1. Market Research
  2. > Retail Market Trends
  3. > Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region

Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region is a report, based on a survey of over 1,500 prominent retail brands in 14 countries, about the provision of co-branded and private-label payment cards, gift cards and loyalty cards by major retailers across the Asia-Pacific region. Retailer participation in coalition loyalty schemes is also considered.

Countries covered are Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

In total, the research identifies 570 retailer payment cards, over 500 closed-loop gift cards, and close to 900 proprietary retailer loyalty programs and coalition loyalty schemes, thereby providing a definitive analysis of retailer co-branded, loyalty and private-label programs in the Asia-Pacific region that goes far beyond the scope of previous published research.

Moreover, the PartnerBASE™ database that accompanies the report details each of the many initiatives for retailer credit, deferred debit, debit and rechargeable pre-paid cards traced by Finaccord, specifying the operating models used by retailers, the payment networks to which the cards are affiliated and the identity of the ultimate card issuers in each case.

Key findings from the executive summary include:

- of the payment card programs in evidence, 52.4% are based around the use of single external card issuers, with a further 13.9% using multiple external partners and 17.0% the product of captive card-issuing entities, while 10.7% are reportedly managed by the retailers themselves, without support from a separate partner, either external or captive;

- card-issuing entities owned by the government of China hold the most partnerships in this field, with 47 different retail brands using one of the country's state-owned banks, while Japan-based AEON ranks second in terms of unweighted partnerships;

- with regards to loyalty programs, also included in Finaccord's research due to their importance as a platform for marketing payment cards, 62.6% of retail brands researched are involved in at least one type of consumer loyalty scheme;

- when segmented by country, retailer involvement in loyalty programs is most prevalent in Taiwan, where 92.8% of retail brands surveyed participate in one or more loyalty scheme, followed by China (84.5%) and Hong Kong (80.7%).

