Future Trends in Cards and Payments

Content

• Executive summary
  • Consumer payment tools
  • Key issues in payment cards
  • Competition in the cards market
  • The future of cards and payments
• Chapter 1 Consumer payment tools
  • Summary
  • Introduction
  • Overview
  • The cards and payments landscape
  • Cashless payments are moving away from cheques and credit transfers
  • Cards are gaining ground in all countries
  • Payment cards
  • Overview
  • Classification of payment cards
  • Key players and transaction processes
  • Some issuers work on a closed loop basis
  • The role of Payment Service Providers
  • Growth of payment cards in Europe
  • Greece and Turkey are outgrowing the rest of Europe
  • High number of cards per person in the US results in low usage figures per card
  • Card usage is strongest in the Nordic region
  • Pay now cards dominate in more than half of Europe
  • Pay now cards
  • Germany and the UK hold 50% of European pay now cards
  • Germany tops the league in terms of pay now card penetration
  • In Belgium and the US, the number of transactions per pay now card has more than doubled since 1999
  • Consumers in some European countries show an increasing readiness to pay by debit card
  • Pay later cards
  • The European pay later cards market is still tiny compared to the US
  • The UK is by far the biggest pay later cards market in Europe
  • Pay later card penetration in Europe is generally still low
  • Finland has the highest number of transactions per pay later card
  • The European average value of transactions for pay later cards lies below the US average
• Chapter 2 Key issues in payment cards
  • Summary
  • Introduction
  • Card fraud
  • Types of card fraud
  • Card-not-present fraud (CNP)
  • Counterfeit fraud
  • Lost and stolen card fraud
  • Mail non-receipt fraud
  • Fraud following identity theft
  • Cross-border fraud
  • Fraud at cash machines
  • Prevalent fraud types
  • Combating card fraud - EMV is expected to reduce counterfeit fraud
  • Migration to EMV in Europe
  • Migration to EMV in the US
  • Combating other types of card fraud
  • 3-D Secure to curb card-not-present fraud online
  • Preventing identity theft fraud
  • Information-based anti-fraud solutions are critical
  • Sharing fraud-related information and educating players
  • Growth strategies in payment cards
  • Pay now card issuers benefit from greater POS usage
  • Do loyalty programs provide the answer?
  • Pay later cards
  • Converting cash acquisition to POS transactions
  • Expanding into other areas of payments
  • Boost revolving balances rather than total transaction volumes
• Chapter 3 Competition in the cards market
  • Summary
  • Introduction
  • Competition in the pay now card segment
  • Maestro dominates the pay now segment
  • Market concentration on issuance
  • Competition in the pay later card segment
  • Across Europe, Visa has a market share of more than 50%
  • Concentration of pay later card issuance
• Chapter 4 The future of cards and payments
  • Summary
  • Introduction
  • Outlook for the pay later card segment
  • High growth in the number of pay later cards in Turkey
  • Turkey - the third largest pay later card market in Europe by 2008
  • Pay later card use in Finland is set to increase even further
  • Changes in average transaction value
  • Data tables
  • Glossary
  • Index
• List of Figures
  • Figure 1: The use of cashless payment instruments, 1999-2002
  • Figure 2: Consumer cards by way of bill settlement
  • Figure 3: Payment card transaction processes and flows
  • Figure 4: Total number of cards in Europe and the US, 1999-2003
  • Figure 5: Payment cards issued in Europe, 2003
  • Figure 6: Card penetration in Europe is still low, but most countries show solid growth in the number of payment cards, 2003
  • Figure 7: Average number and value of transactions per payment card in Europe and the US, 1999-2003
  • Figure 8: Transactions per card by country, 1999-2003
  • Figure 9: Growth in average card usage in Europe and the US, 1999 - 2003
  • Figure 10: Pay now and pay later cards by country, 2003
  • Figure 11: Card usage is much higher for pay now than for pay later cards, 2003
  • Figure 12: The dominance of the two largest markets for pay now cards in Europe, 1999-2003
  • Figure 13: Pay now card penetration in Europe and the US, 2003
  • Figure 14: Debit card transactions in Europe and the US, 2003
  • Figure 15: Average transaction values for pay now cards, 2003
  • Figure 16: The number of pay later cards in Europe and the US, 1999-2003
  • Figure 17: The UK has a share of 31% of pay later cards in Europe, 1999-2003
  • Figure 18: Pay later card penetration in Europe, 2003
  • Figure 19: Use of pay later cards in Europe and the US, 2003
  • Figure 20: Average value of transactions for pay later cards, 2003
  • Figure 21: Types of fraud and losses to fraud in Europe and the US, 2003
  • Figure 22: Pay now cards in Europe by scheme, 2003
  • Figure 23: Combined market shares of the Top 3 pay now card issuers in each country, 2003
  • Figure 24: Market shares of pay later cards by schemes, 2003
  • Figure 25: Combined market shares of the Top 3 Pay Later card issuers in each country, 2003
  • Figure 26: Increase of the number of pay later cards, 2004e-2008f
  • Figure 27: Pay later cards per person in Europe, 2008f
  • Figure 28: Transactions per pay later card in Europe, 2008f
  • Figure 29: Average transaction value for pay later cards in Europe, 2008f
• List of Tables
  • Table 1: Average transaction values in Europe, 1999-2003
  • Table 2: Issuer shares in the European pay now card markets, 2003
  • Table 3: Issuer shares in the European pay later card markets, 2003
  • Table 4: Cashless payment tools in Europe and the US, 1999-2002
  • Table 5: Number of payment cards in Europe and the US, 1999-2003
  • Table 6: Payment cards per person in Europe and the US, 1999-2003
  • Table 7: Average number of transaction for payment cards in Europe and the US, 1999-
  • Table 8: Number of pay now cards in Europe and the US, 1999-2003
  • Table 9: Number of pay now cards per person in Europe and the US, 1999-2003
  • Table 10: Number of transactions per pay now card in Europe and the US, 1999-2003
  • Table 11: Average value of pay now card transactions in Europe and the US, 1999-2003
  • Table 12: Number of pay later cards in Europe and the US, 1999-2003
  • Table 13: Number of pay later cards per person in Europe and the US, 1999-2003
  • Table 14: Average value of pay later card transactions in Europe and the US, 1999-2003
  • Table 15: Number of transactions per pay later card in Europe and the US, 1999-2003