Since the introduction of the European Union’s Interchange Fee Regulation (IFR) in 2016, credit card issuers have suffered the most from the reduction to 0.3%. The average EU interchange fee fell by over 50%, creating significant revenue losses for issuers. This in turn forced credit card issuers to reduce loyalty and cash-back programs and introduce card fees. Issuers in the U.K., which is the largest EU card market, suffered the most. Debit card issuers were less affected by the Regulation.

On 1 July 2017, Australia’s RBA capped interchange fees on credit cards at 0.6%, which were previously set at 1.5%-1.7%. Banks compensated for the subsequent losses by reducing the value of rewards programs.

Digital-world consumers expect banks to securely step up their technology game


Traditional banks must evaluate their place within the payments ecosystem and be open to partnering with FinTechs and third-party developers to drive value collaboratively.

Collaborative Payments Ecosystem Boosts Customer Centricity


Structural changes are spurring payments industry participants to evaluate the future of the business as well as their role in the months and years ahead.

New payments ecosystem key enablers


The Payment Services Directive 2 or PSD2 has been in full force for more than six months, and its impact is being felt not just in the European Union, but across the globe – with several markets, such as Singapore, Australia, and Nigeria, as well as Hong Kong announcing open banking initiatives inspired by the PSD2


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