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Emerging Opportunities in the US Cards and Payments Industry: Market Size, Trends and Drivers, Strategies, Products and Competitive Landscape

Published By :

Timetric

Published Date : Nov 2012

Category :

Banking

No. of Pages : 100 Pages

Synopsis

The report provides market analysis, information and insights into the US cards and payments market, including:

  • Current and forecast values for each segment of the US cards and payment market including debit cards, credit cards, prepaid cards and charge cards
  • Comprehensive analysis of the industrys market attractiveness and future growth areas
  • Analysis of various market drivers and regulations governing the US cards and payment market
  • Detailed analysis of the marketing strategies adopted for selling 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 market
Summary

The US cards and payments market registered marginal growth during the review period (20072011). Combined card volume recorded a growth rate of 4.62% in 2011 over figures from 2010. The positive economic outlook, the need for more sophisticated products in terms of prepaid and charge cards, the growth of online and mobile shopping and increasing levels of per capita income supported the overall growth of the US cards and payments market. During the review period, the market size of the cards and payments industry in terms of volume increased at a CAGR of 1.35% to reach 1.5 billion cards in 2011. In value terms, the US cards and payments market valued US$4.8 trillion in 2011.

Scope

  • This report provides a comprehensive analysis of the US cards and payments market
  • It provides current values for the US cards and payments market for 2011 and forecast figures for 2016
  • It details the different macroeconomic, infrastructural, consumer 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 market
Reasons To Buy

  • Make strategic business decisions using historic and forecast market data related to the US cards and payments market and each market within it
  • Understand the key market trends and growth opportunities within the US cards and payments market
  • Assess the competitive dynamics in the US cards and payments market
  • Gain insights into the marketing strategies used for selling various types of cards in the US market
  • Gain insights into key regulations governing the US cards and payment market
Key Highlights

  • The US market for cards and payments grew both in volume and value terms during the review period. In terms of transaction volume, the card payment market grew at a CAGR of 8.87% during the review period from 51.6 billion transactions in 2007 to 72.4 billion in 2011.
  • In terms of card volume, debit cards remained the largest card market with a market share of 39.1% followed by credit cards with a market share of 33.6%. 
  • The US mobile commerce sector has seen tremendous growth in the last few years, especially in 2011, when the sector recorded annual growth of over 90%, reaching US$6.7 billion compared to US$3.5 billion in 2010.
  • The US cards and payments industry experienced an increase in online fraud, with fraudsters using various techniques to gain unauthorized access to card accounts.
  • In July 2012, the Federal Reserve announced amendments in the provisions of Regulation II (Debit Card Interchange Fees and Routing), that allows a debit card issuer, subject to interchange fee standards, to receive a fraud-prevention adjustment.
Table of Content

1 Executive Summary

2 Market Attractiveness and Future Prospects for the Cards and Payments Market

3 Analysis of the US Cards and Payments Market Drivers
3.1 Infrastructure Drivers
3.1.1 Increasing acceptance of EMV Cards
3.1.2 Emergence of contactless payments
3.1.3 Adoption of near-field communication (NFC)
3.1.4 Availability of technically advanced security measures
3.1.5 Other infrastructure drivers
3.2 Business Drivers
3.2.1 Mobile commerce
3.2.2 Procurement cards
3.2.3 Other business drivers
3.3 Other Market Drivers for the US Cards and Payments Market
3.3.1 Gross domestic product (GDP)
3.3.2 Positive job market data
3.3.3 Per capita annual disposable income
3.3.4 Urban vs rural populations
3.3.5 Lifestyle and spending habits
3.3.6 Consumer confidence index
3.4 Card Fraud Statistics
3.4.1 By channel
3.5 Regulatory Framework
3.5.1 Security regulations and guidelines for credit and debit cards
3.5.2 Other security measures

4 Emerging Consumer Attitudes and Trends
4.1 Market Segmentation and Targeting
4.1.1 Retail segment
4.1.2 Corporate customers
4.2 Consumer Preference
4.2.1 Price
4.2.2 Services
4.2.3 Convenience

5 Competitive Landscape and Industry Dynamics
5.1 Market Share Analysis by Payment Channels
5.1.1 Overview of payment channels
5.1.2 Checks
5.1.3 Credit transfer
5.1.4 Cash
5.1.5 Direct debit
5.1.6 Cards
5.2 Debit Cards Market Share
5.2.1 By bank
5.2.2 By scheme
5.3 Prepaid Cards Category Share
5.3.1 Open-loop cards
5.4 Credit Cards Category Share
5.4.1 By bank
5.4.2 By scheme

6 Strategies Adopted by Key Operators
6.1 Market Entry Strategies
6.2 Marketing and Product Strategies
6.2.1 Debit cards
6.2.2 Credit cards
6.2.3 Prepaid cards
6.3 Pricing Strategies

