Global Payment Card Standards: EMV, PBOC 2.0, and Alternative Solutions Image

Global Payment Card Standards: EMV, PBOC 2.0, and Alternative Solutions

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Once the dominant solution, domestic payment networks are largely fading; being overrun by international payment networks such as Visa and MasterCard. International networks have strong partnerships with banks and financial institutions where they are able to offer more appealing terms, meaning the deployment of international branded cards are often favored. Some notable emerging markets are now attempting to reverse this with the establishment of new domestic networks and the issuance of domestic branded cards. The re-establishment of domestic networks is being driven by countries wanting to retain revenues generated by card transactions locally, whilst trying to limit Visa and MasterCard’s hold over the market, which in some instances they monopolize.

Domestic cards and networks are not the only potential threat to international networks. The mobile mPOS market is a relatively new area, providing a platform of potential future disruption to international network business. Primarily mPOS solutions are targeted at small business, enabling affordable digital payment acceptance for a set percentage fee per transactions. There are no on-going maintenance costs, which appeals to this market niche. Although mPOS is not considered an imminent threat the potential is there. Should mPOS providers move into the payments space then they will have the ability to provide both payment and acceptance capabilities, increasing the likelihood of locking out established international networks.

This report will address the growing trend in alternative payment adoption, providing ABI Research’s view of both the current and future payment network market space.

Table of Contents

Table of Contents

  • 1. NEW DOMESTIC PAYMENT NETWORKS EMERGING, PROVIDING COMPETITION FOR WELL-ESTABLISHED INTERNATIONAL NETWORKS
    • 1.1. Introduction
    • 1.2. Current and Future Market Expectations
    • 1.3. Market Summary
  • 2. PBOC 2.0 AND RUPAY LEADING THE WAY, BUT INTERNATIONAL NETWORKS WILL NOT GO WITHOUT A FIGHT
    • 2.1. Data Definitions
      • 2.1.1. Payment and Banking Cards
      • 2.1.2. Mag-stripe Cards
      • 2.1.3. EMV
      • 2.1.4. PBOC 2.0
      • 2.1.5. RuPay
      • 2.1.6. Branded Cards
      • 2.1.7. Other Card Shipments, Domestic and Non-domestic
    • 2.2. Main Standards behind the Networks
      • 2.2.1. EMV
      • 2.2.2. EMV Market Summary
      • 2.2.3. RuPay Standard
      • 2.2.4. RuPay Market Summary
      • 2.2.5. PBOC 2.0 Standard
      • 2.2.6. PBOC 2.0 Market Summary
    • 2.3. New Domestic Network Card Expectations
    • 2.4. Is mPOS Disruptive to International Networks?
    • 2.5. NETS in Singapore, an Example of How the Battle between Domestic and International Networks Can Play Out
  • 3. DESPITE EMERGING DOMESTIC NETWORKS AND DISRUPTIVE SOLUTIONS, INTERNATIONAL PLAYERS WILL CONTINUE GROWTH AND MAINTAIN MARKET POSITIONS
    • 3.1. The Major Network Players
      • 3.1.1. MasterCard Summary
      • 3.1.2. MasterCard Outlook
      • 3.1.3. Visa Summary
      • 3.1.4. Visa Outlook
      • 3.1.5. American Express Summary
      • 3.1.6. American Express Outlook
      • 3.1.7. Discover Summary
      • 3.1.8. Discover Outlook
      • 3.1.9. JCB Summary
      • 3.1.10. JCB Outlook
      • 3.1.11. CUP Summary
      • 3.1.12. CUP Outlook
    • 3.2. Other Disruptive Payment Solutions Affecting the Current Status Quo
      • 3.2.1. Alipay Summary
      • 3.2.2. Alipay Overview
      • 3.2.3. PayPal and PayPal Here Summary
      • 3.2.4. PayPal and PayPal Here Overview
    • 3.3. PayPal Here Is Not Alone
    • 3.4. Ways International Networks Can Maintain a Strong Position in Markets with New Emerging Domestic Networks
    • 3.5. Ways Domestic Networks Can Succeed against Already Established Players
    • 3.6. Barriers Remain for Domestic Networks
    • 3.7. Domestic Networks More Likely to Succeed Where Card Payments Is Still a Growth Market
    • 3.8. Businesses with Three-party Systems Threaten Traditional Networks

Tables

  1. POS Terminal Mobile Handset Add-on Annual Shipments by Region, World Market, Forecast: 2012 to 2017
  2. India's Smart Payment Cards Market, Forecast: 2013 to 2018
  3. China's Smart Payment Cards Market, Forecast: 2013 to 2018
  4. International Branded Cards Vs Domestic Branded Cards, World Market Forecast: 2013 to 2018
  5. POS Terminal Mobile Handset Add-on Annual Shipments by Region, World Market, Forecast: 2012 to 2017

Charts

  1. Total Payment Cards In Circulation by Type, World Market Forecast: 2013 to 2018