Visa 2007 Annual Report Download - page 8

Table of Contents
We believe that the shift to electronic payment forms is a worldwide phenomenon; however, in many developing countries, it is at an early stage and
will be accelerated by rising incomes, globalization of commerce and increased travel. Recent innovations such as contactless cards and mobile payments are
also increasing the attractiveness of electronic payments. We believe these trends create a substantial growth opportunity for the global payments industry.
According to The Nilson Report, global card purchase transactions grew at a CAGR of 14% over the period from 2000 to 2006. The Nilson Report forecasts
global card purchase transactions to increase at a CAGR of 11% from 2006 to 2012, with particularly strong growth in Asia/Pacific, Latin America and the
Middle East/Africa:
Source: The Nilson Report, issue 866 (October 2006) and issue 885 (August 2007).
The most common card-based forms of payment are general-purpose cards, which are payment cards that permit widespread usage. General purpose
cards are typically categorized as:
• "pay now" cards, such as debit cards, which enable the cardholder to purchase goods and services by an automatic debit to a checking, demand
deposit or other current account;
• "pay later" cards, which typically permit a cardholder to carry a balance in a revolving credit account (a credit card or deferred debit card) or
require payment of the full balance within a specified period (a charge card); and
• "pay before" cards, such as prepaid cards, which are prefunded up to a certain monetary value.
The primary global general purpose card brands include Visa, MasterCard, American Express, Discover, JCB and Diners Club. While these brands—
including Visa—were historically associated primarily with credit or charge cards in the United States and other major international markets, Visa and others
have over time broadened their offerings to include debit, ATM, prepaid and commercial cards.
In addition to general purpose cards, a number of retailers and other entities issue limited-purpose credit, charge and prepaid cards that can be used for
payment only at the issuing entity. These cards are generally referred to as private label cards. Private label cards are sometimes issued by a financial
institution under a contractual agreement with the retailer.
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