Club Meeting 030309

Copyright 2008, First Data Corporation. All Rights Reserved.

An invitation to play cards

John Chaplin, First Data Corporation


“Payment cards: still a good deal or the next busted flush?”

An invitation to play cards


First Data - global leader in card payments processing

US$8 billion annual revenues (2007)

Handling more than 30 billion transactions per year

27,000 employees speaking 75 languages

Operating in all continents – business in 24 EU markets

Active in all elements of card payments value chain


Cards on the table

4


Industry trends as a health indicator

5

• Business

volumes

• Debit vs credit

vs ATM

• Fraud losses

• Credit losses


Changing industry economics

6

• Interchange

• Scheme

assessments

• Surcharging

• Credit/debit

migration


Demutualisation of card schemes

7

• MasterCard• Visa and

Visa Europe• Short-term

moves• Long-term

effects


Where is the innovation?

8

• Contactless

• Pre-paid

• Virtual

• Mobile


Political impacts

9

• SEPA whither or wither?

• Consumer protection

• Central Bank oversight

• Impacts of bank bailouts


How good is the hand in future?

10

5 key conclusions

• Debit card much more important

than credit

• Economics rapidly moving to

utility model

• Scheme sell-offs to have

profound impact

• Innovation patchy and too brand

related

• Political factors weighing heavily

but unclear agenda


Jokers in the pack

11


• Enforced scheme and processor separation

• Major card issuer failure

• Regulated monopoly status for card schemes

Jokers in the pack


13

Game over!

Thank you

Club Meeting 030309

Economy & Finance

Transcript of Club Meeting 030309