World Debit Cards Market

World Debit Cards Market

This report analyzes the worldwide markets for Debit Cards in million units. The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Annual forecasts are provided for each region for the period of 2003 through 2012. The report profiles 175 companies including many key and niche players worldwide such as Bank of America Corporation, Barclays Plc, China Merchants Bank Co., Ltd, Citigroup, Inc., Citibank Inc., Crédit Agricole S.A, Deutsche Bank AG, Direct Response Financial Services, Inc., HSBC Holdings Plc, ING Group N.V., JPMorgan Chase & Co., Laser Card Services Ltd., Lloyds TSB Group Plc, The Royal Bank of Scotland Group Plc, S2 Card Services Ltd., State Bank of India, Wachovia Corporation, Washington Mutual, Inc., Wells Fargo & Company, SA Banksys NV, First Data Corporation, STAR® Networks, Inc., Metavante Corporation, MasterCard Worldwide, PULSE EFT Association, Inc., SSB SPA, and Visa U.S.A., Inc. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability and Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-2
Quantitative Techniques & Analytics I-3
Product Definitions and Scope of Study I-3
Debit Card I-3
Prepaid Debit Cards I-3
Online or PIN Debit Cards I-3
Offline or Signature Debit Cards I-4

II. EXECUTIVE SUMMARY

1. Industry Overview II-1
Payment Cards Industry - An Overview II-1
Table 1: Global Financial Cards Industry (2005): Percentage
Breakdown of Leading Countries by Number of Cards (includes
corresponding Graph/Chart) II-1
Technological Innovations Drive Up Card Transactions II-1
Cards Replace Cash and Paper Transactions II-2
Debit Cards - A Convenient Cash-Less Payment System II-2
Current and Future Analysis II-2
Asia-Pacific - Riding on Chinese Debit Card Success II-2

2. Market Dynamics II-3
Small Value Transactions to Drive Growth in Debit Cards Arena II-3
Intensifying Consolidation in European Card Processing Sector II-3
Asia-Pacific Drives Global Debit Card Use II-3
Growing Use of Cards for Payment of Recurring Bills II-3
Card Companies Focus on Select Consumer Segments II-3
Card Associations Intensify Campaign for Prepaid Cards II-4
Fraud Facilitates Development of New Technologies II-4
Contactless Technology to Fight Fraudulent Transactions II-4
Debit Cards Use Rises During Holiday Season II-4
Technology to Overcome Inadequacies in Infrastructure II-5
Non-Banking Agencies to Counter the Dominance of Associations II-5
Debit Cards for New Mobile Payment System II-5

3. Major Issues Influencing Debit Cards Market II-6
Interchange Fee - A Contentious issue II-6
Visa and MasterCard Face Legal Implications II-6
Security - A Key Concern for Issuing Banks II-6
SEPA Set to Restructure Debit Cards Payment System in EU II-6
Absence of Debit Interchange Programs Affects European Income
Levels II-7
Alternative Online Payment Modes - A Threat to Debit Cards II-7
ACH System - A Major Challenge Facing Debit Cards Industry II-7
Merchant Resistance Obstructs Debit Card Adoption II-7
Rising Fraud in PIN Debit Transactions Worries Consumers II-8
Expensive Overdraft Fees Raises Concern II-8

4. Product Overview II-9
Debit Cards - A Conceptual Definition II-9
Debit Cards in Force Across the World II-9
Debit Card - A Commodity Product II-10
Debit Card Penetration & Activation II-10
Authorization Hold - Saving Retailers from Risk II-10
Electronic Funds Transfer Point of Sale (EFTPOS) II-11
Transaction Processing in Debit Cards II-11
Process Flow for Online Debit Transactions II-12
Process Flow in Signature Debit Transactions II-13
Electronic Funds Transfer Networks (EFT) Networks II-13
Visa & MasterCard - Principal Global Debit Brands II-14
Reward Programs Gain Popularity II-14
Prepaid Bank Debit Cards II-15
Prepaid or Stored Value Card II-15
Common Applications of Prepaid Debit Cards II-15
Transfer of Funds II-15
Retail Debit Cards II-15
Payroll Debit Cards II-16
Health Debit Cards II-16
Prepaid Cards - Challenges & Opportunities II-16
Advantages of Debit Cards II-16
Disadvantages of Debit Cards II-17
Growth Drivers II-17
Market Restraints II-17

5. Types of Debit Cards II-18
Online or PIN Debit Cards II-18
Offline or Signature Debit Cards II-18
PIN Vs Signature Debit Transaction Fee II-18
“Credit” and “Debit” Purchases II-19
PIN Faces Competition from Contactless and Signature-Less
Debit Transactions II-19
Debit Cards for Telephone, Mail and Internet Transactions II-20
Debit Cards As Stored Value Cards II-20

6. Credit Card Vs Debit Card II-21
Comparative Review of Debit and Credit Card Functions II-21
Processing Fee for Debit and Credit Cards II-21
Interchange Fee II-21
Interchange Fee for Signature Debit Cards and Credit Cards II-22
Table 2: Fee Structure for Credit Card and Signature Debit
Card Transactions (Purchase Price US$100) in the US II-22
Interchange Fee for PIN-Based Debit Transactions II-22
Table 3: Fee Structure for PIN (Online) Debit Card
Transactions (Purchase Price US$100) in the US II-22

