Loyalty Programs

Part
01
of twenty-three
Part
01

Germany Loyalty Programs Per Household

The overview of the number of German loyalty programs per household, as well as how many of the loyalty programs are being actively used, has been compiled in columns C and D of the Germany tab of the attached spreadsheet.

Germany Loyalty Programs Per Household

  • According to Bonusprogramm Monitor, an independent market research agency, there are 3.7 loyalty programs per household in Germany.
  • 89% of the programs are considered to be "active" as they have been used at least once after activation.
  • 39% of programs are used multiple times per week, 30% are used multiple times per month, 13% multiple times a year, and 5% are used once a year.

RESEARCH METHODOLOGY

As with most research, data for Germany was almost exclusively available in German articles and studies which is why we used Google Translate to be able to identify the relevant articles for this research. During the course of the research, we identified a study published by Bonusprogramm Monitor that was conducted in 2016. It was the last and therefore, the most recent study, that contained data on the habits of German public when it comes to loyalty cards. In order to confirm that this was the latest available data we could use, we looked into the PwC study published in 2018 that gives a detailed look into the retail market in Germany in 2017, and Statista infographic from 2019 — both of these sources used the data from 2016 mentioning it is the most recent data (if the Statista data is not visible in the sources, we compiled the screenshots in the attached document). Additionally, no other German sources quoted any newer data as being available considering that this research gets conducted every few years with no specified regular intervals available in between.
Part
02
of twenty-three
Part
02

India Loyalty Programs Per Household

While we were unable to find data on the average number of loyalty programs a household in India belongs to, our research team found that on average a consumer in India belongs to 4.3 loyalty programs, and we have provided the data in row 4, column C-D on the INDIA tab of the attached spreadsheet. The total number of different loyalty programs each household in India belongs to on average could not be triangulated due to the limited information available on the subject. Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as other related findings our research team uncovered.

RESEARCH STRATEGY ONE AND HELPFUL FINDINGS

  • An examination of research on loyalty programs in Globally published by Nielson, Statista, and McKinsey did not reveal the total number of different loyalty programs each household in India belongs to on average or sufficient data to conduct any triangulation.
  • The Nielson report was published in 2016, the latest available report that covers loyalty programs in India.
  • The most information provided is that 74% of consumers with online access in India belong to one or more loyalty programs. However, at the time of the report, internet penetration in India was about 34% so the data may not reflect the totality of consumers in India.
  • Reports published by Statista and McKinsey did not provide any helpful findings.

RESEARCH STRATEGY Two and helpful findings

  • An examination of global reports published by global and industry players such as FIS Global, Annex Cloud, Inc42, and eMarket Solutions did not reveal the total number of different loyalty programs each household in India belongs to on average or sufficient data to conduct any triangulation for India only.
  • Although Wonder doesn't use data from sources older than 24 months, we had to expand to older data due to the paucity of data available on the subject and/or because they were the latest available.
  • eMarket Solutions' latest report specific to India is from 2015 and the company's survey of over 6,500 Indians (both offline and online) found that on average an individual belongs to 4.3 loyalty programs across multiple categories.
  • eMarket solutions also noted that of those that belong to at least a loyalty program, 52% actively participate in the loyalty program.
  • Inc42 estimates that there were about 35 million loyalty program members in Indian in 2015.

RESEARCH STRATEGY 3

  • An examination of articles published by media outlets such as Forbes, India Business Journal, India Business Times, and Money Magazine did not reveal the total number of different loyalty programs each household in India belongs to on average or sufficient data to conduct any triangulation.
  • These reports either did not provide any helpful findings or they only provided data on loyalty programs in general and not for Indian consumers.

RESEARCH STRATEGY 4 and Helpful findings

  • An examination of industry publications published by Loyalty 360, Loyalty Magazine, and Incentive Magazine did not reveal the total number of different loyalty programs each household in India belongs to on average or sufficient data to conduct any triangulation. Most of the data from those reports were global in nature and not specific to India.
  • Similarly, we also searched academic databases such as Springer, Research Gate, and Science Direct but reports on those databases did not provide data on the total number of different loyalty programs each household in India belongs to on average or sufficient data to conduct any triangulation.
  • However, a research paper from 2013 noted that there were about 20 million loyalty program members in India, while other relevant research papers focused on the impact and potential of loyalty programs in India.
  • Given that a 2015 report estimates that loyalty program membership in India is about 35 million and the above 2013 report estimates it at 20 million, it suggests that loyalty program membership is growing at a good pace in India.

Part
03
of twenty-three
Part
03

Mexico Loyalty Programs Per Household

Helpful findings have been provided on row 4, column C-D on the MEXICO tab of the attached spreadsheet. While there is no publicly available information to fully answer your question, we have used the available data to pull together key findings. The total number of different loyalty programs each household in Mexico belongs to on average could not be triangulated due to the limited information available on the subject provided by online sources that are not behind a paywall. Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as a deep dive into our findings.

RESEARCH STRATEGY 1

  • An examination of research on loyalty programs in Mexico published by Nielson, Statista, and McKinsey did not reveal the total number of different loyalty programs each household in Mexico belongs to on average or sufficient data to conduct any triangulation.
  • The Nielson report was published in 2016, the latest available report that covers loyalty programs in Mexico.
  • The only information provided include the percentage of Mexican households that belong to one or more loyalty programs and the way that they use their loyalty programs.
  • Reports published by Statista and McKinsey did not provide any helpful findings.

RESEARCH STRATEGY 2

  • An examination of global reports published by Access Development and Annex Cloud did not reveal the total number of different loyalty programs each household in Mexico belongs to on average or sufficient data to conduct any triangulations for Mexico only.
  • These reports did not provide any helpful findings as none of the statistics provided are for Mexico only.

RESEARCH STRATEGY 3

  • An examination of articles published by media outlets such as Forbes and Money magazine did not reveal the total number of different loyalty programs each household in Mexico belongs to on average or sufficient data to conduct any triangulation.
  • These reports did not provide any helpful findings as they have only provided data on loyalty programs in general and not for Mexican consumers.

RESEARCH STRATEGY 4

  • An examination of industry publications published by Loyalty 360, Loyalty Magazine, and Incentive Magazine did not reveal the total number of different loyalty programs each household in Mexico belongs to on average or sufficient data to conduct any triangulation.
  • Similarly, these reports did not provide any helpful findings as they have only provided data on loyalty programs in general and not for Mexican consumers or any specific country.

Helpful FINDINGS

  • 32% of Mexicans belong to one or more loyalty program.
  • The most common method of using their loyalty programs is scanning a card at a retailer.
  • Technology-based features are very appealing to loyalty program members in Mexico.
  • 53% of Mexicans joined loyalty programs for benefits such as rebates and cashbacks, while 40% participated to receive product discounts.
  • 32% of Mexicans in loyalty programs have stated that they value exclusive access to sales or merchandise.
  • 53.8% of Mexicans often stay in hotels that offer loyalty programs.

Part
04
of twenty-three
Part
04

Japan Loyalty Programs Per Household

We estimated that the average number of loyalty programs that an individual in Japan is enrolled in is 18.38. Out of this, 5.05 cards are used on a regular basis and 13.33 cards remain inactive/remain relatively unused. These metrics have also been populated in the attached spreadsheet.

FINDINGS

  • A survey conducted by a Japanese infographic site, Zunny, found that on an average a resident of Japan has 20.88 cards (including credit cards). As the average adult in Japan has 2.5 credit cards, the number of loyalty programs the average person in Japan is enrolled in is 18.38 (20.88 – 2.5).
  • Based on data published by Statista, the average number of loyalty program cards used by a person in Japan on a regular basis is 5.05 (estimated).
  • The average number of loyalty program cards that are not actively used by individuals in Japan is 13.33 (18.38-5.05).

