Emerging opportunities and challenges
The current global payment card network industry is dominated by just a few players. Among these global players, Visa® and MasterCard® enjoy a dominant market share. However, recently there has been an increasing trend towards domestic processing of payment transactions in many countries. Since the launch and wide adoption of UnionPay™ cards in China, many other countries are also considering launching similar networks in their countries.
This paper discusses some of the key domestic payment card networks initiatives that have already started commercial operations while also covering some networks that are expected to commence operations soon. It analyzes the key concerns arising from the new networks for existing global players and how they will have to alter their existing strategies to operate in this new environment. It also analyzes the steps needed to be undertaken by these new domestic networks in order to succeed in an industry dominated by a few players.