The Cards and Payments Industry in the US: Emerging Trends and Opportunities to 2021

GlobalData’s 'The Cards and Payments Industry in the US: Emerging Trends and Opportunities to 2021' report provides detailed analysis of market trends in the US cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, direct debits, check payments, cash transactions and payment cards during the review period (2012–2016).

The report analyzes various payment card markets operating in the industry, as well as providing detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2017–2021). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.

The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.

Scope

  • 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 2016, and forecast figures to 2021.
  • It details the different demographic, economic, infrastructural and business drivers affecting the US cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details marketing strategies used by various banks and other institutions.

Key Highlights

  • Competition in the US alternative payments market increased following the emergence of options such as Apple Pay, Samsung Pay and Android Pay. Banks, card issuers and retailers are also launching new solutions to compete in the market. These new solutions are likely to intensify competition in the US alternative payments market.
  • The US government’s endorsement of Apple Pay is expected to enhance the contactless payment infrastructure, primarily due to the government’s announcement in September 2015 that it will use Apple Pay for social security benefits, national park admissions and other similar services. The deal allows social security and veterans’ benefits recipients to add government-issued debit cards to Apple Pay. As nearly 50% of the population benefits from some form of federal welfare scheme, this initiative is anticipated to further drive mobile payments (m-payments) in the country.
  • The Europay, MasterCard, Visa (EMV) liability shift, as agreed by US card networks, was enforced on October 1, 2015. The shift requires that the least secure party in a transaction is liable for costs resulting from fraudulent transactions in a non-EMV environment. Consequently, merchants are at risk if they fail to install EMV-compliant infrastructure. As a result, the number of EMV cards rose significantly from 2.7 million in 2012 and is anticipated to reach 700 million by the end of 2016.

Reasons to buy

  • Make strategic business decisions, using top-level historic and forecast market data, related to the US cards and payments industry.
  • Understand the key market trends and growth opportunities in the US cards and payments industry.
  • Assess the competitive dynamics in the US cards and payments industry.
  • Gain insights into marketing strategies used for various card types in the US.
  • Gain insights into key regulations governing the US cards and payments industry.

Companies mentioned

Wells Fargo

Bank of America

JPMorgan Chase

PNC Bank

USAA

US Bank

TD Bank

Capital One

SunTrust

Navy FCU

Fifth Third

Barclays

Vantiv

First Data ...

Wells Fargo

Bank of America

JPMorgan Chase

PNC Bank

USAA

US Bank

TD Bank

Capital One

SunTrust

Navy FCU

Fifth Third

Barclays

Vantiv

First Data

Elavon

Worldpay

Visa

MasterCard

Star

Pulse

American Express

Discover

Table of Contents

1 DEFINITIONS AND METHODOLOGY

1.1 Definitions

1.2 Methodology

2 KEY FACTS AND HIGHLIGHTS

3 EXECUTIVE SUMMARY

4 PAYMENT INSTRUMENTS

4.1 Current Payment ...

1 DEFINITIONS AND METHODOLOGY

1.1 Definitions

1.2 Methodology

2 KEY FACTS AND HIGHLIGHTS

3 EXECUTIVE SUMMARY

4 PAYMENT INSTRUMENTS

4.1 Current Payment Environment

5 E-COMMERCE AND ALTERNATIVE PAYMENTS

5.1 E-Commerce Market Analysis

5.2 Alternative Payment Solutions

5.2.1 PayPal

5.2.2 Apple Pay

5.2.3 Android Pay

5.2.4 Samsung Pay

5.2.5 Chase Pay

5.2.6 Walmart Pay

5.2.7 Capital One wallet

5.2.8 Dunkin Donuts mobile wallet

5.2.9 Starbucks mobile wallet

5.2.10 Wells Fargo wallet

5.2.11 Citi wallet

5.2.12 Visa Checkout

5.2.13 American Express Checkout

5.2.14 MasterPass

6 REGULATION IN THE CARDS AND PAYMENTS INDUSTRY

6.1 Regulatory Framework

6.2 Anti-Money Laundering (AML)

6.3 Foreign Direct Investment (FDI) Regulations

7 ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS

8 PAYMENT CARDS

8.1 EMV Migration in the US

9 DEBIT CARDS

9.1 Debit Cards Market Analysis

9.1.1 Debit card scheme and issuer shares in terms of transaction value

9.1.2 Debit cards comparison

10 PAY LATER CARDS

10.1 Pay Later Cards Market Analysis

10.1.1 Pay later card scheme and issuer shares in terms of transaction value

10.1.2 Pay later cards comparison

11 CARD ISSUERS

11.1 JPMorgan Chase & Co.

11.2 American Express Company

11.3 Bank of America Corporation

11.4 Wells Fargo & Company

11.5 Citibank

12 PREPAID CARDS

13 PRIVATE LABEL CARDS

13.1 Private Label Cards Comparison

14 MERCHANT ACQUIRING

15 APPENDIX

15.1 Tables

15.2 Contact GlobalData

15.3 About GlobalData

15.4 GlobalData’s Services

15.5 Disclaimer

List of Tables

Table 1: Key Definitions

Table 2: The US – Key Facts, 2016

Table 3: Regional Benchmarking of the US Payment Cards, 2016

Table 4: The US ...