Table Of Contents

Retailer Payment, Gift and Loyalty Cards in the Asia-Pacific Region
TABLE OF CONTENTS
0.0 EXECUTIVE SUMMARY ...1
1.0 INTRODUCTION 3
What is this report about?..3
Rationale.3
In most countries, retailing is the most important co-branding arena for card issuers…3
… and the number of active coalition loyalty programs is continuing to increase each year..3
The evolution of the retailing market itself also encourages the launch of retailer payment cards 3
Methodology...4
Survey of retailers ...4
The survey's scope covers over 1,500 major retail brands drawn from ten categories and 14 countries…..4
… and classified according to their use of offline-only, online-only or mixed distribution models ..4
Definitions ...6
Payment cards, gift cards and loyalty programs...6
Operating models ...6
Weighted shares.7
PartnerBASE..7
Finaccord7
2.0 REGIONAL OVERVIEW9
Retailer payment cards..9
Credit, debit and prepaid cards..9
Over a quarter of major retail brands in the Asia-Pacific region market a co-branded or private-label card…..9
…with Japan and South Korea laying claim to the highest provision rates for retailer payment cards..9
Retailer payment cards are organised through a variety of different operating models…11
… including use of external, joint venture and captive card issuers plus schemes managed internally..11
Preferred operating models differ substantially from one country to another in the Asia-Pacific region ..11
As would be expected, the supply structure for retailer payment cards is highly fragmented..13
… with subsidiaries of Sumitomo Mitsui in Japan likely to hold the most valuable partnerships overall..13
Visa is ahead of MasterCard as a network used for retailer payment cards in the Asia-Pacific region... 15
… with JCB ahead of American Express and UnionPay when partnerships are viewed in weighted terms...15
Fuel distributors are the most likely to have introduced their own payment card..17
... although most schemes lie in the department store / variety and supermarket / hypermarket sectors ...17
Gift cards ...19
Over a third of major retail brands in the Asia-Pacific region offer stored-value gift cards…19
… with those in the sporting goods retail category most likely to do so 20
Retailer loyalty programs .22
Close to two thirds of major retailers in the Asia-Pacific region participate in some form of loyalty program…...22
… with the rate of involvement highest in China, Japan, Hong Kong, South Korea and Taiwan 22
Involvement rates exceed 50% of those researched across all retailer categories ..23
Proprietary loyalty programs 25
A majority of major retail chains in the Asia-Pacific Region run their own proprietary loyalty scheme.25
Coalition loyalty programs26
Participation in coalition loyalty programs lags behind proprietary schemes by a significant margin...26
3.0 AUSTRALIA..28
Introduction...28
Retailer payment cards29
Credit, debit and prepaid cards29
Fewer than 20% of major retail brands in Australia offer a co-branded or private-label payment card…29RETAILER PAYMENT, GIFT AND LOYALTY CARDS IN THE ASIA-PACIFIC REGION
II
…with most that are active in this sphere relying upon an external partner to issue these cards29
Captive or internal provision is adhered to by just under a third of Australian retailers with cards...30
GE Money, HSBC and Lombard Finance claim the most partnerships for retailer cards 30
The majority of retailer cards in Australia run on the Visa network…31
… although private-label cards are most prominent in weighted terms 32
Three quarters of fuel retail brands surveyed have introduced their own payment card..33
Pure online retailers are the least likely to promote a payment card.33
Gift cards ...35
Over 40% of major retail chains in Australia promote stored-value gift cards…...35
…with initiatives for these products visible across all retailer categories...35
Retailer loyalty programs .37
A significant proportion of retail brands surveyed in Australia participate in some form of loyalty program.37
Retailers of consumer electronics are least likely to be involved in a loyalty program..37
Proprietary loyalty programs 39
Over a third of major retail chains in Australia have launched their own proprietary loyalty scheme...39
Coalition loyalty programs39
Seven coalition loyalty programs are adhered to by retailers in Australia… .39
…with all seven supporting one or more co-branded payment cards...39
flybuys possesses the largest member base of any loyalty scheme in Australia..39
4.0 CHINA41
Introduction...41
Retailer payment cards42
Credit, debit and prepaid cards42
Most retailer payment cards in China are configured as credit cards…42
… with 17 card issuers active in the market in total ...42
ICBC is likely to be the leading issuer of retailer payment cards in China.44
UnionPay claims the highest share of network partnerships for retailer cards..46
The vast majority of retailer payment card programs are concentrated in three categories….47
… most notably that of supermarkets and hypermarkets ..48
Gift cards ...50
Well over a half of major retail brands in China have introduced stored-value gift cards… .50
… with even online-only retailers scoring a provision rate of 50% in this arena ...50
Retailer loyalty programs .52
Over 80% of retail brands surveyed in China participate in a loyalty program of one sort or another…..52
… with significant activity rates apparent across all ten retailer categories...52
Proprietary loyalty programs 54
The great majority of major retailers in China run their own proprietary loyalty program .54
Coalition loyalty programs54
China Rewards was launched in 2013 as a joint venture involving three organisations… ..54
…while the longer-established SmartClub reportedly has over 3 million active members...54
OK Card incorporates several features of a coalition scheme without being a true loyalty program...54
5.0 HONG KONG56
Introduction...56
Retailer payment cards56
Credit, debit and prepaid cards56
Less than 20% of major retailers offer a co-branded or private-label payment card of any type… .56
… with most of those in evidence operated in conjunction with external partners57
Among retailer payment card issuers, Bank of China leads in both unweighted and weighted terms….58
... with Visa clearly dominant among networks used for retailer payment cards...59
Retailer payment card programs are concentrated in five retail categories ..61
Gift cards ...63
Stored-value gift cards have not yet gained much penetration among major retailers in Hong Kong .63RETAILER PAYMENT, GIFT AND LOYALTY CARDS IN THE ASIA-PACIFIC REGION
III
Retailer loyalty programs .65
Loyalty scheme involvement applies to over 80% of major retail brands in Hong Kong... ...65
… with all retailers investigated in five categories found to be active in this sphere .65
