Taking credit: The convenience of new payment methods has driven uptake and revenue growth

The Credit Card Processing industry has grown consistently over the past five years, benefiting from the increasing uptake of non-cash and contactless forms of payment. Other factors such as rising household consumption expenditure, increasing discretionary income and the growing popularity of online shopping have further supported the industry's long-term growth. Industry revenue is expected to grow at an annualised 2.1% over the five years through 2017-18, to reach $3.2 billion. Revenue is expected to fall by 0.2% over the current year as new interchange standards came into effect on 1 July 2017.Australia has been a global leader in adopting non-cash and contactless payments, which has assisted industry growth...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 13-18
2.1%
Forecast Growth 18-23
Profit
Employment
483
Businesses
7

Industry Threats & Opportunities

  • The industry has benefited from the uptake of non-cash and contactless forms of payment
  • Increasing household expenditure and discretionary income have aided industry revenue growth
  • The fundamental factors behind industry growth are likely to persist over the long term
  • Industry Report - Industry Key Buyers Chapter

    The Credit Card Processing industry is characterised by a very high level of market share concentration as it is made up of only five enterprises. The industry's three major players, Visa, MasterCard and American Express account for an estimated 94.2% of industry revenue, with Diners Club and eftpos making up the remainder. High barriers to entry make it difficult for new players to enter the industry and few opportunities exist to acquire other industry firms. The increasing popularity of credit and debit cards as an alternative to cash has spurred industry growth over the past five years, which has supported revenue.Market share concentration has risen over the past five years, with major players Visa and MasterCard outperforming the overall industry. The...purchase to read more.

    Additional Insights for the Credit Card Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Credit Card Processing Industry are

  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Household consumption expenditure and Demand from online shopping in the Credit Card Processing industry impact industry performance..

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    What's in this report

    What is the Credit Card Processing Industry?

    The industry provides authorisation, clearance and settlement services for payments between financial institutions involved in transactions conducted by cardholders and merchants.

    Industry Products
  • Debit cards
  • Credit cards
  • Industry Activities
  • Credit card processing
  • Debit card processing
  • Card payment authorisation
  • Card payment clearing
  • Card payment settlement
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Household consumption expenditure
  • Demand from online shopping
  • Consumer sentiment index
  • Demand from credit card issuance

  • Current Performance
  • Payment process
  • Non-cash and contactless payment
  • Interchange fee reforms
  • Transaction value and volumes
  • Chart: Revenue Growth

  • Industry Outlook
  • Non-cash and contactless payment
  • Digital wallets
  • Interchange fee reforms
  • Table: Credit Card Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Credit Card Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumer Goods Retailing
  • Online Shopping
  • Credit Card Issuance

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • National and Regional Commercial Banks

  • Products & Services
  • Credit cards
  • Debit cards
  • Chart: Credit Card Processing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Merchants
  • Chart: Major Market Segmentation for the Credit Card Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Credit Card Processing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Credit Card Processing Industry

  • Industry Globalization
    Visa Inc., MasterCard Australia Holding Pty Ltd, American Express Australia Limited,
  • Table: Visa Inc. - financial performance
  • Table: MasterCard Australia Holding Pty Ltd - financial performance
  • Table: American Express Australia Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Credit Card Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Credit Card Processing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Four-Party Payment Scheme
  • Under a four-party credit card scheme, the issuer and acquirer are different financial institutions.
  • Interchange Fee
  • Acquirers pay interchange fees to issuers to cover the cost of processing transactions.
  • Three-Party Payment Scheme
  • Under a three-party payment scheme, the issuer and the acquirer are the same entity, meaning there is no need for an interchange fee.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Credit Card Processing market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Credit Card Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Credit Card Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Credit Card Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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