Banks Adopting EMV Technology For Secured Payments.
The global payments industry has witnessed rapid increase in the adoption of Europay, Mastercard and Visa (EMV) technology. This growth is driven by a higher level of data security offered by EMV chip and PIN cards as compared to traditional magnetic stripe cards. EMV is a security standard for various payment cards including debit, credit, charge and prepaid cards. The chip carries data of the cardholder and the account, which is protected using both hardware and software security measures. According to global technical body EMVCo, the number of EMV chip payment cards across the world reached 4.8 billion by the end of 2015. In line with the rest of the world, the adoption rate of EMV chip payment cards has steadily grown across various regions in world, reaching 71.7% in Canada, Latin America and the Caribbean region, 61.2% in Africa and the Middle East region, and 32.7% in Asia-Pacific region
CARDS AND PAYMENTS MARKET TO REACH $498 BILLION BY 2020 ACCORDING TO THE BUSINESS RESEARCH COMPANY.
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The Business Research Company expects the cards and payments market to grow to $498 billion in 2020. The Americas was the largest geographic market in the cards and payments industry in 2016, accounting for more than a half of the global market. This can be attributed to high digital payment penetration in countries such as the USA and Canada.
The figure below shows the year-on-year growth of the global cards and payments market during 2016 – 2020.
According to The Business Research Company’s Financial Consultant, Girish Kavali, another important trend in the market is an increasing focus on security of card payments. The focus on the security of card-based payments has increased significantly across the world. This is mainly to prevent card fraud losses incurred by banks. According to Capgemini, the worldwide value of fraud losses reached $16.3 billion in 2014. In this regard, payment service providers and merchants have implemented various solutions including the Payment Card Industry Data Security Standard (PCI DSS) compliance, EMV technology, 3-D Secure services, tokenization, biometrics and end-to-end encryption. To combat the constantly evolving card fraud methods, the National Retail Federation (NRF) also updates its security guidelines continuously.
Among few global players in the market American Express Company was the largest competitor with the revenues of $22.0 billion from the cards and payments division in the financial year 2015. The growth strategy of the company is to make efficient investments by evaluating the investment opportunities using big data analytics technology. The company also decided to focus more on its prepaid products that will generate incomes that can be directed towards other parts of the business.
The cards and payments market comprises establishments engaged in storing, processing and transmitting payment cards data. This market covers issuing and acquiring banks, card processing and issuing companies, payment processing institutions such as banks, non-banking financial corporations and others. Revenues generated from the cards and payments market include all the processing and services fees levied by the banks and financial institutions for payment processing. This market excludes interest charged by the banks on credit card and other cards.
Some of the companies operate under both the categories. The cards and payments market is broadly classified into the following:
Card Processing Units are the entities primarily involved in processing debit, credit and prepaid card payments between various parties. This includes all institutions involved in card processing such as user bank (individual card user), receiver bank (merchant), payment processing firms, card processing firm and others. These entities charge a fixed fee or a proportion of transactions value as a commission from the clients. Charges include merchant, interchange, card processing, and swiping fees. Clients of the card processing units are merchants or individual accountholders who use these cards.
Payment Service Providers primarily involve in processing money transfer and payments between various accounts. This includes all institutions involved in payment processing such as banks, non-banking financial institutions, and others.
Cards And Payments Global Market Briefing is a detailed report giving a unique insight into this market. The report is priced at $750 for an individual user. To use across your office the price is $1500 and $2000 if you wish to use across a multinational company.
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