club meeting 030309
TRANSCRIPT
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Copyright 2008, First Data Corporation. All Rights Reserved.
An invitation to play cards
John Chaplin, First Data Corporation
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Copyright 2008, First Data Corporation. All Rights Reserved.
“Payment cards: still a good deal or the next busted flush?”
An invitation to play cards
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Copyright 2008, First Data Corporation. All Rights Reserved.
First Data - global leader in card payments processing
US$8 billion annual revenues (2007)
Handling more than 30 billion transactions per year
27,000 employees speaking 75 languages
Operating in all continents – business in 24 EU markets
Active in all elements of card payments value chain
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Copyright 2008, First Data Corporation. All Rights Reserved.
Cards on the table
4
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Copyright 2008, First Data Corporation. All Rights Reserved.
Industry trends as a health indicator
5
• Business
volumes
• Debit vs credit
vs ATM
• Fraud losses
• Credit losses
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Copyright 2008, First Data Corporation. All Rights Reserved.
Changing industry economics
6
• Interchange
• Scheme
assessments
• Surcharging
• Credit/debit
migration
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Copyright 2008, First Data Corporation. All Rights Reserved.
Demutualisation of card schemes
7
• MasterCard• Visa and
Visa Europe• Short-term
moves• Long-term
effects
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Copyright 2008, First Data Corporation. All Rights Reserved.
Where is the innovation?
8
• Contactless
• Pre-paid
• Virtual
• Mobile
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Copyright 2008, First Data Corporation. All Rights Reserved.
Political impacts
9
• SEPA whither or wither?
• Consumer protection
• Central Bank oversight
• Impacts of bank bailouts
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Copyright 2008, First Data Corporation. All Rights Reserved.
How good is the hand in future?
10
5 key conclusions
• Debit card much more important
than credit
• Economics rapidly moving to
utility model
• Scheme sell-offs to have
profound impact
• Innovation patchy and too brand
related
• Political factors weighing heavily
but unclear agenda
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Copyright 2008, First Data Corporation. All Rights Reserved.
Jokers in the pack
11
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Copyright 2008, First Data Corporation. All Rights Reserved.
• Enforced scheme and processor separation
• Major card issuer failure
• Regulated monopoly status for card schemes
Jokers in the pack
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Copyright 2008, First Data Corporation. All Rights Reserved.
13
Game over!
Thank you