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UnionPay widens its lead over US card giants

August 22, 2013

The number of payment cards worldwide increased by 12 percent in 2012 — to 10 billion, according to a new report, "Global Payment Cards Data and Forecasts 2012–2018," from research and consulting firm RBR. The report also said that, due to the rapid expansion of China's cardholder base, UnionPay has further opened its lead over other card schemes.

UnionPay currently claims a 34 percent share of the global card base. And RBR research indicated that in 2012, the scheme increased its base in terms of cards issued, though payment value and volume remained well behind MasterCard and Visa.

The total of 10 billion cards in circulation worldwide corresponds to an average of 2.3 cards per adult, the RBR study said. However, this number ranges from fewer than two cards per adult in the Middle East, Africa, and central and eastern Europe to six in North America. The RBR study predicted the rapid growth of cards in developing markets, to a total of 13.6 billion cards in circulation by 2018.

In 2012, 182 billion card payments were made worldwide, up 10 percent compared with 2011. The number of payments is forecast to grow even faster over the next six years, boosted in part by contactless cards in some markets. Consumers are becoming more accustomed to using cards at the POS, and more comfortable using cards for small purchases. These factors, as well as improved merchant acceptance, are combining to drive use.

It is notable that North America and western Europe account for 66 percent of the volume of card payments worldwide, compared with only 26 percent of cards in circulation. These two regions also have the highest ratios of card terminals to adults. As acceptance improves and customers learn more about the benefits of card use, the other regions are expected to close this gap, eventually.

The study concludes that, despite the presence of a number of strong drivers of payment card growth, development could be restricted by regulations. These include U.S., Durbin Amendment limits on debit card interchange fees and the European Commission's proposal to cap interchange fees — both could trigger a decrease in cardholding and card usage.

Ultimately, RBR found, the success of the cards industry depends on its ability to exploit opportunities for growth while adapting to changing regulations.

Read more about trends and statistics.