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INSIDE: FastFactsP2-3
CHARTS: purchasevolumeoNu.s.GpcarDsP6|u.s.GeNeralpurposecarDsP6|creDitcarDoutstaNDiNGsiNtheu.s.P7visa&mastercarDDebit&prepaiDcarDsP9|50larGestissuersoFvisa&mastercarDcreDitcarDsiNtheu.s.P10,11
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SignatureS required on Fewer receiptSOver 98.5% of card-present transactions initiated by U.S. card-holders at U.S. merchants are authorized by the card issuer while the customer is standing in the checkout lane. These online
debt Settlement updateDebt settlement companies manage funds that are set aside by consumers who hope to pay off their delinquent credit card debt for less than half of what is owed. They’re bargaining that
top 50 u.S. ViSa/maStercard credit card iSSuerSTurn to pages 10 and 11 for a ranking of the 50 largest Visa and MasterCard credit card issuers based on outstanding debt at the end of 2009. Figures include consumer and commercial products.
maStercard & ViSa — u.S. 2009MasterCard and Visa credit, debit, and prepaid consumer and commercial card purchase volume (spending at merchants) declined by 1.9% or $48.15 billion in 2009 versus 2008. Purchase
merchant acquiring in germanyB+S Card Service, Germany’s largest acquirer based on transactions processed, will use the TSYS TS Prime platform to provide clearing and settlement services as well as risk and
arguS inFormation & adViSory SerViceSSince 1997, Argus Information & Advisory Services has been supplying top U.S. credit card issuers with information they can use to better understand and manage customer behavior and
e-commerce paymentS in chinaChina’s largest Web payment processor is Alipay, which opened for business in 2004. Last year it handled $38.40 billion in pay-ments for 270 million registered users. By the end of January,
general purpoSe cardS — u.S. 2009American Express, Discover, MasterCard, and Visa brand cards generated $2.971 trillion in purchase volume (spending at merchants) in 2009 from consumer and commercial credit, debit, and prepaid products, down 3.2% versus 2008. PIN-based debit card figures for Visa (Interlink) and MasterCard are included in that amount. However, PIN-based Pulse brand card figures
Discover Credit
MasterCardDebit
Amex Credit
MasterCardCredit
VisaDebit
VisaCredit
Spending at Merchantsby U.S. Cardholders
Market Shares of$Purchase Volume
40%
35%
30%
25%
20%
15%
10%
5%
‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09©2010 The Nilson Report
February 2010 Issue 942For 39 years, the leading publication covering payment systems worldwide.
© HSN Consultants Inc. 2010 THE NILSON REPORT Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is a copyright violation subject to substantial fines. Yearly Subscription for 23 print and electronic issues is $1,295. ISSN 1087-8718THE NILSON REPORT: 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 USA • PHONE (805) 684-8800 • FAX (805) 684-8825 • [email protected]
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The Nilson Report #942 • 1st draft • February 17, 2010 • 3:37 PM • ddr
GLOBALPLATFORM is delivering a one-day card technology training session in Salt Lake City, Utah on Monday, February 22. Cost is $1,495 for nonmembers. Nilson Report subscribers receive a $200 discount. Register at www.globalplatform.org/trasaltlakecity.asp
GALILEO PROCESSING, provider of a prepaid card account
processing platform that manages over 700 programs, is
working with tax-refund specialist EPS Financial on a new prepaid
Visa product called E1 Visa Prepaid Card. The card will hold
refunds for consumers whose tax preparers used Drake software.
Cards will be issued by The Bancorp Bank. Todd Brockman is
President at Galileo, (801) 365-6060 x200,
TRUSTWAVE'S 2010 Global Security Report is available at no charge from www.trustwave.com/whitePapers.php.
DISCOVER FINANCIAL SERVICES has paid Morgan Stanley $775 million from the antitrust settlement it received from Visa and MasterCard. DFS and Morgan Stanley also entered into an agree-ment that calls for each to release and discharge the other party from litigation over the matter.
MERCURY PAYMENT SYSTEMS, a processor serving 47,323 merchant customers, now offers MercuryShield, a PA DSS-validated payment application for point-of-sale developers that avoids stor-ing, processing, or transmitting cardholder data. Lucas Zaichkowsky is Senior Compliance Technologist, (970) 247-5557 x2723, [email protected].
VOLTAGE SECURITY’S SecureData encryption software can now be integrated into Thales hardware security modules. Thales says it secures more than 70% of the world’s card payment transactions worldwide. Richard Moulds is VP, Product Strategy at Thales, (781) 994-4000, [email protected]. Mark Bower is VP, Product Management at Voltage Security, (781) 4592-2225, [email protected].