7. Debit Card Fraud II-23
Fraud - An Inevitable Consequence of Rapid Growth II-23
Dealing with Advancing Card Fraud Tactics II-23
Major Tools Employed by Card Issuers for Fighting Debit Card
Fraud II-24
Basic Fraud Prevention Tools for Debit Cards II-24
Additional Fraud Prevention Technologies/Tools II-24
Rising Card Fraud Losses - A Major Concern for Card Issuers II-25
Consumer Apathy Hampers Implementation of Card Fraud Measures II-25
Financial & Infrastructure Constraints Plague Card Fraud
Control Implementation II-26
Debit Card Fraud Losses II-26
Card Fraud Losses in North America II-26
Card Fraud Losses in Europe II-26
Table 4: Global Debit Card Fraud Losses (2004-2008P):
Percentage Breakdown of Fraud Loss Value by Region/Country
for North America, Latin America, Europe, Middle East &
Africa, and Asia-Pacific (includes corresponding
Graph/Chart) II-27

8. Recent Industry Activity II-28
Metavante Acquires Nomad Payments II-28
Fortress Financial Takes Over Moneyworx II-28
Hertford to Deliver CrewCard Debit Cards II-28
Net Spend and Capital One in Strategic Partnership II-28
InComm and nFinanSe in Distribution Agreement II-29
Serverside and PayJr Develop Program to Issue II-29
Customized Visa Debit Cards II-29
Capital One and NetSpend Team Up for Reloadable Prepaid Debit
Card II-29
Interac Certifies Gemalto for Supply of EMV Compliant Debit Cards II-29
Citibank and East Asia Bank Seek Approval for Selling Debit
Cards in China II-29
German Sparda Chooses MasterCard’s Maestro Debit Plan II-30
CCSI and Bone Thugs-N-Harmony Enter into Agreement II-30
3PEA Forays into Prepaid Debit Cards Arena II-30
eCommLink Partners with First Bank & Trust II-31
Five Banks to Introduce Visa V Pay Chip-and-PIN-only Debit
Cards in Italy II-31
Tempo Payments Inks Agreement With Fiserv EFT II-31
No Borders Pens Pact with Corregidora Global Group to
Distribute Debit Cards II-31
First Data Renews Agreement with LaSalle Bank & Golden 1
Credit Union II-32
Atos Origin Acquires Banksys II-32
Card Express Enters into Agreement with Eight Pemco
Technologies Customers II-32
Alpine Bank Acquires Saylent Technologies Inc’s Y-Debit Solution II-33
GTREX Capital Partners with XpressDebit for its Debit Card
Program II-33
PayAllNow Selects Altair as a Preferred Debit Card Issuer for
European Payroll Market II-33
SHPS, First Data & UMB Bank Team Up to Offer Debit Card II-33
Global Financial Exchange Sets Up New Company with MGT II-34
Fifth Third Expands Service Offerings by Acquiring CMC II-34
LIC Partners with UTI to Provide Annuity Debit Cards II-34
Soooogood Financial Services Inks Agreement to Distribute
Stored Value Debit Card II-34
DRFS to Deliver Debit Cards to Poder de Compra II-35
Xinhua Finance Collaborates with FreeStar II-35
Visa Protects Indian Debit Cardholders through Zero Liability
Program II-35
eCard to Team Up with Polish Banks for Enabling Debit-Based
Online Transactions II-36
CNB Inks Agreement with No Borders to Issue and Process
Prepaid Debit Cards II-36
Morgan Beaumont Partners with MPS for New Prepaid ATM/Debit
Card Program II-36
Citibank and MTV in Partnership to Introduce New MasterCard
Debit Card II-36
Global Vision Partners with BGG to Market Debit Cards Across EMEA II-36
BPCL and SBI Form Partnership for Debit Cards II-37
Viking Capital Group Acquires Secure Cash™ Card Program II-37
No Borders and Equity One Set Up a Joint Venture II-37
Global Links and Alliance Card Enter into an Agreement II-37
Global Vision Signs Agreement to Introduce Debit Card II-38
Oceanic Bank Collaborates with Interswitch to Upgrade its
Debit Card II-38

