Emerging Opportunities in Morocco s Cards and Payments Industry

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1 Emerging Opportunities in Morocco s Cards and Payments Industry Industry Size, Trends, Factors, Strategies, Products and Competitive Landscape Product Code: VR0935MR Published Date: August

2 TABLE OF CONTENTS TABLE OF CONTENTS 1 Executive Summary Market Attractiveness and Future Prospects of the Cards and Payments Industry Analysis of Moroccan Cards and Payments Industry Drivers Infrastructure Drivers Contactless and NFC technology as payment terminals Increasing acceptance of EMV cards Mobicash as mobile debit payment services Growing number of ATMs and POS terminals Business Drivers Growth in retail sector Growing mobile commerce Growth in e-commerce Outbound business and leisure travel Consumer Drivers Consumer confidence index Increasing urbanization Consumer spending habits Macroeconomic Fundamentals GDP growth Inflation rate Unemployment rate Card Fraud Statistics Regulatory Framework Adherence to the PCI security standards Anti-money laundering Emerging Consumer Attitudes and Trends Market Segmentation and Targeting Retail Segment Corporate Segment Consumer Preference Price Services Convenience Preferred Payment Methods Competitive Landscape and Industry Dynamics Industry Share Analysis by Payment Channels Overview of payment channels Credit transfers Direct debit Cards payments Check payments Debit Cards Emerging Opportunities in the Morocco s Cards and Payments Industry Page 2

3 TABLE OF CONTENTS By bank By scheme Credit Cards By bank By scheme Charge Cards Strategies Adopted by Key Operators Market Entry Strategies Marketing and Product Strategies Credit cards Debit cards Prepaid cards Pricing Strategies Industry Size and Growth Potential of Card Payments Channel Industry Share Analysis by Type of Card Total Market Size and Forecast of Card Payments Channel Analysis by number of cards Analysis by transaction value Analysis by transaction volume Debit Card Category Size and Forecast Analysis by number of cards Analysis by transaction value Analysis by transaction volume Other key performance indicators Prepaid Card Category Size and Forecast Analysis by segment open- and closed-loop cards Analysis by transaction value Charge Card Category Size and Forecast Analysis by number of cards Analysis by transaction value Analysis by transaction volume Frequency of use Credit Card Category Size and Forecast Analysis by number of cards Analysis by transaction value Analysis by transaction volume Other key performance indicators Company Profiles, Product, and Marketing Strategies Attijariwafa Bank Key financials Card portfolio Strategies Banque Marocaine du Commerce Extérieur (BMCE) Bank Emerging Opportunities in the Morocco s Cards and Payments Industry Page 3

4 TABLE OF CONTENTS Key financials Card portfolio Strategies Banque Populaire Card portfolio Strategies Credit du Maroc Key financials Card portfolio Strategies Appendix Methodology Contact Us About Timetric Disclaimer Emerging Opportunities in the Morocco s Cards and Payments Industry Page 4