HEARTLAND PAYMENT SYSTEMS’ offer to pay up to $60 million to issuers of Visa cards for expenses related to a 2008 data breach has been accepted by 97% of the institutions affected. Robert Carr is CEO at HPS, (609) 683-3831, [email protected]. Eduardo Perez is Head, Global Payment System Security at Visa, (650) 432-2375, [email protected].
1010DATA, provider of an analytics engine that merchants can use to store site selection, merchandising, inventory management, cus-tomer loyalty program support, etc., has linked to Equifax to give its customers access to individual and household marketing data. Wendy Lynes is VP, Direct Marketing Services at Equifax, (561) 776-0748, [email protected]. Jim Mattecheck is VP, Retail Solutions Group at 1010data, (503) 701-6477, [email protected].
INTEGRATED BANK TECHNOLOGY, which provides core processing and imaging along with Check 21 software applications to 200 financial institutions, will offer ATM and debit processing ser-vices from U.S. Bank’s Elan Financial Services subsidiary. Troy Cullen is Business Manager at Elan Financial Services, (630) 443-3238, [email protected]. Mike Golebiowski is Pres. at IBT, (773) 973-1536 x151, [email protected].
INCOMM now lets select retailers in its prepaid card distribution network reload prepaid cards managed by Netspend. The deal will increase NetSpend’s reload network from its current level of 93,000 locations. Robert Skiba is EVP and GM at InComm, (770) 240-6173, [email protected]. Dan Henry is CEO at NetSpend, (512) 531-8780, [email protected].
ELAVON, a wholly owned subsidiary of U.S. Bancorp, has purchased 300 merchant card-processing contracts from Citizens National, a community bank in Tennessee. Stuart Harvey is CEO at Elavon, (678) 731-5020, [email protected].
NETWORK MERCHANTS (NMI), a payment gateway provider to
ISOs and MSPs, now offers Three Step Redirect API — an interface
that transmits credit card information directly to the gateway
through a Secure Sockets Layer (SSL) connection, bypassing the
merchant’s server and payment application. Ted Cucci is COO,
(847) 352-4850 x131, [email protected].
GLOBAL CASH, provider of a prepaid card program and operator of its own account-processing platform, now offers consumers Intuit’s Turbo Tax Federal Free Edition for 1040EZ and simple returns. It also discounts Turbo Tax online products that include both federal and state e-filing by 15%. Cardholders can elect to have their tax refunds deposited directly to their prepaid Master-Card or Visa cards. First Regional Bank and Elan Financial/U.S. Bank are the card issuers. Joe Purcell is COO at Global Cash Card, (949) 751-0360 x202, [email protected].
SHPS, one of the largest U.S. providers of account-based, consumer-driven healthcare solutions, has renewed its contract to offer Visa cards as the preferred payment brand for employee-benefit programs it administers. RJD Grimes is SVP, Sales at SHPS, (502) 267-3334, [email protected]. Stacy Pourfallah is Sr. Bus. Leader, Healthcare Prod. at Visa, (650) 432-2388, [email protected].
THE NILSON REPORTNUMBER 942 FEBRUARY 2010
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MOBILE FINANCIAL SERVICES 2010
Two-Day ConferenceMarch 9-10, 2010The Copthrone Tara Hotel, London, U.K.
FEATURED CONFERENCE
Topics include: mobile finance world changes over the last 12 months, Web payments models, the main business case for mobile financial services, convergences for the industry, Mobile Cloud, a security model for mobile payment, and engaging the consumer. Speakers represent: World Bank, Turkcell, Visa Europe, SFR, T-Mobile, Mobitel, Danske Bank, and more. Cost is $4,211 (€2,948 + VAT). Contact Mubenah Khan at Informa Telecoms, 44 (207) 017-5827, [email protected]. Register at www.mobile-financialservices.com.
Subscribers to The Nilson Report receive a 20% discount on registration.
20%
Fast Facts > > > > > > > > >
2 FebruarY2010 issue942theNilsoNreport DO NOT COPY THIS REPORT. Reproducing or allowing reproduction of any portion of this newsletterin any manner for any purpose constitutes a copyright violation subject to substantial fines.
> > > > > > > > > Fast Facts
- 2 - THE NILSON REPORTNUMBER 942 FEBRUARY 2010
ECOMMLINK, operator of a prepaid card-processing platform, has opened an office in Medellin, Colombia to support business devel-opment in Latin America. Carlos Beltran is Head, Latin American Sales, 57 (310) 443-3000, [email protected].
