Abstract This paper uses secondary data to analyze the credit card industry along five constructs: (1) Competitive analysis: Porter's Five Forces and PEST analysis, (2) monopoly vs. perfect competition, (3) standardization vs. localization, (4) competition vs. collaboration and (5) revolutionary vs. evolutionary change. The author points out that the existing credit card industry is a mature market, but it still has room to grow as more people become familiar with the allied financial services their credit and debit cards can provide. The paper relates that VISA enjoys the most powerful credit/debit card position in consumer cards especially in business credit cards, with it has extensive and integrated work in payments processing; however, the founders of First Data/Concord EFS were particularly aggressive business people. Many tables and charts.
Table of Contents
Introduction
In Brief
Background
Flies in the First Data Ointment
Objective
Methodology
Structure of the Dissertation
Literature Review
Competitive analysis
Porter's Five Forces
Porter's Five Forces Example
PEST Analysis
Economic Factors
Socio-Cultural Factors
Technological Factors
Literature Review
Monopoly vs. Perfect Competition
Standardization vs. Localization
National Initiatives
Competition vs. Collaboration
Revolutionary vs. Evolutionary Change
Opportunities
Overview of Credit and Debit Card Industries
Top Ten Card Issuers Compared
Bank Card Profitability
Differences between Credit and Debit Cards
U.S. Payment Cards-in-Force (in millions)
Off-Line Debit History
Top 10 U.S. Issuers by Card Loans
Developed vs. Less Developed Nations' Credit Card Use
VISA Volume
2003 Top 10 Countries
Global Financial Cards in Circulation - 2003
Corporate /Commercial vs. Consumer Use
Analysis of VISA's Strategy
VISA's Strengths
VISA's Weaknesses
VISA's Opportunities
VISA's Threats
STP Strategy (Segmentation, Targeting and Positioning)
Conclusion
Conclusions and Recommendations
From the Paper "From the merchant's point of view, the merger was seen as one that would give them an alternative to VISA and MasterCard. Shortly after the merger, major STAR network contracts with high-profile banks such as Wells Fargo, Wachovia and BankOne were set to expire; this opened the field to some turmoil, in all likelihood, because VISA was already making a play to sign the same institutions for its processing and acceptance capabilities. FirstData/Concord was assumed to have the upper hand, however because analysts thought those two institutions, despite their disparate original sizes, understood contracts of that sort and banks themselves better then VISA. As it turns out, STAR did lose some of its bank contracts, reducing the value of the merger somewhat from the First Data standpoint."
Abstract This paper provides an overview of electronic payment methods and outlines the relative advantages of electronic payment methods both for customer service and increased profitability. The main features of electronic payment cards, which include credit cards, virtual credit cards, debit cards, and charge cards, are described, and the main characteristics of successful e-payment methods are outlined. The recent successes of PayPal and VeriSign are outlined, and the author's personal interest in the subject is discussed.
Outline
Electronic Payment Methods
Main Features of Electronic Payment Methods
Electronic Payment Methods, PayPal and VeriSign
Personal Interest in Electronic Payment Methods
Additional Information on Electronic Payment Methods
From the Paper "Successful e-payment methods share a number of characteristics. These are: independence, interoperability and portability, security, anonymity, divisibility, ease of use, and transaction fees. Independence refers to the ability of e-commerce methods to operate without installing specialized software. Those e-commerce methods that do not require specialized hardware or software are more likely to be successful. Interoperability and portability refers to the ability of forms of e-commerce to interlink with other enterprise applications and systems. Security is an important consideration that encompasses the safety of the transfer and the chance of the transfer being intercepted. Anonymity is a characteristic of cash payments, where payment cannot be traced back to the buyer."
Abstract This paper discusses the various payment methods across the United States. These payment methods consist of paper currency, checks, traveler's checks, debit cards, credit cards and newer payment methods. The newer payment methods are typified by PayPal which is clearly becoming a widely used and accepted form of payment beyond its original use related solely to eBay purchases.
From the Paper "Payment methods have evolved over time with and at the same pace as advances in technology. While physical currency is under no threat of disappearing in the near to mid-term, the changing buy and consumption habits of the United States' consumers is moving in tandem with evolving payment methods in a manner that makes physical currency seem less relevant. Some researchers describe this dynamic in the following manner: "All consumption activity has increasingly become technologically mediated over the past few decades. The shopping experience has been transformed by its technological infrastructure" (Lally, 2002, p.117). Increasingly, this technological mediation in the consumption experience is currency and payment related. No longer is cash considered king and many of the once cutting edge payment methods available to consumers are now considered quaint or archaic."