9. Product Introductions/Innovations II-39
Paychex Unveils Paychex FSA Debit Card II-39
Citibank Unveils Co-Branded Debit Card II-39
IDBI Rolls Out New International Debit MasterCard II-39
Citibank and SMRT Introduce New Debit Card II-39
Tempo & QuikTrip to Introduce Debit Card with Fuel II-40
Discount Feature II-40
Neteller Releases New Debit Cards in Asia and Europe II-40
Guardian Launches Benny Prepaid MasterCard Debit Card II-40
Murphy Oil to Introduce New Debit Cards II-40
Sanlam Introduces Sanlam Liquid Debit Card II-41
Halifax Launches First Visa Debit Card in Ireland II-41
Indian Bank Introduces International Debit Card II-41
Capital One to Launch New Debit Card II-42
Barclays to Introduce Carbon Neutral Debit Card in the UK II-42
MasterCard & Upromise Unveil New Rewards Program II-42
MasterCard Offers Zero Liability Protection Program to US
Small Business Cards II-42
MasterCard Introduces Counter-Fraud Solution for PIN Debit
Transactions II-43
UTI Bank/Axis Bank Introduces International Debit Card for
Small & Medium Enterprises II-43
SBI to Introduce ATM-Cum-Debit Card Cash Back Scheme in Select
Cities II-43
OPM Launches Debit Card for Procuring Healthcare Products on
Trial Basis II-43
EDP Launches Elvis Presley Prepaid Visa® Card II-43
Chase Introduces Visa-Branded ‘Blink’ Debit Cards II-44
HDFC Launches Exclusive Debit Card for Women II-44
Discover Financial Unveils New Discover® Signature Debit Card II-44
Binghamton Introduces Giant EXTRA Plus Debit Card for its
Customers II-44
VIB Unveils New VIB Values Debit Card II-45
IBQ Rolls Out Debit Card for Middle East & North African Markets II-45
Bulgaria FIB Introduces Visa Electron Debit Card for Online
Transactions II-45
UniCredit Romania Unveils Visa Business Electron Debit Card II-45
U.S. Bank & Cabela’s Roll Out Debit Card with Rewards Program II-46
TalkSport Introduces Pre-Pay Debit Card to Enter Financial
Services Market II-46
Metavante Integrates BenSoft’s RepayMe Solution into its
Healthcare Debit Card II-46
Debitman Receives Patent for New Retailer Debit Card Network
Payment System II-46
Dashen Introduces First Visa Electron Debit Card in Ethiopia II-47
ANZ Introduces ANZ Everyday Visa Debit Card II-47
RCBC Unveils Debit Card for Overseas Filipino Workers II-47
DTB Forays into Card Business by Launching Open Visa Debit Card II-47
Citibank Introduces Student Debit Scholarship Card Across Poland II-47
NBB Rolls Out New MasterCard Debit Card Across Bahrain II-48
QCSI Incorporates MyHealthBank Software into Benefits Debit Card II-48
Visa Collaborates with Insurance Companies to Offer Debit Card II-48
PNB and MasterCard Introduce PNB MasterCard Debit Card II-48
Banamex Introduces New Toluca Co-Branded Debit Card II-48
Amscot Introduces MasterCard Prepaid Debit Card II-49
HDFC Bank Introduces International Gold Debit Card for Indian
Customers II-49
InstaDial Introduces New US Dollar MultiCard Debit Visa® Card II-49
Wachovia Rolls Out Direct Pay Prepaid Debit Card II-49
Cash Now Launches New Electronic Debit Card II-49
RMF Rolls Out ATM-Cum-Debit Card for its Mutual Fund Investors II-50
Affinity Card Systems Launches Ethos Prepaid Debit Card II-50
MasterCard & BankWest to Introduce a New Debit Card II-50
IOB Teams Up with VISA to Launch Instacash Debit Card II-50
Marcatel Unveils Debit Card for Hispanic Community in the US II-50
Barclays Bank Introduces New Visa Electronic Debit Card for
Kenyan Customers II-50
BRD-Groupe Introduces BRD-ISIC Debit Card for Student Community II-51
KeyBank Unveils MasterCard PayPass Debit Card II-51
Kotak Mahindra Bank Rolls Out Prepaid Fixed Denomination Card II-51
HBL Offers Visa-Enabled Value Debit Card II-51
Debit Cash Card Introduces New Debit Card Program II-51
MasterCard Europe Introduces Cash2Go Maestro Debit Card in the UK II-51
Yes Bank Launches International Gold & Silver Debit Cards in
India II-52
Allow Card of America Rolls Out New Debit Card for Young
Customers II-52
USA Paycard Launches Prepaid Debit Card for Un-Banked Employees II-52
AmigoMoney Introduces Visa Debit Card for Hispanic Community II-52
Wachovia Introduces Dinero Directo Remittance Debit Card II-52
Delta Hotels Rolls Out Gift Card Program for Clients II-53
Bradesco Launches CDC Bradesco Visa Electron Debit Card II-53
Corp Bank Introduces All-in-One Farmers’ Debit Card II-53
National Bank of Pakistan Unveils E-Banking Debit Card II-53
IndusInd Bank to Introduce Women’s Debit Card II-53
Banco de la Nacion to Launch Debit Card II-53

10. Focus on Select Players II-54
Debit Card Issuers II-54
Bank of America Corporation (US) II-54
Barclays Plc (UK) II-54
China Merchants Bank Co., Ltd (China) II-54
Citigroup, Inc. (US) II-55
Citibank Inc (US) II-55
Crédit Agricole S.A (France) II-55
Deutsche Bank AG (Germany) II-55
Direct Response Financial Services, Inc. (US) II-56
HSBC Holdings Plc (UK) II-56
ING Group N.V. (The Netherlands) II-56
JPMorgan Chase & Co. (US) II-57
Laser Card Services Ltd. (Ireland) II-57
Lloyds TSB Group Plc (UK) II-57
The Royal Bank of Scotland Group Plc (UK) II-57
S2 Card Services Ltd. (UK) II-58
State Bank of India (India) II-58
Wachovia Corporation (US) II-58
Washington Mutual, Inc. (US) II-58
Wells Fargo & Company (US) II-59
EFT Networks/Card Processing Companies II-59
SA Banksys NV (Belgium) II-59
First Data Corporation (US) II-59
STAR® Networks, Inc. II-59
Metavante Corporation (US) II-60
MasterCard Worldwide (US) II-60
PULSE EFT Association, Inc. (US) II-60
SSB SPA (Italy) II-61
Visa U.S.A., Inc. (US) II-61

