Laser in Ireland, pankkikortti in Finland, PIN in the Netherlands, and Bancomat in Luxembourg have two things in common. They were all domestic card schemes, and they were all abandoned between 2011 and 2015. In their absence, the processing of domestic card payments often shifted further towards the major international card brands.
However, the last decade has seen countries – including Russia, Turkey, and Nigeria – introduce their own schemes, while others are now exploring the option. But who are these new schemes, and what is driving their development?
Digital payments are now recognised as a core element of national infrastructure. It is no surprise, then, that one of the most commonly cited reasons for the development of a domestic card scheme is reducing dependence on largely US-based card schemes. This can mean protecting against technological risks – like the outage Visa’s European systems experienced in 2018 – or geopolitical ones. Russia, for example, rapidly developed its domestic Mir scheme following US sanctions in 2014. The first Mir cards were issued in 2015, and by 2023 they constituted 56% of all domestic card transactions.
Similarly, it is reported that the UAE’s domestic card scheme – due to be launched in 2024 as part of the Comprehensive Economic Partnership Agreement between India and the UAE – is, in part, intended to ‘uphold principles of sovereignty, expedite market entry, and ensure strategic independence’.
There are other non-geopolitical motivations behind building redundancy, too. For example, Nigeria’s AfriGo, launched in 2023, aims to free up foreign exchange (FX) reserves and reduce exposure to fluctuations in the dollar (USD) by allowing merchants to pay card fees in naira (NGN).
Another common reason for building a domestic card scheme is financial inclusion. In Egypt, the development of the Meeza scheme in 2019 was part of the Central Bank’s ongoing initiatives to promote a cashless society. This ambition – since then echoed by AfriGo – follows the likes of India’s RuPay, which was developed as one element in a host of financial inclusion measures that included the introduction of zero-balance savings accounts. When the South African Reserve Bank (SARB) consulted on the feasibility of establishing a domestic card scheme in 2021, it too cited opportunities to ‘better serve the unbanked market and increase competition within the payments landscape’.
The SARB is not alone in referencing the need for competition in the processing of card payments. Soner Canko, chairman of the Interbank Card Center in Istanbul, argued in an interview that the introduction of Turkey’s new TROY card scheme in 2016 would generate more savings and innovation, as well as reduce reliance on cash, by charging lower fees than international card networks. However, competitive pricing is not guaranteed purely by the presence of a domestic debit scheme. In the US, in 2011, policymakers required that all domestic debit cards be badged with at least two competing schemes and that merchants have the choice between them; however, there remain significant differences in scheme availability by channel, issuer type, and more.
Still, the potential benefits of competition for merchants are significant. CMSPI estimates that full enablement of merchant routing choice for debit transactions in the US could save merchants USD 4 billion annually. Similarly, in Australia, least-cost routing could reduce merchant costs by AUD 804 million yearly (approximately USD 543 million, at the time of publication).
Although domestic card schemes are seeing an impressive revival, they walk a well-worn path. For example, in 2022, the European Payments Initiative became one in a string of abandoned attempts to develop a pan-European card scheme to rival international brands. In other markets, policymakers have had to intervene repeatedly to protect merchants’ rights to route transactions to domestic debit schemes, especially where technologies such as tokenization and the growth of ecommerce channels affect scheme access.
Furthermore, international card brands remain key players in the market for cross-border card payments. Discover Global Network, in particular, provides the infrastructure for many of the aforementioned networks to operate internationally.
For merchants – which, in the US alone, are estimated to have spent USD 224 billion on card payments in 2023 –, knowing how to access and optimise domestic schemes can be a lifeline amidst rising costs. However, domestic schemes are also a crucial element of any localisation strategy, and – in some markets – the only way a customer can pay. Today, the ability of those schemes to innovate for customers, incentivise merchant adoption, and protect competitive markets will determine their survival around the world.
This editorial piece was first published in The Paypers' Global Ecommerce Report 2025, which provides a complete overview of key trends and strategies to help businesses worldwide succeed. Download your free copy today to explore in-depth insights on global ecommerce trends, the latest innovations in payment solutions, and strategies to stay ahead in a competitive market.
Martha Southall, Global Director of Client Insights at CMSPI, delivers strategic insights for Global 500 clients. She specialises in multi-acquiring strategies, payments regulation, and alternative payment methods. As part of CMSPI's Insights Team, she helps equip merchants with data that’s critical for industry change. Martha holds a First-Class Honors degree in Philosophy, Politics, and Economics from Oxford University and resides in Atlanta, Georgia.
As the world’s leading payments advisory, CMSPI partners with hundreds of Global 500 merchants to save them millions every year. Leveraging the combination of specialist expertise and the CMSPI Platform, CMSPI helps merchants harness the power of data to maximise payments supply chain performance and increase the profitability of every transaction. CMSPI delivers Smarter Payments Intelligence that keeps merchants ahead of the curve.
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