Proprietary loyalty programs 67
Coalition loyalty programs67
Both Asia Miles and enJoy card have attracted major retail brands as program participants..67
6.0 INDIA .68
Introduction...68
Retailer payment cards69
Credit, debit and prepaid cards69
Over 20 major retail brands in India promote a co-branded or private-label credit card...69
ICICI Bank claims by far the highest number of retailer payment card schemes…..69
… although Citibank overtakes it in the weighted analysis of partnerships...70
Private-label retailer cards are marginalised by those linked to MasterCard and Visa.71
By category, fuel retail brands are most likely to have introduced their own payment card… .73
… with offline-only retailers scoring the highest activity rate by distribution model...73
Gift cards ...75
Close to 20% of major retail brands have introduced stored-value gift cards…...75
… with initiatives for these products visible across most retailer categories .75
Retailer loyalty programs .77
Approaching 50% of major retail brands surveyed in India are involved in a loyalty program…..77
… with much activity concentrated in the department store / variety, fashion and speciality categories .77
Proprietary loyalty programs 79
Nearly a quarter of major retail chains in India have launched their own proprietary loyalty scheme..79
Coalition loyalty programs79
Five major coalition loyalty programs are adhered to by retailers in India….79
… among which PAYBACK (formerly i-mint) has signed up the most major retail brands as participants .79
Three other coalition programs have been established by banks… .79
… and another by Tata Group's retail brands 80
7.0 INDONESIA...81
Introduction...81
Retailer payment cards81
Credit, debit and prepaid cards81
14 major retail brands in Indonesia offer payment cards in one form or another..81
A variety of external card issuers are involved in managing retailer credit card schemes82
... albeit two retailers utilise an issuer that can be classified as a captive..82
By weighted share of partnerships, Mandiri is ranked first among card issuers... 83
... followed by BCA, Bank Mega, PermataBank and CIMB Niaga 83
Visa outscores both MasterCard and private-label cards as a network used for retailer payment cards 85
Most retailer payment card schemes are attributable to supermarket and hypermarket brands.86
Gift cards ...88
Just under a third of major retail brands researched in Indonesia offer a stored-value gift card..88
Retailer loyalty programs .90
Just over half of retail brands surveyed in Indonesia operate a proprietary loyalty program90
... with involvement in all retailer categories apart from sporting goods 90
8.0 JAPAN...92
Introduction...92
Retailer payment cards93
Credit, debit and prepaid cards93
Over a half of major retail brands in Japan offer a co-branded or private-label payment card….93
… with captive card issuers constituting the dominant operating model in this context ...93
The largest of these are likely to be AEON Credit Service, Rakuten Bank and Seven Card...94RETAILER PAYMENT, GIFT AND LOYALTY CARDS IN THE ASIA-PACIFIC REGION
IV
Idemitsu Credit and Saison Card are the two joint venture card issuers active in this field…..94
… in which well over 30 entities are present in total...95
Card issuers owned by Sumitomo Mitsui Financial Group would lead if considered together.95
AEON Credit Service has a portfolio of over 30 million credit cards issued in Japan...96
Mizuho Financial Group's Credit Saison is party to multiple joint ventures ...97
Seven Card is one component in Seven and I's broader financial services division97
Rakuten Bank has experienced very rapid growth in both revenues and profitability ..97
By both unweighted and weighted share of partnerships, JCB overtakes MasterCard ...97
All major retail brands surveyed in two categories in Japan have introduced their own payment cards .99
Gift cards .101
Well over a half of major retail brands in Japan offer a stored-value gift card….101
… with the provision rate highest among retailers selling both offline and online...101
Retailer loyalty programs ...103
Participation in loyalty programs runs at over three quarters of the major retail brands investigated… 103
… with provision rates exceeding 50% in all retailer categories..103
Proprietary loyalty programs ..105
Proprietary loyalty programs are most popular among major Japanese retailers…...105
Coalition loyalty programs..105
… although as many as seven coalition loyalty programs attract some retailer involvement.105
JAL Mileage Bank has the most retail sector partners out of the schemes surveyed….105
…although by number of members, ANA Mileage Club is not far behind...105
T Point was launched originally as a proprietary loyalty scheme for Tsutaya….105
…just as Top Club Q mainly serves department store Tokyu, its parent company106
9.0 MALAYSIA..107
Introduction.107
Retailer payment cards..107
Credit, debit and prepaid cards..107
Less than a quarter of major retail brands in Malaysia operate a co-branded or private-label payment card…...107
… although a variety of external card issuers are involved in this sphere...108
Seven retail brands manage credit card schemes on an internal basis or via captive entities...108
RHB is the leading provider of retailer payment cards viewed in both unweighted and weighted terms…...109
… as a consequence of its relationships with KL Sogo and Tesco.110
Visa is the payment brand most commonly found in conjunction with retailer payment cards...111
Payment cards are ubiquitous among major fuel distributors…..113
… but are entirely absent in the case of online-only retailers...113
Gift cards .115
Gift card programs are apparent in categories other than that of sporting goods retailers.115
Retailer loyalty programs ...117
Just over a half of major retail brands in Malaysia are involved in a loyalty program…..117
… with enthusiasm highest among fuel distributors and retailers of books and media products...117
Proprietary loyalty programs ..119
A significant number of major retail chains in Malaysia operate their own proprietary loyalty scheme..119
Coalition loyalty programs..119
Four coalition loyalty schemes attract retailer participation in Malaysia…...119
… including BIG, which launched in November 2011…..119
… plus BonusLink which has accumulated in excess of 8 million members ..119
10.0 NEW ZEALAND ...121
Introduction.121
Retailer payment cards..122
Credit, debit and prepaid cards..122
Co-branded or private-label credit cards are on offer from almost a quarter of major retailers…..122
… with programs fairly evenly split between external partner and internal or captive operating models...122
Among card issuers, GE Money emerges as leader in both unweighted and weighted terms..123

