In Search of a Third European Card Scheme: Time to Move On

by Zilvinas Bareisis, March 15, 2012
Industry Trends
EMEA

Abstract

Encouraged by the authorities, a number of initiatives have emerged over the last six to seven years, vying for the position of a third European card scheme. This report investigates the prospects of these initiatives and reviews the arguments behind the new card scheme.

In a new report, In Search of a Third European Card Scheme: Time to Move On, Celent examines each of the major contenders for the third European card scheme and assesses their likelihood of success. The report discusses the third scheme’s credentials for each of the main players, namely, PayFair, Monnet, EAPS, and EUFISERV Payments, and provides a Celent perspective on their current state and future prospects. The report also reviews the arguments for the need of such a scheme in the first place.

Celent does not believe that any of the main contenders will deliver a new viable and competitive European card scheme any time soon. Furthermore, we argue that the market has moved on in the last seven years, and the case for a European-only card scheme created from scratch is simply no longer there, if it ever was.

“It is time to forget about the European card scheme and to focus on what really matters,” says Zilvinas Bareisis, Senior Analyst with Celent’s Banking Group and author of the report. “In today’s economic climate, where even the euro’s future as a currency remains far from assured, the concept of a third European card scheme should be laid to rest.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Review of the Main Contenders for the Third European Card Scheme

8

 

PayFair

8

 

Monnet

14

 

EAPS

18

 

EUFISERV Payments

21

Who Needs a New European Card Scheme Anyway?

24

Conclusions

30

Leveraging Celent’s Expertise

32

 

Analyst Access

32

 

Support for Financial Institutions

32

 

Support for Vendors

32

Related Celent Research

34

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