11. Global Market Perspective II-63
Table 5: World Recent Past, Current & Future Analysis for
Debit Cards by Geographic Region - US, Canada, Japan, Europe,
Asia-Pacific (excluding Japan), Latin America and Rest of
World Markets Independently Analyzed with Annual Number of
Cards in Use in Million for Years 2003 through 2012 (includes
corresponding Graph/Chart) II-63

Table 6: World 10-Year Perspective for Debit Cards by
Geographic Region - Percentage Breakdown by Cards in Use for
US, Canada, Japan, Europe, Asia-Pacific (excluding Japan),
Latin America and Rest of World Markets for Years 2003, 2007 &
2012 (includes corresponding Graph/Chart) II-64

III. MARKET

1. The United States III-1
A.Market Analysis III-1
Payment Cards Industry in the US - An Overview III-1
Current and Future Analysis III-1
Debit Cards Market III-2
A Preview III-2
An Introduction to Debit Cards Market III-2
Factors Driving Growth of Debit Cards in the US III-2
Rewards & Prepaid Cards III-2
Routine & Low-Value Transactions III-3
Major Trends III-3
Debit Card Transactions Witness Rapid Growth III-3
PIN and Dual Feature Debit Cards to Witness Rapid Growth III-3
Card Associations in the US III-4
Table 7: US Debit Cards Industry (2005-2006): Leading
PIN-Debit Networks by Market Share (%) of Transaction
Volume for Interlink (Visa), Star, Pulse, NYCE and Others
(includes corresponding Graph/Chart) III-5
Interchange Fees III-5
Competition Intensifies Between Debit Card Schemes III-5
Table 8: US Interchange Fee for Debit Transactions for
Scheme-Based and PIN-Based Systems (1994-2004) (includes
corresponding Graph/Chart) III-6
MasterCard and Visa Settlement Lowers Interchange Rates III-6
Associations Lower Interchange Fee for Small Ticket
Transactions III-6
Visa Lowers Interchange Fees III-6
Visa’s Small Ticket Strategy Succeeds III-7
MasterCard’s Small Ticket Debit Programs III-7
Programs from American Express III-7
Online Vs Offline Debit Cards III-7
Table 9: Leading Offline Debit Card Issuers in the US by
Number of Cards (In Million) (2004-2005) (includes
corresponding Graph/Chart) III-8
PIN Transactions to Grow at the Expense of Offline Segment III-8
Trends in Signature & PIN Debit Card Segments III-9
Debit Card Vs Other Payment Methods III-9
Credit Faces Challenge from Debit Cards Market III-9
Saturation in Credit Cards Segment Boosts Debit Cards Market III-10
Table 10: Market Share of Debit Cards and Credit Cards in
the US (2004-2008) (includes corresponding Graph/Chart) III-10
PIN & Signature Usage at POS Exceeds Credit Cards III-10
Use of Cash and Checks Drops III-10
Checks Dominate Bill Payments Arena III-11
Debit Cards - Replacing Cash Payments III-11
Debit Card Spending Exceeds Credit Card Spending III-11
Table 11: Consumer Preference for Payment System by Age
Group for ATM/Debit Card, Credit Card and Checks (2005)
(includes corresponding Graph/Chart) III-11
Banks Undertake Innovative Initiatives to Promote Card Usage III-12
Debit Cards Erode Credit Cards Revenues III-12
Rising Debt from Credit Cards Drives Use of Debit Cards III-12
Leading Debit Card Players Enter Credit Cards Arena III-12
Challenges Facing US Debit Cards Market III-12
Interchange Fee - A Major Challenge for Card Associations III-12
Lack of Consensus on Revenues Hampers Revenue Generation III-13
Multiplicity of Cards - A Major Obstacle for Consumers III-13
Demographic Challenges Hurdle Rapid Adoption III-13
‘Bucket Spending’ Limits Card Usage to Small-Value
Transactions III-13
Major Issues Affecting US Debit Cards Market III-13
Impact of Consolidation in Banking Sector on Debit Cards
Market III-13
Security - A Major Concern for Issuing Banks III-14
Trends & Developments III-14
Declining Use of ATMs III-14
Women Debit Card Users on the Rise III-14
Teen Prepaid Cards Growing Popular III-14
Credit Unions Benefit from Growing Debit Card Usage III-14
Government Agencies Slow to Adopt Debit Cards for
Disbursements III-15
California DMV Adopts ATM/Debit Cards for Accelerating
Service Provision III-15
Card Issuers Capitalize on ‘Back-to-School’ Spending Period III-15
Card Issuers Re-Evaluate Limit on Daily PIN Debit Transactions III-15
Debit Cards in Natural Emergencies III-15
Visa Provides E-Payment Facility in Theatres III-16
Surging Use of MasterCard’s PayPass Debit & Credit Cards III-16
Debit Card Usage at Stores III-16
Table 12: In-Store Payments in the US (2001-2005):
Percentage Breakdown of Payment Type for Cash, Debit Card,
Credit Card, Check and Others (includes corresponding
Graph/Chart) III-16
Online Purchases III-17
Reward Programs for Debit Cards III-17
Rising Debit Card Fraud - A Key Concern Area for Card
Participants III-18
Debit Card Fraud - An Expanding Menace III-18
Debit Card Fraud Loss III-19
Table 13: US Payments Industry (2005 & 2009): Percentage
Breakdown of Fraud Loss by Payment Type for Credit Card,
Check, Signature Debit, PIN Debit and ACH (includes
corresponding Graph/Chart) III-19