7 Market Size and Growth Potential of the Payment Cards Market
7.1 Market Share Analysis by Type of Card
7.2 Total Market Size and Forecast of Card Industry
7.2.1 Analysis by number of cards
7.2.2 Analysis by transaction value
7.2.3 Analysis by transaction volume
7.3 Credit Card Market Size and Forecast
7.3.1 Analysis by number of cards
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.3.4 Other key performance indicators
7.4 Debit Card Market Size and Forecast
7.4.1 Analysis by number of cards
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.4.4 Other key performance indicators
7.5 Prepaid Card Market Size and Forecast
7.5.1 Analysis by number of cards
7.5.2 Analysis by segments open loop cards and closed loop cards
7.5.3 Analysis by transaction value
7.6 Charge Card Market Size and Forecast
7.6.1 Analysis by number of cards
7.6.2 Analysis by transaction value
7.6.3 Analysis by transaction volume

8 Profile of Key Operators, Products and Strategies
8.1 Bank of America Corporation
8.1.1 Strategies
8.1.2 Credit cards offered
8.1.3 Prepaid cards offered
8.1.4 Charge cards offered
8.1.5 Financial performance
8.2 JPMorgan Chase
8.2.1 Strategies
8.2.2 Prepaid cards offered
8.2.3 Charge cards offered
8.2.4 Financial performance
8.3 PNC Bank
8.3.1 Strategies
8.3.2 Prepaid cards offered
8.3.3 Financial performance
8.4 Wells Fargo
8.4.1 Strategies
8.4.2 Financial performance
8.5 American Express Company
8.5.1 Strategies

9 Appendix
9.1 Methodology
9.2 Definitions
9.3 Contact Us
9.4 About Timetric
9.4.1 Our Approach
9.4.2 Services
9.5 Disclaimer

List of Table


Table 1: United States Card Industry by Type of Cards (Thousands), 20072016
Table 2: United States Card Industry Market Size by Volume (Thousands), 20072016
Table 3: United States Card Industry Market Size by Transaction Value (US$ Million), 20072016
Table 4: United States Card Industry Market Size by Transaction Volume (Million), 20072016
Table 5: United States Credit Card Industry Market Size by Volume (Thousands), 20072016
Table 6: United States Credit Card Industry Market Size by Transaction Value (US$ Million), 20072016
Table 7: United States Credit Card Industry Market Size by Transaction Volume (Million), 20072016
Table 8: United States Credit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 20072016
Table 9: United States Credit Card Industry Market Size by Average Transaction Value (US$), 20072016
Table 10: United States Debit Card Industry Market Size (Thousands), 20072016
Table 11: United States Debit Card Industry Market Size (US$ Million), 20072016
Table 12: United States Debit Card Industry Market Size by Transaction Volume (Million), 20072016
Table 13: Unites States Debit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 20072016
Table 14: United States Prepaid Card Industry Market Size ( Thousands), 20072016
Table 15: United States Open Loop Prepaid Card Industry Market Size (Thousands), 20072016
Table 16: United States Closed Loop Prepaid Card Industry Market Size (Thousands), 2007 2016
Table 17: United States Prepaid Card Industry Market Size (US$ Million), 20072016
Table 18: United States Charge Card Industry Market Size (Thousands), 20072016
Table 19: United States Charge Card Industry Market Size (US$ Million), 20072016
Table 20: United States Charge Card Industry Market Size by Transaction Volume (Million), 20072016
Table 21: Bank of America BankAmericard Cash Rewards Card, Fees and Charges
Table 22: Bank of America BankAmericard Travel Rewards Credit Card, Fees and Charges
Table 23: BankAmericard Basic Visa Credit Card Fees and Charges
Table 24: Bank of America Financial Position FY2011 (US$ Billion)
Table 25: JPMorgan Chase Financial Position (US$ Billion)
Table 26: PNC Bank Financial Position (US$ Billion)
Table 27: Wells Fargo Financial Position (US$ Billion)
Table 28: Cards and Payments Key Definitions

