The European Cards and Payments Market Outlook: Securing profit under competitive threat

SUMMARY

The financial landscape is changing, making financial institutions recognise the value of the plastic cards market: movements within market structure are being reinforced by regulation changes at both country and European level. The European Cards and Payments Market Outlook is a management report that analyses the cards and payments markets across the UK, Germany, France, Italy and Spain. It provides key data on each of these markets in terms of country comparisons, trends and the major players. The report details the market from the perspective of card issuers, acquirers and customers. Individual chapters are devoted to the important issues of loyalty and co-branding. The report explains what constitutes a loyalty scheme, how they have developed over time and what the card loyaltylandscape currently looks like. It also defines co-branding and demonstrates how co-branding functions from a country specific and European perspective.

TABLE OF CONTENTS

Executive Summary

• European plastic cards market
• European plastic cards statistical overview
• Co-branding
• Card loyalty schemes
• Product development

Chapter 1 Introduction

• Introduction
• Report structure
  • European plastic cards market
  • European plastic cards statistical overview
  • Co-branding
  • Card loyalty schemes
  • Product development

Chapter 2 The European Plastic Cards Market

• Introduction
• The merchant acquisition process
  • The players
  • The process
    • The transactional information process:
    • The transactional fund process
  • European market issues
  • The transfer to chip cards under EMV
    • Testing of terminals
  • Intra-regional interchange fees - debate
• Customer focus
  • Card acceptance across Europe
  • Merchant service charges
• Competitors
  • Payment Service Providers
    • Pricing structure

Chapter 3 The European Plastic Cards Statistical Overview

• Introduction
• Market overview
  • Pay now cards market
  • Pay later cards market
  • Competition
• Country-by-country overview
  • France
    • Key points
  • Germany
  • Italy
    • Pay now and pay later card markets
    • Competitor analysis
    • Card issuer shares
  • Spain
    • Pay now and pay later card markets
    • Competitor analysis
    • Card issuer shares
  • UK
    • Pay now and pay later card markets

Chapter 4 Co-branded Cards

• Introduction
  • Co-branding, affinity marketing and self-issued cards
    • Co-branding in the past
  • Co-branding in Europe
    • The co-branding boom
• Country-by-country analysis
  • Europe
  • Germany
  • France
  • The UK
  • Conclusions

Chapter 5 Card Loyalty Schemes

• Summary
• Introduction
• Loyalty scheme
  • Price based incentives
  • Reward based loyalty schemes
• A background to card loyalty schemes
  • Loyalty schemes in the UK
  • Europe's loyalty schem es
    • Loyalty schemes and insurers
  • Loyalty schemes objectives and problems
• Conclusions

Chapter 6 Product Development

• Summary
• Introduction
• Product developments
  • Introductory offers
  • The origins of black cards
  • Sub-prime
  • Loyalty schemes
    • The Nectar card
  • Flexible cards
  • Flat rate cards
  • Conclusions
    • Switching cards
    • Pricing

Chapter 7 Appendix

• Definitions and abbreviations
  • Definitions for plastic cards
• Index

List of Figures

• Figure 1.1: Total Western European cards market, 2002
• Figure 1.2: Total Western European cards market, by market share, 2002
• Figure 1.3: Combining brand and expertise in a co-branding relationship, 2003
• Figure 2.4: The transactional information process
• Figure 3.5: Total Western European cards market, by market share, 2002
• Figure 3.6: Total Western European cards market, 2002
• Figure 3.7: Total Western European pay now and pay later cards market, 2002
• Figure 3.8: French pay now and pay later cards market, 1998 2002
• Figure 3.9: German pay now and pay later cards market, 1998 2002
• Figure 3.10: Italian pay now and pay later cards market, 1998 2002
• Figure 3.11: Spanish pay now and pay later cards market, 1998 2002
• Figure 3.12: The UK pay now and pay later cards market, 1998-2002
• Figure 4.13: Combining brand and expertise in a co-branding relationship, 2003
• Figure 5.14: Percentage of UK credit cards offering loyalty schemes, 1993 2002
• Figure 5.15: Europe's loyalty schemes, September 2001

List of Tables

• Table 2.1: Number of PoS terminals, split by country, 2001
• Table 2.2: Population per PoS terminal, split by country, 2001
• Table 2.3: Average MSCs on pay later cards, split by country, 2003
• Table 2.4: Average MSCs on pay later cards and the number of acquirers in a market, split by country, 2003 29
• Table 2.5: Average MSCs and the size of the pay later card markets, split by country, 2003
• Table 3.6: Total Western European card market, number of cards, 1998 2002
• Table 3.7: Total Western European card market, cards per person, 1998 2002
• Table 3.8: Total Western European card market, average value of transactions, 1998 2002
• Table 3.9: Total Western European card market, frequency of transactions, 1998 2002
• Table 3.10: Total Western European pay now card market, number of cards, 1998 2002
• Table 3.11: Total Western European pay later card market, number of cards, 1998 2002
• Table 3.12: Total Western European pay now/pay later card market, competitors by country, 1998 2002 42
• Table 3.13: Total French card market, 1998 2002
• Table 3.14: Card issuer shares: French pay now/pay later card market, 1998 2002
• Table 3.15: Total German card market, 1998 2002
• Table 3.16: Total Italian card market, 1998 2002
• Table 3.17: Card issuer shares: Italian pay now/pay later card market, 1998 2002
• Table 3.18: Total Spanish card market, 1998 2002
• Table 3.19: Card issuer shares: Spanish pay now/pay later card market, 1998 2002
• Table 3.20: Total UK card market, 1998 2002
• Table 3.21: Card issuer shares: UK pay now/pay later card market, 1998 2002
• Table 6.22: Zero per cent introductory rate offers, UK, May 2003
• Table 7.23: Currency and data abbreviations