State of the Industry Report September 2024

Developed alongside 11 of the world’s leading payments experts, CMSPI’s flagship report aims to empower merchants and advocates with the information they need to execute payments for their organizations in the market today. Want to understand how tokenization works, which payment methods to offer in different geographies, or why payments regulation differs by market? CMSPI’s Insights team has created the SOIR to be the first of its kind, developed with merchant input, to fuel merchant decision-making.


Executive Summary
6-7

Section 1 Overview A Primer in Payments
8-9

Section 1.2 – Global Cost Observations
14-15

Section 1.2.1 – Case Study: Payment Costs in the United States
16-17

Section 1.2.2 – Cost of Cash vs. Debit Cards Case Study
20-21

Section 1.1 – A Model of Card Payments
10-11

Section 1.1.1 – Four-Party Card Networks
10-11

Section 1.1.2 – Three-Party Card Networks
12-13

Section 2 Overview The Payments Supply Chain
28-29

Section 2.3 – Card Network Industry Overview
46-47

Section 2.3.1 – Card Networks in the Americas
48-49

Section 2.3.2 – Card Networks in EMEA
50-51

Section 2.3.3 – Card Networks in APAC
52-53

Section 2.2 – The Card Acquiring Industry
42-43

Section 2.1 – The Card Issuing Industry
32-33

Section 2.1.1 – Card Issuing Market Shares in the Americas
34-35

Section 2.1.2 – Card Issuing Market Shares in EMEA
36-37

Section 2.1.3 – Card Issuing Market Shares in APAC
38-39

Section 2.1.4 – U.S. Case Study
40-41

Section 3 Overview Understanding Ecommerce
56-57

Section 3.3 – Card-Not-Present Payment Challenges
64-65

Section 3.3.1 – Ecommerce Cost
64-65

Section 3.3.2 – Card-Not-Present Operational Complexities: Transaction Authorization, Capture, and Settlement
66-67

Section 3.3.3 – Tokenization Dynamics
68-69

Section 3.2 – Card Network Rule CP and CNP Definitions
62-63

Section 3.2.1 – Why does the classification matter?
62-63

Section 3.2.2 – What is Card-Present and Card-Not-Present?
64-65

Section 3.1 – In-Store vs Online Commerce Growth Patterns
58-59

Section 3.1.1 – Ecommerce Mobile Device Payments – Recent Trends
62-63

Section 4 Overview Payment Methods Around the Globe
74-75

Section 4.4 – Digital Payment Methods
86-87

Section 4.4.1 – Local Payment Methods (LPMs)
86-87

Section 4.4.2 – Digital Payment Methods Global Developments
88-89

Section 4.4.3 – Pix Case Study (Brazil): The Poster Child for a Successful APM
92-93

Section 4.3 – The Future of Cash
82-83

Section 4.3.1 – Cash in the Americas
82-83

Section 4.3.2 – Cash in EMEA
84-85

Section 4.3.3 – Cash in APAC
84-85

Section 4.2 – Credit and Debit Cards around the World
80-81

Section 4.2.2 – Credit and Debit Cards in EMEA
82-83

Section 4.2.3 – Credit and Debit Cards in APAC
82-83

Section 4.2.4 – Credit and Debit Cards Summary
82-83

Section 4.1 – Payments Mix by Region
76-77

Section 4.1.1 – Payments Mix in the Americas
76-77

Section 4.1.2 – Payments Mix in Europe and the Middle East
78-79

Section 4.1.3 – Payments Mix in Asia-Pacific
78-79

Section 5 Overview Payments and Regulation
96-97

Section 5.7 – Conclusion
138-139

Section 5.6 – Risks and Outcomes from Each Policy Intervention
136-137

Section 5.6.1 – Interchange Caps
136-137

Section 5.6.2 – Co-Badging
136-137

Section 5.6.3 – Surcharging
138-139

Section 5.5 – Payments Industry Regulation in Japan
132-133

Section 5.4 – Payments Industry Regulation in Australia
122-123

Section 5.4.1 – Interchange Caps in Australia
122-123

Section 5.4.2 – Co-Badging and Routing in Australia
126-127

Section 5.4.3 – Discounting and Surcharging in Australia
130-131

Section 5.3 – Payments Industry Regulation in Europe
118-119

Section 5.3.1 – Interchange Caps in Europe
118-119

Section 5.3.2 – Co-Badging and Routing in Europe
118-119

Section 5.3.3 – Discounting and Surcharging in Europe
122-123

Section 5.2 – Payments Industry Regulation in the US
110-111

Section 5.2.1 – Interchange Caps
110-111

Section 5.2.2 – Card Co-Badging and Routing
112-113

Section 5.2.3 – Discounting and Surcharging
116-117

Section 5.1 – Types of Government Intervention
98-99

Section 5.1.1 – Interchange Caps
100-101

Section 5.1.2 – Co-badging/Dual Network Routing Regulation
104-105

Section 5.1.3 – Price Signaling: Discounting, Surcharging, and Steering
106-107

Section 5.1.4 – Government-Mandated Payments
108-109

Section 5.1.5 – The Challenges of Regulating Payments
108-109

Glossary
138-139

Processes
138-139

Exception Processes
140-141

Set-Up/Operations
140-141

Parties
142-143

Economics
142-143

Miscellaneous
144-145

Payment Methods
144-145

Appendix
146-147

Index
154-155

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