Table 1: Key Definitions

Table 2: The US – Key Facts, 2016

Table 3: Regional Benchmarking of the US Payment Cards, 2016

Table 4: The US – Mode of Entry of Foreign Banks

Table 5: The US – Liability Scenarios From Most to Least Secure

Table 6: The US – Number of EMV Cards and Adoption Rate, 2014–2015

Table 7: The US – Debit Cards Comparison and Key Features, 2016

Table 8: The US – Gold Credit Cards Comparison and Key Features, 2016

Table 9: The US – Premium Credit Cards Comparison and Key Features, 2016

Table 10: The US – Charge Cards Comparison and Key Features, 2016

Table 11: The US – Private Label Credit Cards Comparison and Key Features, 2016

Table 12: The US – Payment Instrument Transaction Values (US$ Trillion), 2012–2016

Table 13: The US – Payment Instrument Transaction Volumes (Billion), 2012–2016

Table 14: The US – Number of Payment Cards in Circulation by Type (Million), 2012–2021

Table 15: The US – Volume of Payment Card Transactions by Type (Billion), 2012–2021

Table 16: The US – Value of Payment Card Transactions by Type (US$ Billion), 2012–2021

Table 17: The US – Number of Debit Cards in Circulation (Million), 2012–2021

Table 18: The US – Debit Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 19: The US – Debit Card Total and Average Transaction Values by Channel, 2012–2021

Table 20: The US – Number of Debit Cards in Circulation by Scheme (Million), 2012–2016

Table 21: The US – Debit Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 22: The US – Debit Card Transaction Values by Issuer (US$ Billion), 2012–2016

Table 23: The US – Number of Pay Later Cards in Circulation (Million), 2012–2021

Table 24: The US – Pay Later Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 25: The US – Pay Later Card Total and Average Transaction Values by Channel, 2012–2021

Table 26: The US – Number of Pay Later Cards in Circulation by Scheme (Million), 2012–2016

Table 27: The US – Pay Later Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 28: The US – Pay Later Card Transaction Values by Issuer (US$ Billion), 2012–2016

Table 29: The US – Number of Credit Cards in Circulation (Million), 2012–2021

Table 30: The US – Credit Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 31: The US – Credit Card Total and Average Transaction Values by Channel, 2012–2021

Table 32: The US – Number of Credit Cards in Circulation by Scheme (Million), 2012–2016

Table 33: The US – Credit Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 34: The US – Number of Charge Cards in Circulation (Million), 2012–2021

Table 35: The US – Charge Card Transaction Volumes and Frequency by Channel, 2012–2021

Table 36: The US – Charge Card Total and Average Transaction Values by Channel, 2012–2021

Table 37: The US – Number of Charge Cards in Circulation by Scheme (Million), 2012–2016

Table 38: The US – Charge Card Transaction Values by Scheme (US$ Billion), 2012–2016

Table 39: The US – Personal and Commercial Pay Later Card Transaction Volumes (Billion), 2012–2021

Table 40: The US – Personal and Commercial Pay Later Card Transaction Values (US$ Billion), 2012–2021

Table 41: The US – Number of Commercial Pay Later Cards in Circulation (Million), 2012–2021

Table 42: The US – Commercial Pay Later Card Transaction Volumes (Billion), 2012–2021

Table 43: The US – Commercial Pay Later Card Transaction Values (US$ Billion), 2012–2021

Table 44: The US – Number of Prepaid Cards in Circulation (Million), 2012–2021

Table 45: The US – Prepaid Card Transaction Values (US$ Billion), 2012–2021

Table 46: The US – Merchant Acquiring Transaction Volumes (Billion), 2012–2021

Table 47: The US – Merchant Acquiring Transaction Values (US$ Trillion), 2012–2021

Table 48: The US – Acquirers’ Transaction Volumes (Billion), 2012–2016

Table 49: The US – Acquirers’ Transaction Values (US$ Billion), 2012–2016

Table 50: The US – Retail Outlets and Card Accepting Merchants (Million), 2012–2021

Table 51: The US – Debit Card, Average Interchange Fees: Intra-Network Transactions (%), 2012–2016

Table 52: The US – Debit Card, Average Merchant Service Charge and Interchange Fee (%), 2012–2021

Table 53: The US – Pay Later Card, Average Interchange Fees: Intra-Network Transactions (%), 2012–2016

Table 54: The US – Pay Later Card, Average Merchant Service Charge and Interchange Fee (%), 2012–2021

Table 55: The US – EMV Deployment, Regional Definitions

List of Figures

Figure 1: The US – Payment Instrument Shares by Transaction Value (%), 2012 vs 2016

Figure 2: The US – Payment Instrument Shares by Transaction Volume (%), 2012 vs ...

Figure 1: The US – Payment Instrument Shares by Transaction Value (%), 2012 vs 2016

Figure 2: The US – Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016

Figure 3: E-Commerce Value, 2012–2021

Figure 4: The US – E-Commerce Payment Methods, 2016

Figure 5: The US – Population

Figure 6: The US – Economic Indicators

Figure 7: The US – ATMs and POS Terminals

Figure 8: The US – Household Consumption

Figure 9: The US – Growth in Payment Card Transaction Values and Number of Cards in Circulation by Type, 2012–2021

Figure 10: EMV Migration Timeline in the US

Figure 11: The US – Number of EMV Cards and EMV-Capable POS Terminals (Million), 2012–2016

Figure 12: The US – Debit Card Penetration and Turnover Per Card

Figure 13: The US – Debit Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2016

Figure 14: The US – Pay Later Card Penetration and Turnover Per Card

Figure 15: The US – Pay Later Card Scheme and Issuer Shares in Terms of Transaction Value (%), 2016

Figure 16: The US – Number of Prepaid Cards in Circulation and Transaction Value, 2012–2021

Figure 17: The US – Private Label Card Transaction Volumes and Values, 2012–2015

Figure 18: The US – Merchant Acquiring Transaction Volume and Value, 2012–2021

Figure 19: The US – Acquirers’ Market Share in Terms of Transaction Volume and Value (%), 2016

Figure 20: The US – Average Merchant Service Charge and Interchange Fee (%), 2012–2021

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