Table 14: US Debit Card Issuers (2006-2008): Percentage
Breakdown of IT Spending Value by Activity for Transaction
Processing, Risk Management, Card & Account management,
Acquisition/Marketing, Customer Servicing and Other Back
Office (includes corresponding Graph/Chart) III-19
Legal Implications for Debit Card Fraud III-20
New Federal Legislation on Fraud Disclosure III-20
Visa Implements ADCR for Expediting Fraud Loss Reimbursement III-20
Security Codes - Internal Security Mechanism III-20
Future of Smart Cards in the US III-21
Contactless Technology Offer Enormous Growth Potential III-21
Banks Allow Controversial Overdraw Facility for Debit Card
Transactions III-21
Overdraft Fees - Burning Hole in the Customers’ Pocket III-21
Overdraft Transactions Under the Scanner III-22
Debit Cards for Healthcare Benefits Plan Administration III-22
Growing Demand for Debit Cards in Healthcare Benefits
Administration Programs III-22
Prepaid FSA Debit Cards to Grow Further III-23
IRS Issues New Regulations for Debit Cards III-23
Smart Medical Debit Cards Facilitate Faster Claim Settlements III-24
Cards Dominate Holiday Spending Payments III-24
Table 15: Payment Methods During Holiday Season in the US
(2005-2006): Percentage Breakdown for Debit/Check Cards,
Credit Cards, Cash and Checks (includes corresponding
Graph/Chart) III-25
Growing Penetration of Debit Cards Among Small Businesses III-25
Visa Products for Small Business Owners III-26
Rising Use of Debit Cards for Micro-Payments III-26
Growing Use of Debit Cards for Low-Value Transactions III-26
Debit Cards Facilitate Faster and Secure Child Support Payments III-26
Prepaid Debit Cards - Ideal for Benefits Payments III-27
Popularity of Payroll Debit Cards Rises Among Banked and Un
-banked Employees III-27
New Regulations Place Unauthorized Usage Liability on Card
Issuers & Employers III-27
Growing Use of Cards for Payment of Recurring Bills III-28
Card Companies Focus on Minority Communities III-28
Hispanic Consumers - Growth Opportunity for Card Companies III-29
Debit Cards Used for Payment of Unemployment Benefits III-29
Prepaid Debit Cards Market in the US III-29
Proposed Government Initiatives Offer Growth Opportunities III-30
Globalization - Key to Growth of Prepaid Debit Cards III-30
Strategic Corporate Developments III-30
Product Introductions III-36
Focus on Select Players III-43
Card Issuing Companies III-43
Bank of America Corporation III-43
Citigroup, Inc. III-43
Citibank, Inc III-43
Direct Response Financial Services, Inc. III-44
JPMorgan Chase & Co. III-44
Wachovia Corporation III-44
Washington Mutual, Inc. III-45
Wells Fargo & Company III-45
EFT Networks/Card Processing Companies III-45
First Data Corporation III-45
STAR® Networks, Inc. III-45
Metavante Corporation III-46
MasterCard Worldwide III-46
PULSE EFT Association, Inc. III-46
Visa U.S.A., Inc. III-47
B.Market Analytics III-48
Table 16: US Recent Past, Current & Future Analysis for
Debit Cards by Product Segment - Signature (Offline) and PIN
(Online) Markets Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-48

Table 17: US 10-Year Perspective for Debit Cards by Product
Segment - Percentage Breakdown by Cards in Use for Signature
(Offline) and PIN (Online) Markets for Years 2003, 2007 &
2012 III-48

Table 18: US Recent Past, Current & Future Analysis for
Debit Card Transaction Volume (in Billion) by Product
Segment - Signature (Offline) and PIN (Online) Markets
Independently Analyzed with Annual Number of Cards in Use in
Million for Years 2003 through 2012 (includes corresponding
Graph/Chart) III-49

Table 19: US 10-Year Perspective for Debit Cards by Product
Segment - Percentage Breakdown by Transaction Volume for
Signature (Offline) and PIN (Online) Markets for Years 2003,
2007 & 2012 III-49

