This worldwide research project reveals that domestic payments schemes above all can offer their participants lower costs and products better suited for the local market than international card schemes. Download here.
Domestic card schemes run at approximately 45% of the costs of the international card schemes on average, giving them the ability to lower costs for participating banks. Banks in turn can better respond to pressures for low cost payments. Domestic schemes operate at lower costs not only due to their streamlined business models but also because the international schemes spend considerable sums on marketing and work with high profit margins as demanded by the stock market.
The global research unveils that national payments schemes, as low cost providers, have an integral role in promoting financial inclusion, especially through mobile. Especially in the developing world, mobile provides a means for the unbanked population to access formal financial services. Domestic payments schemes have the ability and inclination to integrate easily with other domestic service providers, such as mobile wallets, enabling them to play a vital part in combatting poverty and supporting economic growth in their countries.
Read more in the full report which has been put together by John Chaplin, Andrew Veitch and Prof Jürgen Bott. Download here.
National Payments Schemes Report, 2014: Drivers of Economic & Social Benefits by anthemisgroup