May 12, 2008 21:22 ET

Get a Deep Insight Into the Future Of Payments: Prepaid Cards, Contactless and Mobile Payments

LONDON, UNITED KINGDOM--(Marketwire - May 12, 2008) - announces that a new market research report related to the Financial services industry is available in its catalogue.

The Future of Payments: Prepaid cards, contactless and mobile payments

Card payments have increasingly become an important part of our everyday lives, especially as more and more people utilize the Internet and financial institutions offer various payment services that preclude writing checks or using cash. From a business standpoint and despite growing transaction volumes, financial institutions are facing margin pressures on their payments businesses as competition has grown. From a technology standpoint, there has been little change in the past two decades. However, there are indications that suggest the next few years will yield interesting changes to how the electronic payments landscape will look.

Table of Contents

The Future of Payments

Market context: The US and Europe 8

Market context: Asia Pacific and pre-paid cards 9

The future of co-branded cards 10

Contactless payments 11

Mobile payments 12

Chapter 1 Market context: the US and Europe 16

Summary 16

Introduction 17

Prepaid cards 18

Contactless payments 19

Market issues 20


Future strategies 24

Payments fraud 26

Chapter 2 Market context: Asia-Pacific and pre-paid cards 30

Summary 30

Introduction 31

Definitions 31

Affinity cards 31


Balances outstanding 32

Branded prepaid cards 32


Co-branded cards 32

Private-label cards 32

Prepaid cards 33

Pre-paid markets 39


The European market vs the US and Japan 39

The youth market 39

Corporate market 41

Unbanked customers 42

Conclusions 43

Teen market 43

Corporate and government sectors 47

Chapter 3 The future of co-branded cards 52

Summary 52

Market context 53

Loyalty schemes 56

Types of co-branded card programs 57

Benefits to card issuers of co-branded programs 59

Benefits to merchants of co-branded card programs 61

Risks 62

Conclusions 63

Product differentiation 65

Co-branding relationships 66

Market share in growing markets 66

Co-branding profitability 67

High costs 68

Chapter 4 Contactless payments 72

Summary 72

Market context 73

Market sizing 78

Conclusions 80

Potential obstacles and solutions 81

Interoperability 81

Security 82

Cost 82

The future 83

The Americas 85

Asia-Pacific 86

Europe 86

Chapter 5 Mobile payments 90

Summary 90


Defining mobile payments 91

Market context 91

Costs and risks 93

Market drivers 95

mPayment trials 98

Mobipay - Europe's great mPayment success story? 98

NTT DoCoMo - turning the mobile phone into a contactless e-wallet 101

The collapse of Simpay 106

Problem 1: Premium SMS is a highly inflexible means of payment 107

Problem 2: A lack of common standards makes life difficult for merchants and

restricts cross-border sales 108

Conclusions 110

Payment and billing structures 113

Interoperability and acceptance 115

The cost of accepting mPayments 117

The future 120

Index 122

List of Figures

Figure 1.1: European retail banks' payment project priorities 22

Figure 1.2: European retail payment players 25

Figure 1.3: Retail banks' fraud priority areas 27

Figure 2.4: Prepaid cards have their place in the current payment card landscape 35

Figure 2.5: Asia-Pacific target youth market, 2007 40

Figure 3.6: Defining card partnership models 54

Figure 3.7: Combining brand and expertise in a co-branding relationship 55

Figure 4.8: Global market opportunity for contactless payments 78

Figure 5.9: Cash is the dominant payment mechanism for transactions up to the value of Pounds Sterling 10.00 in the UK 96

Figure 5.10: NTT DoCoMo has taken the traditional mobile phone proposition and added extra functionality 101

Figure 5.11: Applications for mobile payments 111

List of Tables

Table 2.1: Forecast prepaid card spend by country ($bn), 2010 39

Table 2.2: Asia-Pacific target youth market (0-17 years), 2007 40

Table 2.3: Youths and their aspirational ages 45

Table 3.4: forecast for pay later card numbers across five markets, 2006-2010 64

Table 5.5: The aspects of the mPayment value chain that interested parties are keen to secure or avoid 94

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