5 LIST OF FIGURES LIST OF FIGURES Figure 1: Morocco Growth of Various Card Categories (%), Figure 2: Moroccan Cards and Payments Industry Drivers Figure 3: Global EMV Adoption Levels Figure 4: Number of ATMs in Morocco (Thousand), Figure 5: Final Consumption Expenditure in Morocco (US$ Billion), Figure 6: Moroccan Outbound Expenditure on Travel and Tourism (MAD Billion), Figure 7: Moroccan Consumer Confidence Indicator, Figure 8: Moroccan Urban and Rural Populations (Million), Figure 9: Morocco GDP Growth Rate (%), Figure 10: Morocco Inflation Rate (%), Figure 11: Total Unemployment Rate (%), Figure 12: Moroccan Card Fraud Statistics (MAD Million), Figure 13: Moroccan Cards Payments Channel Segmentation by Card Type Figure 14: Types of Cards Offered by Banks in Morocco Figure 15: Cards for Premium Customers in Morocco Figure 16: Cards for Niche Customer Segment in Morocco Figure 17: Number of Outbound Trips on Travel and Tourism in Morocco (Thousand), Figure 18: Cards Offered to Business Travelers and Professionals in Morocco Figure 19: Shares of Payment Channels in Morocco (%), Figure 20: Value of Moroccan Credit Transfers (MAD Million), Figure 21: Value of Moroccan Direct Debit Transactions (MAD Million), Figure 22: Value of Moroccan Cards Payments (MAD Million), Figure 23: Value of Moroccan Check Payments (MAD Million), Figure 24: Moroccan Debit Cards by Issuing Banks (%), Figure 25: Moroccan Debit Card Category Share by Scheme (%), Figure 26: Moroccan Credit Card Category Shares by Bank (%), Figure 27: Moroccan Credit Card Category Shares by Scheme (%), Figure 28: Moroccan Charge Card Category Shares by Scheme (%), Figure 29: Market Entry Strategies of Foreign Banks in Morocco, Figure 30: Morocco Marketing and Product Strategies Based on Card Type Figure 31: Value Added Services Offered by Banque Populaire in Morocco Figure 32: Pricing Strategies of Various Service Providers in Morocco Figure 33: Morocco Card Payments Channel by Card Category (%), Figure 34: Moroccan Card Payments Channel Size by Volume (Thousands), Figure 35: Moroccan Card Payments Channel Size by Transaction Value (MAD Million), Figure 36: Moroccan Card Payments Channel Size by Transaction Volume (Million), Figure 37: Moroccan Debit Card Category Size (Thousands), Figure 38: Moroccan Debit Card Category Size (MAD Million), Figure 39: Moroccan Debit Card Category Size by Transaction Volume (Million), Figure 40: Moroccan Card Category Size by Frequency of Use (Transaction per Card per Year), Figure 41: Debit Card Use at ATMs and POS Terminals (Thousands), Figure 42: Moroccan Prepaid Card Category Size (Thousands), Figure 43: Moroccan Open-Loop Prepaid Cards Category Size (Thousands), Figure 44: Moroccan Closed-Loop Prepaid Cards Category Size (Thousands), Figure 45: Moroccan Prepaid Cards Category Size (MAD Million), Figure 46: Moroccan Charge Card Category Size (Thousands), Figure 47: Moroccan Charge Card Category Size (MAD Million), Figure 48: Moroccan Charge Card Category Size by Transaction Volume (Million), Figure 49: Moroccan Charge Card Category Size by Frequency of Use (Transactions per Card per Year), Figure 50: Moroccan Credit Card Category Size by Volume (Thousands), Figure 51: Moroccan Credit Card Category Size by Transaction Value (MAD Million), Figure 52: Moroccan Credit Card Category Size by Transaction Volume (Million), Figure 53: Moroccan Credit Card Category Size by Frequency of Use, Figure 54: Moroccan Credit Card Category Size by Average Transaction Value (MAD), Emerging Opportunities in the Morocco s Cards and Payments Industry Page 5

