Smart Cards in the U.S.: Contactless Payment Cards

May 1, 2007
184 Pages - Pub ID: LA1383053
Share this report
 
Online Download $3,500
Hard Copy Mail Delivery $3,900
Global Site License $7,000
Online Download plus 1 Hard Copy $4,300
For your convenience, Packaged Facts has specially prepared a PowerPoint presentation of tables to accompany Smart Cards in the U.S.: Contactless Payment Cards . To facilitate further exploration, all slides include page references to the original report.
A Smart Time for Contactless

As 2006 came to a close, smart cards in the consumer card payments market had reached near full penetration in western European countries such as France and the United Kingdom. What was once a cutting edge technology is now a standard in the wallets of many Europeans.

In the United States, this market has struggled to gain a foothold. But, smart cards may now be getting a second chance in the form of contactless technology. The fast-paced American lifestyle continues to put pressure on retailers to serve customers in an ever-more efficient manner. At the same time, card brands such as MasterCard and Visa, are pushing for a bigger slice of the small-tickets payments pie traditionally reserved for cash. The time is finally right for large-scale penetration of smart cards in the payments market.

According to the new Packaged Facts report, Smart Cards in the U.S.: Contactless Payment Cards, roughly 27 million contactless payment cards were in circulation in the United States in 2006. If circumstances permit, that number could top 100 million by 2011. What’s more, increased penetration of contactless payments is expected grow transaction volumes and even managed balances for issuers.

This targeted report provides in-depth analysis of the small, but potentially large market for contactless payment cards in the United States. For perspective, it includes overviews of the overall smart card market worldwide and in the Untied States and the worldwide and U.S. payments markets. Also included are trends affecting the payments and contactless payments markets and analysis of consumer attitudes towards payment cards derived from the Annual Consumer Survey conducted by Simmons Market Bureau. To complete the report, an in-depth analysis of the potential market including forecasts of number of cards and increases in transaction and purchase volumes through 2011 is provided.

Report Methodology
The information in Smart Cards in the U.S.: Contactless Payment Cardsis based on both primary and secondary research. Primary research involved extensive interviews with senior marketing, public relations and industry executives within the banking, retail and credit card markets and consultants to the industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature, annual reports and 10(k) filings, white papers, and data from databases such as CardData and CardLine. Consumer data was obtained from Simmons Market Research Bureau’s Fall 2006 National Consumer Study. Media spending data was obtained from TNS Media Intelligence.

What You’ll Get in this Report
Smart Cards in the U.S.: Contactless Payment Cardsmakes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Smart Cards in the U.S.: Contactless Payment Cards. offers.

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You Will Benefit from this Report
If your company is already doing business in the smart card and contactless market, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for smart cards and contactless payments, as well as projected markets and trends through 2011.

This report will help:

  • Marketing Managers identify market opportunities and develop targeted promotion plans for smart cards and contactless payments.
  • Research and development professionals stay on top of competitor initiatives and explore demand for smart cards and contactless payments
  • Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to use smart cards and contactless payment options.
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Chapter 1 Executive Summary
  • Scope of Report
  • Methodology
  • What Is a Smart Card?
  • Memory Chip
  • Microprocessor Chip
  • Smart Card Applications
  • Types of Smart Cards
  • Contact Smart Card
  • Contactless Smart Card
  • The Worldwide Market for Payment Smart Cards
    • 582 Million Payment Smart Cards in Circulation Worldwide
    • U.S. Contactless Card Payments Market Still in Infancy
    • 27 Million Contactless Payment Cards In Circulation
    • Table 1-1 Total U.S. Contactless Payment Cards, by Brand, 2002-2006 (in millions)
    • Figure 1-1 U.S. Market Share of Contactless Payment Cards, by Brand, 2006 (%)
    • Contactless Cards Attract More Transactions
    • Table 1-2 Estimated U.S. Transactions from Cards with a Contactless Feature, by Brand, 2004-2006 (in millions)
    • High Growth, Lower Value for Contactless Card Purchase Volume
    • Table 1-3 Estimated U.S. Purchase Volume from Cards with a Contactless Feature, by Brand, 2004-2006 (in million $)

