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Card scheme security initiatives

Product Type: Market Research Report
Published by: Datamonitor
Published: April 2003
Product Code: R313-5650
Description
Introduction
The major card schemes have launched a number of new initiatives to boost the popularity of making credit card payments online. Such initiatives were launched amid much fanfare, but what success have they really achieved? This brief will analyse the success of the card scheme security initiatives and will prove an invaluable guide for banks assessing whether to sign up for these initiatives .

Scope
Coverage of card scheme security initiatives including SET, 3D-SET, 3D Secure (Verified by Visa), Secure Payment Application (MasterCard SecureCode)

Extensive primary interviews with leading executives from the major card schemes

Datamonitor's market sizing estimate for eCommerce in Europe in 2003 and over the next five years

Effectively analyzed secondary data from wide array of sources

Report Highlights
Due to consumers’ appetite for purchasing a wide range of goods and services online Datamonitor estimates that European consumer online spend in 2002 amounted to EUR25 billion

eCommerce currently accounts for a small percentage of sales volumes for the major card schemes. However, this percentage is growing rapidly. Visa USA has revealed that eCommerce currently accounts for 5 per cent of total sales volume, up from 2 per cent in 2000, and that this volume continues to grow at 50 per cent per year

3D Secure is attractive to all parties because it requires cardholders to do little that they do not already do online once they have registered with their card issuing bank

Reasons to Purchase
Determine which card scheme security initiative is winning the race to achieve critical mass in terms of cardholder, issuer and merchant adoption

Understand how card schemes are incentivizing the adoption of their security initiatives

Understand how eCommerce consumer sales volumes are likely to grow over the next five years

Table of Contents

ABOUT DATAMONITOR


INTRODUCTION


The Cards & Payments Briefings Service


What is this briefing about?


Who is the target reader?


How to use this brief?


Scope


What is a card scheme security initiative?

CHAPTER 1 BACKGROUND


The need for card scheme security initiatives


eCommerce payment volumes continue to grow


Online card fraud is on the increase


Credit cards remain the dominant means of making an online purchase


Concern that other payment mechanisms could wrestle market share from cards


Consumers’ fear of online card fraud

CHAPTER 2 THE INITIATIVES


Prevailing standards and failed initiatives


SSL (Secure Sockets Layer)


SET (Secure Electronic Transaction)


D SET (Server based SET)


The current state of play


Verified by Visa


MasterCard SecureCode


Maestro eCommerce


The roll-out: using incentives to encourage all parties to adopt


The liability shift: the key driver of card scheme inititatives


Adoption: Visa is currently winning the race hands down


Conclusion


A SWOT analysis of card scheme security initiatives

CHAPTER 3 THE FUTURE DECODED


Market forecast


Consumer eCommerce payment volumes will reach EUR . billion by

APPENDIX


Supplementary data


Definitions


Future readings


Relevant links


SPP writing team


Datamonitor Financial Services Consulting


SPP writing team


How to contact experts in your industry

Ordering and More Information
Price and Delivery Options


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