ADDITIONAL INFORMATION

  • According to Nielsen, 80% of individuals in Japan participate in loyalty programs (2016).
  • According to FBIC Group, 2 in 3 consumers in Japan participate in loyalty programs.
  • According to Epsilon, on average, shoppers in Japan participate in 2.4 credit card programs, 2.8 e-commerce loyalty programs, and 2.4 multi-merchant loyalty programs (2015).
  • Zunny found that on an average an individual in Japan keeps only 10.7 cards out of the 20.88 loyalty program cards he or she possesses.

RESEARCH STRATEGY

In order to fulfill this request, we began by searching research reports published by agencies like Nielsen, McKinsey, and FBIC Group. These reports only provide the loyalty program participation rates in Japan; there was no data specific to the average number of cards per household or individual (active/inactive). Next, we searched industry portals like Card Linx, Retail Dive, Loyalty 360, Japan Marketing Association, and Japan Advertising and Marketing. However, this strategy did not result in any success either. Following this, we searched media sources such as the Japan Times and Japan Today. On the Japan Today website, we found data from a survey conducted by Zunny of over 3,000 individuals in Japan aged 15-69 yrs.

In addition to the above sources, given the lack of available information, we also searched statistical databases like Statista and Statistics Brain. Statista provided data related to the number of loyalty program cards used by a person in Japan on a "regular basis". The number estimated using this data (5.05) is similar to Epsilon’s findings in 2015. It is assumed that by "loyalty program cards" Statista is referring to exclusive loyalty program card and not credit cards that also run loyalty programs.

In a study pertaining to customer loyalty, Epsilon found that shoppers in Japan participate in 2.8 e-commerce loyalty programs and 2.4 multi-merchant loyalty programs (a total of 5.2 loyalty programs). Given that the study was specific to the factors driving loyalty, it is assumed that the references made in the Epsilon study pertain to regular usage of loyalty cards (and not enrollment).

Please note that we have excluded all credit card programs from our calculations.

CALCULATIONS (STATISTA)

The average number of loyalty program cards in Japan (Statista):
  • 0 cards: 0.6%
  • 1 card: 5.9%
  • 2 to 3 cards (2.5 mid-range value): 38.2%
  • 4 to 5 cards (4.5 mid-range value): 29.7%
  • 6 to 7 cards (6.5 mid-range value): 9.7%
  • 8 to 9 cards (8.5 mid-range value): 4.8%
  • 10 to 14 cards (12 mid-range value): 6.5%
  • 15 to 19 cards (17 mid-range value): 1.3%
  • 20 or more cards: 3.3%
Assuming the mid-range values for triangulating an estimate, the average number of loyalty program cards used by a person in Japan is 5.05 ((0*0.6+5.9*1+38.2*2.5+29.7*4.5+9.7*6.5+4.8*8.5+6.5*12+1.3* 17+3.3*20)*100). The estimation was done using a weighted-average method and assuming that 3.3% of individuals have 20 cards (instead of 20 or more).

Part
05
of twenty-three
Part
05

Amazon Prime Penetration: Germany

The overview of the number of Amazon Prime customers in Germany, as well what percentage of the overall Amazon customers are Prime members, and what percentage of the overall households in Germany are Amazon prime members, has been compiled in row 5, columns C and D of the Germany tab of the attached spreadsheet. 

Amazon Prime Penetration: Germany

  • There are 17.6 million Amazon Prime members in Germany.
  • 38.64% of Amazon customers are Amazon Prime members.
  • 39% of households in Germany are Amazon Prime members.

RESEARCH METHODOLOGY

As with most research, data for Germany was almost exclusively available in German articles and studies which is why we used Google Translate to be able to identify the relevant articles for this research.

For Amazon Prime penetration as percentage of the total Amazon customers, we needed to acquire two figures — the total number of Amazon customers and the total number of Amazon Prime customers:
In order to calculate the percentage of the Amazon Prime members as the share of the overall Amazon customers in Germany, we divided the number of Amazon Prime members with the total number of Amazon customers in Germany:
17.6 million / 44 million = 38.64%
38.64% of Amazon customers are Amazon Prime members.

For Amazon Prime penetration as percentage of the total households in Germany, we needed to acquire two figures — the total number of households in Germany and the total number of Amazon Prime customers:
  • There are 17.6 million Amazon Prime members in Germany.
  • There are 43.5 million households in Germany.

  • In order to calculate the percentage of the Amazon Prime members as the share of the overall household number in Germany, we divided the number of Amazon Prime members with the total number of households in Germany:
    17.6 million / 43.5 million = 39%
    39% of households in Germany are Amazon Prime members.
    Part
    06
    of twenty-three
    Part
    06

    Amazon Prime Penetration: India

    While there is no publicly available information to fully answer your question, we've used the available data to triangulate the following key findings: Amazon.in has approximately 29 million users in India, of which as many as 9.4 million (32.5%) may be Prime members. There is insufficient data to determine household penetration. This information has been entered into the project spreadsheet as requested. Below is a summary of the available data points, why more information is not available, and the calculations used to arrive at the above conclusions.

    TOTAL AMAZON PRIME MEMBERSHIPS

    AMAZON USERS IN INDIA

    • In the US, 197 million users generate 2.48 billion page visits to Amazon.com per month, which comes to approximately 12.6 visits per user per month.
    • Amazon's Indian page receives 365.4 million visits per month
    • Assuming that India's users log onto the site as frequently as their US counterparts, there are about 29 million users in India (365.4 million / 12.6).

    RATIO OF PRIME MEMBERSHIPS

    • 32.5% of US Amazon users have Prime memberships (64 million Prime memberships / 197 million users).
    • If that ratio is also true in India, as many as 9.4 million Indians have Amazon Prime memberships (29 million x 0.325)

    OTHER FACTS


    RESEARCH STRATEGY

    We began our research by going to the source. Since Amazon is a publicly-traded company, its annual financial statements are a matter of public record. While we considered it doubtful that Amazon would provide a complete breakdown of its Prime memberships by country, we hoped that India's importance as a market would cause it to receive special mention in the text. Unfortunately, this proved not to be the case; in fact, Amazon does not even separate out its revenue for Prime memberships, instead grouping them together with "audiobook, digital video, ebook, digital music, and other non-AWS subscription services." In addition, the only mentions of India were in the context of explaining the complexities in dealing with local laws and regulations.

    Therefore, we switched tracks and looked to interviews and op-ed pieces in business media sources for hints about Amazon's growth in India. We soon found that the answer would not be available outright. While it was well-publicized when Amazon's global Prime memberships hit over 100 million paid subscribers last year, as Forbes notes, prior to that the "figure has been kept private for years." In other words, this is a card that Amazon has always played close to its chest and we should not expect to find it in the public domain. Other sources confirm that Amazon has not revealed the number of Prime members in India, or anywhere else, for that matter.

    As a last-ditch effort, we also checked sources internal to India, such as the Office of the Registrar General & Census Commissioner, to find out what commerce information is available, specifically, e-commerce statistics. However, these both lacked the sort of data needed and were, by modern standards, hopelessly out-of-date, with India's last census having taken place in 2011. The only salient details we found concerned India's attempts "at leveling the e-commerce playing field in India" via regulations which prevent e-commerce firms from selling "products of companies in which they have equity stakes or management control" or to enter into exclusive sale agreements with companies. However, such articles provided no quantitative insights into Amazon's penetration into the country, nor did the available household statistical data, e.g., that the average household size is 4.5 persons, assist in determining Amazon Prime's household penetration.

