Why Consider Modified Endowment contracts?

Photo of Stuart Chamberlin

Stuart Chamberlin, President at Chamberlin Financial

Modified Endowment contracts can be an annuity alternative. Fully liquid, linked to an index and grows tax deferred with a tax-free death benefit.

Modified Endowment contracts are an over looked annuity alternative advisers should consider.”

— Stuart Chamberlin

BOCA RATON, FL, US, June 22, 2018 /EINPresswire.com/ — There are many benefits of owning an annuity-like tax differed growth and income for life. But eventually the taxes will be due at an ordinary income rate and for non-spousal beneficiaries, the death benefit will also be taxed.

There is an overlooked annuity alternative that has been around since 1988 that has a tax-free death benefit and at the same time grows tax-deferred. Modified Endowment Contracts (MEC) are in fact life insurance contracts that grow tax-deferred and have a tax-free death benefit.

Unlike annuities, though MEC’s can be used to bypass taxes not just defer them. Many advisors aren’t taking advantage of using this strategy to help their clients by properly designing a MEC to fit their client’s needs.

A MEC is a tax qualification of a life insurance policy where the policy has been funded with more money than allowed under federal laws. If the cumulative premium payments exceed certain amounts specified under the IRS code, the life insurance policy becomes a modified endowment contract.

To illustrate the benefits let's suppose you needed access to your money during the surrender period of your annuity contract and you’re over 59 ½. Most insurance companies allow you access of up 10% a year of your contract value or in many cases just your original investment while most MEC’s allow you access up to 90% -100% of your cash value.

If you create a MEC using an indexed universal life (IUL) policy then the cash value is linked to an index just like a fixed indexed annuity (FIA) without the risk. All the gains on the cash value are locked in annually and in a typical IUL you can take tax-free loans against the cash value. In a MEC though since you over funded the policy any loans or cash withdraws against the cash value are taxed as ordinary income on a Last- in- First- Out (LIFO) basis. The death benefit though is tax-free and the cash value is fully liquid.

So you can overfund a cash value policy, link it to an index growing the cash value tax deferred and in some cases have up to a 135% participation rate in the index increasing the size of your estate to pass to your beneficiaries tax-free.

Many insurance companies are also allowing policy owners access to their death benefit while they’re alive just in case they need long-term care. There is always some cost involved though for these benefits ranging from 1-2 percent depending on one’s age. However many prefer paying for a long-term care benefit that is combined with the death benefit since you may not need the long-term benefit but you will eventually use the death benefit.

Stuart Chamberlin
Chamberlin Financial
561-962-2775
email us here


Source: EIN Presswire

Why use a Captive Insurance Company to midigate risk?

Photo of Stuart Chamberlin

Stuart Chamberlin, President at Chamberlin Financial

Captives are formed to cover a wide range of risks; practically every risk underwritten by a commercial insurer can be provided by a captive.

Captives are really a form of self-insurance”

— Stuart Chamberlin

BOCA RATON, FL, US, June 22, 2018 /EINPresswire.com/ — A Captive Insurance Company (captive or CIC) is a property and casualty insurance company established to provide coverage primarily for a Parent Operating Company. Captives are an effective risk management strategy to insure against risk for which commercial insurance is not available or may be too expensive.

Examples of exposures often incorporated in captive insurance arrangements include enterprise risks such as business interruption resulting in loss of income due to: breach/release of data, deductible reimbursement, loss of licensure, legislative and regulatory changes, loss of franchise, reputational risk, supplier/supply chain interruption, etc.

Many operating companies face losses from these low frequency/high liability risks, which can be better managed through coverage from a captive insurance company rather than self-insuring. A policy issued by the captive insurance company will have the features and coverage's drafted to meet the specific risks unique to your business.

A little background on what a captive is an insurance company is. Captive insurance companies are wholly-owned by one or more non-insurance companies to insure the risks of its owner (or owners). Captives are really a form of self-insurance whereby the insurer is owned wholly by the insured.

They are typically established to meet the risk-management needs of the owners or members. Captives are formed to cover a wide range of risks; practically every risk underwritten by a commercial insurer can be provided by a captive.

To begin, let us be clear that captives are all about money. You want one to make money. It will cost money to have one. You will pay your own losses, come what may.

