Annual Forecasts

Click links below to access 2018 Outlook Documents:

2017 Outlook: Commercial and Enterprise Payments

Innovation and improvements continue.

Increasing digitization, improved cash cycle management, better integration, and faster capabilities are all converging as we move into 2017, but risk management is a clear concern in commercial and enterprise payments.


2017 Outlook: Credit

 Industry projections and predictions for U.S. consumer credit cards

Credit cards continue to be the most profitable segment for retail banking, but margins are slipping due to changes in non-interest revenue. Volumes are up but the industry must pay attention to controllable and operational expenses to protect profits.



2017 Outlook: Customer Interaction

 Adapting to the public’s changing expectations of financial institutions will stabilize their course.

The banks, credit unions, and other financial institutions that consumers rely on today to help navigate their daily financial lives will be expected by them to further modify the ways they conduct business and service delivery in 2017. By adopting greater flexibility and implementing financial technology (fintech), these organizations will secure and enhance their position.


2018 Outlook: U.S. Debit Cards and Alternative Products

 In early 2017, debit card transaction volume took an abrupt and steep decline. In 2018, issuers face a new normal with lower and unpredictable growth, compressed margins, and ever-changing fraud challenges. Meanwhile, push payments will make debit cards important as the gateway to consumers’ and small businesses’ transaction accounts. Person-to-person (P2P) payment strategies will become more important to financial institutions as they seek to fend off competition from successful fintech products. Planning faster and real-time payment solutions will reach fever pitch as financial institutions look for profitable use cases and providers aim to make real-time payments ubiquitous.


2017 Outlook: Emerging Technologies

Three new technologies are vital for payments.

Three technologies need to be embraced immediately by the payments industry. They are tokenization, machine learning, and APIs. These three are important to consider when making any investment plans in specific strategic areas. Three more technologies will most likely affect the future of your organization but do not, broadly speaking, need immediate implementation—unless your institution is ready to invest in them now. They are biometrics (eliminate passwords), mobile OS and blockchain.


2017 Outlook: Merchant Services

 A familiar landscape is evolving.

Every merchant makes significant investment in new services brought on by enhancements to their payments systems. Each year brings an expanding array of new vendor solutions for merchants’ consideration, and 2017 will be no different. Mercator Advisory Group’s 2017 Outlook for merchant services highlights some notable trends and issues that will have an impact on every merchant’s business in the upcoming year.


2017 Outlook: Prepaid

 Another year of regulatory uncertainty


The election results will not solve the industry’s regulatory problems. The results of the 2016 U.S. elections have led many in the payments industry to think that their regulatory concerns are at an end, but a more likely consequence is that companies will need to deal with shifting regulations for at least the next two years.