    CALCULATIONS

    Consequently, we set about pulling together what data points are publicly available in order to triangulate an approximate answer. Business Insider reveals that as of 2018, 36% (approximately 36 million) of Amazon Prime memberships were outside of the US. This provides an extreme upper bound to the possible number of Hindi members which we will attempt to narrow further.
    The first step was to try to determine how many people in India use Amazon per month. As we were unable to find this information in the public domain, we will attempt to triangulate it via a comparison with US traffic. According to Statista (which we found quoted in other sources), as of December 2017, 197 million US users visit Amazon's website each month. (See screenshot here, if needed.) According to SimilarWeb, those 197 million users generate 2.48 billion page visits per month, which comes to approximately 12.6 visits per user per month.

    Amazon's Indian page receives 365.4 million visits per month. If we assume for the sake of calculation that Indian users visit the site at approximately the same rate as their American counterparts, this would equal about 29 million users in India (365.4 / 12.6). Given the total number of international Prime members, this estimate seems reasonable.

    Given the 197 million users in the US and the estimate of 64 million (64% of 100 million) Prime members, we would infer that 32.5% (64/197) of American Amazon users are Prime members. If an equal percentage of Indian users were Prime members, that would give us approximately 9.4 million Prime users (29 x 0.325).
    Since Amazon Prime is relatively new in India and is still expanding both the number of eligible items and other services (e.g., India's Prime membership only began including the music streaming service in February 2018), we must regard this triangulation as likely representing an upper bound to the number of members. On the other hand, for a country as large and populous as India to have 9.4 million out of Amazon's 36 million international Prime members does not seem unreasonable, especially given that India is specifically noted as being Amazon's "largest growing market" in multiple sources. Additionally, given the low price of Prime membership in India ("Rs 999 per year, or around $15") it seems reasonable that a large percentage of Indian users would opt to become early adopters.


    Part
    07
    of twenty-three
    Part
    07

    Amazon Prime Penetration: Mexico

    While there is no publicly available information to fully answer your question, we've used the available data to triangulate the following key findings: Amazon.com.mx has approximately 3.28 million users in Mexico, of which as many as 1.066 million (32.5%) may be Prime members. This information has been entered into the project spreadsheet as requested. Below is a summary of the available data points, why more information is not available, and the calculations used to arrive at the above conclusions.

    Amazon in Mexico

    • Amazon Prime launched in Mexico in March 2017. The cost of membership is M$889/year.
    • Amazon's total 2017 revenue in Mexico was estimated to be $505.2 million.
    • Amazon.com.mx has 41.31 million page views per month.
    • Alexa and Amazon Music only launched in Mexico last year (2018).
    • Amazon is hoping to bolster its sales and Prime membership by partnering with popular corner store Oxxo to accept cash payments.

    Amazon prime in general

    Ratio of prime memberships

    • Amazon.com has 2.48 billion hits per month, which we know amounts to around 197 million users. This means each US customer visits Amazon.com around 12.6 times, on average. (2.48 billion / 197 million)
    • If we assume that Mexican Amazon customers visit the website as often as their American counterparts, this means there are around 3.28 million users of Amazon Mexico.
    • If there are 64 million US-based Prime members, that means 64 million / 197 million = 32.5% of US Amazon users have a Prime membership.
    • Assuming the same ratio applies to Mexican Amazon customers, that amounts to 1.066 million Amazon Prime Mexico subscribers. (32.5% x 3.28 million users)
    • There are 34.536 million households in Mexico. If around 1.066 million are Prime members, then that is 3.1% of all Mexican households subscribe to Prime.

    Research strategy

    We first attempted to find Prime subscriber figures in Amazon's own annual reports. These revealed that Amazon does not report the total number of Prime subscribers, revenue from Prime subscriptions or any data specific to Mexico on its own. Amazon groups its net sales in far more general categories like subscription services or international revenue.

    Therefore, we changed strategies to check for information or speculation about Amazon's results in Mexico from expert analysis and business publications. We quickly discovered that not only do Amazon famously do not report the number of Prime subscribers (even in the US or a worldwide total), they equally do not disclose individual country revenue or success rates for Prime services. After concluding that this information has not been estimated or compiled in the past two years, we then changed approaches to look for data about Amazon Prime Mexico revenue or even total Amazon Mexico revenue from which we could attempt some triangulations. While we were able to find the estimated revenue for Amazon in Mexico, we did not enough data points to further calculate about this broke down between Prime subscriptions revenue and other sales.

    We then looked a Mexico-specific e-commerce market research reports to see if there were any specific mentions of Amazon Mexico and its Prime offerings. Neither official government reports nor reports from major market research firms revealed any additional data points about the penetration rate of Amazon Prime in Mexico.

    Therefore, we turned to another angle of triangulation to find the number of Prime members in Mexico. While not a perfect calculation, since we had to make some broad assumptions, it is the best available calculation from information available in the public domain. We used some expert information about the number of US-based Prime members against the company's user numbers to calculate roughly how many US Amazon customers are Prime members. We used this to then make calculations about the number of Prime members in Mexico, compared to total Amazon.com.mx customers and total Mexican households. Since Amazon Prime is relatively new in Mexico, and is still expanding both the number of eligible items and other services, we must regard this triangulation as likely representing an extreme upper bound to the number of members. However, as the company is taking active measures to improve penetration in Mexico, it is a reasonable calculation.
    Part
    08
    of twenty-three
    Part
    08

    Amazon Prime Penetration: Japan

    In Japan, only 16.6% of Amazon customers are Prime members. Using publicly available data, we estimated the number of Amazon Prime customers in Japan at 10.975 million. We estimated the penetration of Amazon Prime in Japanese households at about 3.8%. This data has been added to the "Japan" tab of the attached spreadsheet.

    Amazon Prime Penetration: Japan

    • 16.6% of Amazon customers in Japan are Prime members.
    • There are an estimated 10.975 million Amazon Prime members in Japan.
    • The estimated penetration of Amazon Prime in Japanese households is approximately 3.8%.

    Research Strategy:

    To identify the penetration of Amazon Prime in Japan, we investigated reports related to online purchases and retail penetration in Japan by trusted research portals including eMarketer, Markets & Markets, Nielsen, Accenture, and others. Unfortunately, reports publicly available by these directories only provided insights into the overall online purchasing habits in Japan with no data specific to the penetration of Amazon Prime on Japanese Amazon customers or Japanese households.

    So, we examined relevant reports by media websites like Business Insider, Japan Times, Yahoo Japan, and others in search of insights into the required information. This time, we located a report by Fool.com, which referenced a 2017 study by NTTCom Research that showed that only 16.6% of Amazon customers were Prime members. This data was the same one highlighted in other reports by Japan Times, Yahoo Japan; therefore, we took it to be the most recent data on the penetration of Amazon Prime among Amazon users in Japan. Then, to determine the exact number using this percentage, we researched and located reports by Accenture and Yahoo Finance, which revealed the percentage of Japanese that use Amazon, the internet, and those that shop online.


    Hence, if 66.7% of online consumers in Japan use Amazon, as the report by Yahoo Finance; then, the calculated number of people that use Amazon to shop online in Japan would be [66.7%*99.127 million] ~ 66.117 million.

    Based on the above calculations, if about 66.117 million people in Japan use Amazon; then, based on the report by Fool.com that 16.6% of Amazon users in Japan are Amazon Prime members, it follows that the estimated number of Amazon customers that are also Amazon Prime members would be [16.6%*66.117 million] ~10.975 million.