Captives are another method by which risk of loss is financed. They are not inherently mysterious, or illegal, or a silver bullet for all situations and have been around for over 100 years. The fact that the insured, or an entity closely related to the insured, is the owner/operator is a separate and distinct fact, which may or may not intrude on the captive transaction.

A Captive can also be used to cover gaps in coverage for business enterprise risk or interruption. Here are just some of the actual net loss Insurance policy scheduled events that can be covered with a captive.
There are many, many other considerations and structures to a captive. It can reinsure traditional lines such as workers compensation, general liability, auto liability, professional liability, and credit risk.

This is due to the relative ease and certainty of projecting losses and revenues with coverage's in which claim payments occur years after the incident of loss, known as long-tail losses. More and more captives are entering property fields or short-tail losses. The traditional view of restricting captives to long-tail business has encountered the reality of escalating prices and lack of availability.

A captive can also be used to provide coverage and limits not available in the market, such as credit risk and terrorism. The captive can provide a tax-sheltered approach to large retention's. If no certificate is required, it can accept direct placements.

Captives are highly regulated and are required to operate as bona fide insurance companies. Therefore, acceptable uninsured risks must be present before a captive insurance company can be formed.
Once the captive is operational, with coverage's designed to fit the insurance needs of the business, the captive owner or “insured” may be eligible for captive insurance tax advantages (namely with captives formed under IRC 831(b).

For example, $1,000,000 in earned profits are subject to a tax margin of at least 45%, and in some states, over 50%. This means, by not using a captive, at least 45% (or $450,000) is taxable, leaving you with a retainer of $550,000.

With a captive, you can retain the full $1,000,000. The monies are kept in the captive to cover unexpected losses. And if those losses don’t come to fruition, you can retain these funds as investment income.
Captive insurance tax benefits under IRC 831(b) have been a proven strategy for improving cash flow for many mid-market businesses. It has allowed business owners in the middle market to play on a more level playing field with large insurers.

Ultimately, the financial benefits to captive and alternative risk planning promote growth, sustainability, and resilience.

With considerable effort, there are occasional personal tax advantages that can be obtained with a captive, but these require a sophisticated, knowledgeable consultant, and there are the usual caveats about taxing bodies.
Some captives have performed so well for their owners that they have re-domesticated to the United States, filed for licensing as an admitted insurer, and offered primary coverage, replacing their risk-sharing partner.

Stuart Chamberlin
Chamberlin Financial
561-962-2775
email us here


Source: EIN Presswire

Charitable Planning in Creating a Legacy

Photo of Stuart Chamberlin

Stuart Chamberlin, President at Chamberlin Financial

Charitable planned giving is one of the few programs available that provides a variety of tax and income benefits.

Someone's sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

BOCA RATON, FL, US, June 22, 2018 /EINPresswire.com/ — When you think of charitable planning most people think it only benefits the charity and it serves. But there are many benefits on all sides when creating a legacy using charitable planning.

Charitable planning can be beneficial not only for tax and philanthropic benefits but for income planning as well. Think about how you could benefit from an immediate charitable income tax deduction. The deduction can be utilized to reduce your Adjusted Gross Income (AGI) by up to 50%. If the tax deduction is large enough that it cannot be utilized fully in the first year, the remaining amount can be carried forward for up to 5 additional years.

Examples of people who might be able to utilize these tax deductions are:

Annuity owners who would prefer NOT to pass along lump sum annuity gains to their heirs.

People who are taking RMD’s that they currently neither want nor need.

People who earn enough in social security, pension and other investment income that they are making quarterly tax payments.

Families who experience an unusual year of inflated income due to the sale of a business, real estate, or another type of windfall.

Put real dollars back in your pocket.

It’s Not Just for the Wealthy

By understanding the basic features of charitable gift annuities and charitable bargain installment sales, you can strategically unlock assets, create tax deductions and set up structured payments for your heirs while also supporting your favorite charities. These simple programs include:

1. The charitable bargain installment sale, which provides either an immediate or deferred structured income payout to your family for a set number of years.

2. The traditional charitable gift annuity, which creates an immediate or deferred lifetime payout for up to two individuals.

Unlock Qualified Money Potentially Tax-Free

Many people create this substantial charitable tax deduction then utilize it to unlock or re-characterize qualified money in a tax-free manner. For example, let’s say you have an adjusted gross income of $100,000.
You utilize existing cash assets to fund a charitable program that creates a $50,000 tax deduction.

