• 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