turn affects profitability in the market. Issuers have begun to address this problem by rationalising their portfolios, so while slowing card growth may suggest tougher times, it is in fact a necessary response to inactivity and an attempt to revitalise the industry
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