Communications and Technology Industry Research

Payment Cards have emerged as a secure alternative to paper-based modes of payment among consumers due to convenience, security and ease of use, according to a new report.

 

With card companies offering benefits such as redeemable reward points and cash-back offers, customers are being beguiled into using their cards for payment of various products and services.

 

The report titled, “Payment Cards: A Global Outlook,” published by Global Industry Analysts Inc., provides statistical anecdotes, market briefs, and concise summaries of research findings.

 

It says cards represent a “fast, secure and convenient means of payment for goods and services purchased by customers.” Electronic payments have replaced the cumbersome and often risky paper-based transaction system and boost business prospects of organizations worldwide. By using electronic systems, business organizations and customers are able to conduct safe and hassle-free transactions.

 

With the expansion of point-of-sale (POS) networks and online markets, electronic payment systems are becoming accessible to an increased number of wholesale and retail outlets across the world. Growing adoption of payment cards has also led to a decline in the direct and indirect costs associated with plastic payment cards.

 

Contactless technology is expected to be a major driving force in the global payment cards market. As compared to conventional magnetic stripe cards, contactless payment cards offer improved security, ensure faster transaction, and eliminate the need for user authentication measures such as signatures. Reduction in the cost of development of contactless technology-based cards is expected to drive up the market for contactless debit cards and RFID smart cards.

 

Types of payment cards in use across the world include credit cards, debit cards, charge cards, commercial cards, and cash/prepaid cards. Credit cards have emerged as the world’s most popular form of borrowing. With the Internet emerging as a major medium for purchase of goods and services, credit and debit cards are being widely utilized.

 

Credit cards are a relatively mature market and presently face testing times with consumers shifting towards debit cards and prepaid cards, targeted at consumers without bank accounts. However, credit card usage in countries such as the United States, UK and France is anticipated to grow.

 

Smart cards are being promoted as the future of secure payment transactions and are considered ideal for user identification and authentication.

 

Smart cards find use in ID programs, network security, and transportation sectors. With a growing number of consumers holding smart cards, merchants are expected to upgrade their POS terminals for acceptance of these cards. This would promote conversion of magnetic stripe-based credit and debit cards to chip-based smart technology.

 

Card fraud, identity theft, and card skimming are some of the challenges faced by this industry. However, the development of advanced technologies such as RFID, and biometric authentication are expected to facilitate card issuers to effectively deal with card fraud. For more details about this research report, please visit http://www.strategyr.com/Payment_Cards_Industry_Market_Report.asp.