SEAMLESS ERS 360° provides the system used by Sweden's
Swedbank to provide mobile phone account reloads at its Internet
Bank, IVR, and mobile bank. The system has delivered 10 million
reloads since 2006. Rohit Bhatia is Managing Director at Seamless,
46 (8) 5648-7800, [email protected]. Anna Bjarnling is
Head, Prepaid Recharge Services at Swedbank, 46 (730) 454-919,
I&M BANK in Kenya is the first bank in Eastern and Central Africa to be certified by Visa to process online credit card payments for goods and services. Victor Ndlovu is Manager, Sub-Saharan Africa at Visa, 27 (11) 547-8466, [email protected]. V.S. Sekhera Reddy is General Manager, Card Products at I&M, 254 (20) 322-1217, [email protected].
FIRST DATA CORPORATION will provide the Egyptian govern-ment with a managed service for issuing and processing more than 4.5 million prepaid reloadable smart cards in its family card project, which covers subsidized food and pension services. Masria Card, Egypt’s top card manufacturer, will supply the cards. George Tsoutsos is Managing Director, North Africa at First Data, 30 (697) 848-3966, [email protected]. Amr Rashad is Managing Director at Masria Card, 20 (2) 2291-4179, [email protected].
SIA-SSB has opened a new office in Warsaw, Poland. Agnieszka Zygner is Executive Sales Consultant, 48 (22) 528-6656, [email protected].
GEMALTO has become the majority shareholder in Netsize, a mobile payments firm based in France. Previously Gemalto had held a 24% stake. Netsize offers payment services for 100 mobile operators who serve more than 1 billion subscribers in 28 coun-tries. Mobile messaging and marketing services reach consum-ers through 700 network operators in 200 countries. Stanislas Chesnais will remain CEO at Netsize, 33 (1) 4127-5600, [email protected]. Olivier Piou is CEO at Gemalto, 33 (1) 5501-5000, [email protected].
TRANSUNION is promoting a new credit risk management tool in South Africa called Empirica V4 score, claiming it incrementally im-proves on the FICO scoring product the company previously sold. Empirica has also claimed to improve lenders’ decisions on those applicants with little or no prior credit history. Ian Logan is Execu-tive, Credit Bureau at TransUnion in South Africa, 27 (11) 214-6182, [email protected]. Brian Cooper is Senior Director, Scores at FICO, 44 (121) 781-4517, [email protected].
CARREFOUR, the largest retailer in Europe, will deploy Hypercom’s Wynid server-based payment solution along with over 12,000 PIN pads with EMV contactless readers at 210 of its French hypermarkets and petrol stations in France. Kazem Aminaee is Managing Director, Southern EMEA at Hypercom, 44 (1483) 718-600, [email protected].
CEDACRI, Italy’s top provider of outsourcing services to banks, has partnered with TSYS to offer end-to-end card processing for consumer, commercial, and prepaid cards, as well as 3D Secure services and fraud solutions. Fabio Menghini is Sales Director at TSYS, 39 (348) 283-7590, [email protected]. Fabio De Ferrari is GM at Cedacri, 39 (348) 895-2972, [email protected].
RETAIL BANKING RESEARCH has published The Future of Cash and Payments, a 415-page report that looks at the historic and fu-ture use of cash and other payment methods, and at the economics of cash substitution in Europe. Cost is $4,900. Rob Walker is Payment Systems Expert, 44 (208) 940-1398, [email protected].
PKO BANK POLSKI will reissue more than 6 million Visa debit cards with contactless chips starting in the second half of 2010. Jakub Kiwior is Country Manager at Visa, 48 (22) 630-6801, [email protected]. Katarzyna Sosin is Head of Cards at PKO Bank Polski, 48 (22) 639-6190, [email protected].
GIESECKE & DEVRIENT'S Mobile Security Card for use with the Android operating system offers applications including online bank-ing, secure access to corporate networks, and electronic ticketing. Users insert the memory card into the microSD slot on their Android device to make phones a secure alternative to external smart cards. Kai Grassie is Head, New Business division, 49 (89) 4119-0, [email protected].
VESESS, a Sri Lanka-based, Web application development company, has formed a partnership with e-onlinedata, provider of payment processing support to Web, mail order, and auction merchants. The partnership lets Vesess bundle e-onlinedata merchant account services and the Authorize.net payment gateway with its CurdBee online invoicing service. Lankitha Wimalarathna is CEO at Vesess, 94 (114) 924-894, [email protected]. Marci Gagnon is Manager is at e-onlinedata, (207) 228-6082 x1186, [email protected].
