Credit Card Processing and Money Transferring in the US Industry Market Research Report Now Available from IBISWorld

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Despite an uncertain economy and decreases in disposable income, the Credit Card Processing and Money Transferring industry has been able to sustain revenue throughout the recession. While the volume of transactions decreased during the recession, the ratio of electronic payments to cash or check methods increased. Nevertheless, the industry's reliance on transaction volumes and the value of noncash payments makes it susceptible to fluctuations in the general economy. Consequently, IBISWorld estimates that industry revenue declined as the recession began in 2008. During the next five years, general economic improvements will drive industry growth. As unemployment falls and consumer confidence improves, demand for products and services will rise, increasing transaction volumes.

IBISWorld Market Research

IBISWorld Market Research

As demand for products and services rises, transaction volumes will increase

Despite an uncertain economy and decreases in disposable income, the Credit Card Processing and Money Transferring industry has been able to sustain revenue throughout the recession. According to IBISWorld industry analyst Eben Jose, “the recession set back industry revenue, but the large-scale implementation and popularity of electronic payment technology has provided the industry with a solid foundation for revenue growth.” The industry mainly generates revenue through data processing and international transactions fees. Therefore, while the volume of transactions decreased during the recession, the ratio of electronic payments to cash or check methods actually increased. As a result, in the five years to 2012, IBISWorld estimates industry revenue will rise at an average annual rate of 0.4% to $46.5 billion.

Nevertheless, the industry's reliance on transaction volumes and the value of noncash payments makes it susceptible to fluctuations in the general economy. Consequently, industry revenue declined as the recession began in 2008. During this period, revenue dipped 0.8% to $45.2 billion as the real estate bubble burst, credit markets tightened and the United States spiraled into a recession. Jose says, “the downward trend worsened in 2009, with revenue falling a further 3.4% because of lower transaction volumes and increased competition among operators.” The top four major companies, American Express Company, Kohlberg Kravis Roberts & Co., Visa USA and MasterCard International, increasingly compete for market share. With the economy beginning to recover, this negative trend will reverse, and revenue is expected to jump 4.9% in 2012.

During the five years to 2017, general economic improvements will drive industry growth. As unemployment falls and consumer confidence improves, demand for products and services will rise, increasing transaction volumes. Businesses are also projected to boost spending, as revenue improves and the economy stabilizes. Consequently, industry revenue is expected to steadily rise throughout the next five years. In addition to revenue growth, profit margins are set to improve, as operators benefit from consolidation and technological advancements that improve processing efficiencies.

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Establishments in this industry primarily engage in financial transaction processing, reserve and liquidity services, and check or other financial instrument clearinghouse services. The industry excludes electronic transactions associated with the US Federal Reserve (central bank).

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
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