2. Canada III-50
A.Market Analysis III-50
Current and Future Analysis III-50
Canada Payment Cards Market - An Overview III-50
IDP - Canada’s National Debit Scheme III-50
Table 20: Global Debit Card Usage (2004): Debit Card
Transactions Per Inhabitant by Country for Canada, Sweden,
The Netherlands and the US (2004) (includes corresponding
Graph/Chart) III-51
Tech-Savvy Consumers Facilitate Growth in Electronic
Payments Segment III-51
A Chronology of Select Technological Developments in
Canada’s Financial Industry III-51
Major Developments & Trends III-52
Debit Card Use Spirals During Holiday Season III-52
Card Companies Undertake Trials for EMV Compliance III-52
Canada Promotes Use of Chip-Enabled Cards III-52
Growing Use of Debit Cards for $25-$100 Value Transactions III-52
Consumers Prefer PIN Debit Transactions III-52
Canada Introduces New Voluntary Code for Debit Card
Transactions III-53
Rising Debit Card Fraud at Canadian Retail Gas Stations III-53
Strategic Corporate Developments III-53
Product Introductions III-53
B.Market Analytics III-54
Table 21: Canada Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-54

3. Japan III-55
A.Market Analysis III-55
Current and Future Analysis III-55
Payments Cards in Japan - An Overview III-55
Japanese Debit Cards Market - A Historical Perspective III-55
Debit Cards System in Japan III-56
Card Associations in Japan III-56
Online Processing Dominates Debit Card Processing Scenario III-56
Debit Cards Find Use in High Value Transactions III-56
JCB - A Major Card Industry Player III-56
B.Market Analytics III-57
Table 22: Japanese Recent Past, Current & Future Analysis
for Debit Cards Market Independently Analyzed with Annual
Number of Cards in Use in Million for Years 2003 through
2012 (includes corresponding Graph/Chart) III-57

4. Europe III-58
A.Market Analysis III-58
Current and Future Analysis III-58
Banking Facilities in Europe III-58
Central and Eastern Europe (CEE) Region III-58
Cards Replace Cash and Paper Transactions III-58
Payments Cards Address Needs of Un-Banked Population III-59
Focus on Prepaid Cards III-59
Single Euro Payments Area (SEPA) Takes Shape in Europe III-59
Rationale Behind SEPA III-59
European Banking Sector Proposes Pan-European Debit Card
Scheme III-60
What is SEPA? III-60
EAPS Initiates Process of SEPA Compliance for European
Debit Cards III-60
Major Highlights of SEPA III-61
Current & Post-SEPA Scenario in EU Nations III-61
Banks Fear MasterCard’s Dominance III-62
MasterCard Defers Introduction of New Interchange Rates for
Europe III-62
MasterCard’s New Interchange Fees for Europe III-62
European Prepaid Cards Market on the Rise III-63
Table 23: European Prepaid Cards Market (2006): Percentage
Breakdown of Spending by Type of Prepaid Card (includes
corresponding Graph/Chart) III-63

Table 24: European Prepaid Cards Market (2006): Percentage
Breakdown of Spending by Type of Prepaid Card (includes
corresponding Graph/Chart) III-64
Strategic Corporate Developments III-64
B.Market Analytics III-65
Table 25: European Recent Past, Current and Future Analysis
for Debit Cards by Geographic Region - France, Germany,
Italy, UK, Spain, Russia and Rest of Europe Markets
Independently Analyzed with Annual Number of Cards in Use
in Million Years 2003 through 2012 (includes corresponding
Graph/Chart) III-65

Table 26: European 10-Year Perspective for Debit Cards by
Geographic Region - Percentage Breakdown by Cards in Use
for France, Germany, Italy, UK, Spain, Russia and Rest of
Europe Markets for Years 2003, 2007 & 2012 (includes
corresponding Graph/Chart) III-66

4a. France III-67
A.Market Analysis III-67
Current and Future Analysis III-67
Payment Cards Market in France - An Overview III-67
French Payment Cards Market Continues to Rise III-67
Debit Cards in France III-67
Carte Bleue - The National Debit Card Scheme III-67
Crédit Agricole S.A (France) - A Key Player III-68
B.Market Analytics III-68
Table 27: French Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-68

4b. Germany III-69
A.Market Analysis III-69
Current and Future Analysis III-69
An Overview of the German Payment Cards Market III-69
Germany Leads Europe in Card Transactions III-69
Visa Seeks to Break Maestro’s Stronghold on European Debit
Cards Market III-69
Strategic Corporate Developments III-69
Deutsche Bank AG - A Leading Player III-70
B.Market Analytics III-70
Table 28: German Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-70

4c. Italy III-71
A.Market Analysis III-71
Current and Future Analysis III-71
Italian Payment Cards Market - An Insight III-71
Table 29: Italian Payment Cards Market (2003-2007E):
Percentage Breakdown of Transaction Volume for Credit and
Debit Cards (includes corresponding Graph/Chart) III-71
Major Card Issuers in Italy III-71
Card Statistics At a Glance III-72
Payment Network III-72
MasterCard Vs Visa III-72
Impact of SEPA on Italian Debit Cards Market III-72
Strategic Corporate Developments III-73
B.Market Analytics III-73
Table 30: Italian Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-73

