2020 Foresight Report: The Role of the Domestic Payment Card Network
London (PRWEB) December 03, 2013 -- Synopsis
The report provides information and insights into the dynamics of domestic payment card networks globally and their increasing importance in emerging economies:
-Provides insights into sector dynamics including card payment frameworks, a snapshot of domestic card payment networks across the globe, and the competitive landscape in selected developed and emerging economies
-Discusses market potential in key target segments along with operation, technical and regulatory challenges for domestic payment card networks
-Provides insights into key operational, regulatory and infrastructure drivers supporting the case of domestic payment card networks
-Discusses key success factors and strategies adopted by domestic payment card networks with detailed case studies
-Includes insights into the expected strategic response of international payment card networks due to the rise in competition
Summary
International payment card networks such as Visa and MasterCard enjoy the majority of the global market share, enabling them to control pricing in their favor, leading to high transaction and settlement costs for the overall card payment channel. Owing to this, the idea of government backed domestic networks has started to gain momentum in a number of markets. The emergence of government-backed networks is expected to play a crucial role in the redistribution of market share; they are predicted to lower the cost of transactions and help in the growth of card services to a larger market through increased competition. The success of China’s UnionPay and India’s RuPay are expected to fuel the trend further. The ability to provide transaction facilities for up to 40% cheaper than international networks is expected to be the key growth driver for domestic networks, especially in emerging markets. Moreover, International networks have lagged behind in exploiting business opportunities in certain market segments such as micropayments, social benefit programs, and the reliance of the rural population on small financial institutions.
Scope
-This report provides comprehensive analysis of domestic payment card networks on a global scale with the current competitive landscape of different payment card networks and their market share in selected developed and emerging economies
-Includes insights on both established and dominant domestic networks as well as new emerging schemes
-Analyzes key market potentials including target markets, growth drivers and challenges
-Examines key strategies adopted by domestic payment card networks to expand their business and increase revenues in both developed and emerging markets
-Futuristic outlook about expected strategic response from international payment card networks to counter competition from local and national competitors
Reasons To Buy
-Gain insights into key strategies adopted by domestic payment card networks to expand their business operations and increase revenue to streamline your domestic model
-Understand the key drivers of growth and challenges to develop a cost effective strategy for key target markets
-Learn about the current competitive landscape in selected developed and emerging economies for both the credit and debit card categories
-Get data on historical and forecast number of cards in circulation with their transaction value and volume in selected developed and emerging economies
-Gain insights into expected strategic moves by international payment card networks to level the playing field
Key Highlights
-Competition among payment card networks is expected to accelerate over the next five years. This can be attributed to the rise of domestic networks in emerging economies and the opening of economies to international networks, such as in China. The rising competition is expected to have an impact on fees charged by card networks, which are expected to decline from the current levels and will also lead to a redistribution of market share.
-Although international card networks will continue to dominate the overall market over the next five years, domestic networks are expected to gain significant market share, driven by cost advantages and preference by government-aided financial institutions.
-The key target markets of domestic payment card networks include micropayments, small financial institutions and social benefit programs as well as traditional markets. Additionally, domestic networks are expected to increase their focus on smaller, independent stores with rising penetration of innovative technologies such as MPOS devices that support acceptance of card payments with minimal investment.
-The biggest challenge faced by domestic networks is making big enough investments to get the business running, and acquire enough market share to make investment economically sustainable. International networks such as Visa and MasterCard have become synonymous with payment cards in a number of economies which will make it very difficult for a new network to gain cardholder trust.
-At present, well-established and dominant domestic networks focus on defending and expanding their market share through partnerships, marketing campaigns and venturing into niche market segments such as micropayments. On the other hand, newly developed domestic networks are trying to capitalize on their low-cost advantage to tap into a broader market, including rural markets.
