International Card Schemes

International card schemes
The top six international card schemes (American Express, China Union Pay (CUP), Discover/Diners Club,JCB, MasterCard, and Visa) have branded 75% of all cards in circulation worldwide, although a large majority of cards are co-branded with national schemes, as is the case in Europe.

The top six account for 85% of all card-based purchases. Among these market leaders, four are US-based and two are from Asia. Three use the 4-party model and three use the 3-party.

Noticeably absent from the list of market leaders is any European card scheme.

The EC/ECB would like to see European banks rectify this situation, arguing that the SCF offers banks an opportunity to combine their capabilities and create a major European payments scheme with potentially global reach.

Nevertheless, analysis confirms that to date there are only two truly global players: Visa and MasterCard, both of which use the 4-party model. Visa (no. 1) and MasterCard (no. 2) both have a large number of European members.

Together, their brands or cobrands account for 50% of all cards issued worldwide, and 67% of all card purchase transactions.

Banks are currently investigating the conditions necessary for allowing the creation of a third international scheme.

Visa and MasterCard each have a very strong brand in mature countries, but a less established presence in emerging markets.

The Asia largest scheme, China Union Pay (CUP), is primarily a domestic scheme, but it is trying to establish broad internationalacceptance to support its numerous cardholders as they travel abroad.

Acceptance is largely confined to Asia but is gradually extending globally.

While transaction volumes are large and growing significantly, CUP's weakness remains the relatively modest levels of consumer spending, which translate into relatively low revenues for scheme participants compared with those in mature economies.

Moreover, the scheme's growth is likely to be tempered by the high cost of establishing international brand recognition and acceptance relative to consumers' limited purchasing power.

You could download your contact card statements and put them into financial software processing tool...

E.g. MoneyWiz takes a modern approach to powerful personal finance. Money wiz is available for iPad, iPhone and Mac.) to break down your spending into categorise, so it gives you a good, accurate and detailed picture of where your money is going and where you need to set budgets.

This lets you forecast for the future and try and reign in on unnecessary expenditure where appropriate.

Cash means having to keep your receipts and remember what you have spent... where as sometimes you might not get a receipt for certain goods.

Perhaps, you have been using cash and cheques for donkey years, for a variety of reasons. And you control how much you spend , and have no particular desire to increase the revenues of banks via transaction fees.

If you ever had your credit or debit card cloned before could certainly hastened the process of getting contactless card. The fact that banks and politicians discourage us to use cash should be all the warning one needs.

Sometimes it is very irritating to be standing behind someone at a shop who is paying for a loaf of bread, a pint of milk and a packet of a crisps with a cash?

Paying by contactless card is quite quick these days, you will find. "No more Endless attempts to key in your pin". How often does that happen, really? Imagine writing a cheque for carton of milk?

Although, it may be annoying standing behind someone entering a pin and using a contact card for buying a pack of crisps at a shop, your contactless card is quicker than cash in that you don't have to fumble about for coins and the assistant that doesn't have to give you change.

Also you can get cashback with card payments and at least 30 days free credit on everything you buy, and it is convenient not having to make sure you are carrying enough cash for lunches.

Each to their own. People have a choice. Some people will always do business in cash, and cash will never disappear - but you could like the fact that there is a reduction of physical cash in society.





































































































































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