4d. United Kingdom III-74
A.Market Analysis III-74
Current and Future Analysis III-74
Payment Cards Market in the UK - An Overview III-74
Debit Card Vs Credit Cards III-74
Debit Cards Drive Growth in the Payment Cards Arena III-75
Table 31: UK Payment Cards Market (2004-2006): Percentage
Breakdown of Transaction Volume by Type of Card for Debit
Cards and Credit, Store and Charge Cards (includes
corresponding Graph/Chart) III-75
Debit Cards Outshine Credit Cards III-75
Debit Cards Score Over Credit Cards III-75
Key Card Statistics for 2005 III-76
Card Associations in the UK III-76
Table 32: Visa Payments Cards in the UK (2005): Percentage
Breakdown of Number of Cards and Spending on Card for Debit
and Credit Cards III-76
Chip & PIN Technology Lowers Card Fraud Losses III-77
Table 33: Payment Cards Market in the UK (2005): Percentage
Breakdown of Fraud Losses for UK-Issued Cards by Type of
Fraud (includes corresponding Graph/Chart) III-77
UK Payments Industry - A Historical Perspective III-77
Waning Popularity of Cheques III-77
Table 34: UK Payments Industry (2000-2005): Number of ATMs
Installed (in Thousands) by ATM Deployer (includes
corresponding Graph/Chart) III-78

Table 35: UK Payments Industry (1998-2005): Percentage
Breakdown of Transaction Volume by Payment Method for Cash
Payments, Non-Cash Payments and Others (includes
corresponding Graph/Chart) III-78

Table 36: UK Payment Cards Industry (1998-2003):
Percentage Breakdown of Transaction Volume by Payment
Method for Debit Cards, Credit and Charge Cards and Store
Cards (includes corresponding Graph/Chart) III-79
Debit Card Spending Continues to Rise . III-79
Table 37: UK Payments Industry (2005): Consumer Spending
(in £ Billion) at Retail Outlets by Payment Method for
Debit Cards, Cash and Others (includes corresponding
Graph/Chart) III-79
Growing Demand for Prepaid Cards III-80
Use of Cards for Charitable Donations III-80
Card Statistics for 2006 Christmas Season III-80
UK to Introduce Contactless Cards for Low-Value Transactions III-80
Strategic Corporate Developments III-81
Product Introductions III-82
Focus on Select Players III-83
Barclays Plc III-83
HSBC Holdings Plc III-83
Lloyds TSB Group Plc III-83
The Royal Bank of Scotland Group Plc III-83
S2 Card Services Ltd./Solo III-84
B.Market Analytics III-84
Table 38: UK Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-84

4e. Spain III-85
A.Market Analysis III-85
Current and Future Analysis III-85
Overview of Spanish Payment Cards Market III-85
Debit Cards Market in 2005 III-85
Visa - The Leading Card Brand in Spain III-85
Table 39: Spanish Payment Cards Market (2005): Percentage
Breakdown of Number of Visa Cards for Credit Card, Debit
Card and Commercial Card (includes corresponding
Graph/Chart) III-86
Interchange Reduction Compels Banks to Restructure Card
Programs III-86
B.Market Analytics III-87
Table 40: Spanish Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-87

4f. Russia III-88
A.Market Analysis III-88
Current and Future Analysis III-88
Payment Cards Industry - Growth Despite Inadequate Banking
Services III-88
Debit Card Usage Grows III-88
B.Market Analytics III-89
Table 41: Russian Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-89

4g. Rest of Europe III-90
A.Market Analysis III-90
Current and Future Analysis III-90
Absence of Interchange Lowers Income Levels in North Europe III-90
Select Regional Markets - An Overview III-90
Belgium III-90
Mobile Phones As Debit Cards III-90
Finland III-91
Ireland III-91
Overview III-91
Laser - The National Debit Card Scheme III-92
Declining Share of Cheque-Based Payments III-92
Portugal III-92
Visa Card Usage Grows in Portugal III-93
The Netherlands III-93
Turkey III-93
An Insight into Turkish Payment Cards Market III-93
Credit Cards Hold Sway in Turkish Payments Market III-93
Advanced Infrastructure Facilities to Drive Cards Market III-94
Strategic Corporate Developments III-94
Product Introductions III-94
Focus on Select Players III-96
ING Group N.V. (The Netherlands) III-96
Laser Card Services Ltd. (Ireland) III-96
SA Banksys NV (Belgium) III-96
SSB SPA (Italy) III-97
B.Market Analytics III-97
Table 42: Rest of Europe Recent Past, Current & Future
Analysis for Debit Cards Market Independently Analyzed with
Annual Number of Cards in Use in Million for Years 2003
through 2012 (includes corresponding Graph/Chart) III-97

5. Asia-Pacific III-98
A.Market Analysis III-98
Current and Future Analysis III-98
Asian Markets Drive Global Debit Card Adoption III-98
Asia Pacific - Major Contributor to Growth in Visa Debit and
Prepaid Programs III-98
Pakistan & Bangladesh Driving Growth for Visa Debit Cards III-98
B.Market Analytics III-99
Table 43: Asia-Pacific Recent Past, Current and Future
Analysis for Debit Cards by Geographic Region - Australia,
China, India, Singapore and Rest of Asia-Pacific Markets
Independently Analyzed with Annual Number of Cards in Use in
Million Years 2003 through 2012 (includes corresponding
Graph/Chart) III-99

