The Convergence of Card Payments and Bank Payments

Terms such as "payment service provider" and "mobile payments" have very different meanings depending on which tribe one are speaking with. Bank payments tend to be used for large-value transactions, and scheduled bill payments to regular payees which are processed as batches. Card payments, in contrast, offer payment in real time for goods purchased at shops, when travelling and for e-commerce purchases, and have lower average transaction values, particularly since the introduction of contactless cards. Three types of payment systems have been operated in most countries: large-value payment systems, retail payment systems, and the card payment network. The UK market is expected to be one of the first countries to see this convergence from card to bank payments. The international payment networks, including Visa and Mastercard, probably have the most to lose from this payments convergence. Acquirers risk being disintermediated if merchants and consumers switch from card to bank payments.