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A comprehensive overview of the cards, payments and consumer banking market in Algeria.
By size, Algeria is the largest country in Africa and the tenth-largest country in the world; the country had a population of around 41.2 million at the end of 2016.
At the end of 2016, there were approximately 1.5 million debit cards and 6.5 million ATMonly cards in circulation in the Algerian market. There were no credit cards offered in the country but prepaid cards are prevalent in Algeria. Prepaid cards are issued with international travellers in mind, and the majority of these cards can also be used for making purchases over the internet.
Algeria, a cash-dominated market, is underdeveloped in terms of payments acceptance infrastructure. At the end of 2016, there were an estimated 8,000 POS terminals in the country. The Algerian online acquiring market is at a nascent stage of development.
TABLE OF CONTENTS
Consumer finance market
Pricing and enhancements
The networks: debit cards
Merchant acquiring and processing
Regulatory and other cards market information
Appendix I: Demographics
Appendix II: The economy
Appendix III: Retail banking
Appendix IV: Consumer finance market
Appendix V: Cards market
Appendix VI: The networks: debit cards
Appendix VII: Card issuers
Appendix VIII: Merchant acquiring and processing
Appendix IX: Online acquiring
Demographics and Economy
Algeria has the third-largest French-speaking population worldwide, with an estimated 11 million Algerians being able to read and write in French. Oil and gas exports are among the largest sources of revenue, accounting for about 93% of total exports and 38% of the state budget in 2016.
There were 20 retail banks operating in the country at the end of 2016; however, the Algerian banking industry remains dominated by the five state-owned banks: Banque Nationale d'Algérie (BNA), Banque Extérieure d'Algérie (BEA), Crédit Populaire d'Algérie (CPA), Banque de l'Agriculture et du Developpement Rural (BADR) and Banque de Développement Local (BDL).
Consumer Finance Market
Unsurprisingly, the consumer credit market is underpenetrated in Algeria. At the end of 2016, consumer debt outstanding per household was estimated to be around $568, of which non-mortgage debt was $150.
Cash remains the primary mode of payment in Algeria for day-to-day purchases. Cheques and bank transfers are preferred by companies for their daily business needs. To reduce the usage of cash, the authorities are encouraging individuals to use cheques and digital payments for larger transactions.
Prepaid cards are prevalent in Algeria and are issued by major banks such as BDL, Gulf Bank Algérie and Trust Bank Algérie. Prepaid cards are issued with international travellers in mind, and the majority of these cards can also be used for making purchases over the internet.
The Algerian debit cards market is a developing one. It is dominated by Algeria Post, which had 81% of debit/ATM cards in issue at the end of 2016. CIB, the domestic debit scheme, held 19% of the market at the same date.
Key Retail Banks and Issuers
Major banks and payment card issuers in Algeria include Algeria Post, the state-owned postal service company, and the six local state-owned banks: CPA, Caisse d'Epargne et de Prévoyance (CNEP), BEA, BADR, BNA and BDL.
Acquiring and Processing
Algeria, a cash-dominated market, is underdeveloped in terms of payments acceptance infrastructure. At the end of 2016, there were an estimated 8,000 POS terminals.
The Association of Banks and Financial Institutions (ABEF) partnered with the Bank of Algeria, and eleven Algerian banks (six state-owned and five private) to launch the e-payment service in Algeria; the service enables customers to carry out internet payments using their cards.
Regulatory and Markets Information
In order to diversify the Algerian economy away from its current dependence on the oil and gas sectors, the Algerian government passed a new investment law to encourage investment in non-oil sectors through incentives to existing and new local/foreign businesses in the non-oil sectors.
Financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in Africa. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and Africa finance experts.
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