The Giant Credit Card Industry Is Bracing For Massive Disruption -- Here's Who's Most Vulnerable

Credit and debit card payments made in physical stores add up to a huge amount of economic value — $US4 trillion in transaction volume in the U.S. alone in 2013, and that volume is growing as more and more people move away from cash.

But traditional card payments technology has evolved slowly, and merchants must choose from a confusing and expensive array of services and equipment in order to accept credit cards. That’s creating an opportunity for more agile players that can offer innovative technology, easy-to-understand pricing, and less clunky software and hardware.

In a recent report from BI Intelligence, we look at the complicated series of interactions among different legacy players that powers each credit card payment, outlining the six types of companies that play key roles in the credit credit payment chain. We explain what each of these players do, and how much value they add, and explain why two parts of this chain — the hardware providers and merchant service providers (MSPs) — are particularly vulnerable to disruption.

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Here are some of our key findings:

In full, the report:

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