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Preface Summary of Key Findings CHAPTER 1 The World Non-cash Payments Market CHAPTER 2 The European Non-cash Payments Market CHAPTER 3 SEPA Achievements and Challenges CHAPTER 4 SEPA Implementation and Migration Status CHAPTER 5 European Cash Management and Corporates CHAPTER 6 Card Market Opportunities and Challenges for Banks MethodologyGlossary
Now in its fourth year, the World Payments Report from Capgemini, The Royal Bank of Scotland (RBS), and the European Financial Management & Marketing Association (Efma) explores the global payments market at a critical juncture. With US and European economies feeling the effects of a slowdown, inflationary pressures, and the fallout from thesubprime credit crisis, we are witnessing the restructuring of many industry players and niche activities. Payments represent an especially important business for banks—and economies—given the likelihood that industry consolidation will continue and economic growth will remain weak. For banks, payments generate recurrent revenue, though with higher Basel II capital consumption, so that returns onequity are reliable. Moreover, payments services are vital for both consumer and corporate customers, so they can help win customers and drive loyalty if handled effectively. From an economic perspective, investments in the efficiency and security of the payments systems help fuel growth by making funds flow more efficiently, and help protect against systemic risk. Against this backdrop, this 2008edition of the World Payments Report has a broader global perspective spanning Europe, North America, and Asia. It highlights regional initiatives and potential payments growth areas, and it offers insights and new information aimed at helping industry stakeholders make sound strategic business decisions. Like past reports, we concentrate on European payments initiatives, as the landscape evolvesdramatically with the introduction of the Single Euro Payments Area (SEPA). However, recognising the forces of globalisation, we also reflect on several emerging European developments that are playing out in other markets around the world—and find that many key trends are universal. This year’s World Payments Report also provides a more in-depth analysis of the global cards market where we founddouble-digit growth in card use in all regions. Cards are by far the fastest-growing means of non-cash payments. We examined the impact of technology and how it is creating new ways for customers to acquire and use cards every day, and the globalisation of the card-acquiring industry, which makes cards a strategic instrument for payments players. The overall growth trends in cards indicates acomplex mix of country-by-country development paths, which are determined by factors ranging from market history to customer habits. The creation, modernisation, and evolution of payments systems will depend in large part on how different countries want to drive card usage, given their unique social and economic situations. We hope and trust that you will find this year’s report useful in forging thecritical decisions you must make to succeed in your particular payments environment.
Brian Stevenson Chief Executive Global Transaction Services
Bertrand Lavayssière Managing Director Global Financial Services
Patrick Desmarès Secretary General
The Royal Bank of Scotland
European Financial management & marketing Association
2008 WORLD PAyMENTS REPORT
Summaryof Key Findings
In the global payments arena, the drive to increase payments efficiency and security is relentless and based largely on three paperless instruments: cards, credit transfers, and direct debits. In Europe, it has been eight years since heads of state launched the Lisbon Agenda, aimed at making Europe the world’s most powerful economic force by 2010. SEPA, an engine of economic...