6 LIST OF TABLES LIST OF TABLES Table 1: Moroccan Payment Channels (MAD Million), Table 2: Moroccan Card Payments Channel by Type of Card (Thousands), Table 3: Moroccan Card Payments Channel Size by Volume (Thousands), Table 4: Moroccan Card Payments Channel Size by Transaction Value (MAD Million), Table 5: Moroccan Card Payments Channel Size by Transaction Value (US$ Million), Table 6: Moroccan Card Payments Channel Size by Transaction Volume (Million), Table 7: Moroccan Debit Card Category Size (Thousands), Table 8: Moroccan Debit Card Category Size (MAD Million), Table 9: Moroccan Debit Card Category Size (US$ Million), Table 10: Moroccan Debit Card Category Size by Transaction Volume (Million), Table 11: Moroccan Card Category Size by Frequency of Use (Transaction per Card per Year), Table 12: Moroccan Prepaid Card Category Size (Thousands), Table 13: Moroccan Open-Loop Prepaid Cards Category Size (Thousands), Table 14: Moroccan Closed-Loop Prepaid Cards Category Size (Thousands), Table 15: Moroccan Prepaid Cards Category Size (MAD Million), Table 16: Moroccan Prepaid Cards Category Size (US$ Million), Table 17: Moroccan Charge Card Category Size (Thousands), Table 18: Moroccan Charge Card Category Size (MAD Million), Table 19: Moroccan Charge Card Category Size (US$ Million), Table 20: Moroccan Charge Card Category Size by Transaction Volume (Million), Table 21: Moroccan Charge Card Category Size by Frequency of Use (Transactions per Card per Year), Table 22: Moroccan Credit Card Category Size by Volume (Thousands), Table 23: Moroccan Credit Card Category Size by Transaction Value (MAD Million), Table 24: Moroccan Credit Card Category Size by Transaction Value (US$ Million), Table 25: Moroccan Credit Card Category Size by Transaction Volume (Million), Table 26: Moroccan Credit Card Category Size by Frequency of Use (Transactions per Card per Year), Table 27: Moroccan Credit Card Category Size by Average Transaction Value (MAD), Table 28: Moroccan Credit Card Category Size by Average Transaction Value (US$), Table 29: Attijariwafa Bank Key Financial Indicators, Table 30: Cards Offered by Attijariwafa Bank Table 31: BMCE Bank Key Financial Indicators, Table 32: Cards Offered by BMCE Bank Table 33: Cards Offered by Banque Populaire Table 34: Credit du Maroc Key Financial Indicators, Table 35: Cards Offered by Credit du Maroc Emerging Opportunities in the Morocco s Cards and Payments Industry Page 6

EXECUTIVE SUMMARY 1 Executive Summary Morocco s card payments channel recorded robust growth during the review period (2008 2012) and registered a CAGR of XX.XX%, growing from MADXX.X billion (US$XX.

7 EXECUTIVE SUMMARY 1 Executive Summary Morocco s card payments channel recorded robust growth during the review period ( ) and registered a CAGR of XX.XX%, growing from MADXX.X billion (US$XX.X billion) in 2008 to MADXXX.X billion (US$XX.X billion) in The growth was driven by infrastructural improvements such as contactless technology, an increase in the adoption of smartphones, and a reduction in card fraud. Over the forecast period ( ), the channel is projected to grow from MADXXX.X billion (US$XX.X billion) in 2013 to MADXXX.X billion (US$XX.X billion) in 2017, after registering a CAGR of X.XX%. A rise in disposable income levels, stable inflationary forecasts, positive employment opportunities and an increasing volume of corporate and leisure travelers are some of the key factors expected to drive the growth of the channel over the forecast period. Payment infrastructure has supported the growth of card payments channel Banks and retail outlets in Morocco expanded their infrastructure networks during the review period. The number of automatic teller machines (ATMs) installed grew from X,XXX in 2008 to X,XXX in 2012, at a review-period CAGR of XX.XX%. The increasing acceptance of debit and credit cards at retail outlets and a consumer shift towards making purchases directly with cards resulted in an increasing number of point-ofservice (POS) transactions during the review period. The number of POS terminals in Morocco recorded a review-period CAGR of X.XX%, rising from XX,XXX terminals in 2008 to XX,XXX in Due to these figures, the use of cards as a payment channel is expected to register widespread acceptance over the forecast period. In addition, these banks and retail organizations have been adopting new technologies to further improve their payment processes. Contactless, Europay, MasterCard and Visa (EMV) and mobile payments are being rolled out extensively across Morocco. As of 2012, all leading banks in the country offered EMV-compliant card solutions. Mobile payments grew at an annual rate of XX.X% during to reach MADXX.X million (US$XX.X million) in The introduction of contactless technologies is expected to provide customers with an advanced and efficient payment technique that will increase the use of cards. Adoption of effective security measures to combat card fraud During the review period the central bank mandated the use of chip-based ATM cards, and EMV standards for credit cards, resulting in all leading banks offering EMV-compliant cards by the end of Moreover, the introduction of transaction alerts via short message services (SMSs) and the adoption of stronger authentication methods for online transactions resulted in a decline in card fraud at a review-period CAGR of X.XX%, from MADXX.X million (US$X.X million) in 2008 to MADXX.X million (US$X.X million) in Banks and other card issuers are offering customized cards to target specific consumer groups Banks and other card issuers have been focusing on various customer segments by offering customized products. With competitive pressures in the Moroccan cards and payments industry, banks and issuers are developing marketing strategies with the aim of attracting larger customer bases. In addition to mass-market offerings such as cashback, discounts for retail outlets, buy-one-get-one-free offers, and rewards points, banks and card issuers are also issuing customized cards focusing on particular customer groups. Banks are segmenting their customer base in order to maximize the potential of expanding their market shares in each card category. Banks such as Attijariwafa Bank have launched prepaid cards specially targeting women, while Banque Populaire and Attijariwafa Bank launched bank cards for students and the youth demographics aged Credit and debit cards specifically designed to meet the needs of corporate customers are also prevalent. Emerging Opportunities in the Morocco s Cards and Payments Industry Page 7