    However, there was no study or report in the public domain by any of the above portals researched with insights into the penetration of households in Japan that use Amazon for shopping or were Amazon Prime members. Therefore, we proceeded to examine reports by Japan's Statistics Bureau in search of insights into the number of Japanese households that shop online, and use the same for determining the required data pertinent to the penetration of Amazon Prime on Japanese households. We located the 2018 study by Japan's Statistics Bureau and used its findings to estimate the required information, as follows:

    • Japan's Statistics Bureau reported that the last census in 2015 revealed that Japan had 53.33 million households.
    • The report also observed that 34.3% of these households were online shoppers as of 2017. Using this data, we estimated the number of Japanese households that were online shoppers in 2017 to be [34.3%*53.33 million] = 18.292 million.

    So, if an estimated 18.292 million Japanese households were online consumers in 2017, using data from Yahoo Finance's report that 66.7% of online consumers in Japan used Amazon in 2017, we calculated the number of Japanese households that likely used Amazon to be [66.7%*18.292 million] = 12.2 million.

    Next, we used data by Fool.com revealing that 16.6% of Amazon users are Amazon Prime customers and the calculated 12.2 million taken to be the number of households in Japan that used Amazon to shop in 2017 to estimate the number of these households likely to be Amazon Prime members, as follows:

    If an estimated 12.2 million Japanese households use Amazon to shop online and 16.6% of them are Amazon Prime members, as per Fool.com's report; then, the estimated number of households in Japan likely to be Amazon Prime members would be [16.6%*12.2 million] = 2.025 million.

    Finally, we used the calculated 2.025 million households in Japan likely to be Amazon Prime customers to estimate the required penetration of Amazon Prime in Japanese households, using the formula:
    [(est. number of Amazon Prime users among Japanese households/No. of Japan households)*100]
    = [(2.025 million/53.33 million)*100] = ~3.8%.

    Thus, the estimated penetration of Amazon Prime customers in Japanese households is 3.8%.
    Part
    09
    of twenty-three
    Part
    09

    Financial Transactions: Germany

    There were a total number of 81,855,000,000 financial transactions in Germany during 2017. We have outlined our findings below and included all figures in the accompanying spreadsheet. Figures for 2018 were only partially available, and therefore, the most accurate and complete figures which were utilized are for 2017.

    2017 Financial Transaction Statistics for Germany

    Calculations of Figures

    There is no officially-sanctioned definition for EFT. However, ACH payments and echecks are universally considered to be EFTs. Additionally, "a number of other electronic payment and transfer methods may also be referred to as part of the EFT family. A few other electronic payment methods include ACH, wire transfer, PayPal, direct deposit, SEPA payments, local bank transfers, and ewallets." This being the case, both credit transfers (6,287.5 million) and e-money payments (5.4 million) have been combined to provide a total number of EFTs. This total is thus calculated by adding the two categories together (5.4 million + 6,287.5 million = 6,292.9 million).

    To calculate the number of cash transactions we needed to take what we know (74% of transactions were in cash), along with the total number of cashless transactions in 2017 (21,282,300,000). 100 percent of transactions minus 74 percent of transactions leaves us with 26 percent of transactions being non-cash transactions. Next, we apply simple cross multiplication to find the total number of transactions. (100 x 21,282,300,000) / 26 = 81,855,000,000. This is the total number of financial transactions in Germany in 2017. Finally, to find the number of cash transactions, we can subtract the total number of non-cash transactions from the total transaction figure. 81,855,000,000 - 21,282,300,000 = 60,572,700,000 total cash transactions.

    Part
    10
    of twenty-three
    Part
    10

    Financial Transactions: India

    In India, 95% of the total of 317.77 billion financial transactions are done in cash. Debit card transactions (2.14%) and ETF transactions (2.05%) are the second and third-most popular modes of making payments; credit card transactions and check transactions make up a meager 0.44% and 0.37% of all transactions. These metrics have been populated in rows 6-11 of the attached spreadsheet.

    FINDINGS

    The breakup of financial transactions in India in the financial year 2017-18 expressed as a percentage of the total number of transactions:
    • Cash: 95%
    • Debit card transactions: 2.14%
    • Credit card transactions: 0.44%
    • Check transactions: 0.37%
    • ETF transactions: 2.05%

    RESEARCH STRATEGY

    We searched the Reserve Bank of India (Central Bank) website for mode-specific transaction data. Given that 95% of the transactions carried out in India are done using cash, 5% (100-95) of the total number of transactions can be attributed to non-cash transactions. We segregated the Reserve Bank of India data based on the mode of payment and determined the number of transactions for each non-cash payment mode: debit card transactions, credit card transactions, check transactions, and ETF transactions. Then we determined the percentage of each type of non-cash transaction in total transactions. The calculations done using RBI data have been shown in the attached spreadsheet.

    CALCULATIONS FOR TOTAL NUMBER OF TRANSACTIONS

    As the total number of non-cash transactions is 15,888.5 million and make up 5% of all transactions, the total number of financial transactions in India is 317.77 billion (15,888.5M *100/5).
    Part
    11
    of twenty-three
    Part
    11

    Financial Transactions: Mexico

    The most recent information for transactions is from the Bank of Mexico (Banxico) are for the dates of April-December 2018. We have, therefore, ensured that all statistics come from the same time period and provide an accurate picture of the current financial transactions in Mexico. Included below are our findings, which are also included in the accompanying spreadsheet, along with a detailed explanation of all calculations used.

    • Cash transactions: 31,456,934,262
    • Credit transactions: 685,064,771
    • Debit transactions: 1,697,323,601
    • Check transactions: 184,794,238
    • EFT: 928,032,308
    • Total transactions: 34,952,149,180

    Calculations

    To find the total number of credit card transactions in 2018 (close approximate with available data) we summed the totals for April-June 2018 (206,754,300), July-September 2018 (230,756,417), and October-December 2018 (247,554,054). This gives us a reasonable total of 685,064,771 credit card transactions during the three-quarters time period.

    The same method was used to obtain the total number of debit card transactions in 2018. We summed the totals for April-June 2018 (499,839,044), July-September 2018 (579,068,557), and October-December 2018 (618,416,000). This gives us a reasonable total of 1,697,323,601 debit card transactions during the three-quarters time period.

    The Bank of Mexico splits up checks according to local and US currencies. Therefore, it is necessary to add together all three available quarters for both the local and the US currencies to obtain the full number of checks transacted. Local Currencies: April-June 2018 (62,304,733), July-September 2018 (60,259,524), and October-December 2018 (59,633,751) = 182,198,008 local currency checks. USD checks: April-June 2018 (885,642), July-September 2018 (867,164), and October-December 2018 (843,424) = 2,596,230 USD checks. Adding these two numbers together results in a total of 184,794,238 checks.

    A similar strategy for the checks must be employed to calculate electronic transfers as Banxico splits transactions between “electric” banking and “internet” banking, both of which involve electronic transfers. For electric banking: April-June 2018 (62,559,092), July-September 2018 (61,968,089), and October-December 2018 (69,439,966) = 193,967,147 total electric banking transfers. For internet banking: April-June 2018 (245,940,793), July-September 2018 (236,535,931), and October-December 2018 (251,588,437) = 734,065,161 internet transactions. Adding these two numbers gives a total of 928,032,308 EFTs during the final three quarters of 2018.

    Reports show that 90% of financial transactions in Mexico are cash based. To find this number of transactions, a total needs to be made of all non-cash transactions: Credit: 685,064,771 + Debit: 1,697,323,601 + Check: 184,794,238 + EFT: 928,032,308 = 3,495,214,918 total non-cash transactions. Next, cross multiplication is employed to find the total number of transactions made. 100 – 90 = 10% of transactions are non-cash transactions. (100*3495214918) / 10 = 34,952,149,180 total financial transactions. Finally, the number of non-cash transactions are subtracted from the total transactions to reveal 31,456,934,262 cash transactions.
    Part
    12
    of twenty-three
    Part
    12

    Financial Transactions: Japan

    Rows 6-11, column C-D of the JAPAN tab of the attached spreadsheet have been completed. While there is no publicly available information to fully answer your question, we have used the available data to pull together key findings. The breakdown of financial transactions in terms of number/percentage of check and EFTs transactions, and total transactions could not be triangulated due to the limited information available on the subject provided by online sources that are not behind a paywall. Only the 2017 data for cash and credit transactions and 2016 data for debit transactions are publicly available. Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as a deep dive into our findings.