  • Market Forecast
    • Total Contactless Payment Cards to Reach 109 Million by 2011
    • Table 1-4 Projected Total U.S. Contactless Payment Cards, by Brand, 2007-2011 (in millions)
    • Figure 1-2 Market Share Growth of Contactless Payment Cards, 2007-2011 (percent)
    • 2011 Contactless Transactions Reach 2.2 Billion
    • Figure 1-3 U.S. Contactless-Enabled Payment Card Transactions, Contactless Versus Magnetic Stripe Transactions, 2007-2011 (in billions)

  • Marketing Dynamics
    • Contactless Product Introductions
    • Retailers a Driving Force in Contactless Integration
    • Top Financial Services Companies Ad Spend
    • Table 1-5 Selected Financial Services Companies Ranked By Total Measured U.S. Advertising Spending, First Half of 2006 versus First Half of 2005 (In Million $)
    • Selected Smart Card Marketing Initiatives
    • MasterCard Priceless Highlight Fun and Function of PayPass
    • MasterCard PayPass at a Sports Venue Near You
    • Visa Brings Life into Play
    • Visa Feels Consumer Pain With Lunch Spot
    • Consumers Urged to Blink with Chase VOD Campaign
    • Chase at Major League Ballparks
    • Product and Design Innovation to Explode
    • Corporate Landscape in Flux

  • The Consumer
    • Credit Card Brand Penetration
    • Table 1-6 Household Penetration Rates for Major Credit Card Brands, 2003-2006 (%)
    • Credit Card Brand Demographic Indicators
    • Younger Consumers: Financial Insecurity and Immaturity
    • With Age Comes Awareness
    • Issuer Tests and Trials Provide Insights Into Consumer Acceptance
    • Adopters Most Likely Young and High Household Income
    • MasterCard Study Points to Shifting Consumer Behavior

Chapter 2 The Smart Card Contactless Payments Market

  • Overview
  • Methodology
  • What Is a Smart Card?
  • Memory Chip
  • Microprocessor Chip
  • Smart Card Applications
  • Types of Smart Cards
  • Contact Smart Card
  • Contactless Smart Card
  • RF Technology Versus RFID Cards
  • The EMV Standard
  • The Market for Smart Cards
    • The Worldwide Market for Smart Cards
    • Worldwide Shipments of Smart Cards Tops 3 Billion Units
    • Table 2-1 Total Worldwide Smart Card Shipments, by Type, 2002-2006 (units in millions)
    • Payment Smart Cards Account for 9% of Worldwide Shipments
    • China’s National ID Program Drives Identification Segment Shipments
    • Figure 2-1 Worldwide Market Share of Smart Card Shipments, by Type, 2006 (in millions)
    • The U.S. Market for Smart Cards
    • U.S. Smart Card Shipments Total 199 Million Units
    • Table 2-2 U.S. Versus Worldwide Smart Card Shipments, 2002-2006 (units in millions)
    • Figure 2-2 U.S. Market Share of Worldwide Smart Card Shipments, 2002-2006 (%)

  • The Market for Payments
    • The Worldwide Market for Payment Cards
    • Total Payment Cards in Circulation Tops 2.5 Billion Units Worldwide
    • Table 2-4 Number of Payment Cards in Circulation Worldwide, by Brand, 2002-2006 (in millions)
    • Figure 2-4 Worldwide Market Share of Payment Cards, by Brand, 2006 (%)
    • The U.S. Market for Payments
    • Metric Mania
    • U.S. Credit/Debit Card Purchase Volume Approaches $2.8 trillion
    • Visa Accounts for Nearly Half of Purchase Volume
    • Table 2-5 Total U.S. Payment Card Purchase Volume, by Brand, 2002-2006 (in billion $)
    • Figure 2-5 U.S. Market Share of Payment Card Purchase Volume, by Brand, 2006 (%)
    • Consumers Increasingly Prefer Credit/Debit Cards
    • Table 2-6 Payment Card Share of Personal Consumption Expenditures, by Brand, 2005 and 2006 (%)
    • Figure 2-6 Payment Card Share of Personal Consumption Expenditures Versus Total PCE, by Brand, 2006 (%)
    • Total Cards in U.S. Circulation at 969 Million
    • Table 2-7 U.S. Payment Cards in Circulation, by Brand, 2002-2006 (in millions)
    • Figure 2-7 U.S. Market Share of Payment Card Purchase Volume, by Brand, 2006 (%)
    • Total Payment Transactions Top 48 Billion
    • Table 2-8 U.S. Payment Card Transactions, by Brand, 2002-2006 (in billions)
    • Figure 2-8 U.S. Market Share of Payment Card Transactions, by Brand, 2006 (%)