Table 44: Asia-Pacific 10-Year Perspective for Debit Cards
by Geographic Region - Percentage Breakdown by Cards in Use
for Australia, China, India, Singapore and Rest of
Asia-Pacific Markets for Years 2003, 2007 & 2012 (includes
corresponding Graph/Chart) III-99

5a. Australia III-100
A.Market Analysis III-100
Current and Future Analysis III-100
Overview III-100
RBA Introduces New Regulations for Payment Cards Industry III-100
EMV Compliance & Technological Advancements Hold Key to Growth III-100
Debit Cards in Australia III-100
Interchange Fee in Australia III-101
RBA Implements New Standards for Debit Cards III-101
Debit Card Fraud in Australia III-101
Table 45: Debit Card Fraud in Australia (2006): Number of
Frauds (In Thousands) and Value (In $ Million) III-101

Table 46: Debit Card Fraud in Australia (2006): Number (In
Thousands) and Value (In $ Million) by Type of Fraud for
Lost/Stolen, Counterfeit/Skimming, Never Received and
Others (includes corresponding Graph/Chart) III-102
Product Introductions III-102
B.Market Analytics III-103
Table 47: Australian Recent Past, Current & Future Analysis
for Debit Cards Market Independently Analyzed with Annual
Number of Cards in Use in Million for Years 2003 through
2012 (includes corresponding Graph/Chart) III-103

5b. China III-104
A.Market Analysis III-104
Current and Future Analysis III-104
China’s Bankcard Industry - An Overview III-104
Bankcard Industry in China Witnesses Continuous Growth III-104
Table 48: Bankcards Industry in China (2000-2005):
Percentage Breakdown of Cards Issued by Payment Card for
Debit and Credit Cards (includes corresponding Graph/Chart) III-104
Rise in Personal Accounts Facilitate Debit Card Use III-105
Credit Cards in Nascent Stage III-105
Government Promotes Use of Bankcards III-105
China Proposes New Bankcard Regulations III-105
Major Trends III-106
China’s Central Bank Reduces Service Charges for Migrant
Workers III-106
SARS Crisis Aids Growth in Card Utilization III-106
Additional Services Ensure Continuous Growth for Debit Cards III-106
Strategic Corporate Developments III-106
China Merchants Bank Co., Ltd - A Major Player III-107
B.Market Analytics III-107
Table 49: Chinese Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-107

5c. India III-108
A.Market Analysis III-108
Current and Future Analysis III-108
Financial Cards Industry in India III-108
Table 50: Payment Cards Industry in India (2004-2005):
Percentage Breakdown of Transaction Volume and Value for
Debit Cards and Credit Cards (includes corresponding
Graph/Chart) III-108
Debit Cards - A Dominant Presence III-109
Credit Cards to Drive Future Growth III-109
SBI Dominates Debit Card Issuance Scenario III-109
Table 51: Debit Cards Market in India (2004-2006E):
Percentage Breakdown of Leading Card Issuers by Number of
Cards for SBI, ICICI, HDFC, UTI, Citibank and Others
(includes corresponding Graph/Chart) III-110

Table 52: Debit Cards Market in India (2005): Market Share
(%) of Leading Banks by Transaction Volume for State Bank
of India, ICICI, HDFC, UTI, Canara Bank, Citibank and
Others (includes corresponding Graph/Chart) III-110
Debit Cards Market - Enormous Opportunities for Card Issuers III-110
Issues & Trends III-111
Intensifying Competitive Environment III-111
Prepaid & Premium Cards - Potential for Higher Debit Card
Utilization III-111
Increased Adoption of Electronic Systems Boosts Demand for
Debit Cards III-111
Low Utilization Rates at POS Terminals III-111
Overcoming Infrastructure Challenges III-112
Focus Shifts to Smaller Towns & Cities III-112
Visa Initiates ADP Program for Developing Infrastructure
in Smaller Cities III-112
SBI Promotes Debit Card Usage in Small Cities III-112
Indian Postal Department Proposes Debit Cards for MIS
Accountholders III-112
MasterCard & Visa Offer Differentiated Products III-113
Card Use for Routine Payments Grows III-113
Banks Promote Card Usage for Modernization of Banking
Operations III-113
ICICI Bank Promotes Debit Cards to Save Planet III-113
Visa Provides Zero Liability Protection Program for Debit
Cardholders III-113
Strategic Corporate Developments III-114
Product Introductions III-114
B.Market Analytics III-117
Table 53: Indian Recent Past, Current & Future Analysis for
Debit Cards Market Independently Analyzed with Annual Number
of Cards in Use in Million for Years 2003 through 2012
(includes corresponding Graph/Chart) III-117

5d. Singapore III-118
A.Market Analysis III-118
Current and Future Analysis III-118
An Insight into Singapore’s Cards Market III-118
Visa - The Dominant Card Brand III-118
Product Introduction III-118
B.Market Analytics III-119
Table 54: Singaporean Recent Past, Current & Future Analysis
for Debit Cards Market Independently Analyzed with Annual