The deduction can either be utilized to reduce your AGI, you can do a $50,000 Roth conversion or take a $50,000 qualified distribution, potentially without any tax consequences.

The charitable program also creates a structured inheritance without the costs of setting up or administering a trust. Overall, charitable planned giving is one of the few programs available that provides a variety of tax and income benefits and should be strongly considered as an additional planning tool for the individual or family.

Stuart Chamberlin
Chamberlin Financial
561-962-2775
email us here


Source: EIN Presswire

Use Premium Financing to increase your benefits

Stuart Chamberlin, President

Why you should use premium financing as a leverage to increase your benefits.

Leverage definition is – the action of a lever or the mechanical advantage gained by it.”

— Merriam-Webster

BOCA RATON, FL, US, June 21, 2018 /EINPresswire.com/ — Leverage is used every day from financing a home using a mortgage or using a credit line for a business. Leverage can be used for a lot more when it comes to insurance products and when it is used it’s called premium financing. Premium Financing involves the lending of funds to a person or company to cover the cost of an insurance premium.

This concept is not much different than using a bank mortgage to leverage assets to purchase a home. Money is borrowed to buy more house (or with premium financing access to more benefits) than one could purchase with assets on hand.

This concept has been used for years by high net-worth individuals who have illiquid assets or they don’t want to use a lot of their working capital to pay life insurance premiums. So instead they financing their premiums through a bank or lending institution at a low interest rate usually close to the LIBOR rate. By doing this they only pay the interest on the premiums being financed and still get the full benefit of the policy.

When using this strategy to finance the premiums of an indexed universal life policy (IUL) you have the potential of growth on the cash value since it’s linked to an index like the S&P 500 without the risk. All of the gains are locked in annually and there are many index strategies to choose from including some that have participation rates as high as 135%.

When the gains on the cash value are greater than the interest being charged on the financing you have what’s called an arbitrage situation. This can also be a more cost effective way to cover additional benefits to attract top talent for a business or to cover a key man policy or succession planning.

Most premium financing strategies are only available for high net-worth individuals with a net-worth of 5 mm or higher. The Kai-Zen strategy is available for individuals earning 150k a year or higher giving them the same advantage high net-worth individuals have been benefiting from for years.

Due to limitations, traditional retirement plans are typically insufficient for high-income earners. If you want to maintain your lifestyle in retirement, you need a proactive strategy that puts more money toward protecting your future income without putting a drain on your current finances.

Kai-Zen is the ONLY strategy that uses leverage to help you acquire more benefits you need to financially protect you and your family. It’s unique fusion of financing and life insurance offers you more protections and the potential to earn more retirement than you could obtain without leverage.

How it Works

The Kai-Zen strategy is simple. Premiums are jointly funded by bank financing and the participant or employer. The bank financing provides the majority of the total contribution to the plan, and the life insurance policy itself is the full security for the loan. This strategy is specifically designed so that the participant is not required to go through financial underwriting or sign loan documents. As an additional protection, Kai-Zen’s structure is also set up protect your benefits in the event of employer bankruptcy.

By using bank financing, the Kai-Zen strategy allows you to realize benefits beyond your expectations while keeping contributions within your means.

The most unique and compelling aspect of the Kai-Zen strategy is that the participant’s contributions are leveraged 3 to 1.

Stuart Chamberlin
Chamberlin Financial
561-962-2775
email us here


Source: EIN Presswire

SimScale Announces a Preview Program of FDS for Simulation of Fire Scenarios in Buildings

Temperature distribution in a car park fire scenario with SimScale

Temperature distribution in a car park fire scenario with SimScale

Smoke propagation in a car park fire scenario with SimScale

Smoke propagation in a car park fire scenario with SimScale

The provider of the world’s first cloud-based engineering simulation solution, launches Fire Dynamics Simulator (FDS) preview program.

SimScale’s CFD capabilities that are in production today, along with its seamless deployment, collaboration functionality, and scalability, have made it the tool of choice for many AEC companies.”

— David Heiny

MUNICH, BAVARIA, GERMANY, June 20, 2018 /EINPresswire.com/ — SimScale (“SimScale”), the provider of the world’s first cloud-based engineering simulation solution, today announced the launch of the Fire Dynamics Simulator (FDS) explorative preview program.