  • The Worldwide Market for Payment Smart Cards
    • 582 Million Banking and Payment Smart Cards in Circulation
    • MasterCard Leads Globally
    • Table 2-9 Banking and Payment Smart Cards in Circulation Worldwide, by Brand, 2002-2006 (in millions)
    • Figure 2-9 Worldwide Market Share of Banking and Payment Smart Cards, by Brand, 2002-2006 (%)
    • MasterCard Surpasses Visa in Smart Card Share
    • Table 2-10 Percentage of Smart Cards to Total Cards Worldwide, by Brand, 2002-2006 (%)

  • The U.S. Market for Smart Card Contactless Payment
    • For Payment Smart Cards, It’s Contactless
    • Why Contactless Payment Cards Haven’t Stuck
    • Less Fraud, Less Need
    • Substantial Fragmentation
    • Contactless Card Payments Market Still in Infancy
    • Table 2-11 U.S. Contactless Payment Cards in Circulation, by Brand, 2002-2006 (in millions)
    • Figure 2-11 U.S. Market Share of Contactless Payment Cards, by Brand, 2006 (%)
    • Contactless Cards Attract More Transactions
    • Shift in Consumer Interest
    • Table 2-12 Estimated U.S. Transactions from Cards with a Contactless Feature, by Brand, 2004-2006 (in millions)
    • Figure 2-12 Percentage of U.S. Transactions from Cards with a Contactless Feature, by Brand, 2004-2006 (%)
    • High Growth, Lower Value for Contactless Card Purchase Volume
    • Table 2-13 Estimated U.S. Purchase Volume from Cards with a Contactless Feature, by Brand, 2004-2006 (in million $)
    • Figure 2-13 Percentage of U.S. Purchase Volume from Cards with a Contactless Feature, by Brand, 2004-2006 (%)
    • Total Contactless Payment Cards to Reach 109 Million by 2011
    • Table 2-14 Projected Total U.S. Contactless Payment Cards, by Brand, 2007-2011 (in millions)
    • Table 2-15 Projected Total U.S. Payment Cards, by Brand, 2007-2011 (in millions)
    • Figure 2-14 Market Share Growth of Contactless Payment Cards, 2007-2011 (%)
    • Contactless Cards to Rev Up Transactions, Slow Purchase Volume Growth
    • Table 2-16 Total U.S. Payment Card Transactions and Purchase Volume, 2007-2011
    • 2011 Contactless Transactions to Reach 2.2 Billion
    • Figure 2-15 U.S. Contactless-Enabled Payment Card Transactions, Contactless Versus Magnetic Stripe Transactions, 2007-2011 (in billions)

Chapter 3 Factors to Growth

  • Educate Consumers on Convenience and Safety Factors
  • Safety May Not Be a Major Consumer Impasse
  • Politicians Cry Wolf on Safety
  • Security Measures are Already There
  • Retail Acceptance Increasing
  • Expanding Definition of Retail Acceptance
  • Merchant Benefits … and Costs
  • Added-Value Contactless
  • Is Direct Mail Smart for Smart Card Payments?
  • Table 3-1 Growth of U.S. Card Solicitations, 1998-2006 (in billions)
  • Direct Mail Relevancy Questioned
  • Beware The Do-Not-Mail Movement
  • Population Growth = Potential Customers
  • Reach Out to Minority Populations
  • Table 3-2 Purchasing Power of U.S. Minorities: 1990, 2000, 2005 and 2010 (in billion $)
  • Gross Domestic Product
  • Figure 3-1 U.S. Quarterly GDP, Q1-2001- Q3-2006 (in billion $)
  • Interest Rate Dilemma
  • Greater Disposable Income
  • Table 3-3 U.S. Population’s Personal Income and its Disposition, 2004-2005
  • Table 3-4 U.S. Population’s Personal Income and its Disposition, 2006 (April-November)
  • Consumers May Immediately Mobile-ize
  • Near Field Communications (NFC) and Mobile Device Payments Chapter 4 Marketing Dynamics
    • Overview
    • Retailers a Driving Force in Contactless Integration
    • Can Old Card Users Learn New Tricks?
    • Advertising Spend of Major Credit Card Marketers
      • Selected Advertising Expenditures of Financial Services Category
      • Table 4-1 Top 5 Megabrand Ad Categories, Ranked by Total Measured U.S. Advertising Spending for First-Half 2005 Versus First-Half 2006 (in million $)
      • Top Financial Services Companies’ First-Half 2006 Ad Spend
      • Table 4-2 Selected Financial Services Companies, Ranked by Total Measured U.S. Advertising Spending, First-Half 2005 Versus First-Half 2006 (in million $)
      • Top Financial Services Companies’ Total 2005 Ad Spend
      • Table 4-3 Financial Services Companies in Advertising Age’s Top 200 Advertisers, 2005
      • AmEx Ad Spend Increases Following Supreme Court Ruling
      • Print Trumps Internet in 2005 Ad Spend