8 APPENDIX 2 Appendix 2.1 Methodology Timetric s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. Timetric adheres to the Codes of Practice of the Market Research Society ( and the Society of Competitive Intelligence Professionals ( All Timetric databases are continuously updated and revised. 2.2 Contact Us If you have any queries about this report, or would like any further information, please contact info@timetric.com. 2.3 About Timetric Timetric is an independent economic and business research firm that provides critical intelligence on emerging economies and key global industries. The company offers detailed economic and sector intelligence, business insights and independent and authoritative commentary. Underpinning all Timetric s research services is a belief that data if gained following the right technologies and analytic frameworks can provide unique and powerful economic and business insights. The Timetric economic and industry intelligence centers are premium decision tools that provide access to comprehensive research, data and expert analysis. They provide invaluable decision support, presented in an easily digestible format and grounded in rich, proprietary data and data analysis frameworks. Each year, Timetric produces hundreds of high-quality research reports across countries, industries and companies. These reports draw on in-depth primary and secondary research, proprietary data and high-quality modeling and analysis to give its readers a deep insight into global market dynamics and economic trends. Timetric helps its clients to: Gain an unbiased, expert insight from a genuinely independent and trusted source Save time in researching, visualizing and comparing economic and industry data Access the latest and most useful data sets, indices and forecasts Gain access to a unique methodology for understanding economic trends Forecast and predict trends more accurately Emerging Opportunities in the Morocco s Cards and Payments Industry Page 8

9 APPENDIX Economic Research Services Timetric s economic research services are founded on three key goals: 1. To provide the strongest base data: The most accurate data The most timely and frequently updated data sets The best data curation methodologies and standardizations Unique data sets and forward-looking indicators Industry-specific, premium data sets 2. To develop the best data analysis frameworks: Unique economic indices and data analysis frameworks Forward-looking indicators Proprietary indices and surveys Data analysis frameworks, scorecards and models 3. To provide authoritative independent economic insights: To give a uniquely local perspective on developing markets Truly expert, independent economic analysis and commentary Proprietary analysis techniques and frameworks Unique forecasts Timetric believes that world-class content delivery should be the enabling factor across all it does. All its research services follow the principle that data and research should be easy to access, visualize and consume. All economic research products are built on the Timetric economic research software platform, which has four layers: 1. Unique, proprietary aggregation and curation software for pulling together the world s data 2. A cloud time-series database filled with top-quality statistics from across the globe 3. Web-delivered search, discovery and research software to allow customized data searches 4. World-class browser-based display to visualize the data searched 2.4 Disclaimer All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Timetric. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Timetric delivers will be based on information gathered in good faith from both primary and secondary sources, the accuracy of which Timetric is not always in a position to guarantee. Timetric will accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. Emerging Opportunities in the Morocco s Cards and Payments Industry Page 9

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