Fire Dynamics Simulator (FDS) is a solver developed by the National Institute of Standards and Technology (NIST) of the United States Department of Commerce, in cooperation with VTT Technical Research Centre of Finland. Throughout its development, FDS has been aimed at solving practical fire problems in fire protection engineering, while at the same time providing a tool to study fundamental fire dynamics and combustion.

The preview program is a response to the request of many customers to combine the maturity and reliability of FDS for modeling fire and smoke with the convenience and scalability of SimScale’s cloud-based simulation infrastructure. Most of these requests come from AEC (architecture, engineering, and construction) companies working on projects that require performance-based design, fire reconstruction, test planning, compliance with fire-related codes and standards, dispersion, calculation of smoke venting systems or indoor air quality.

“SimScale’s CFD capabilities that are in production today, along with its seamless deployment, collaboration functionality, and scalability, have made it the tool of choice for many AEC companies. SimScale already helps these companies—including ARUP, WSP, Aqseptence Group among others—tackle engineering projects in the space of thermal comfort, industrial ventilation, building wind loads and pedestrian comfort. The request from these customers to extend SimScale’s feature set to also cover fire and smoke scenarios seems like a natural next step for our development.” said David Heiny, CEO and co-founder of SimScale.

The FDS preview program will explore and validate an offering of a simple workflow-driven interface for quick and robust modeling and visualization of complex fire scenarios in buildings, particularly parking garages and tunnels. Interested engineers and companies can apply for the program giving them a chance to shape the future workflow and user interface of the FDS integration, while in the meantime having their fire management-related simulation projects solved by SimScale’s engineers.

Companies interested in joining SimScale's explorative FDS preview program and leveraging FDS for their projects can request more information through the Fire and Smoke Simulation in a Browser – Contact Form.

Agata Krzysztofik
SimScale GmbH
89809132765
email us here

Visualization of the temperature distribution in a car park fire scenario with SimScale


Source: EIN Presswire

American Fidelity Makes IDG Computerworld's Best Places to Work in IT

American Fidelity Colleagues Attend Women in Technology Meeting

American Fidelity Colleagues Compete in the Office Olympics

OKLAHOMA CITY, OK, UNITED STATES, June 18, 2018 /EINPresswire.com/ — American Fidelity, based in Oklahoma City, once again made Computerworld’s list of Best Places to Work in IT. Landing at No. 18 among mid-sized companies, this is AF’s 15th appearance on the list.

“In the past year, IT has continued to undergo changes to help us align more closely to the business and prepare for the future,” said Kim Fisher, chief information officer. “We’ve worked to make our technology easier for our Customers and policyholders to use, such as simplifying and improving our Online Service Center and mobile app. We have also put succession plans in place to set us up for a smooth transition as Colleagues prepare to retire.”

American Fidelity is currently hiring for several positions within the IT team, including software developers, Citrix infrastructure engineer, security analysts and engineers, and technical infrastructure analysts and more. https://americanfidelity.com/careers/corporate-careers/it-jobs/

The Best Places to Work in Information Technology (IT) list is an annual ranking of the top 100 work environments for technology professionals by IDG's Computerworld. The list is compiled based on a comprehensive questionnaire regarding company offerings in categories such as benefits, career development, training and retention. In addition, Computerworld conducted an extensive survey of IT Colleagues, and their responses factor heavily in determining the rankings.

“Over the past couple of years, we've seen an already tight market for tech talent get even tighter,” said Computerworld executive editor Ken Mingis. “Computerworld's 2018 Best Places to Work in IT list illustrates that the companies that offer the best working environments aren't satisfied with rolling out one or two initiatives. They seek an edge in the talent marketplace through a combination of good salaries, great benefits, ready access to training, and the deployment of cutting-edge technologies. They recognize that the top tech talent can easily move to the organization that respects them best, and they are determined to be that organization.”

###

About American Fidelity
American Fidelity Assurance Company is a supplemental benefits provider serving more than 1 million Customers across 49 states with a focus on offering a different opinion for Customers in the education, public sector, auto retail and healthcare industries. More information can be found at https://americanfidelity.com.

American Fidelity has earned an “A+” (Superior) from the A.M. Best Company since 1982. One of the nation’s leading insurance company rating services, A.M. Best conducts a strict review process for financial stability every year.

American Fidelity has been recognized as one of the “100 Best Companies to Work for in America” by global research and consulting firm Great Place to Work® and Fortune Magazine 11 times.