    RESEARCH STRATEGY 1

    • An examination of articles published by reputable local and international website and publications such as Kachi, BTrax, Asia Nikkei, Cash Matters, Knoema, Japan Times, Statista, Forbes, WSJ, Business Insider, and others have revealed the breakdown of financial transactions in terms of number/percentage of cash, credit, and debit transactions.
    • However, data related to check, EFTs transactions, and total financial transactions are not published by the sources mentioned above.

    RESEARCH STRATEGY 2

    • An examination of reports published by Japanese banks such as Mitsubishi UFJ Financial Group, Japan Post Bank, Mizuho Financial Group, Sumitomo Mitsui Financial Group, Norinchukin Bank and others did not reveal data related to check, EFTs transactions, and total financial transactions or sufficient data for triangulation.
    • The majority of the statistics provided are only related to cash, debit, and credit transactions.
    • Users are required to register to view more in-depth information released by the banks or more information are available behind a paywall.

    RESEARCH STRATEGY 3

    • An attempt to triangulate the most current data for check, EFTs transactions, and total financial transactions were unsuccessfully by examining articles published older than two years was unsuccessful due to limited publicly available information on the subject.
    • We have identified a 2016 article that provided the number of debit transactions, the latest available for this type of transaction.
    • We have also found a report that mentioned that check transactions are not popular in Japan due to its complicated process.

    HELPFUL FINDINGS

    • In 2017, 62% of consumer payments in Japan was made in cash. Cash is considered the most convenient daily transaction in the country.
    • In 2017, Japanese used credit cards for only 17% of their purchasing activities
    • According to the Bank of Japan's first payment and settlement statistics report, the number of debit card transactions was 107,560,000 in 2016, the latest available.
    • Checks are no longer popular in Japan because of the process complicated

    Part
    13
    of twenty-three
    Part
    13

    Financial Transactions: UK

    In 2017, 38.8 billion financial transactions were made in the United Kingdom. Debit was the most used form of payment for transactions, representing 34% of all transactions made. Checks were the least used method of payment with only 346 million transactions completed using this form of payment. The requested information has been entered into the attached spreadsheet.

    Transactions in the united kingdom

    Research Strategy

    Our research was able to find publicly available information for payment transaction volumes in the United Kingdom. The most recent information was for 2017. To calculate the percentage of transactions we took the transactions for each payment method and divided them by the total number of transactions. For example for cash payments;

    Part
    14
    of twenty-three
    Part
    14

    Credit and Debit Cards: Germany

    The overview of the number of credit cards and debit cards in Germany has been compiled in rows 13 and 14, columns C and D of the Germany tab of the attached spreadsheet. 

    average number of credit cards per person in Germany

    • According to Horst Rüter from the EHI trade research institute, Germans in general do not like credit cards, with only 1.5% of the overall money transaction coming via credit cards in Germany.
    • Currently, there are 0.36 credit cards per person in circulation in Germany, which amounts to a total of 29.7 million people having credit cards in Germany.

    Average number of debit cards per person in Germany

    • The equivalent of a debit card in Germany is called the Girokonto, and it is essentially the debit card account.
    • In 2018, there were 102.7 million Girokontos in Germany. As each Girokonto has its own debit card, this number translates to the number of debit cards in circulation in Germany.
    • According to the below calculation, the average number of debit cards per person in Germany is 1.25.

    Research methodology

    As with most research, data for Germany was almost exclusively available in German articles and studies, which is why we used Google Translate to be able to identify the relevant articles for this research.

    As the number of credit cards per person was already provided the Deutsche Bundesbank stating that 36% of people in Germany have credit cards, we used this number to calculate the total number of credit cards in Germany.
    The current population of Germany is 82.4 million. If 36% of people own credit cards, this translates to:
    0.36 x 82.4 million = 29.7 million people have credit cards in Germany.

    In order to calculate the average number of debit cards per person in Germany, we needed two figures — the number of people currently living in Germany and the number of people owning a debit account:
    In order to calculate the average number of debit cards per person in Germany, we calculate as follows:
    102.7 million / 82.4 million = 1.25 debit cards per person
    Part
    15
    of twenty-three
    Part
    15

    Credit and Debit Cards: India

    According to data provided by the Reserve Bank of India and corroborated by Medianama, as of December 2018 the average number of debit cards per person in India is 0.704, and the average number of credit cards per person is 0.032. This data has been entered into the attached spreadsheet, in rows 13 and 14 of the India tab. Below is a description of the data and calculations used to arrive at these figures, followed by an explanation of the research strategy we employed.

    India: Average number of credit and debit cards per person

    • According to the Reserve Bank of India, India had a total of 44,213,752 credit cards and 958,150,285 debit cards as of December 2018. These figures are corroborated by the Indian media outlet Medianama.
    • Estimates of India's population vary slightly. Worldometers puts India's 2018 population at 1,354,051,854 (see graph), while Countrymeters states that India's population was 1,370,048,541 as of 1 January 2019, immediately after December 2018. LivePopulation assessed the country's 2018 population at 1,358,137,719.
    • In any case, all sources indicate that India's total population was roughly between 1.35 and 1.37 billion. We took the average of these slightly-varying estimates to use in our calculations: (1,354,051,854+1,370,048,541+1,358,137,719)/3=1,360,746,038.
    • Then, we simply divided the total number of credit and debit cards in India by its population to determine the average number of credit and debit cards per person: 44,213,752/1,360,746,038=0.032 credit cards per person, and 958,150,285/1,360,746,038=0.704 debit cards per person.

    Your research team applied the following strategy:

    To find the average number of credit and debit cards per person in India, we first conducted a review of government databases and relevant media sources to determine if this figure had already been compiled. After an extensive search failed to find an already-existing figure in this regard, we sought to find the components which would allow us to triangulate this figure: namely, the total number of credit and debit cards held by Indians, and the total population of India. We found data on the total number of credit cards held by Indians offered by the Reserve Bank of India, and corroborated these figures with a report published by Indian media outlet Medianama. We found slightly varying estimates of India's total population in 2018, so we utilized the average of three sources of Indian population data in our calculations. We then simply divided the total number of debit and credit cards held by Indians by the total Indian population to determine the average number of credit and debit cards per person in India.
    Part
    16
    of twenty-three
    Part
    16

    Credit and Debit Cards: Mexico

    In Mexico, the average number of credit cards per person is 0.36. And, the average number of debit cards per person is 1.79. Also, in 2018, the total number of population in Mexico that most likely owned credit and debit cards was 96,991,314.

    All the required information has been entered into the spreadsheet here.

    CREDIT CARD

    • Upon triangulation, the average number of credit cards per person in Mexico is 0.36.
    • In 2011, Mexico had a total of 23.2 million credit cards in circulation.
    • In 2016, Mexico had a total of 31,226,708 credit cards in circulation.
    • In 2015, the number of credit cards per person in Mexico was 0.52 with a total of 28.5 million credit cards in issue.
    • According to an AT Kearney study, Mexico had 0.8 number of credit card per household in 2016.
    • In 2017, approximately 9.52% of Mexicans owned a credit card, down from over 17.82% in 2014.
    • Based on the findings presented above, it can be confirmed that the average number of credit cards per person in Mexico is declining year-after-year.