List of Chart


Figure 1: Growth Potential of the US Cards And Payments Market by Area of Use
Figure 2: Shift Away From Credit Cards towards Prepaid and Charge Cards in the US, 20112016
Figure 3: US Cards and Payments Market Drivers
Figure 4: US EMV Cards
Figure 5: US Current Market Activities In Contactless Payment
Figure 6: Some US Retailers Accepting Contactless Cards
Figure 7: NFC Mobile Contactless Payment Stakeholders
Figure 8: Verified by Visa and MasterCard SecureCode
Figure 9: Number of ATMs in the US (Thousand), 20072016
Figure 10: Number Of POS Terminals in the US (Thousand), 20072016
Figure 11: US Internet Penetration Rate (%), 20072011
Figure 12: US Smartphone Penetration
Figure 13: US Mobile Commerce Sales Dynamics (US$ Billion), 2010 2016
Figure 14: P-Card Category in the US (US$ Billion), 20072014
Figure 15: US Online Trade Market (US$ Billion), Q1 2009Q2 2012
Figure 16: US Retail Sales Dynamics (US$ Billion), Q1 2009Q2 2012
Figure 17: US GDP Growth, Q1 2009Q2 2012
Figure 18: US Total Private Employment (Thousands of Persons), January 2010June 2012
Figure 19: US Annual Per Capita Disposable Income (US$), 20072011
Figure 20: US Urban and Rural Population (%), 20072011
Figure 21: US Consumer Confidence Index, 2009 2012
Figure 22: US Card Fraud Statistics by Channel (US$ Million), 20072011
Figure 23: Overview of PCI Data Security Standards
Figure 24: PIN Entry Device Security Requirements
Figure 25: Payment Application DSS Requirements
Figure 26: US Cards and Payments Market Segmentation by Card Type
Figure 27: US Outbound Tourist Volume (Million), 2012
Figure 28: Consumer Preferences on Various Types of Cards
Figure 29: Consumer Preferences on Various Types of Cards
Figure 30: US Payment Channels, 2011
Figure 31: US Value and Growth of Check-Based Transactions
Figure 32: US Value and Growth of Credit Transfers
Figure 33: US Value and Growth of Cash-Based Transactions
Figure 34: US Value and Growth of Direct Debit Transactions (US$ Billion), 20072011
Figure 35: US Value and Growth of Card Transactions (US$ Billion), 20072011
Figure 36: US Debit Cards Banks Category Shares (%), 2011
Figure 37: US Debit Cards Category Share by Scheme (%), 2011
Figure 38: US Open-Loop Prepaid Card Segment Share (%), 2011
Figure 39: US Credit Cards Banks Category Shares (%), 2011
Figure 40: US Credit Cards Banks Category Shares (%), 2011
Figure 41: Marketing Entry Strategies of Multinational Banks in the US
Figure 42: Marketing Strategies Based on Card Type
Figure 43: Co-Branded Cards From Banks In Various Sectors
Figure 44: Credit Card for Customers with Bad Credit History
Figure 45: Prepaid Card Pricing Strategies of Various Service Providers
Figure 46: Prepaid Card Pricing Strategies of Various Service Providers
Figure 47: United States Card Industry by Type of Cards (%), 20072016
Figure 48: United States Card Industry Market Size by Volume (Thousands), 20072016
Figure 49: United States Card Industry Market Size by Transaction Value (US$ Million), 20072016
Figure 50: United States Card Industry Market Size by Transaction Volume (Million), 20072016
Figure 51: United States Credit Card Industry Market Size by Volume (Thousands), 20072016
Figure 52: United States Credit Card Industry Market Size by Transaction Value (US$ Million), 20072016
Figure 53: United States Credit Card Industry Market Size by Transaction Volume (Million), 20072016
Figure 54: United States Credit Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 20072016
Figure 55: United States Credit Card Industry Market Size by Average Transaction Value (US$), 20072016
Figure 56: United States Debit Card Industry Market Size (Thousands), 20072016
Figure 57: United States Debit Card Industry Market Size (US$ Million), 20072016
Figure 58: United States Debit Card Industry Market Size by Transaction Volume (Million), 20072016
Figure 59: United States Card Industry Market Size by Frequency of Use (Transactions/Card/Year), 20072016
Figure 60: Debit Card Usage ATM and POS (Million), 20072016
Figure 61: United States Prepaid Card Industry Market Size ( Thousands), 20072016
Figure 62: United States Open Loop Prepaid Card Industry Market Size (Thousands), 20072016
Figure 63: United States Closed Loop Prepaid Card Industry Market Size (Thousands), 20072016
Figure 64: United States Prepaid Card Industry Market Size (US$ Million), 20072016
Figure 65: United States Charge Card Industry Market Size (Thousands), 20072016
Figure 66: United States Prepaid Card Industry Market Size (US$ Million), 20072016
Figure 67: United States Charge Card Industry Market Size by Transaction Volume (Million), 20072016
Figure 68: Bank of America Market Segmentation of Cards Offered
Figure 69: Bank of America Offers for Credit Card Users
Figure 70: Bank of America Offers for Credit Card Users
Figure 71: JPMorgan Chase Market Segmentation of Cards Offered
Figure 72: Ink Bold Charge Card
Figure 73: PNC Bank Market Segmentation of Cards Offered
Figure 74: PNC Bank Credit Card Offerings
Figure 75: Wells Fargo Market Segmentation of Cards Offered
Figure 76: Wells Fargo Rewards Categories

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