The Company was also selected for several other lists by Fortune, including: Best Workplaces for Millennials, Best Workplaces in Finance and Insurance, Best Companies for Giving Back, Best Workplaces for Women, Best Workplaces for Diversity and the Human Capital 30: Companies that Put Employees Front and Center.

Contact:
Lindsey Sparks
Corporate Communications Team Leader
Lindsey.Sparks@americanfidelity.com
405-523-5901

Melody Wortmann
Assistant Vice President, Corporate Communications, Creative Services and Culture
Melody.Wortmann@americanfidelity.com
405-523-5979

About Computerworld
Computerworld is the leading technology media brand empowering enterprise users and their managers, helping them create business advantage by skillfully exploiting today's abundantly powerful web, mobile, and desktop applications. Computerworld also offers guidance to IT managers tasked with optimizing client systems—and helps businesses revolutionize the customer and employee experience with new collaboration platforms. Computerworld's award-winning website (www.computerworld.com), strategic marketing solutions and research forms the hub of the world's largest global IT media network and provides opportunities for IT vendors to engage this audience. Computerworld is published by IDG Communications, Inc. Company information is available at www.idg.com.

Lindsey Sparks
American Fidelity
4055235901
email us here


Source: EIN Presswire

HOW MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE CAN HELP PRIMARY HEALTHCARE?

Replete Health, Pushing towards Democratization and Decentralization of Healthcare

NEW YORK, NEW YORK, USA, June 18, 2018 /EINPresswire.com/ — The care for patients has always been based on decision making depending on the kind of information that you have acquired from the patients. Health officers have for a long time relied on their skills, acquired experience and make judgments. But the changing times have led to the discovery of certain technologies to help both doctors and patients for easy medical decision making and practice.

The use of Artificial intelligence technology in health has not been so common up to the late years. This is simply because so many great thinkers, such as Elon Musk and Bill Gates, have criticized the move. However, the use of this technology can help improve the standards of healthcare even though there has been minimal use of it in the healthcare industry. The major challenge is the complexity of the healthcare. Before you can make a judgment on one’s health you will need to collect information on demographic and physiology and many other things, and also bank on the psychology of the patient to respond to treatment quickly. One of the setbacks of Artificial intelligence is the inability to help patients adhere to drugs according to the way it’s required.

Doctors do require information of the patient regarding their response to medication, diet and various activities they indulge in so that they can be able to prescribe drugs to them without difficulty. Replete Health Ecosystem allows patients to keep a record of medications they are using, and in case of any reactions to their current drugs the doctor will receive a notification and he will advise the patient accordingly. On top of that, the patients can also use it to access all their history on health and assess their care which can be shared with other providers.

The patient will not feel the pressure of getting to remember how they are feeling when they are asked every now and then. They will just need to spend very little time on the app since the doctor has a direct access to all the information. Replete health’s aim is to foster constant communication between the doctor and the patient, to improve the standards of healthcare. You don't have to intrude into the personal lives of the user for you to improve health outcomes. All that is needed is the valuable data that is collected from the ecosystem to help in addressing and countering health care related issues.

Venkat Timmaraju
Replete Health
7328758765
email us here


Source: EIN Presswire

Non-Life Insurance Market 2018 Global Share, Trend, Segmentation and Forecast to 2025

PUNE, INDIA, June 18, 2018 /EINPresswire.com/ —

Global Non-Life Insurance Market

WiseGuyRerports.com Presents “Global Non-Life Insurance Market Size, Status and Forecast 2025” New Document to its Studies Database. The Report Contain 99 Pages With Detailed Analysis.

Description

This report studies the global Non-Life Insurance market size, industry status and forecast, competition landscape and growth opportunity. This research report categorizes the global Non-Life Insurance market by companies, region, type and end-use industry.

This report focuses on the global top players, covered

Bupa
DKV
Swiss Re
Pacific Prime
Benefit Management, Inc. (BMI)
Gen Re
Fubon
Seoul Guarantee Insurance (SGI)
First Capital Insurance Limited
Asertec, S.A.
Claveseguros Proseguros Nacionales Cia.
Ltda

 

Get sample Report @ https://www.wiseguyreports.com/reports/3207067-global-non-life-insurance-market-size-status-and-forecast-2025

 

Market segment by Regions/Countries, this report covers
United States
Europe
China
Japan
Southeast Asia
India

Market segment by Type, the product can be split into
Health Insurance
Property Insurance
Cargo Insurance
Vehicle Insurance
Other

Market segment by Application, split into
Personal
Commercial
Industrial

Key Stakeholders
Non-Life Insurance Manufacturers
Non-Life Insurance Distributors/Traders/Wholesalers
Non-Life Insurance Subcomponent Manufacturers
Industry Association
Downstream Vendors

Available Customizations
With the given market data, QYResearch offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional and country-level analysis of the Non-Life Insurance market, by end-use.
Detailed analysis and profiles of additional market players.

