State of the Industry Report September 2024

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CMSPI – IAC State of the Industry Report

CMSPI – IAC State of the Industry Report

Contents Executive Summary

Section 3.2 – Card Network Rule CP and CNP Definitions

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Section 3.2.1 – Why does the classification matter?

63

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Section 3.2.2 – What is Card-Present and Card-Not-Present? Section 3.3 – Card-Not-Present Payment Challenges

64

Section 1 Overview – A Primer in Payments

65

Section 1.1 – A Model of Card Payments

10

Section 3.3.1 – Ecommerce Cost

65

Section 1.1.1 – Four-Party Card Networks

10

Section 3.3.2 – Card-Not-Present Operational Complexities: Transaction Authorization, Capture, and Settlement

67

Section 1.1.2 – Three-Party Card Networks Section 1.2 – Global Cost Observations

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Section 3.3.3 – Tokenization Dynamics 68 Section 4 Overview – Payment Methods Around the Globe 74 Section 4.1 – Payments Mix by Region 76 Section 4.1.1 – Payments Mix in the Americas 77 Section 4.1.2 – Payments Mix in Europe and the Middle East 78 Section 4.1.3 – Payments Mix in Asia-Pacific 79 Section 4.2 – Credit and Debit Cards around the World 80 Section 4.2.2 – Credit and Debit Cards in EMEA 82 Section 4.2.3 – Credit and Debit Cards in APAC 83 Section 4.2.4 – Credit and Debit Cards Summary 83 Section 4.3 – The Future of Cash 83 Section 4.3.1 – Cash in the Americas 83 Section 4.3.2 – Cash in EMEA 84 Section 4.3.3 – Cash in APAC 85 Section 4.4 – Digital Payment Methods 86 Section 4.4.1 – Local Payment Methods (LPMs) 86 Section 4.4.2 – Digital Payment Methods Global Developments 88 Section 4.4.3 – Pix Case Study (Brazil): The Poster Child for a Successful APM 93

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Section 1.2.1 – Case Study: Payment Costs in the United States

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Section 1.2.2 – Cost of Cash vs. Debit Cards Case Study

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Section 2 Overview – The Payments Supply Chain

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Section 2.1 – The Card Issuing Industry

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Section 2.1.1 – Card Issuing Market Shares in the Americas

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Section 2.1.2 – Card Issuing Market Shares in EMEA

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Section 2.1.3 – Card Issuing Market Shares in APAC

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Section 2.1.4 – U.S. Case Study

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Section 2.2 – The Card Acquiring Industry Section 2.3 – Card Network Industry Overview

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Section 2.3.1 – Card Networks in the Americas

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Section 2.3.2 – Card Networks in EMEA

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Section 2.3.3 – Card Networks in APAC

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Section 3 Overview – Understanding Ecommerce Section 3.1 – In-Store vs Online Commerce Growth Patterns

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Section 3.1.1 – Ecommerce Mobile Device Payments – Recent Trends

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