 What are your expectations from the 3rd Cardist Card and Smart Technologies Exhibition & Summit organization in 2010 that you have supported as the main sponsor since its first edition?
As BKM, we continue to support Cardist as the main sponsor. With both local and international participants, latest developments in the Card Payment System will be shared once again. Moreover consumer, company and economy based benefits of Card Payment System will be presented to the Cardist participants.
As Istanbul was selected the Culture Capital 2010, “Culture Cards Come Together in Istanbul” has been chosen as the conference program theme for Cardist Summit. Could you tell us the differences between cards used for payment in Turkey and other countries?
Turkey has achieved more than many European countries in terms of technology, service and product diversity in the card payment systems. Multi-partnered cards and loyalty programs are shown as examples par excellence in many countries and they are honored with awards in the international markets. ;
Compared to other countries, the rate of using cards in shopping in Turkey is lower. As BKM, we time to time release campaigns to increase the use of cards in shopping.
The Turkish banking sector is already one of the most innovative players of the globe, especially in the card technologies. Could you tell your opinion about how Cardist contributes to the sector and how its position in the sector would shift in the future?
Cardist offers the opportunity to transfer the achievements the Turkish card payment sector has succeeded and leading innovations in Turkey to the related global audience. Furthermore it is a chance for the sector-leaders to share their knowledge.
What are the latest developments in your project which leads card users to the card payment systems instead of cash payment and thus is one of the most significant factors in fighting underground economy? Have Turkish card users started to prefer cards instead of cash more occasionally?
Use of card payment systems is essential for fighting underground economy. Hence it’s very important in contributing to the national economy in terms of raising the tax income.
It is predicted that 50% of the Turkish economy is unregistered. However, every penny is registered thanks to the card payment system and thus the tax income increases. Taxing the product we buy via card payment systems means taxing whole trade chain from suppliers to raw material producers. As tax income raises, so does the economy; many industries from retail, tourism and white goods to IT and furniture gain acceleration. Industrial growth and active economy leads to rise in employment, which means fewer unregistered employees. Besides using card payment systems is an important factor in reducing the inflation. It is projected that using card payment systems in 2010 and following years will contribute to increase its share in GDP, using cards more often than cash and reduce underground economy. The benefits of card payment systems offered to the economy will contribute to the development and growth of these systems.
With the aims of raising awareness in terms of security, sharing important issues about using credit cards with consumers and in general providing a much safer and more conscious environment to use cards, BKM has created the web site www.kartbilinci.com. The project was initiated in order to create a much clearer perception of cards as a means not to be indebted but to easily pay, and take advantage of many benefits of cards. Unknown advantages of the cards when used consciously like growth and employment they provide in many sectors from furniture production and IT to tourism and textile and its important role in fighting the underground economy are shared with the public.
With the bank card campaigns it is aimed to encourage the consumers to use their bank cards instead of cash in shopping.
By 2009 has there been a shift in the number of bank cards, POSs and ATMs compared to previous years? Likewise can you tell us the amount issued by credit and bank cards in 2009. Do you expect a rise in these figures in 2010? Approximately how much will they rise?
As of December 2009, there have been 64.661.947 bank cards, 44.392.614 credit cards, 1.738.728 POSs and 23.800 ATMs in Turkey. Compared to the same period in 2008, there is a rise by 6.8% in the number of bank cards, 2.3% in the number of credit cards, 6.5% in the number of POSs and 8.3% in the number of ATMs. These rates show us that the industry grows in a healthy and efficient way. in 2009 the operations issued by credit cards amount 205 billion TL and the same figure for bank cards correspond to 188 billion TL. It is projected that the industry will continue growing also in 2010.
As one of the countries in which cards are most widely used, what are the developments Turkey has achieved lately. What are the innovations? Have there been any projects applied in Turkey for the first time, compared to Europe?