    DEBIT CARD

    • Upon triangulation, the average number of debit cards per person in Mexico is 1.79.
    • In 2011, Mexico had a total of 75.2 million debit cards in circulation.
    • In 2016, Mexico had a total of 136,714,377 debit cards in circulation.
    • According to an AT Kearney study, Mexico had 3.8 number of debit cards per household in 2016.
    • Based on the data presented above, it can be confirmed that the average number of debit cards per person in Mexico is declining year-after-year.

    Your Research team applied the following Strategy:

    In order to identify the average number of credit and debit cards per person in Mexico, we started our research by examining government databases and relevant government-affiliated media sources to check if the figure had already been compiled for 2018. Ministry of Finance website, OECD, Secretariat of Finance and Public Credit (Mexico), export.gov, Public Finance, World Bank, and INEGI are some of the sources we looked into. However, we were unable to locate find precompiled data regarding the subject. We only found data pertaining to population statistics, financial status of Mexico, banking system of the country, how to get credit card and debit card in Mexico, and other data that was not relevant to what we were looking for.
    Following this, we proceeded to look for data obtained through surveys and studies from financial institutions, research firms, consultancy firms, and other bodies that conduct research on credit and debit cards. Euromonitor International, Indra Sistemas, Financial Conduct Authority, Statista and AT Kearney are some of the domains we looked into. Here, we found some useful data even though, it did not directly answer the question. The data that we found is as follows:
    • The number of credit cards and debit cards in circulation for the year 2011.
    • The number of credit cards and debit cards in circulation for the year 2016.
    • The number of credit cards per person for the year 2015.
    • The number of debit cards and credit card per household for the year 2016.
    • The ownership rate of credit cards for the year 2011, 2014, and 2017.
    • The total number of credit cards and debit cards of the top issuers in Mexico for the year 2017.
    While these data were outdated and did not answer directly the request, they were, however, useful for triangulation.

    Triangulation

    Step 1

    Having the number of credit cards and debit cards in circulation for 2011 and 2016, we calculated the compound annual growth rate (CAGR) from 2011 to 2016 and assumed that the rate was consistent up to 2018.

    CREDIT CARDS
    • 2011 credit cards in circulation — 23,200,000
    • 2016 credit cards in circulation — 31,226,708
    • CAGR = (2016/2011) ^ (1/5)-1
    • CAGR = (31,226,708/23,200,000) ^ (1/5)-1
    • CAGR = 6.12%
    DEBIT CARDS
    • 2011 debit cards in circulation — 75,200,000
    • 2016 debit cards in circulation — 136,714,377
    • CAGR = (2016/2011) ^ (1/5)-1
    • CAGR = (136,714,377/75,200,000) ^ (1/5)-1
    • CAGR = 12.70%
    Assuming that the growth rate was consistent up to 2018, we performed the following triangulation:
    CREDIT CARDS
    • 2017 estimated credit cards in circulation = (2016 * 6.12%) + 2016
    • 2017 estimated credit cards in circulation = (31,226,708 * 6.12%) + 31,226,708
    • 2017 estimated credit cards in circulation = 33,137,782
    • 2018 estimated credit cards in circulation = (2017 * 6.12%) + 2017
    • 2018 estimated credit cards in circulation = (33,137,782 * 6.12%) + 33,137,782
    • 2018 estimated credit cards in circulation = 35,165,814
    DEBIT CARDS
    • 2017 estimated debit cards in circulation = (2016 * 6.12%) + 2016
    • 2017 estimated debit cards in circulation = (136,714,377 * 12.70%) + 136,714,377
    • 2017 estimated debit cards in circulation = 154,077,103
    • 2018 estimated debit cards in circulation = (2017 * 6.12%) + 2017
    • 2018 estimated debit cards in circulation = (154,077,103 * 12.70%) + 154,077,103
    • 2018 estimated debit cards in circulation = 173,644,895
    Therefore, in 2018, Mexico had a total number of 35,165,814 credit cards and 173,644,895 debit cards in circulation.

    Step 2

    To obtain the average number of credit and debit cards per person in Mexico, we divided the number of credit cards and debit cards by the number of population that was mostly likely to own a credit card or debit card in Mexico. Since banks and other card providers usually issue the cards to people with a legal or a reliable source of income, we restricted the population to those who belong to 'working age' groups, including all adults.
    In Mexico, working age starts at 15. Therefore, we only picked the total number of population in Mexico aged 15 and above.
    MEXICO POPULATION — 2018 (WORKING AND ADULT POPULATION)
    • 15-19 age range — 11,856,020
    • 20-24 age range — 11,676,114
    • 25-29 age range — 10,965,803
    • 30-34 age range — 10,172,771
    • 35-39 age range — 9,542,243
    • 40-44 age range — 8,991,096
    • 45-49 age range — 8,078,370
    • 50-54 age range — 6,679,654
    • 55-59 age range — 5,364,619
    • 60-64 age range — 4,339,679
    • 65-69 age range — 3,300,170
    • 70-74 age range — 2,266,546
    • 75-79 age range — 1,649,962
    • 80-84 age range — 1,045,847
    • 85-89 age range — 650,832
    • 90 and above — 411,588
    TOTAL = 96,991,314
    Therefore, in 2018, the total number of population in Mexico that most likely owned credit and debit cards was 96,991,314.

    Step 3

    Finally, we proceeded to triangulate the average number of credit and debit cards per person in Mexico.

    CREDIT CARDS
    Average number of credit cards per person
    35,165,814 ÷ 96,991,314 = 0.36
    DEBIT CARDS
    Average number of debit cards per person
    (173,644,895 ÷ 96,991,314) * 100 = 1.79
    Therefore, the average number of credit cards and debit cards per person in Mexico are 0.36 and 1.79, respectively.
    Part
    17
    of twenty-three
    Part
    17

    Credit and Debit Cards: Japan

    In 2017, the average number of credit cards per person in Japan was 2.14 and the average number of debit cards was 3.3. These metrics have also been populated in the attached spreadsheet.

    FINDINGS

    • The population of Japan in 2017 was 126,706,000.
    • According to The Japan Consumer Credit Association, there were 272,010,000 credit cards issued in Japan in 2017. Therefore, the average number of credit cards per individual in Japan in 2017 was 2.14 (272,010,000/126,706,000).
    • According to the Bank of Japan, the average number of debit cards in Japan in 2017 was 3.3.

    CALCULATIONS

    The average number of credit cards per person = The total number of credit cards issued/ the population of Japan = 272,010,000/126,706,000 = 2.14

    NOTES

    • We came across an article on a Japanese debit card comparison that provided the average number of debit cards per person in Japan. As the article made references to the "Recent Debit Card Trends" report published by the Bank of Japan in 2017, we made a search for the English version of the report. However, the Payments and Settlements Report (English version) explicitly mentions that the "Recent Debit Card Trends" portion is only available in the Japanese. Therefore, we do not have an English version of the report original report.
    • The Japan Consumer Credit Association has incorrectly used a period instead of a comma in the figures it has published for the number of cards issued. Among the years 2014-2018, the figure for March 2016 reads correctly. For reference, an article published by Btrax, mentions cites the Japan Consumer Credit Association March 2015 data as 258 million. Therefore, we gather that the placement of the period is an error and that it should be a comma.
    Part
    18
    of twenty-three
    Part
    18

    Credit and Debit Cards: UK

    Our research calculated the estimated number of credit and debit cards held per person in the United Kingdom to be 1.86 for credit cards and 1.9 for debit cards. There are currently 158.7 million debit and credit cards issued in the United Kingdom. We have updated the attached spreadsheet with our findings.