CIT 2010: March 9-10, 2010. The Palacio Municipal de Congresos, Campo de las Naciones, Madrid, Spain. Estimated attendance: 100 delegates and 800 visitors. Cost for the two-day conference is $1,340 (individual sessions for $830). Subscribers to The Nilson Report will receive a 20% discount. Contact Isabel de la Cuesta at IIR España, 34 (91) 700-4902, [email protected]. Register at www.iir-cit.com.
CARDS & PAYMENT METHODS: March 9-11, 2010. The Blue Tree Towers, Faria Lima, Sao Paulo, Brazil. Estimated attendance: 50. Cost for the three-day conference is $1,730 (R$3,195). Subscribers to The Nilson Report will receive a 20% discount. Contact Patricia Costa at IQPC, 55 (11) 3164-5601, [email protected]. Register at www.cartoesbr.com.
CONFERENCES & SEMINARS
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3FebruarY2010 issue942theNilsoNreportIF YOU ARE READING THIS NEWSLETTER BY WAY OF A WEB SITE OR SERVER, there has been a violation of copyright law which carries substantial fines. No company has been granted the right to post this publication.
fraud-detection support for credit card trans- actions generated at its more than 200,000 merchant accounts. The TSYS platform will also handle VPay and Maestro debit card, but not
girocard (formerly electronic cash) debit card trans- actions. That business is cleared and settled by
B+S into data centers operated by the coopera-tive, savings, and private banks.
B+S’s back-office support had been supplied by Atos. Front-end au-thorizations for B+S’s 260,000 POS terminals are handled in-house. Other bidders for the back-office contract in-
cluded First Data, Elavon, Six Multipay, and Atos.
Last year, B+S settled 198 million credit card transactions valued at €14.90 billion ($20+ billion) from merchants in Germany, Austria, Switzerland,
Belgium, Italy, the Netherlands, Luxembourg, Slovenia, Hungary, Czech Republic, and Slovakia. B+S is owned by Germany’s savings banks group led by Deutscher Sparkassen Verlag. Michael Pip is Managing Director at B+S Card Service in
Frankfurt, Germany, 49 (69) 6630-5100, [email protected]. Prior issue: 928
TSYS has two other clients in Germany. Deutsche Bank has used it for consumer card account processing since June 2009, and Degussa
Bank will use it for commercial card account processing beginning next month. Conversion of B+S merchants to the TSYS platform, which is operated from the U.K., is planned for the first quarter of 2011. Bob Evans is Group Executive at TSYS International in York, U.K., 44 (207) 160-9400, [email protected].
creditors will settle for a guaranteed amount in the near term rather than trying to col-lect the entire amount later and fail. Settlements typically range from 30¢ to 40¢ on the dollar.
One of the biggest challenges faced by settlement companies
is getting the funds saved by their clients into the hands of creditors. Many creditors have a long-standing distaste for deal-ing with these firms, although that appears to be shifting as the reputable ones find ways to dis-tinguish themselves from those that bilk consumers.
Persolvo Data Systems lets settlement companies upload
files on debtors so creditors can search those files for a match. By automating the process, Persolvo believes it has reduced the man hours required on the settlement company’s end, while allowing creditors to col-lect without working with settle-ment companies directly.
Once a match is found, the creditor goes through Persolvo to send an offer to the settlement company. If the offer is accepted, the consumer releases funds to the credi-tor. The number of searches initiated by creditors since October is up 50%, led by a growing number of debt buyers.
Most funds are saved in trust accounts, although some are in personal accounts or managed
by attorneys. Persolvo estimates that the amount of funds in trust accounts alone exceeds $5 bil-lion and is growing at a rate of $1 billion per quarter.
The company’s database cur-rently tracks $108 million that more than 200,000 consumers have set aside for proposed settlements — up from $70 mil-lion tied to 90,000 consumers
in October 2009. All funds in the database are immediately available to creditors, who pay Persolvo commissions that range from 4% to 8% of the settlement amount.
Persolvo won’t say whether or not any card issuers have begun working with them yet, but they point out that most debtors go into a settlement
other bidderS included FirSt data, elaVon, Six multipay, and atoS.
all FundS in the data-baSe are immediately aVailable to creditorS.
debt settlement update(from page 1)...
merchant acquiring in germany (from page 1)...
4 FebruarY2010 issue942theNilsoNreport IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
Alipay was processing 5 million transactions a day with average daily volume exceeding $176 million.
