0 11 min 2 yrs

Get insights on the changing trends and key issues within the Cards and Payment Industry, values and volumes for a number of key performance indicators, including credit transfers, direct debits, payment cards and check payments. Overview of key alternative payment instruments, Analysis of various market drivers and regulations governing cards and payments industry, analysis of consumer attitudes and buying preferences and competitive landscape. On the basis of product categories within the market such as Financial, Debit, Credit, Digital Wallets, EMV, Prepaid cards.

With more than 90% of payments being made through cash, the cash payment dominated the payment industry few years back. Now the “just digital” bots model is fast injecting change vaccines to mutate consumer preferences and with introduction of card / app only payments encouraging economic surveillance policies by government and banks, the scenario is getting murkier with the share of cash transactions (in terms of overall card payments channel) decreasing, while the share of card and online transactions increasing. Various macroeconomic, demographic, economic, infrastructural and business elements have played a role in it. Govt also conducting schemes like Mudra, Startup, Standup, Rupay, bla bla and lifting the cap on corporate digital investments making the market more efficient and grow crazy in both volume and value terms.

With increase in number of domestic as well as foreign players in the market, technology has become a tool in hands of market players to survive invincible competition and grow. Banks are launching and hard-pushing mobile based shadow financial service apps and also up taking point of sale (POS, Paytm, Gpay bla bla..) solutions among small and medium-sized enterprises (SMEs).

Introduction of mobile POS solutions is forcing SMEs to accept card-based payments, further driving payment card transaction volumes and values. Banks have hugely shifted focus on security and utility of cards and bots by using EMV chips and integrating multi-utility into a card like NFC technology, RFID Tracking and QR code-based payment services. Card issuers have been concentrating on attaining customer loyalty / slavery, promoting some “just digital models”. Many are collaborating with merchants across various sectors to provide their clients with loyalty or co-branded cards / apps.

Global Card & Payment Industry

Over the years, the Cards and Payments Industry has evolved and has shown significant and steady growth both in terms of volume and value of transactions, mostly because of the strong growth in developing economies such as Latin America and Asia. In emerging markets, due to the growth of the middle class and expanded consumer purchases provides for vast untapped pools for payments companies, particularly involving mobile money applications, because cellular penetration in these regions tends to be high. In more established economic zones, however, like North America, the landscape is more challenging than in the developing world due to new capitalization restrictions and increased regulation.

Some prominent trends in Cards & Payments Industry include:

  • Emerging having higher growth rates than mature economies.
  • Rising competition in the market affecting profit margin of the players.
  • Mobile wallets converting consumers’ phones into smart card.

Challenges in the form of increasing amount of both online and offline fraud, including the creation of fake mobile apps (on Google Android Play, iOS, Windows Phone etc..) as well as increased competition leading to decline in profit margins resulting in looters getting hyper.

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