 

Complete Report Details @ https://www.wiseguyreports.com/reports/3207067-global-non-life-insurance-market-size-status-and-forecast-2025

 

Table of Contents -Major Key Points

Global Non-Life Insurance Market Size, Status and Forecast 2025
1 Industry Overview of Non-Life Insurance
1.1 Non-Life Insurance Market Overview
1.1.1 Non-Life Insurance Product Scope
1.1.2 Market Status and Outlook
1.2 Global Non-Life Insurance Market Size and Analysis by Regions (2013-2018)
1.2.1 United States
1.2.2 Europe
1.2.3 China
1.2.4 Japan
1.2.5 Southeast Asia
1.2.6 India
1.3 Non-Life Insurance Market by Type
1.3.1 Health Insurance
1.3.2 Property Insurance
1.3.3 Cargo Insurance
1.3.4 Vehicle Insurance
1.3.5 Other
1.4 Non-Life Insurance Market by End Users/Application
1.4.1 Personal
1.4.2 Commercial
1.4.3 Industrial

2 Global Non-Life Insurance Competition Analysis by Players
2.1 Non-Life Insurance Market Size (Value) by Players (2013-2018)
2.2 Competitive Status and Trend
2.2.1 Market Concentration Rate
2.2.2 Product/Service Differences
2.2.3 New Entrants
2.2.4 The Technology Trends in Future

3 Company (Top Players) Profiles
3.1 Bupa
3.1.1 Company Profile
3.1.2 Main Business/Business Overview
3.1.3 Products, Services and Solutions
3.1.4 Non-Life Insurance Revenue (Million USD) (2013-2018)
3.2 DKV
3.2.1 Company Profile
3.2.2 Main Business/Business Overview
3.2.3 Products, Services and Solutions
3.2.4 Non-Life Insurance Revenue (Million USD) (2013-2018)
3.3 Swiss Re
3.3.1 Company Profile
3.3.2 Main Business/Business Overview
3.3.3 Products, Services and Solutions
3.3.4 Non-Life Insurance Revenue (Million USD) (2013-2018)
3.4 Pacific Prime
3.4.1 Company Profile
3.4.2 Main Business/Business Overview
3.4.3 Products, Services and Solutions
3.4.4 Non-Life Insurance Revenue (Million USD) (2013-2018)
3.5 Benefit Management, Inc. (BMI)
3.5.1 Company Profile
3.5.2 Main Business/Business Overview
3.5.3 Products, Services and Solutions
3.5.4 Non-Life Insurance Revenue (Million USD) (2013-2018)

……..CONTINUED

 

Norah Trent
WiseGuy Research Consultants Pvt. Ltd.
+1 646 845 9349 / +44 208 133 9349
email us here


Source: EIN Presswire

The in-and-out of the Cards and Payments Market in Australia

Australia-Cards-and-Payments-Market

Australia Cards And Payments Market – By Cards (Debit Cards, Credit Cards, Prepaid Cards), By Payment Terminals (POS And ATM’s), By Payment Instruments (Credit Transfers, Direct Debit, Cheques And Payment Cards) – Transaction Value, Volumes, Historical Tr

Australia Cards And Payments Market – Transaction Value, Volumes, Historical Trends, Analysis And Forecasts (2017 -2022)

Further, the increasing launches of mobile wallet developed particularly for the mobile marketplace is projected to drastically alter the mechanism of payments in Australia. ”

— Market Data Forecast

HYDERABAD, TELANGAANA, INDIA, June 18, 2018 /EINPresswire.com/ — The Australia cards and payments market has displayed marginal incremental growth during the forecast period. The requirement for more advanced prepaid cards, an optimistic outlook for the economy, and the rapid increase in shopping, particularly online shopping are the major drivers of market growth in this region.

During the forecast period, the card and payments market in Australia is expected to grow at a CAGR of more than 5 percent to reach a market value of more than USD 700 billion. The increasing shift of consumers away from cash is also expected to provide a boost to the growth of the market during the forecast period.