1 Executive Summary
2 Global Landscape of Card Payments Channel
2.1 Market Dynamics of Card Payments
2.1.1 Card transaction framework
2.1.2 Global snapshot of domestic networks
2.2 Snapshot of Card Payments Channel and Competitive Landscape
2.2.1 Developed economies
2.2.2 Emerging economies
3 Market Potential and Key Challenges for Domestic Networks
3.1 Key Target Markets
3.1.1 Small scale businesses
3.1.2 Government payments
3.1.3 Traditional markets
3.2 Analysis of Key Drivers
3.2.1 Operational drivers
3.2.2 Regulatory drivers
3.2.3 Infrastructure drivers
3.3 Key Challenges for Domestic Networks
3.3.1 Operational challenges
3.3.2 Technical and regulatory challenges
4 Key Success Factors for Payment Card Networks
4.1 Best Practices for Domestic Networks
4.1.1 Partnerships and collaborations to offer card services in international markets
4.1.2 Focus on small financial institutions to increase market share
4.1.3 Adoption of innovative technology to lower fraud losses and improve net income
4.1.4 Tapping micropayments for growth
4.1.5 Using promotions and cross-selling opportunities to generate higher revenues
4.2 Strategies Adopted by Domestic Networks
4.2.1 Expansion in international markets through partnerships and product launches
4.2.2 RuPay's low cost strategy for extension of card services in the Indian economy
4.2.3 eftpos' focus on micropayments and marketing campaigns to protect market share in Australia
4.2.4 ACCEL/Exchange's focus on low cost advantage and cross-selling opportunities for expansion
4.2.5 Interac's adoption of innovative technology to counter fraud losses
4.3 Changing Strategies of International Networks
4.3.1 Cost and product strategies
4.3.2 Expansion strategies
5 Appendix
5.1 Methodology
5.2 Background
5.3 Contact Timetric
5.4 About Timetric
5.5 Disclaimer
List of Tables
Table 1: Participant Incentives in a Card Transaction Framework
Table 2: Card Market Size in Developed Economies (Million), 2008–2017
Table 3: Card Transaction Value in Developed Economies (US$ Billion), 2008–2017
Table 4: Card Transaction Volume in Developed Economies (Billion), 2008–2017
Table 5: Card Market Size in Emerging Economies (Million), 2008–2017
Table 6: Card Transaction Value in Emerging Economies (US$ Billion), 2008–2017
Table 7: Card Transaction Volume in Emerging Economies (Billion), 2008–2017
Table 8: Access to Banking Facilities in India
Table 9: POS Terminals in Developed Economies (Thousand), 2008–2017
Table 10: POS Terminals in Emerging Economies (Thousand), 2008–2017
Table 11: Number of MPOS Terminals and Penetration, 2011–2017
Table 12: Examples of Financial Institutions Switching to ACCEL/Exchange Network
List of Figures
Figure 1: Two-Party Payment Model
Figure 2: Three-Party Payment Model
Figure 3: Four-Party Payment Model
Figure 4: Domestic Payment Card Networks
Figure 5: Card Market Size in Developed Economies (Million), 2008–2017
Figure 6: Card Transaction Value in Developed Economies (US$ Billion), 2008–2017
Figure 7: Card Transaction Volume in Developed Economies (Billion), 2008–2017
Figure 8: US Debit Cards – Category Share by Scheme (%), 2012
Figure 9: Germany Debit Cards – Category Share by Scheme (%), 2012
Figure 10: Australia Debit Cards – Category Share by Scheme (%), 2012
Figure 11: US Credit Cards – Category Share by Scheme (%), 2012
Figure 12: Canada Credit Cards – Category Share by Scheme (%), 2012
Figure 13: Germany Credit Cards – Category Share by Scheme (%), 2012
Figure 14: Australia Credit Cards – Category Share by Scheme (%), 2012
Figure 15: Japan Credit Cards – Category Share by Scheme (%), 2012
Figure 16: Card Market Size in Emerging Economies (Million), 2008–2017
Figure 17: Card Transaction Value in Emerging Economies (US$ Billion), 2008–2017
Figure 18: Card Transaction Volume in Emerging Economies (Billion), 2008–2017
Figure 19: China Debit Cards – Category Share by Scheme (%), 2012
Figure 20: India Debit Cards – Category Share by Scheme (%), 2012
Figure 21: Malaysia Debit Cards – Category Share by Scheme (%), 2012
Figure 22: Argentina Debit Cards – Category Share by Scheme (%), 2012
Figure 23: Russia Debit Cards – Category Share by Scheme (%), 2012
Figure 24: China Credit Cards – Category Share by Scheme (%), 2012
Figure 25: India Credit Cards – Category Share by Scheme (%), 2012
Figure 26: Malaysia Credit Cards – Category Share by Scheme (%), 2012
Figure 27: Argentina Credit Cards – Category Share by Scheme (%), 2012
Figure 28: Russia Credit Cards – Category Share by Scheme (%), 2012
Figure 29: Dynamics of Target Markets
Figure 30: Dynamics of Key Drivers
Figure 31: Average Exchange Rate Movement Per US$ (%), 2008–2012
Figure 32: POS Terminals in Developed Economies (Thousand), 2008–2017
Figure 33: POS Terminals in Emerging Economies (Thousand), 2008–2017
Figure 34: Global MPOS Terminals (Units in Millions), 2011?2017
Figure 35: Global MPOS Terminal Penetration (%), 2011?2017
Figure 36: Key Success Strategies
Figure 37: UnionPay’s Emergence in International Market
Figure 38: Roadmap for RuPay
Figure 39: RuPay’s Growth Strategies
Figure 40: Card Transactions in Australia on Different Networks, 2012
Figure 41: eftpos Promotion Campaign, ‘I am King’
Figure 42: eftpos Growth Strategies
Figure 43: ACCEL/Exchange Growth Strategies
Figure 44: Fraud Prevention by Interac
Read the full report:
2020 Foresight Report: The Role of the Domestic Payment Card Network
For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: [email protected]
Tel: +44 208 816 85 48
Website: http://www.reportbuyer.com
Sarah Smith, Research Advisor at Reportbuyer.com, +44 208 816 85 48, [email protected]
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