    • Selected Smart Card Marketing Initiatives
      • Many Marketers Still in the Pilot Plan Stage
      • Expansive Partnerships Often Involved
      • Pilots Continue, But Skeptics Remain
      • MasterCard Leadership Threatened?
      • MasterCard Highlights Fun and Function of PayPass
      • Table 4-4 Top 10 Preferred New Television Advertisements, Airing February 5-March 4, 2007
      • MasterCard PayPass at a Sports Venue Near You
      • MasterCard Sweepstake Offer Specialized for PayPass Users
      • Smart Cards and Small Business Card Market
      • Visa Launches Prepaid Contactless Program
      • Visa Brings Life into Play
      • Visa Feels Consumer Pain with Lunch Spot
      • Consumers Urged to Blink with Chase VOD Campaign
      • Direct Mail Losing Direction
      • Chase at Major League Ballparks
      • Beware the Backlash

    • Selected Smart Card Product and Design Innovations
      • Form and Function: Design Innovations
      • An Open Market for Ancillary Products
      • Purchase with a Flick of the Wrist in Taiwan
      • Technology Vendors Go Smaller
      • Manufacturing Innovations Focus on Security
      • Will Biometrics Replace Smart Card Technology?
      • Pay By Touch, Leader in Biometrics

Chapter 5 Corporate Landscape and Profiles

  • Overview
  • Corporate Landscape and Significant Industry Events
  • Interchange Fee Suits
  • Ramifications of Antitrust Suit
  • Senate Judiciary Committee and Interchange Fees
  • American Express and Discover Sue the Associations
  • Corporate Profiles of Credit Card Brands
    • Overview
    • A Note on Metrics

  • MasterCard
    • Overview
    • History
    • MasterCard’s IPO
    • Performance
    • Figure 5-1 Estimated Total U.S. Revenues for MasterCard, 2002-2006 (in million $)
    • Other Metrics
    • Table 5-1 Key U.S. Metrics for MasterCard, 2002-2006
    • MasterCard’s PayPass

  • Visa USA
    • Overview
    • History
    • Reorganization and Initial Public Offering
    • Performance
    • Figure 5-2 Estimated Total U.S. Revenues for Visa, 2002-2006 (in million $)
    • Other Metrics
    • Table 5-2 Key U.S. Metrics for Visa, 2002-2006
    • Visa Contactless
    • Small-Ticket Transactions to Drive Contactless Adoption
    • Table 5-3 Visa Small-Ticket Purchase Volume, 2000-2006 (in billion $)
    • Visa Tests Smart Card ID Waters

  • American Express
    • Overview
    • History
    • 1990s: a Time for Reinvention
    • Competition Heats Up
    • Performance
    • Figure 5-3 Estimated Total U.S. Revenues for American Express, 2002-2006 (in million $)
    • Other Metrics
    • Table 5-4 Key U.S. Metrics for American Express, 2002-2006
    • AmEx ExpressPay

  • Discover Financial Services
    • Overview
    • History
    • Discover Spin-Off
    • Performance
    • Figure 5-4 Estimated Total U.S. Revenues for Discover, 2002-2006 (in million $)
    • Other Metrics
    • Table 5-5 Key U.S. Metrics for Discover, 2002-2006
    • Discover’s Contactless Program
    • Discover Tests Healthcare Waters

