In the first blog of my payment predictions series, we address the developments in the cards domain.

Loyalty solutions for digital commerce will emerge, providing seamless integration of loyalty point redemption and discounts with payments processes, in support of omni-channel retailing. A driver for this is margin pressure from regulators capping interchange fees, forcing payment service providers to focus on new revenue streams and value added services.

Card fraud and data breaches will continue to be a big issue, particularly in the USA where magnetic stripe cards are still widespread. Companies with millions of cards-on-file for e-commerce/m-commerce will be vulnerable.


  1. Loyalty 2.0 will emerge as a theme, with common, omnichannel solutions appearing in the market, integrated seamlessly into digital payments processes.

Margin pressure

  1. Payments companies will continue to face downward pressures on fee structures and will search for new revenue streams and value added services to replace lost revenue from regulatory caps and legal restraints.

Card fraud

  1. Massive data breaches of magnetic stripe cards will continue, particularly in the USA – companies with millions of card on file for e-commerce/m-commerce will be vulnerable
  2. The industry will be more engaged to implement remedial actions such as EMV, tokenisation, and end-to-end encryption
  3. However, these remedial actions may not be implemented fast enough in vulnerable countries such as the USA to stop new data breaches.

The final post of the series will cover the predictions on bank operating models, infrastructure and technology.

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