Despite only moderate growth in Kuwait’s cards and payments industry, the rising popularity of online trade has fuelled expansion of the market.
|The global economic crisis has precipitated slow growth in Kuwait’s cards industry between 2008 and 2012, which recorded a CAGR of 3.59%. However, the growing market for online trade in Kuwait is driving growth in the cards sector, along with the growing number of domestic and international tourists that have increased demand for travel cards.
Between 2008 and 2012, prepaid cards occupied the largest share in the overall cards and payments industry, and in volume terms recorded a CAGR of 37.83%. Charge cards grew at a CAGR of 4.02% over the same period, whilst debit cards posted a CAGR of 2.58%.
Between 2013 and 2017, the overall card industry is expected to grow at a CAGR of 4.44%, again driven primarily by the prepaid cards category, which is expected to grow at a CAGR of 19.94%. Over the same period, credit cards are expected to grow at a CAGR of 3.2%, debit cards are expected to record a CAGR of 2.76%, and charge cards a CAGR of 3.59%. In terms of value, the industry is set to grow at a CAGR of 10.91% between 2013 and 2017, rising from LWD17.2 billion (US$61.4 billion) to KWD26 billion (US$93 billion).