BKM and member banks decided to apply chip&PIN system to fight credit card fraudulence which is one of the most important dangers facing the sector. As of July 1, 2007 bank card security codes have been initiated through chip cards. Turkey is the third country having completed the chip&PIN transmission in Europe. Today almost 100% of credit cards, POS terminals and ATMs are in accordance with chip&PIN system and 98% of shopping by cards are issued through security codes. BKM has established the required platform for 3D Secure application, providing the safe environment for both commercial web sites and card owners while shopping on the Internet via credit cards, in 2007. 3D Secure will offer a very powerful firewall for the fraudulent operations and the chance to develop e-shopping in Turkey.
As operations are in the full flow around the globe, Turkey breaks new grounds in card payment industry. Turkey is the leading country in Europe in which the contactless credit card, the watch equipped with contactless technology and the contactless EVM card in ferry transportation have been initiated for the first time and thus the compliance with the next generation technology has been provided. Turkey and the world have been forming the required infrastructure for contactless card and NFC (Near Field Communication) age.
One of the latest developments in Cardist is Cardist Awards to be presented to Cardist exhibitors selected by the jury which is constituted by executive leaders of the finance sector. What is your opinion about this change?
Cardist Awards will be a chance for us to thank our colleagues having realized successful and efficient projects and worked closely with the industry. We also hope that it will inspire product and service diversity by bringing innovative companies into prominence.
As BKM, you have been realizing many projects like “Card Awareness Campaign”, “If Shared, It is not a Security Code” and “Uniting all ATMs”. Have you observed any changes in consumer trends?
According to the BKM data, the total number of operations issued by ATMs through bank cards has risen as of October 1 which is the start date of Shared ATM Network.
As to the rate of conscious shopping by bank cards; while it was 44% before the campaign, it has reached 77% in the post-campaign period.
The research conducted after the code awareness campaign shows us that the campaign has been effective. Rate of the people who state they would not share their security code has risen from 72% to 77% after the campaign.
According to results of research on the card awareness campaign, total positive perception about credit cards has risen from 46% to 52% after the campaign. While on the other hand the negative perception has decreased to 48% which equals to a 12% positive progress.
All ATMs of Turkey “united” on October 1, 2009. How did the Shared ATM Network affect card usage?
Considering the efficiency and profitability for the banks, BKM realized a very important project for the Turkish card payment sector in 2009. All banks providing ATM service entered into a joint service protocol which facilitates operations for the card owners.
With Shared ATM Network which was in effect as of October 1, 2009, bank card users are free to withdraw cash and control their accounts by ATMs of all banks.
The number of ATMs has increased by 70% in Turkey within the last five years. The number of cards in Turkey has reached 64 million by December 2009. Through the Shared ATM Network, a new structure, which makes it possible to meet the needs of all card users and optimize capital investment in expanding ATM networks, has been identified. Thanks to the Shared ATM Network, it is aimed to obtain high efficiency by using only 23 thousand ATMs which would normally require 35 thousand ATMs through which we will save around $300 million contributing to the economy. Additionally this system will also indirectly contribute to the economy as it will energize the banking industry. As cash withdrawal will be easier, cash circulation in the market will increase and accelerate, underground economy will be discouraged and the national economy will be energized. It is projected that both cost optimization and a rise in ATM transaction value will be maintained via the new system.
What are the latest technologies and innovative applications expected for 2010?
As the card payment system progresses and offers new possibilities, credit cards become more and more indispensable for the daily life. Today the credit card prepares to be more than a substitute for cash as a means of shopping.
We believe contactless cards and NFC, the card technologies of tomorrow, will leave their marks on 2010 with their unique specifications to change our habits and make our lives easier.
We expect prepaid cards, which are already available on the market and allow you to spend as much as you loaded, will become widespread in 2010. Thus many other types of cards like allowance card and gift card will be parts of our lives. We project that the card payment industry will continue growing in 2010.
We appreciate your support and thank you for the lovely conversation...
Cardist Project Team |
