Despite uncertainties around the global economic recovery, the card payment industry continued to show high growth rates worldwide in 2011. Throughout 2011, card transactions continued to increase driven by consumer preference for non-cash transactions. Cards are now increasingly used for low-value transactions, and with significant growth in online and mobile commerce, card payments are expected to grow strongly in the near future. The stakeholders in the card industry–including acquirers, card processors, and card issuers—are all witnessing shifting trends due to changing customer preferences as well as technological advancements and innovations.

This paper discusses industry trends of interest to cards processors including how processors can play an important role in reducing fraud losses through increased investments in fraud detection and prevention technologies. In addition to security concerns, card processors can offer differentiated value-added services in several areas including: fraud and risk management; business data analytics; and loyalty programs to increase profitability.