State of the Industry Report September 2024

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17

CMSPI – IAC State of the Industry Report

CMSPI – IAC State of the Industry Report

$8,000

3.50%

2.50%

$14,000

Unregulated Market

Unregulated Market

$7,000

3.00%

$12,000

$6,000

2.00%

2.50%

$10,000

Regulated Markets

$5,000

2.00%

Voluntary Commitments

1.50%

$8,000

$4,000

Regulated Markets

1.50%

$3,000

$6,000

1.00%

1.00%

$2,000

$4,000

0.50%

$1,000

0.50%

$2,000

0.00%

$0

USA Japan Mexico Canada Australia New Zealand

UK EU-12 China

$0

0.00%

Mexico

USA Canada

UK

Australia

EU-12

China

Interchange

Network Fee

Acquirer Fee

Total MSC

Market Size

Interchange

Network Fee

Acquirer Fee

Total MSC 2023 Market Size (USD bn)

Graph 1.2 – Credit Card Fees by Country, Market Size and Regulation Status 16 17

Graph 1.3 – Debit Card Fees by Country, Market Size and Regulation Status

Section 1.2.1 – Case Study: Payment Costs in the United States The weighted average cost of payments acceptance is increasing for U.S. merchants. In the U.S., CMSPI estimates the average cost of payments has risen from 1.36% in 2009 to 1.70% in 2022, corresponding to $49 billion in like-for-like additional costs for U.S. merchants annually. We believe this is being driven by two main factors: rising card fees and a changing payments mix.

16 Please see Section 5 for an overview of credit card interchange voluntary commitments in Canada 17 Average Credit Rates are exclusively Visa and MasterCard averages

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