The US card payments channel registered marginal growth during the period 2008-2012. The nation’s positive economic outlook, need for more sophisticated prepaid and charge card products, popularity of online and mobile shopping, and an increase in per capita income supported the growth.
During this period, the channel’s market size increased at a CAGR of 1.79% in volume terms to reach 1.5 billion cards in circulation in 2012 In value terms, the channel valued US$4.9 trillion in 2012. The US card payments channel grew both in volume and value terms during the review period. In terms of transaction volume, the channel grew at a review-period CAGR of 1.79% from 1.4 billion transactions in 2008 to 1.5 billion in 2012.
It is anticipated that this volume will grow at a CAGR of 2.68% over the forecast period (2013-2017), to reach 1.8 billion transactions in 2017. In terms of value, the channel increased from US$4.1 trillion in 2008 to US$4.9 trillion in 2012, at a review-period CAGR of 4.40%. The channel is forecast to grow from US$5.2 trillion in 2013 to US$6.1 trillion in 2017 at a forecast-period CAGR of 4.15%. Growth is expected to be driven by more stable economic conditions, an increase in disposable income and the popularity of mobile commerce and online retail.
Research & Markets has released a new report entitled “The US Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape.” The report provides market analysis, information and insights into the US cards and payments industry, including:
- Current and forecast values for each category of the US cards and payments industry including debit cards, credit cards, prepaid cards and charge cards.
- Comprehensive analysis of the industry’s market attractiveness and future growth areas.
- Analysis of various market drivers and regulations governing the US cards and payments industry.
- Detailed analysis of the marketing strategies adopted for selling debit, credit, charge and prepaid cards used by various bankers and other institutions in the market.
- Comprehensive analysis of consumer attitudes and their buying preferences for cards.
- Competitive landscape of the US cards and payments industry.
- This report provides a comprehensive analysis of the US cards and payments industry.
- – It provides current values for the US cards and payments industry for 2012 and forecast figures for 2017.
- It details the different macroeconomic, infrastructural and business drivers affecting the US cards and payments industry.
- It outlines the current regulatory framework in the industry.
- It details the marketing strategies used by various bankers and other institutions.
- It profiles the major banks in the US cards and payments industry.
The report enables executives to:
- Make strategic business decisions using historic and forecast market data related to the US cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities within the US cards and payments industry.
- Assess the competitive dynamics in the US cards and payments industry.
- Gain insights into the marketing strategies used for selling various types of cards in the US.
- Gain insights into key regulations governing the US cards and payments industry.
In terms of transaction volume, the card payments channel grew at a review-period CAGR of 1.79% from 1.4 billion transactions in 2008 to 1.5 billion in 2012. It is anticipated that this volume will grow at a CAGR of 2.68% over the forecast period (2013–2017), to reach 1.8 billion transactions in 2017.
- In the US, contactless-enabled NFC technology has been adopted by banks and retailers. As contactless cards become more widely accepted, progression has been noted in the industry. The total number of contactless cards in the channel increased from 58,626 in 2008 to 139,452 in 2012, at a review-period CAGR of 24.19%. This trend is expected to continue over the forecast period to reach 205,601 cards in 2017.
- In July 2012, the Federal Reserve announced amendments in the provisions of Regulation II (Debit Card Interchange Fees and Routing), which permits a debit card issuer to receive a fraud-prevention adjustment, subject to interchange fee standards. This is expected to force banks to cap the daily limits for debit card transactions. Consequently, Visa, MasterCard, Discover and several other card issuers have lowered their interchange fees.
- Banks and card issuers in the US are increasingly targeting niche customer segments to offer differentiated products and services. Citibank targets students through its Citi Forward Card. The card enables customers to make international purchases with no annual fees. The cardholder earns five ‘Thank You points’ for every US$1 spent at restaurants, bookstores or on entertainment. Similarly, Bank of America offers student credit cards with low interest rates and no annual fees.
More information or to purchase the report: The US Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape