BDI CODE 2014 - Israel's Leading Companies, Law Firms, Accounting Firms, Best Companies To Work For - page 42

42
Credit Card Companies
With the reforms in the branch planned by the Business Antitrust Commissioner
looming over them, the credit card companies registered another successful
year. The tendency of increase in the total transactions implemented by means
of credit cards continued also in 2013, a growth of 8% as opposed to last
year, with a total amount of transactions of NIS 228,090 million. The earnings
of the credit card companies in 2013 stood at NIS 3,614 million, a growth of
1% relative to last year. Similarly to 2012, Isracard concluded the year with
earnings of NIS 1,514 million. In addition the earnings of CAL did not change
and totaled NIS 1,113 million, and Leumi Card registered a growth of about
3% in earnings, which amounted to NIS 987 million.
In order to increase competition in the branch, the Business Antitrust
Commissioner, Professor David Gilo, is currently promoting a reform that
includes two main sections: Introduction of “Debit” cards into the market
and advancement of the payment by the credit card companies to businesses
to within about three days. Payment by means of a “Debit” card results in
immediate debiting of the customer’s account, similarly to payments in cash,
and in this framework the place of business would pay a reduced commission,
and would receive the payment immediately. A study initiated by the Business
Antitrust Authority found that introduction of “Debit” cards would facilitate
economy-wide savings of about NIS 500-700 million annually, while hopefully
the costs of merchandise in places of business would be reduced as a result
of savings in the payment of commissions. Furthermore, it is anticipated that
the large businesses would be obligated to enable payments by means of
deferred debits for transactions exceeding NIS 500 in order to avoid harm
to consumers who at that particular time lacked the balance to cover large
transactions in their current accounts. We should state that in April 2014 the
Cost of Living Cabinet, headed by Naftali Bennet, approved use of “Debit”
cards at a controlled price.
An additional step designed to increase competition in the branch is the
separation of control of credit card companies from the banks. In February
2014, the Knesset discussed this proposal, according to which the separation
would be implemented by gradual sale of the credit card companies over a
period of years, in order to prevent disproportionate harm to the banks.
Similarly to last year, the number of credit cards per capita was estimated
at about 0.95 on average, as opposed to an average of about 1.5 cards
per capita in European Union countries. However, in Israel the use of credit
cards is relatively widespread and stands at about 120 transactions per credit
card per capita, as opposed to an average of about 80 transactions in the
European Union. The average amount of a transaction in Israel is about NIS
230, a little lower than the average in the European Union, which stands at
an equivalent of about NIS 245.
Use of credit cards abroad is expanding, and in 2013 an increase of 34%was
registered in the number of transactions abroad. Furthermore, the amount
of the transactions by means of credit cards abroad registered an increase of
13% in 2013, and it stood at NIS 12,536 million. Among the main reasons
for this increase, we can point to the increase in purchasing of merchandise
by means of electronic commerce sites abroad.
Purchases by credit cards of goods and services including communications,
fuel, electricity and gas, medical and medication, computers and software
and others, constituted 42% of all purchases by credit card in 2013. Other
services such as: insurance, government and municipal services, tourism and
entertainment constituted 21%. Industrial products such as clothing and
footwear, electrical and electronic and furniture accounted for 19%, while
food and beverages made up 18% of the total credit card purchases. We
should state that between 2011 and 2013 an increase of 17%was registered
in the value of purchases of services that included insurance, government and
municipal services and more.
The number of active credit cards of the three credit card companies registered
a growth of 5% in 2013 as opposed to 2012 and totaled about 6.3 million
cards. Isracard concluded the year with 2.7 million cards, constituting 43%
of all active credit cards. Leumi Card holds a segment of 30%, and CAL
concluded with a segment of 27% of all active cards.
The aggregate net profit of the three credit card companies totaled about
NIS 617 million in 2013, a drop of 2% in relation to 2012. The Isracard Group
registered the highest net profit – NIS 285 million, an impressive growth of
19%. Leumi Card concluded the year with a net profit of NIS 200 million, a
growth of 11% while CAL concluded the year with a net profit of NIS 132
million, a decrease of 37% in relation to 2012. Most of the drop in net profit
of CAL group can be attributed to royalties’ agreements the company had
signed with Discount Bank and the International Bank of Israel, which led to
an increase in the extent of payments to them.
ברות
התפלגות מספר כרטיסי האשראי הפעילים
לפי סוגים בשנת 3102 )במונחים כמותיים(
פלטינה
7%
עסקי
9%
בינלאומי
25%
זהב
27%
מקומי
32%
Local
32%
Gold
27%
Platinum
7%
Business
9%
International
25%
Le
התפלגות מספר כרטיסי האשראי הפעילים בין החברות
המדורגות בשנת 3102
ישראכרט
43%
לאומי קארד
30%
כאל
27%
43%
30%
27%
התפלגות מספר כרטיסי האשראי הפעילים
לפי סוגים בשנת 3102 )במונחים כמותיים(
פלטינה
7%
עסקי
9%
בינלאומי
25%
זהב
27%
מקומי
32%
7%
9%
25%
27%
32%
Local
32%
G ld
27%
Platinum
7%
Business
9%
International
25%
Cal – Israel Credit Cards
27%
Isracard
43%
Leumi Card
30%
Distribution of active credit cards by types in 2013
(in quantitative terms)
Distribution of active credit cards by companies in 2013
(in quantitative terms)
CONTINUED
1...,32,33,34,35,36,37,38,39,40,41 43,44,45,46,47,48,49,50,51,52,...480