From the Paper "The International Banking Industry
Introduction and Statement of Purpose
As the world's banks enter the new millennium, they face a confusing paradox. On the one hand, they need to be bigger, more diversified, and offer more comprehensive services in order to compete globally. On the other hand, in a rapidly changing market, on the most agile and nimble will survive - let alone expand and increase profitability (Keeler, 2000). Banking has moved from a bordered, domestic set of activities to a truly international orientation. This is being driven by market factors encouraging mergers and consolidations, along with other forms of affiliation that are reshaping this entire sector (Keeler, 2000).
McMillan (1999) stated that the banking world enters the new millennium .."
From the Paper "On the surface, the smart card is a means of gathering up loose change and loose economic threads, and moving toward a cashless society. In the real world, almost everyone carries paper money, coins, credit cards, checks, and the occasional debit card. These are the currently accepted financial instruments used in everyday transactions of money and credit. One or all of these instruments are accepted by whomever we choose to do business with. As the year 2000 draws near, the likelihood exists that stored value cards, often known as smart cards, will all but eclipse the use of small bills and coins (Morrall, 1995)."
From the Paper "ELECTRONIC BANKING
Introduction
This research reviews the trends in electronic banking. Debit cards, so-called "smart cards" (such as Mondex), and other trends in the application of information technology are reviewed...'
From the Paper "Introduction
In 1991, the first Planet Hollywood opened in Manhattan; in the following four years, the chain grew to 28 outlets with locations from Honolulu to Helsinki. Each time a new restaurant opens, some of the more famous owners, including Arnold Schwarzenegger, Demi Moore, Bruce Willis and Sylvester Stallone, are part of the opening festivities. Inside the restaurant, which features burgers, chili and similar fare, diners sit among props from movies and are able to purchase Planet Hollywood merchandise, including jackets and baseball caps; in some locations, the merchandise is available well before the restaurant opens for business. The result is that the restaurant chain has posted significant profits in an industry typically characterized by low profit margins, and an initial public offering was favorable.."
Abstract The development of cards which can access different monetary services electronically has been the major boost to electronic commerce. Many computer users today are accessing commercial enterprises on the Internet, but millions more have indulged in a different form of electronic commerce simply by using their ATM card, debit card, or credit card in the course of daily business. The dissemination of such cards has been part of a long-term and evolving marketing strategy on the part of banks and other financial institutions to change the way people do business both with their banks and with retailers of various sorts.
From the Paper "NEW WAYS TO PAY
INTRODUCTION
The development of cards which can access different monetary services electronically has been the major boost to electronic commerce. Many computer users today are accessing commercial enterprises on the Internet, but millions more have indulged in a different form of electronic commerce simply by using their ATM card, debit card, or credit card in the course of daily business. The dissemination of such cards has been part of a long-term and evolving marketing strategy on the part of banks and other financial institutions to change the way people do business both with their banks and with retailers of various sorts. Some believe this could one day lead to a cashless society where all commerce is conducted through the use of plastic cards with ..."
Abstract For many years, science fiction writers and futurists have predicted the end of the cash-based society. Advances in the technology which supports financial transactions has already greatly reduced the amount of cash necessary for many everyday events, and most individuals conduct at least some cashless transactions on a regular basis
From the Paper "Introduction
For many years, science fiction writers and futurists have predicted the end of the cash-based society. Advances in the technology which supports financial transactions has already greatly reduced the amount of cash necessary for many everyday events, and most individuals conduct at least some cashless transactions on a regular basis. The move toward a cashless society has occurred over centuries, but the technology of the twentieth century has propelled it faster than ever before. Yet despite the rapid technological advances of recent years, a cashless society remains well in the future. This research examines the factors which have moved society away from an entirely cash-based system as well as those factors which prevent society from being entirely cashless today."
Abstract For many, automated teller machines (ATMs) are simply a way of life. There were introduced nearly 20 years ago and today, many bank customers never go into a branch after opening their account. But today's ATM cards can also be used to make purchases at retail outlets and even on the World Wide Web, another innovation which was not envisioned 20 years ago. The videophone has become video conferencing, and cameras which use film may be made obsolete by cameras which use a floppy disk for recording images. Electronic pagers, once the purview of doctors and others who needed to be notified in case of emergencies, have now become commonplace and are used to summon diners to their table.
From the Paper "Introduction
For many, automated teller machines (ATMs) are simply a way of life. There were introduced nearly 20 years ago and today, many bank customers never go into a branch after opening their account. But today's ATM cards can also be used to make purchases at retail outlets and even on the World Wide Web, another innovation which was not envisioned 20 years ago. The videophone has become video conferencing, and cameras which use film may be made obsolete by cameras which use a floppy disk for recording images. Electronic pagers, once the purview of doctors and others who needed to be notified in case of emergencies, have now become commonplace and are used to summon diners to their table. This research examines each of these technologies and considers how the impact of technology extends beyond its stated use."
