Key trends faced by card acquirers and their implications for the payment card industry
The payment card industry was relatively resilient to the global economic slowdown, with cards transaction volumes up in 2009 primarily driven by stronger growth in the developing markets of Asia and Latin America. Transaction volumes are expected to continue to grow with developing countries such as China and Brazil as the growth engines. The average global value of card purchases however has been slowly declining as consumers in developed nations cut down on their big ticket purchases.
The key payment card industry stakeholders of card acquirers, card processors, and card issuers are all witnessing shifting trends. This paper identifies key emerging trends for the acquiring side of the payment card industry. The recent rise in data breaches specifically targeted to the financial services industry has led to a greater focus on more stringent compliance from card industry associations. The card acquiring side of the business has shown a greater emphasis on compliance due to a regulatory push, as well as the need to avoid reputational risks associated with data breaches.