    Average number of credit cards per person

    Average number of debit cards per person

    research strategy

    We began our research looking for industry reports, and news articles on the average number of credit and debit cards per person in the United Kingdom. We were unable to find any reliable and verified statistics for either card type. We next turned to consumer and banking reports, these reports provided information on the amount of debit per household and how many people have credit and debit cards in the United Kingdom. We then found the total number of credit and debit cards that have been issued and calculated how many credit and debit cards there are per person in the United Kingdom.

    60,107,000 (Number of credit cards) / 32,300,000 (Number of credit card holders) = 1.86 average number of credit cards per person.

    98,632,000 (Number of debit cards) / 51,100,000 (Number of debit card holders) = 1.9 average number of debit cards per person.

    Part
    19
    of twenty-three
    Part
    19

    Credit Card Interchange Fees: Germany

    An overview of the average credit card interchange fees in Germany has been compiled in row 12, column C and D, of the Germany tab of the attached spreadsheet.

    Credit Card Interchange Fees: Germany

    • In 2015, the European Union rolled out a cap for interchange fees on all credit card except three-party schemes such as Diners and American Express. Since 2018, this cap includes all credit card providers.
    • According to the cap, the highest amount all credit card institutions in the EU can charge for interchange fees is 0.3% of the transaction value.
    • The European Council published a report in 2019 which states that the majority of institutions are nowadays applying the highest possible interchange fee which amounts to 0.3% for credit cards.
    • This is further proven by Visa and Mastercard's fee regulations which both show an interchange fee of 0.3%. The same can be seen in the American Express and Diners fees.

    RESEARCH METHODOLOGY

    In order to be able to provide the correct data for interchange fees, we first looked into defining what interchange fees are. According to finance institutions, interchange fees are "transaction fees that the merchant's bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud and bad debt costs and the risk involved in approving the payment." Additionally, in this research we based our findings on European Union policies, as Germany is part of the EU.
    Part
    20
    of twenty-three
    Part
    20

    Credit Card Interchange Fees: India

    After an exhaustive search, information on the average credit card interchange fees in India is not available and cannot be triangulated, hence, we have entered N/A in the corresponding cell on the attached spreadsheet. However, in the course of our search, we found related information on debit card interchange fees which is between 0.3% to 0.9% of the total transaction value since 2018. Furthermore, a 2016 publication by the Indian Institute of Technology reported that the interchange rate, including both the "credit and issuer's cost of processing payments" with a credit card, in India was about 1.25%.

    Helpful findings

    • 96% of the cards used in India are debit cards. In 2018, the interchange fee for debit card transactions ranged between 0.3% to 0.9%.
    • Effective from August 1, 2018, RuPay — one of the leading credit card providers in India — set their interchange rate to 0.15% (maximum of ₹75 per transaction) for POS and E-Com domestic transactions and 0.10% (maximum of ₹67 per transaction) for QR-Code for transactions up to ₹2,000. However, for transactions above ₹2,000, the interchange rate becomes 0.65% (maximum of ₹722 per transaction) for POS and E-Com domestic transactions and 0.55% (maximum of ₹688 per transaction) for QR-Code for transactions.
    • Effective from January 1, 2018, the Reserve Bank of India set the Merchant Discount Rate (MDR) for debit card transactions in India to 0.40% (maximum of ₹200 per transaction) for POS transactions and 0.30% (maximum of ₹200 per transaction) for QR-based transactions involving small merchants with annual turnover up to ₹20 lakh. While for other merchants with annual turnover above ₹20 lakh, it was pegged at 0.90% (maximum of ₹1,000 per transaction) for POS transactions and 0.80% (maximum of ₹1,000 per transaction) for QR-based transactions.
    • In 2018, Visa — with a 40% share of the Indian electronic card market — slashed their debit card transaction charges in India by up to 95%. However, Visa increased its service charges from 0.035% to 0.055% of the total transaction amount.
    • A 2016 publication by the Indian Institute of Technology reported that the interchange rate, including both the "credit and issuer's cost of processing payments" with a credit card, in India was about 1.25%.

    RESEARCH STRATEGY

    To determine the average credit card interchange fees in India, the research team commenced with an extensive search for a pre-existing data on financial publications and media pages such as the Indian Times, Business Today, and others, no specific data related to credit card interchange fees could be found. In the course of our research, we found a publication that discusses recent reforms in interchange fees for a select country which India was included. While the publication was locked behind a paywall, we were able to view an important page on it on Google Books. The book reveals that unlike the debit card, there is no regulation on credit cards in India. This means that credit card providers are free to set their interchange rate as they deem fit.

    Knowing that credit card charges are not regulated in India, our next approach was to search for individual rates of the leading providers in the country such as Visa, RuPay, Master Card, and Unified Payment Interface (UPI). We searched for press releases by each of these players for any insight into their credit card interchange charges. However, we could only find the debit card interchange charges. In the course of our research, we found a 2016 publication that gave the closest data related to the requested data point. A workshop publication by the Indian Institute of Technology on digital payment hinted that the interchange fee for a credit card transactions but this data includes both credit and issuer's cost of processing payments. As such, it could not categorically be used as the credit card interchange fee.

    Furthermore, we searched for any other alternative data that could be used to triangulate the interchange fee for a credit card. We found that Merchant Discount Rate (MDR) consists of interchange fee, and additional clearing and settling fees. We also found that interchange fees constitute over 80% of MDR. Based on this, we proceeded to search for the average MDR of credit cards in India. We relied on publications, articles, and press releases from financial regulatory organizations in India such as the Reserve Bank of India (India's Central Bank), National Payment Corporation of India, and Banks Board Bureau. While we found information on the MDR of debit cards in India, no information specific to credit card was found.

    After an exhaustive search, the likely reason for the unavailability of relevant data on the average credit card interchange fees in India is likely due to the fact that credit card is not regulated in the country. Also, credit cards make up just 4% of the total cards in India which could be the reason for the little or no interest in analyzing the interchange fees or rates.
    Part
    21
    of twenty-three
    Part
    21

    Credit Card Interchange Fees: Mexico

    Our research team has compiled an overview of the average credit card interchange fees in Mexico in Row 12, Columns C-D, of the Mexico tab of the project spreadsheet. 

    CREDIT CARD INTERCHANGE FEES: MEXICO

    • In 2006, the Bank of Mexico and the Mexican Bankers Association held a meeting where it was agreed to reduce interchange fees on credit card and debit card.
    • According to a financial report by the Mexican Bankers Association, the highest amount all credit card institutions in Mexico can charge for interchange fees is 1.6% of the transaction value; and the highest amount on all debit card institutions is 0.7% of the transaction value.

    RESEARCH STRATEGY

    We began our research by combing through credible sources like Bank of Mexico website, Mexican Bankers Association website and Public Authority Involvement in Payment Card Markets Reports for information regarding the average credit card interchange fees in Mexico. Our research team utilizes Bank of Mexico reports, and Public Authority Involvement in Payment Card Markets Reports to unearth the required information. According to Bank of Mexico report, interchange fees (IFs) are per-transaction charges" that the merchant's bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store.
    Part
    22
    of twenty-three
    Part
    22

    Credit Card Interchange Fees: Japan

    According to a January 2018 report by Nomura Research Institute, the average credit card interchange fee in Japan is approximately 3.09%. This data has been added to the attached spreadsheet in columns C and D, row 12.

    Japan Credit Card Interchange Fees

    • A January 2018 study by Nomura Research Institute found that the average credit card interchange fee in Japan was approximately 3.09%. These high fees are one of the reasons that Japan has been slow to move to cashless payments. In early 2018, only about 20% of payments in Japan were cashless.
    • In order to push towards more cashless use, the government is implementing a 9-month points program where purchases made without cash will be eligible to receive 5% of the purchase back in points. Part of this program will also be limiting the maximum credit card processing fee to 3.25%. However, that cap will end when the points program ends after 9 months.
    • Since most Japanese consumers do not carry a balance on their credit cards, the interchange fees are the main way the companies make money. Typically, fees range from 2%-5%.


