News from the Wire

Debit card use to reach 5.2 billion by 2012

Tuesday, March 04, 2008 — 12:19:56 (EST)

San Jose, Calif., March 3, 2008 -- Worldwide debit cards market is riding on its increased utilization among young consumers, and is benefiting from the significant rise in the volume of online transactions. Further, rising popularity of debit cards for low-value transactions and the lure of benefits offered to cardholders are other factors contributing to its increased utilization. Growing consumer preference for debit card is mainly attributed to its convenient usage, faster transaction pace, and absence of interest debt as found in credit card. Besides, debit cards provide easy payment options for government and business sectors in applications such as benefits, payroll and food stamps.

Asia-Pacific represents the leading debit cards regional market for 2007, with the number of cards in use estimated at about 1.4 billion, as stated by Global Industry Analysts, Inc. Asia-Pacific is also set to drive the debit card usage numbers across the world, increasing at a compounded annual rate of 17% over the forecast period. India and China are projected to increase the debit card numbers in Asia-Pacific region. Europe and the US are the other major regional markets, accounting for a combined share of more than 31% of debit cards in use for the year 2007. The number of signature debit cards in use in the US is forecast to reach 317 million in 2008.

Debit Cards: A Global Strategic Business Report Interchange fee continues to be a major contentious issue among credit and debit card issuers, processors, and merchants. Debit card use is also hindered by the absence of adequate payment infrastructure facilities, particularly across developing nations. Expensive overdraft fee is emerging as a major causes of concern among debit cardholders. However, restructuring of interchange fee rates and ongoing industry consolidation are few measures that are expected to promote the adoption of debit cards among various consumer and merchant segments. Besides, loyalty and reward programs are expected to boost the prospects of the debit card industry.

Along with the rapid increase in the number of debit transactions, a corresponding rise in the number of fraud incidents is being witnessed. Identity thieves and hackers are capitalizing on the enormity of the transaction volume and the corresponding decline in the volume of paper checks.. As against the earlier instances involving skimming of lost cards, fraud now includes advanced methods involving large-scale database hacking. Lack of appropriate technology and shortage of resources are key factors, particularly with respect to debit card transactions at the point-of-sale, which prevent real-time detection of fraud.

The report titled "Debit Cards: A Global Strategic Business Report" published by Global Industry Analysts, Inc., provides a comprehensive review of incisive insights on the industry structure, market drivers, issues, competition, and product trends. The study analyzes market data and analytics over the period 2003-2012, in terms of debit cards in use, for regions such as United States, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World.

The report discusses several global and regional debit card issuers and EFT/card processing companies. Major players in the debit cards market include Bank of America Corporation, Barclays Plc, Crédit Agricole S.A, Deutsche Bank AG, ING Group N.V., JPMorgan Chase & Co., S2 Card Services Ltd., Wachovia Corporation, Washington Mutual, Wells Fargo & Company, First Data Corporation, MasterCard Worldwide, PULSE EFT Association, SSB SPA, Visa U.S.A., Inc.

For more details about this research report, please visit www.strategyr.com/Debit_Cards_Market_Report.asp .

About Global Industry Analysts, Inc. Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

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Source: Company press release.