👀How are payments and the card business changing? A summary

👀How are payments and the card business changing? A summary

Representatives from payment systems, banks, marketplaces, Big Tech, and fintech companies agree that the natural evolution is making payments cheaper.

➡️History:

✅Payment cards appeared in the mid-20th century in the US🇺🇸, when Frank McNamara and Ralph Schneider founded Diners Club. Membership required a $3 annual fee and a deposit, after which the card was issued.

✅Between 1950 and 1955, Diners Club cards were used by 200,000 people, mainly in restaurants. In five years, these users spent $20 million. Restaurants paid an 8% fee per transaction to the payment networks.

✅Later, Visa and Mastercard appeared, targeting the mass consumer market. Fees dropped to 3% and continued to decrease over time.

✅In Russia🇷🇺, the first Visa card transaction (from Kredobank) was on September 21, 1991. The initial deposit for a Visa Classic was $10,000, plus a security deposit.

✅The annual card maintenance fee in Russia was $100; cash withdrawals had a 3% fee and purchases a 1% fee. Shops and restaurants paid a 3% fee, which decreased with competition.

➡️Current situation:

✅In Europe, the average acquiring fee is around 0.3%.

✅In Russia, cards are still the main payment method (77% of payments, according to the Central Bank), but they are gradually being replaced by alternative and cheaper methods like the SBP, which usually has a 0.4% fee.

✅At the St. Petersburg International Economic Forum, it was noted that in Russia and globally there is a trend toward monopolization of payment infrastructure by state systems, which set rates and reflect sector maturity, benefiting customers.

✅The arrival of fintech companies has led to better conditions and more transparent fees. Experts agree on the importance of regulation fostering competition.

➡️Perspectives:

✅In the future, a still-unknown disruptive technology may transform the sector.

✅In Russia, radical changes are unlikely in the next five years, given the technological maturity and strength of banks like Sber and Alfa-Bank, which are already considered fintechs internationally. Experts believe innovations could come from marketplaces such as Ozon or VK.

➡️Recommendation: Market players should develop new services and technologies, diversifying their solutions.

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