Garanti Payment Systems

GPS will continue to provide services in the areas of chip-based multi - or joint-brand card programmes, commercial cards, virtual cards, marketing of businesses and e-commerce.

Setting trends in the industry with its projects, GPS is constantly enhancing its products and services. Resourceful and visionary, GPS has a marketing-focused team and is a leader in innovation and a pioneer in many areas both in Turkey and on international platforms.

Garanti has largest range of products in Turkey as a consequence of its endeavour to cater to diverse needs through the most appropriate product. With its 7.5 million cards, consisting of Bonus, Flexi, Shop&Miles, Shop&Miles&club, Privé, American Express and commercial credit cards, Garanti is the bank offering the highest number of plastic cards in the country. When virtual cards and bank cards are included in the total, Garanti manages a portfolio of over 12 million cards.

GPS attributes great importance to customer analysis in order to be able to manage its portfolio and revenue in the best manner possible and carries out exemplary and leading edge work in the area of CRM on Risk Measurement and customer profitability thanks to an astute use of technology.

GPS completed 2008 as the leader in the following areas: the number of plastic cards, the number of POS, international issuing volume, domestic and international acquiring volume, international and domestic shopping retail volume, international and domestic debit card shopping retail volume. GPS also has the only network of businesses in Turkey that accept VISA, MasterCard, JCB, American Express, CUP and Diners cards.

GPS provides businesses with services such as POSmatik, Easy Cash Desk, Point of Payment, and Point of Application for Cards. It meets all of the needs of businesses, without fail, in the area of payments and offers special payments services, such as dial-up POS, ADSL POS, Mobile POS and Virtual POS, while providing e-commerce services and e-retail services over garantialisveris.com.

Activities in 2008

• With an issuing market share of 21.1%, Garanti increased its number of credit cards at the highest rate, reaching 7.5 million cards, thus achieving a growth rate of 15.4% relative to the previous year and 622% over the last 8 years. Of immense importance in creating non-interest revenue, credit cards accounted for 54% of the Bank’s commission fees.
• The products of GPS continued to grow across the board, in terms of number of users, transaction volume, number of merchant, and number of POS. Providing services through a total of 327,005 POS terminals and with 278,253 merchants, GPS sustains its position of market leader with a market share of 22.3% in acquiring volume and 22.8 % in retail volume. GPS grew by 17% in its number of POS, relative to the previous year, and increased its acquiring volume by 26%, thus reaching a turnover of YTL 38.3 billion.
• Having introduced the concept of card platform to Turkey in 2002, under an agreement conducted with DenizBank initially and at a later stage, with TEB, Şekerbank and, in 2008, ING Bank, GPS enlarged this platform and the Bonus Card Platform finished the year as market leader with a share of 27.12% in terms of turnover.
• Thanks to innovative projects, GPS grew at a rate of 62.7% in debit cards retail volume and reached TRY 170 of spending per card. With its retail volume that stands at 3 times the total market, it has a market share of 23.5 %.
• Having issued 2 new cards, Ekin Card and Corporate Travel Card, GPS has made it possible for Garanti to offer the highest number of choices to the market with a total of 8 commercial products. On the basis of its rich product range, GPS provides the best and most appropriate services to firms of diverse character and, in 2008, increased its number of cards by 18% and its volume by 45%.. The growth rate, attained in the number of member businesses carrying out e-commerce, rose by 17%.

Garanti issued Shop&Miles, the official credit card of Turkish Airlines (THY), in 2000. The agreement with THY was renewed for a second time in 2008, for a period of 3 years. The first and most popular credit card in Turkey with a flight mileage program, the Shop&Miles group has now approached the 400,000 card mark.

By purchasing the exclusive right to issue and market American Express products in Turkey in 2006, GPS further consolidated its presence in the affluent cards category, first achieved through Shop&Miles. Following the issuance of Bonus Platinum Card, bearing the American Express logo, American Express grew at a rate of 572 % in the number of cards and 693% in volume relative to the previous year.

For GPS, customer satisfaction has always been a priority. In 2008, the company attained a 20% rate of response in its campaigns customised for more than 4 million card holders and raised its card activation to 83 %.

Future Plans

One of our main objectives at GPS is the most efficient management of all phases of the credit card process, including applications, limits and collection, with the purpose of minimising the bad debts bound to arise from rising unemployment as a result of the world economic crisis. GPS will continue its war against cash in 2009, sustaining its emphasis on contact less payments in order to come into contact with large audiences, and reaching out to persons who cannot obtain credit cards, starting with housewives and students, through bank cards.