Browse our latest research report on Australia Cards and Payments Market @ https://marketdataforecast.com/market-reports/Australia-cards-and-payments-market-6926/

Potential for growth in the already developed market of cards and payments of Australia
The Australia Cards and Payments Market grew at an average pace during the forecast period both in value terms and volume terms. The number of transactions through the channel of cards has already crossed 1 billion. The transactions of credit and debit cards continue to remain the most significant drivers of market growth. The category of prepaid cards closely follows the debit and credit card category.

The volume of transactions of the total number of cards is projected to grow at a CAGR of more than 4 percent during the forecast period, with the transactions in terms of volume growing at a CAGR of more than 5 percent. The rising demand for having prepaid cards among consumers, the advancements in the framework of regulations, the robust growth experienced in the markets of mobile commerce as well as online commerce, and the positive economic future of the country, are among the other key drivers of Australia cards and payments market growth.
Convenience of consumers being enhanced by the provision of secured environment in banking and the emergence of innovative technologies

The rise of the online commerce, particularly mobile commerce in the region has augmented the growth of platforms using NFC technology as well as contactless payments. The launch of MasterCard PayPAss, which is a mechanism of payment via smartphone using the contactless technology is a major development to be taken note of. To capitalize on the benefits offered by PayPass, many issuers are now providing PayPass enabled cards. Further, the collaboration of Vodafone with Visa had led to the introduction of mobile based wallet service which enables shoppers for making payments relating to services and products using their smartphones.

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Regulatory norms pertaining to prepaid and gift cards are yet to be solidified
The central bank of Australia, The Reserve Bank of Australia, is aiming for the promotion of competitive effectiveness and providing stability by taking a plethora of significant steps, which include the restriction of the honor all cards rule for allowing the declining of cards by merchants and sellers. The bank has also capped the interchange fees relating to the Visa debit cards, decreased the interchange fees for funds transfers of electronic domestic origin at POS, and has also brought about measures to increase transparency and requirements for disclosure pertaining to fees of merchant services and interchanges.

However, the prepaid category remains unregulated, but still has to adhere to certain legislations such as the Corporations Act of 2001. ePayments code is an exception wherein there is a requirement for the issuers of gift cards to have information about the identity as well as the transaction history of the card holder.

Business and economic drivers are projected to drive the growth of the Australiancards and payments market
There have been significant changes in the business, infrastructural, and economic drivers in the industry of the Australia cards and payments market. The GDP growth per capita and the lesser pressures of inflation are contributing robustly to the market. Government purchase cards, mobile commerce, prepaid cards, and e-commerce are also expected to be substantial drivers. The infrastructural contributors to Australia cards and payments market growth include the insistence of the government on the use of software applications which have been developed by banks for purposes of e-banking and mobiles.

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Market competitiveness and strategies of pricing
In a rapidly developing market such as this, there are substantial pressures of competition. To cope up with the same issuers and banks are in the means of the development of pricing and marketing strategies which have the goal of bringing more customers. Insurance covers, discounts, reward points, and cashbacks, are the some of the major strategies that are being used by banks.

Further, banks are also competing by strategizing via the segmentation of their target customers and existing customers for the maximization of the potential of the expansion of their shares in the market. The Commonwealth Bank of Australia and Westpac have released credit cards which particularly target students of colleges, with ANZ and the Commonwealth Bank establishing a wide array of cards for corporate purposes which have been specifically designed for corporate users. The Commonwealth Bank of Australia is also offering a management card for procuring of the end to end activity, and the offerings from ANZ include payroll cards.

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An overview of the Cards and Payments Market in India

India-Cards-and-Payments-Market

India Cards And Payments Market – By Cards (Debit Cards, Credit Cards, Prepaid Cards), By Payment Terminals (POS And ATM’s), By Payment Instruments (Credit Transfers, Direct Debit, Cheques And Payment Cards) – Transaction Value, Volumes, Historical Trends

India Cards And Payments Market – Transaction Value, Volumes, Historical Trends, Analysis And Forecasts (2017 -2021)

The debit and card transactions has mounted up to 84% increase with the push on cashless payments and POS transactions raised by 86% compared to 2016. ”

