Travelex - Competitors

Travelex Competition

Now Viewing Travelex's competition in: Credit Card Processing

Recent Developments

Processors See Increase in Debit Transactions - Debit card transactions were up in 2007, although not by as much as in 2006. According to credit card processor PULSE EFT, 14.4 percent more debit transactions occurred in 2007 than in 2006, compared to about 18 percent growth in 2006 compared to 2005. The increase was due to more use by card holders and a higher number of debit cards in circulation.

More Oversight, New Questions Linger Over Fees - The interchange fees that processors collect for transactions are under increased scrutiny due to potential legislation in Congress. Processors earn significant income on the fees, which may be up to 2 percent of a transaction. Retailers are the primary opponents of the fee, as they say that new technology should result in lower transaction fees, which aren't reflected in the rates. Legislation would open the process to additional parties, and may result in government oversight of the fee process.

Credit Card Volume Up in 2007 - According to industry publication Cards&Payments, 2007 was a good year for processors, as credit card volume increased more than 3 percent over 2006 volume. The increase pushed the total amount of transactions to $1.33 trillion; the higher volume suggests that processors likely collected more processing fees, thus boosting profits. Despite the gains, some industry experts feel that the shaky US economy may take its toll on transactions in 2008.

Competitive Landscape

Demand is driven by consumer spending. The profitability of individual companies depends on efficient operations, as services are sold largely based on cost. Large companies have big economies of scale in processing and can provide more services; small companies can compete by specializing in industries and providing custom services. The business is highly automated and capital-intensive: average annual revenue per employee is about $225,000.

Full Industry Overview For Credit Card Processing

Credit Card Processing Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US credit card and finance companies is forecast to grow at an annual compounded rate of 5.7 percent between 2007 and 2012.

Credit Card and Finance Companies Growth Strong and Steady

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.