View This Report »

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 24 Million searchable statistics with tables, figures & datasets
  • More than 10,000 trusted sources
24/7 Customer Support

Talk to Amrita

+1 718 303 2019

Purchase Reports From Reputable Market Research Publishers
Thermometer Markets in the World to 2020 - Market Size, Development, and Forecasts

Thermometer Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 21799
  • Industry report
  • November 2016
  • by Global Research & Data Services

The expansion of the global thermometer industry is forecast to reach 7.5% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 7.8%. Currently, liquid-filled ...

Gold Markets in the World to 2020 - Market Size, Development, and Forecasts

Gold Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The expansion of the global gold industry is forecast to reach 5.0% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 4.0%. Currently, unwrought gold ...

Silver Markets in the World to 2020 - Market Size, Development, and Forecasts

Silver Markets in the World to 2020 - Market Size, Development, and Forecasts

  • $ 20469
  • Industry report
  • September 2016
  • by Global Research & Data Services

The expansion of the global silver industry is forecast to reach 3.1% p.a. in the coming years. Between 2009 and 2015 the market increased with an average annual growth of 0.8%. Currently, unwrought silve ...


Download Unlimited Documents from Trusted Public Sources

Crop Production in the US

  • December 2016
    6 pages
  • Retail  

    Crop Production  

  • United States  

View report >

Retail Statistics in the US and North America, Weekly Update

  • December 2016
    15 pages
  • Retail  

  • United States  

    North America  

View report >

Retail Markets in the UK and the US - Forecast

  • December 2016
    23 pages
  • Retail  

    Retail Sales  

    E-Commerce  

  • United Kingdom  

    United States  

View report >

Retail Markets

4 days ago

ref:plp2014

Reportlinker.com © Copyright 2016. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.