— Market Data Forecast

HYDERABAD, TELANGAANA, INDIA, June 18, 2018 /EINPresswire.com/ — The India Cards and Payments Market is expected to have stable growth during the forecast period. There are many new opportunities for both non-banking and banking issuers of cards such as the Diners Club, American Express, and ITZ Cash Cards. The prepaid segment is also set to expand given the positive growth potential seen in online sales, government welfare schemes, and remittances of travelling expenses. The use of prepaid cards by the government to distribute welfare benefits is one of the major factors contributing to the growth of this segment. Further, an increase in the number of customers using prepaid cards for leisure holidays as well as business trips is also augmenting the growth of this segment. In the case of debit cards, expansion in retail sales, bill payments, and entertainment expenses is contributing to the growth of this segment. Offline and online retail, travel expenditures, and entertainment expenses are the factors contributing to the growth of the credit and charge cards category.

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Doing away with cash transactions
More than 40 percent of the population of the country remains unbanked and the payment system of the country is comparatively underdeveloped. The central of the country, RBI has launched initiatives to expand the financial inclusion of the populace by extending banking facilities to unbanked and untapped regions. People without bank accounts have been issued prepaid cards owing to which the prepaid card segment is expected to grow with the highest CAGR during the forecast period.

Specific consumer targeting
The female populace accounts for more than 48 percent of the population of the country which is a significant size of a customer group. The above has attracted banks to start the specific targeting of the female populace by launching customized card offerings. In the case of the developed markets of the world, banks are in the process of capitalizing on the female segment by launching a variety of banking services related to retail. A similar trend is anticipated in India as key banks such as Citibank and HDFC Bank have already issued female centric cards.

RuPay vs MasterCard and Visa
The National Payment Corporation of India had launched RuPay in 2012, which is the domestic card payment network of the country. The platform was established at the request of the central bank with the aim of competing with global network providers such as MasterCard and Visa. Owing to this initiative, key public sector banks such as SBI, Bank of India, Union Bank of India, and Bank of Baroda, have already launched RuPay debit cards in the year 2012 itself. The domestic platform is expected to break the stronghold of MasterCard and Visa on the India Cards and Payments Market, and is also expected to decrease the processing fees charged, as the processing fees of RuPay is 40 percent lesser than the competition. This low rate allows for the encouragement in the acceptance of these cards by retailers.

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Debit Cards transactions to be charged lower at POS
The use of the debit card segment in the cards and payments market of India has been limited to that of cash withdrawals from ATMs instead of transactions at POS. The capping of the MDR for debit card transactions at 0.75% for any transaction below 2000 INR and 1% for transaction exceeding the same amount, is expected to encourage the use of debit cards at POS. Merchants will also be motivated to install POS terminals by installing the necessary infrastructure.

Banks are also projected to utilize marketing for encouraging customers for using debit cards beyond ATMs and at POS terminals for things such as e-commerce transactions.

Prepaid cards segment altered by the entry of non-banking companies
The entrance of non-banking companies into the prepaid card segment is anticipated to augment the growth of the cards and payments market in India. There has been an expansion in the services and products offered in the prepaid cards segment owing to the entry of non-banking companies into this segment. Firms are expected to capitalize on the existing offerings of cards and also incorporate these with the latest technology for tapping a bigger segment of the market.

Travel prepaid cards expected to contribute to market growth
The prepaid travel card segment of the India Cards and Payments Market is expected to grow at a robust CAGR of more than 50% during the forecast period. Substantial corporate demand accounting for more than 80% of the value of travel cards is the major factor contributing to the growth of this segment. Companies are also being aided by travel prepaid cards for exercising control over the expenditure of their employees, as prepaid travel cards help the company to keep track of the expenses made by the employee, particularly during business trips. The increase use of prepaid cards by corporations is set to further expand and consequently drive the growth of both the prepaid cards and travel card segments.

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About Market Data Forecast:
Market Data Forecast is a firm working in the areas of market research, business intelligence and consulting. We have rich experience in research and consulting for various business domains to cater to the needs of both individual and corporate clients. A few key business areas that we handle with excellence include business process improvement, corporate financing and decision making based on market research, assisting in developing appropriate strategy and providing consultancy based on extensive research.

Contact Us:
Abhishek Shukla
Sales Manager
Market Data Forecast
Direct Line: +1-888-702-9626
Mobile: +91 998 555 0206
Mail: abhishek@marketdataforecast.com

Sai Kutumbarao
Market Data Forecast
7680952236
email us here


Source: EIN Presswire