The idea of government backed domestic networks has started to gain momentum.

Monday 26 August 2013, Amsterdam

Domestic payment card networks have existed for a long time, yet the global landscape of the card payment channel continues to be dominated by international payment card networks. Among international networks, Visa and MasterCard enjoy the majority of the global market share, enabling them to control pricing in their favor, leading to high transaction and settlement costs for the overall card payment channel.
This is in contrast to emerging markets where governments are making efforts to shift their economies from cash to cashless. Owing to this, the idea of government backed domestic networks has started to gain momentum in these markets.
The success of China’s UnionPay and India’s RuPay are expected to fuel the trend. The emergence of government-backed networks is expected to play a crucial role in the redistribution of market share; they are predicted to lower the cost of transactions and help in the growth of card services to a larger market through increased competition.

Current landscape of domestic networks is skewed towards debit card networks
While companies such as UnionPay, JCB and Tarjeta Naranja focus on credit card networks, the majority of domestic networks focus on debit card networks. Domestic debit card networks in countries such as Canada, Australia, Singapore, China and Germany have emerged as market leaders due to their current regulatory frameworks and preference for domestic schemes.
The analysis indicates that growth in card and payments channels in developed economies will be relatively slower than emerging economies over the next five years. This trend is likely to emerge due to high saturation levels in developed markets in comparison to relatively low levels of card penetration in emerging economies. New domestic networks are therefore more likely to occur in emerging markets.


This report offers:
•An insight into the global landscape of the card payments channels including market dynamics of card payments and a snapshot of the competitive landscape of this industry.
•An analysis of the market potential and key challenges for domestic networks including the key drivers, challenges and target markets.
•A breakdown of the key success factors for payment card networks such as tapping micropayments for growth, using promotions, cross selling opportunities and more.
•A look into an assortment of strategies adopted by domestic networks.

This will facilitate:
•The increasing of your knowledge of the factors affecting the payment card industry.
•Your understanding of the successes within the market and the challenges it faces.
•A clear understanding of market opportunities and entry strategies to gain or grow your market share in the cyber liability insurance industry in the UK.
•A greater understanding of the strategies adopted by the main players in the market.


Increasing focus in untapped markets to drive growth
International networks have lagged behind in exploiting business opportunities in certain market segments such as micropayments, social benefit programs, and the reliance of the rural population or small financial institutions. These relatively unexplored markets are becoming the primary focus of domestic networks to expand their businesses and increase revenues. Over the next five years, domestic networks are expected to concentrate on small enterprises that do not currently accept card payments. This move will be aided by the availability of technologies such as mobile point of sale (MPOS) solutions, which will make acceptance of card payments feasible for small merchants.