The Credit Card Industry Research Paper by Neatwriter

The Credit Card Industry
This paper is a research project, which studies the credit card industry especial VISA and the effects of the First Data-Concord EFS merger.
# 62008 | 12,255 words | 36 sources | APA | 2005 | US

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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
In Brief
Flies in the First Data Ointment
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
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)
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."

Cite this Research Paper:

APA Format

The Credit Card Industry (2005, November 05) Retrieved August 18, 2022, from

MLA Format

"The Credit Card Industry" 05 November 2005. Web. 18 August. 2022. <>