    Part
    23
    of twenty-three
    Part
    23

    Credit Card Interchange Fees: UK

    An overview of the average credit card interchange fees in the United Kingdom has been compiled in Row 12, Columns C-D, of the United Kingdom tab of the project spreadsheet. 

    CREDIT CARD INTERCHANGE FEES: UNITED KINGDOM

    • In 2015, the European Union rolled out a cap for interchange fees on all credit cards except third-party schemes such as Diners and American Express.
    • According to Expert Market reports, the highest amount all credit card institutions in the United Kingdom can charge for interchange fees is 0.3% of the transaction value; and the highest amount on all debit card institutions is 0.2% of the transaction value.
    • According to Competition Appeals Tribunal (CAT), interchange fees was concluded to be an average of 0.5% of the value of credit card transactions and 0.27% of the value of debit card transactions.

    RESEARCH STRATEGY

    We began our research by combing through credible sources like Expert Market, Lloyds Bank Reports, Lexology, and the United Kingdom Legislation Reports for information regarding the average credit card interchange fees in the United Kingdom. Our research team utilizes Expert Market reports, Adyen Reports, and Lloyds Bank Reports to unearth the required information. According to finance institutions, interchange fees are "transaction fees" that the merchant's bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store.

    Sources
    Sources

    From Part 04
    Quotes
    • "There are more than 200 LPs in Japan"
    Quotes
    • "Nearly two-thirds of Japanese consumers are members of at least one grocery loyalty program, and coalition loyalty programs, such as T-card and Ponta."
    Quotes
    • "Vietnam, New Zealand and Australia have the highest selfreported rates of loyalty-program participation in the region (84%, 84% and 83%, respectively), followed closely by Japan (80%), Korea (77%) and Malaysia (77%)."
    Quotes
    • "This means that every Japanese adult has approximately 2.5 credit cards, which is very close to how many Americans have per person (2.6 credit cards)."
    Quotes
    • "According to a survey conducted by the infographic site Zunny (Japanese), Japanese people possess on average 20.9 cards, 10.7 of which they keep in their wallets. At 92 percent, the most commonly carried one is, not surprisingly, a credit card. (Interesting, when you consider that only two decades ago very few people in Japan used plastic.) That dubious T-Point card of mine is a close second with almost 90 percent claiming they had one in their wallet. Just over 82 percent surveyed said they had their Ponta Card on them, while 79 percent took their supermarket card with them wherever they went. The Nanaco card was fifth at 77.7 percent. Among the remaining top 10 cards were drugstore cards (76.5 percent), WAON (73.2 percent), Rakuten Point Card (71.1 percent), WAON Point Card (70.5 percent) and Rakuten Edy (67.2 percent)."
    From Part 08
    Quotes
    • "Amazon Prime also isn't a huge hit in Japan. NTTCom Research claims that just 16.6% of Amazon users in Japan are Prime members."
    Quotes
    • "Last April, research firm DI Marketing found that 70.2% of online consumers used Rakuten, compared to 66.7% for Amazon Japan."
    • "NTTCom Research and print publisher Toyo Keizai reported more encouraging numbers, claiming that 87.2% of Japanese internet users shopped on Amazon (without taking a poll of Rakuten users)."
    Quotes
    • "A significant proportion (83.3 percent) of Japan’s 119 million internet users are also active digital buyers. "
    Quotes
    • " According to the Survey of Household Economy, the percentage of two-or-more-person households that utilize Internet shopping has continued to increase since 2002, reaching 34.3 percent in 2017. "
    • "The Population Census shows that Japan had 53.33 million private households (excluding "institutional households" such as students in school dormitories) in 2015, showing a consistent increase since the initiation of the Census. "
    From Part 12
    Quotes
    • "In Japan, 62 percent of consumer payments are made in cash, compared with 38 percent in China, and 23 percent in the U.S., according to Euromonitor."
    Quotes
    • "Did you know that 62% of Japan's consumer payments are made in cash?"
    Quotes
    • "Even though Japanese have a high number of credit cards, they make use of their cards for only 17% of their purchasing activities. One study shows that 40% of Japanese want to use credit cards more. Why do Japanese hold more credit cards than necessary and still not use them"
    Quotes
    • "Debit cards are making gains in the Japanese market thanks to their money management merits, with transactions nearly doubling over two years to 107.56 million in fiscal 2016, according to the Bank of Japan's first payment and settlement statistics report."
    Quotes
    • "Even though Japan is a dream come true for sending a fax for example, cheques are something that are no longer in popular use, complicating the process. This space is for notes about cashing an international cheque in Japan."
    From Part 20
    Quotes
    • "Debit cards account for 96% of the cards in use in India but it’s credit cards that account for 51% of card payments in terms of value, ET reported on June 12. But with only 37 million credit cards in use in the country — as against 861 million debit cards — their usage does not translate to mass adoption of digital payments."
    Quotes
    • "In India, for RuPay Debit cards the interchange is 0.65% (for amounts exceeding ₹2000), whereas for regular consumer Credit cards the interchange for the combine credit and issuer‟s cost of processing payments is about 1.25%."
    Quotes
    • "The merchant discount fee (also referred to simply as "discount fee") is paid by a merchant (supplier) to its merchant acquirer/bank or other contracted party for services related to the processing of the merchant's card transactions. "
    • "The merchant discount fee includes interchange, which is a fee paid by a merchant acquirer to the issuing bank (card issuer), plus additional clearing and settling fees."
    Quotes
    • "Merchants pay a merchant discount rate on each credit card transaction. This rate is a combined rate that is distributed a number of ways: the majority(80%+) goes to the cardholder’s bank as an interchange fee. The remainder is split between the networks(VISA or MasterCard), and the processor (e.g. Chase or Moneris)."
    From Part 21
    Quotes
    • "The ABM developed a mechanism for setting more uniform interchange fees based on a catalog of business types from 2006 onwards, and in January 2008 agreed to a new interchange fee price scale based on this methodology. "
    • "As a result, the weighted average of the new interchange fee was set at 1.6 percent for credit card payments and 0.7 percent for debit card payments. "
    From Part 22
    Quotes
    • "The report, released in April, noted cash has been reliable in Japan, where counterfeit bills are rare. The crime rate is low, so people feel safe carrying cash, and ATMs are readily available."
    • "A search for Tokyo eateries that accept credit cards on the Tabelog website, a popular restaurant search service, found only 49,350 stores out of 135,764 as of last week."
    Quotes
    • "Credit cards account for 90% of cashless payments in Japan, where most cardholders pay off their balances in full each month. Consequently, Japanese credit card companies rely more on processing fees from retailers for income than in other places."
    From Part 23
    Quotes
    • "Interchange is set by the card association — that’s Visa, Mastercard, and Discover. Forming a portion of the transaction fees charged by providers, it’s a mandatory charge capped at 0.2% per transaction for debit cards and 0.3% for credit card processing fees."
    Quotes
    • "The Consumer Rights Act 2015 has introduced changes to the UK’s competition damages regime, which has made the UK an attractive jurisdiction in which to bring actions for breaches of competition law."
    • "Such competition damages actions are relatively new in the UK, and can be heard by either the High Court or the specialist Competition Appeals Tribunal (CAT). As the High Court is not bound by the decisions of the CAT in competition damages cases there is a risk that inconsistent judgments may have a chilling effect on competition damages actions being brought in the UK."