BANK OF CEYLON

CORPORATE TRAVELLER

“To further expand our reach, BOC is deploying Android-based POS terminals with QR payment capabilities”

Q: How would you describe the state of Sri Lanka’s payment card sector, based on the most recent data?

A: In Sri Lanka, we use three types of payment cards – debit, credit and prepaid cards. These cards are used to purchase goods and services at merchant outlets (POS transactions), for online purchases (transactions via internet payment gateways or IPGs) and for ATM transactions globally.

There are over 19 million active debit cards and 1.9 million active credit cards, performing more than Rs. 600 billion worth of ATM transactions, and 130 billion rupees’ worth of POS and Rs. 28.5 billion of IPG transactions a month per industry data.

Sri Lanka is rapidly moving towards a cashless payment culture, supported by payment cards among other instruments. Compared to the first quarter of 2023, the total value of ATM transactions increased by 22.6 percent in the first quarter of this year, and the total value of POS and IPG transactions increased by 25.8 percent and 41 percent respectively.

Q: What are the recent developments in the payment card sector – and what are the key challenges it faces today?

A: The developments in the payment card sector include demand for contactless, virtual and wearable cards, and various types of prepaid cards such as travel, fuel and minor cards.

Key challenges facing the sector include the substantial costs of systems infrastructure, system maintenance, payments for card schemes and providing cybersecurity. Fast growing alternative payment channels will be a major challenge for the payment card sector in the future.

Q: And what are the primary benefits for consumers in using debit, credit and prepaid cards?

A: Debit cards offer secure, real-time access to the funds in a cardholder’s account while credit cards offer online access to a prearranged credit facility. Using debit cards, cardholders can withdraw or deposit cash, or make fund transfers or bill payments without visiting a bank branch.

Both debit and credit card holders can pay for daily purchases at merchant outlets and online orders globally. Debit and credit cards issued in Sri Lanka are globally accepted, and cardholders can use these cards at ATMs and pay merchants around the globe.

Credit cards provide flexible expense management, interest free repayment periods, rewards such as reward points, cashback incentives, travel insurance and exclusive deals catering to both everyday and luxury spending.

A prepaid card is a store value card (SVC) that can be used as an alternative to cash. These cards can be used as general spending cards for various purposes. Spending cards for minors can be used for purchases at specific stores such as bookshops; fuel cards can be used at fuel stations; and multi-currency travel cards can be used as spending cards for overseas travel. Prepaid cards are generally reloadable and can be reloaded online by the main account holder.

Q: How does the Bank of Ceylon (BOC) differentiate its debit and credit card offerings to meet the needs of different customer segments?

A: We differentiate our debit and credit card offerings through a segmented, customer-centric approach. For example, BOC debit cards cater to various demographics including women (Kantha Ran Ginum card) and youth (18+ and 14+ cards). BOC possesses the largest debit card base in Sri Lanka, offering advanced security features like NFC (near field communication) and EMV (Europay, Mastercard and Visa) chip technology, and OTP (one time password) authentication for secure online transactions.

BOC offers a range of Visa and Mastercard credit cards – from Classic to Master World – along with affinity cards for specific groups such as doctors, chartered accountants, prime customers and state sector employees. The State Sector Card was introduced to provide needed financial assistance to this segment as recognition of their valuable service to the country.

BOC also supports customers with ‘buy now, pay later’ schemes and easy settlement plans for credit card holders. The ‘apply online’ facility on the BOC website makes applying for a credit card more convenient.

Q: Can you provide an overview of BOC’s market share and standing within Sri Lanka’s payment card sector?

A: Bank of Ceylon is positioned as the No. 1 player in Sri Lanka’s payment card sector with over five million active debit, credit, Fuel and Multi Currency Travel cards. BOC cardholders process over 300 billion rupees’ worth of ATM transactions, and Rs. 20 billion of POS and e-commerce transactions a month. This is over 48 percent of overall ATM transactions, and 12 percent of all POS and e-commerce transactions in the country.

Q: How extensive is BOC’s payment card acceptance network and what initiatives are in place to expand this?

A: We have deployed different channels to accept transactions from payment cards. Our ATM network is the largest deployed by a single institution in Sri Lanka. These ATMs facilitate cash withdrawals and deposits, and fund transfers and bill payments using payment cards.

BOC’s POS service facilitates accepting customer payments through payment cards at merchant outlets such as supermarkets, grocery stores, hotels, restaurants, textile shops and more in Sri Lanka and the Maldives.

Moreover, BOC’s IPG service is used by leading e-commerce providers in the country including online stores, airlines, and hotels and restaurants, enabling them to accept customer payments through payment cards.

To further expand our reach, BOC is deploying Android-based POS terminals with QR payment capabilities, aimed at driving digital payment adoption in both urban and rural areas – particularly among SMEs. The bank is in the process of expanding its acquiring network in Sri Lanka and the Maldives.

Q: Is BOC working with merchants – particularly SMEs – to increase the acceptance of card payments?

A: BOC promotes card payment adoption among SMEs with affordable, tailored POS solutions and comprehensive merchant training. The BOC Connect agent banking service provides opportunities for SME merchants to become BOC agents and perform customer transactions via payment cards.

To encourage the adoption of cards, BOC offers seasonal promotions, reduced transaction fees and cashback incentives. By engaging SMEs, BOC supports the broader shift to a cashless economy.

Our extensive network of ATMs, POS terminals, IPG service and BOC Connect across Sri Lanka ensures 24/7 convenient service for payment card holders.

– Compiled by Indrajit Lankeshwara

---

Telephone 2205001/2204711 | Email dgmpdb@boc.lk | Website www.boc.lk