  • JCB International, Inc.
    • Overview
    • History
    • Performance
    • Figure 5-5 Estimated Total U.S. Revenues for JCB, 2002-2006 (in million $)
    • Other Metrics
    • Table 5-6 Key Worldwide Metrics for JCB, 2002-2006
    • JCB’s Smart Card Program
    • J/Speedy
    • JCB Offica

  • Corporate Profiles of Banks and Other Issuers
    • Overview

  • Bank of America
    • Overview and Brief History
    • MBNA & U.S. Trust Purchases
    • Performance and Other Key Metrics
    • Table 5-7 Key U.S. Metrics for Bank of America, 2004-2006
    • BofA/MBNA Contactless

  • JPMorgan Chase
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-8 Key U.S. Metrics for Chase, 2004-2006
    • Chase Blink

  • Citigroup
    • Overview and Brief History
    • Largest MC Issuer Became an AmEx Issuer
    • Performance and Other Key Metrics
    • Table 5-9 Key U.S. Metrics for Citigroup, 2004-2006
    • Citigroup’s Contactless Partnership with MasterCard

  • Wells Fargo
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-10 Key U.S. Metrics for Wells Fargo, 2004-2006
    • Wells Fargo and Visa Signature Contactless Cards

  • HSBC North America
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-11 Key U.S. Metrics for HSBC, 2004-2006
    • HSBC Begins Full issuance of Contactless Debit Cards

  • Citizens Financial Group
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-12 Key U.S. Metrics for Citizens Financial Group, 2004-2006
    • Citizens Becomes Largest Contactless Debit Card Issuer

  • Key Bank
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-13 Key U.S. Metrics for Key Bank, 2004-2006
    • Contactless Debit Cards

  • GE Money
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-14 Key Metrics for GE Money, 2004-2006
    • GE Money Issues Meijer-Branded MasterCard

  • Advanta
    • Overview and Brief History
    • Performance and Other Key Metrics
    • Table 5-15 Key U.S. Metrics for Advanta, 2004-2006
    • First Contactless Business Credit Card

Chapter 6 The Consumer

  • Introduction to Simmons Market Research Bureau Data
  • Credit Card Brand Penetration
  • Figure 6-1 Consumer and Monthly Credit Card Balances, by Balance Carried, 2006 (%)
  • Table 6-1 Household Penetration Rates for Major Credit Card Brands, 2003-2006 (%)
  • Credit Card Brand Monthly Usage Rates
  • Table 6-2 Household Usage Rates for Major Credit Card Brands, 2006 (%)
  • Credit Card Brand Demographic Indicators
  • Age Makes a Difference
  • Table 6-3 Demographic Indicators for Major Credit Card Brands, 2006
  • Whites and Asians Show Preference
  • Higher Education, Higher Income, White Collar Work, Two-Person Households and Home Ownership
  • Financial Attitudes by Age and Household Income
    • Younger Consumers: Financial Insecurity and Immaturity
    • Consumers Age 55+: With Age Comes Awareness
    • Table 6-4 Consumer Responses to Financial Attitudinal Statements, by Age, 2006
    • More Money, More Secure and Informed
    • Table 6-5 Consumer Responses to Financial Attitudinal Statements, by Household Income (HHI), 2006

  • Consumer Reaction to Contactless
    • Issuer Tests and Trials Provide Insights Into Consumer Acceptance
    • Are More Consumers Ready to Embrace Contactless?
    • Adopters Most Likely Young and High Income
    • Fast and Easy, Once Consumers Learn About It
    • MasterCard Study Points to Shifting Consumer Behavior
    • Consumer Point of View on BioPay

  • Selected Addresses of Players in the Contactless Market
    • Bankcard Associations and Issuers
    • Smart Card Component Suppliers

In this report, {{keyword[keywordTextProperty]}} appears {{keyword[keywordCountProperty]}} times. {{searchResults.STATRESULT.SUMMARY.KW[keywordTextProperty]}} appears {{searchResults.STATRESULT.SUMMARY.KW[keywordCountProperty]}} times.

We were unable to search inside this report.

Search for an exact word or phrase by placing the word or phrase in quotation marks ("market trend"). Search for different versions or tenses of a word by placing an asterisk at the end of the word (pharma*).

Please note that your term must be at least three characters long and numbers will be blocked by the # sign.