Discusses VeriFone, Inc., which manufactures the credit or debit processing box that reads magnetic strips on bank or credit cards, analyzing market, distribution and objectives of the company.
3,375 words (approx. 13.5 pages), 8 sources, 1993, $ 119.95
From the Paper "INTRODUCTION
VeriFone, Inc. manufactures the credit or debit processing box that reads the magnetic strip on a bank card. The company was founded in 1981. At the time, retailers had to get a telephone authorization on most transactions, and there was little specialized equipment for immediate processing of transactions on the market. VeriFone had reached more than half the market for retail transaction processing terminals by 1990 and had become the industry leader in new products for specialized markets. The company is today believed to have about 65 percent of a market that is continuing to expand into new areas. Revenue projects for 1993 are $270 million. In recent years VeriFone has found new markets internationally and in retail sectors that have not previously used transaction ..."
Abstract Discusses the worsening of external debit as a proportion of gross domestic product (GDP), Brazil's recent performance in relation to external debt management, and the impact of the country's primary development. Includes a table of key economic indicators.
From the Paper "This research explores Brazil's external debt problem. The external debt of country reflects claims on the country's wealth by entities located outside of the country. Such claims may be against the ..."
This paper discusses Tesco, one of the leading U.K. retailers and the largest private-sector employer, and its competitive advantage over rival supermarkets in the United Kingdom.
Abstract This paper explains that Tesco's success occurred because the company found new and better ways of selling people food and other items, pioneering in Internet shopping, developing large out-of-town stores selling numerous products, investing in local 'express' stores, slashing the prices on hundreds of goods, creating new lines catering to the quality market, and establishing a brand image. The author points out that one of Tesco's key competitive weapons in the battle for retail supremacy has been its Clubcard loyalty scheme and the subsequent launch of the Clubcard Plus debit card. The paper relates that, to increase its success in its food retail operations, Tesco significantly increased its investments in food store development in low-income areas, including a significant investment in local work force training to develop literacy and retail skills and employee training programs.
From the Paper "For many years, competitor Sainsbury's was the premier supermarket in the United Kingdom, but it lost its leadership position in the 1990's to Tesco, which remains the largest British supermarket in the UK, with over 2,000 stores. By 2003, Sainsbury's slipped to No. 3, behind Walmart-backed Asda, another UK supermarket chain. One of the main reasons for Tesco's rise to the top was its slashed prices. Tesco now dominates the United Kingdom supermarket sector with a market share of 28 percent, followed by Asda with 16.9 percent, with Sainsbury trailing behind at 15.3 percent."
Abstract Rapid advances in technology in recent decades have brought about a dramatic change in the way people work, transact business, and communicate. Yet, it is widely believed that there is still ample scope for technology to make life even more convenient and efficient. For instance, the cell phone is already showing the promise of functioning as an electronic wallet. This paper demonstrates that using the cell phone as an electronic wallet, will, in fact, add a great deal to convenience and safety, especially in the area of replacing plastic credit, debit, and smart cards.
Introduction
Current Trends
Role of the Cell Phone
Cell Phones as Wallets
Cell Phone-Based Services
Payment Safety
Security Issues
Payment Technology
Hurdles
Conclusion
From the Paper "Advances in Information Technology and Communication in recent decades have brought about a dramatic change in the way people live, work and play. Consider, for instance, the manner in which the Internet and the mobile phone have significantly changed the communication landscape or the way that ATMs and plastic cards have replaced bank tellers and the need for cash. In fact, it is now hard to imagine a world where one is unable to stay connected with family, friends, and business associates round the clock, irrespective of geographical location. Similarly, long queues to pay bills or withdraw cash are now pretty much inconceivable in a day and age when shopping, banking, and even tax returns can all be done online."
A paper looking at the Automated Clearing House system (ACH), used by the Federal Reserve Banking System to move money to and from various clearing houses.
Abstract The paper explains what is meant by ACH System, how it works, its advantages and disadvantages. The paper also discusses how the U.S. Payment System has been affected by the new ACH System. Further, the paper includes a discussion about the past, the present, and the future of the U.S. Payment System.
From the Paper "If the same customer were to authorize an electronic debit to their account, then the transfer of the funds would be carried out electronically, and this is what is known as the Automated Clearing House or the ACH transfer. However, whatever may be the innate advantages, there are a few things to be remembered at the outset, and these are: the money would not be transferred immediately; rather the transaction would proceed as if the customer did indeed have a valid physical account with the necessary funds available in his account, and it may take up to two or three days, and four at the most, to obtain information that the transaction has been accomplished. Secondly, there is no guarantee that the money is paid; and this can be quite risky when dealing with strangers or in cases where payment is expected immediately."
Tags: product, service, electronic, payment, debit, credit, elecontronically, network, communication
