Payment cards to hit 10 billion mark worldwide by 2014 – research

According to the research conducted by Retail Banking Research, a UK-based research and consulting company, the payment card market continued to expand at a healthy rate, even against the difficult economic situation experienced during the past couple of years. Although Asia-Pacific owns the highest share of cards, Western Europe and North America have emerged as the most mature regions, since they have the highest ratios of cards per adult, as well as the highest numbers of payments per card, the same research points out.

The study has also shown that the share of debit cards is continuously increasing, currently accounting for 62 percent of cards worldwide. Such a growth is being triggered by the conversion of ATM-only cards to include POS (point-of-sale) functionality in a number of countries, especially in the Asia-Pacific region, as well as the issuance of prepaid cards. The report predicts that the share of debit cards will increase significantly in the coming years, as the banked population rises in countries where account holding is currently low, encouraged by government-backed campaigns.

A far as credit cards are concerned, their market share is expected to fall as individuals holding cards for the first time will usually be issued with a debit (or prepaid) card rather than a credit card. Nevertheless, the sector displays potential for expansion once confidence is restored after the effects of the credit crisis have worn off and as credit bureaux become established in more countries.