IBS Journal October 2015


Card payments show no sign of slowing with $20tn spent worldwide in 2014


The growth in the amount of payments made via debit, credit and prepaid cards shows no sign of slowing, with $20 trillion spent on them in 2014 alone. Research from RBR indicates that


strong growth in the Asia-Pacific, Middle East and African regions has driven the increase in the number of payment cards in circulation worldwide, up eleven per cent in 2014 to more than twelve billion. UnionPay, Visa and Mastercard remain


the top dogs in the card payments market. UnionPay is stretching ahead of its competi- tors with a 40 per cent share of the global card base – MasterCard and Visa make up 18 per cent and 23 per cent respectively. One third of global card expenditure in 2014 occurred on Visa card, however, amounting to $6.7 trillion. Of the estimated 235 billion card pay-


ments made in 2014, 78 per cent of the total were made on Visa or Mastercard branded cards. Domestic and private label cards made up a much smaller percentage of the market, with the value of payments made on them matching T&E schemes (like American Express) at six per cent of the global total. RBR expects this number


Value of card payments worldwide by scheme


Domestic 4% JCB 1%


Discover/ Diners Club 1%


American Express 5%


MasterCard 21% $20 trillion Private label 3% Visa 34%


to diminish in the future as domestic labels are increasingly being absorbed and rebranded by international schemes. Banking growth in less mature markets


UnionPay 32% Number of cards in circulation


20% 17bn


23% 12bn


4% 72% 68% 5% 2014 2020 6% Source: RBR 3% Credit


Debit Prepaid Charge


is a major driver behind the proliferation of cards, according to RBR. ‘Consumers who enter the banking system for the first time typically receive a debit card as their first product,’ it writes. As the size of the bank- ing population grows, it’s natural to see an increase in the amount of card payments made over cash. The market, says RBR, has seen a remark-


able 50 per cent growth in card usage since 2010. The research firm is projecting that the number of cards in circulation by 2020 will reach 17 billion – an annual growth of six per cent year-on-year. 80 per cent of this increase will be due to debit cards, it adds, and will be concentrated in the Asia-Pacific, Middle East and Africa markets. Meanwhile, the ATM Industry Associ-


ation released its own findings in August, which conclude that despite the rise in card and contactless payments, people will still prefer to pay with cash in the future.


Alex Hamilton


Cassiopae gains new client in Kenya, Rivieres Finance


Kenya-based Rivieres Finance has imple- mented French supplier Cassiopae’s leasing software, with the project being completed in less than three months. Rivieres Finance, a member of the


Chase Group of companies, selected Cassiopae to support its growth in Kenya and Africa. The Cassiopae solu- tion, which is a front-to-back office platform, ‘easily adapted to the spe- cifics of the African business environ- ment,’ according to Rivieres Finance CEO Jennifer Kinyoe. The new system will be used to man-


age the company’s equipment and auto- motive leases. Rivieres Finance will be look- ing to scale it as it launches new products and services, adds Kinyoe. The latest version of Cassiopae, V4, was launched in 2009 and was a complete over- haul in J2EE of previous iterations. It sup- ports Oracle and covers operations across commercial loans, real estate, mortgages leasing and auto finance. The company claims to have more


than 400 clients in over 40 countries world- wide. Cassiopae has a stance of not forc- ing its clients to upgrade their software,


© IBS Intelligence 2015


meaning that many run older versions of the system. In 2013 Cassiopae acquired a German leasing specialist Singhammer dSoftware GmbH, increasing its presence in Central Europe.


Elsewhere in Kenya, Kenya Commercial Bank has embarked on an enterprise-wide core banking system upgrade. Despite the bank at one point floating the idea of replacing the Temenos T24 solution it cur- rently uses, it has now decided instead to shift to the latest version, R14.


Alex Hamilton www.ibsintelligence.com 21


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