Analysis On Bankcard Market Structure Development

Bankcard market mainly include bankcard associations,issuing banks,acquiring banks,merchants and cardholders. They together compose market structure and play an important role in the development of the market. Meanwhile, Bankcard market has typical characteristics of two-sided markets,due to these characteristics,This paper compares cost,efficiency,welfare at each important sector of bankcard market development in order to analyzes different cost,different efficiency, different welfare in different market structures. This paper aim to find out how do bankcard market structure develop and what are the characters of best bankcard market structure. Finally, proposing a possible way in which the bankcard market structure would develop.Through the empirical analysis, this paper show that the birth of bankcard associations relate to the increasing exchange costs and the bankcard number relate to bankcard acceptance environment, consumers, the choice of merchants and other factors. When a number of bankcard associations are not compatible with each other, while banks join different associations at the same time, social welfare would conflict with associations profits, eventually led to a higher-level bankcard association formation.