Despite the ongoing economic crisis, cards transaction volumes globally have been increasing mainly due to strong growth in Asia Pacific, Latin America, and other emerging markets. Card transaction volumes are expected to continue to grow, with Brazil, China and other Asia Pacific regions being the main contributors. The average transaction value, however, is declining due to the geographic expansion of cards into emerging countries, and tapping into a low value segment—competing with cash—in mature economies.

This paper explores trends for card issuers in 2012. In terms of driving card industry growth, mobile and contactless payments are expected to be the fastest growing segments going forward. In addition, technological advancements and innovations coupled with fraud protection measures are expected to further drive expansion in the cards industry. With the increasing adoption of smart phones and ease of access to internet, consumer preferences have shifted towards mobile-based payments over physical credit and debit cards. More users are opting for mobile channels to make their daily payments, and to manage various aspects of both their business and personal activities. This trend makes it a high priority for issuers to protect these mobile transactions from any kind of fraud and security breaches.