The largest international financial card networks have successfully maintained a leading position in consumer payments through innovation and extensive merchant acceptance. The COVID-19 pandemic accelerated the existing shift of consumer payments from cash to card and electronic alternatives globally. Fintech companies have become integrated into the payment process in most markets by providing additional value, security and convenience in consumer payments, and access to financial services.
This report comes in PPT.
Expanding access to financial products and services is the most obvious means for networks to grow card payment value over the forecast period. Fintech has made progress in many emerging markets by increasing access to financial products and services by reaching consumers where they are. Networks need to continue to partner with these companies to remain an integral part of the non-paper payment ecosystem. Developing tools to shift the underserved to being fully banked is a key area where networks can make a significant impact over the next five years.
The next big opportunity for payment networks will be converting the substantial B2B cheque and cash payment value. Making the value proposition to merchants will be most effective if tailored to their industry and their scale of operations. For all platforms, increasing the value of the transaction will depend on leveraging the data created from repeated card payments and a thorough understanding of customers. Investing in developing the most attractive platform for merchants will be costly in the short term but will deliver significant long-term payment value growth.
Merchants need to make their products and services available across a range of platforms that are secure and convenient for their customers. Maintaining the highest security standards while more commerce moves online is essential for card networks to gain payment share going forward. The digital threats have increased faster than adoption of preventative measures, illustrated by the continued growth of the portion of card payment value that is lost to fraud globally. Working together could be the best way for networks to implement effective security.
Financial card networks have moved on from only processing payments. While it is a core service, there are several other layers where they can add value to issuing partners, merchants and consumers. The card network that provides the most complete platform will gain the most traction over the forecast period. Whether this is developed internally or through partnerships is less important. Consumer and merchant expectations have risen for digital payment partners, and how well the networks will adapt will determine who gains share.
This is the aggregation of ATM, charge, credit, debit, e-purse and retail cards. Note that smart cards are not included in financial cards.
See All of Our DefinitionsIf you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!