Alipay is owned by Alibaba Group, which owns and oper-ates two online auction sites. Taobao.com is both business-to-consumer and consumer-to-consumer, and Alibaba.com is business-to-business. Alipay provides payment processing support for both sites as well as for another 500,000 China-based
Web retailers not connected to either one.
Registered buyers and sellers use one of two payment models. In the escrow model, Alipay is the middle man, holding a buyer’s money until the seller delivers the goods. Funds are transferred from the buyer’s bank account into their Alipay account. In the instant payments model, the buyer’s funds are transferred directly from their bank account to the seller’s Alipay account where they can either be moved into a bank account or used to make auction payments.
Other payments are generated by credit and debit cards. Even when those cards carry China UnionPay, Visa, or MasterCard
brands, settlement occurs directly between Alipay and the bank card issuers.
Alipay recently signed a contract with Asknet in Germany, which oper-ates Web portals for soft-ware vendors and will
use Alipay as a new acceptance mark.
Stock trades on the Hong Kong Stock Exchange. Stephen Zhu is Director of Business Intelligence at Alipay.com Co. Ltd. in Hang-zhou, China, 86 (571) 2688-8888 x37315, [email protected].
authorizations, coupled with state-of-the-art fraud detection technology, have allowed the card organizations to lift signature requirements for most low-value transactions.
On the MasterCard network, U.S. merchants in select categories in-cluding gas stations, convenience stores, drugstores, and supermar-kets since 1991 have been allowed to process transactions valued at $25 or less without requiring card-holders to sign a receipt. Called Quick Payment Service, the program was expanded in November by raising the floor limit to $50.
Discover Financial Services began letting select U.S. merchants process transactions under $25 without a signature in the mid-1990s and has expanded the merchant categories over the years. Since October 2009, nearly all merchants have been allowed to participate. Transactions involving
money transfers, lottery tickets, and cash advances are excluded.
American Express also has a $25 floor on the transaction amount that requires a signed receipt as long as merchants have swiped a card to initiate an authorization.
Visa launched its $25 or less No Signature Required program in the U.S. in 2006 and will expand it from 26 merchant segments to approx-imately 98% of the 800+ merchant segments in
the U.S. by July 1 of this year.
Visa, MasterCard, American Express, and Discover say they have not seen any increase in fraud on transactions where no signature is required. At least 29% of the Visa, MasterCard, Discover, and American Express transactions that occur at the point of sale in the U.S. will soon qualify for no signature or receipt required programs along with the accompanying charge-back protection.
program when their accounts are still current or only 30 days past due, and so would enter the database before being placed
with a collection agency or sold by the issuer to a debt buyer. Teresa Dodson is COO at Persolvo Data Systems in Irvine,
California, (949) 340-7033, [email protected]. Prior issues: 935, 929, 922
alipay pro-ceSSeS 5 mil. tranSactionS daily Valued at $176 mil.
there haS been no uptick in Fraud.
e-commerce payments in china (from page 1)...
signatures required on fewer receipts (from page 1)...
5FebruarY2010 issue942theNilsoNreportDO NOT COPY THIS REPORT. Reproducing or allowing reproduction of any portion of this newsletterin any manner for any purpose constitutes a copyright violation subject to substantial fines.
are excluded because Discover, which owns the Pulse EFT
system, doesn’t integrate statistics from that business with Discover statistics. Cirrus and Plus PIN-based ATM activity is also excluded.
American Express figures include credit cards issued by Bank of America, Barclays, Citi, GE Money, HSBC, and USAA. Discover figures include credit, debit, and prepaid cards issued by GE Money, HSBC, Alliance Data, and 27 other issuers.
Visa gained 194 basis points in share of spending at merchants in 2009 against the combined signature and PIN-based credit, debit, and prepaid cards of its competitors, from 53.50% to 55.43%. All other brands declined. Discover’s share fell 8 basis points to 3.38%. Master-Card’s share fell 84 basis points to 27.05%. American Express’s share declined 102 basis points to 14.13%.
Comparing only credit cards, Visa had the highest market share of purchase volume in 2009 at 43.40%, up from 42.43% in 2008. Master-Card credit cards held a 27.06% share, down from 28.16% in
2008. American Express credit cards had a 23.84% share, down from 23.95% in 2008. Discover credit cards reached 5.70%, up from 5.47% in 2008.
Visa debit and prepaid card spending overtook Visa credit cards for the first time. Visa debit and prepaid cards held a 29.72% share of all general purpose card spending, up from 26.65% in 2008. Visa credit cards held a 25.72% share in 2009. MasterCard debit and prepaid cards ended the year with a 11.00% share, up from 10.06% in 2008. Discover brand debit and prepaid cards num-
bers were low and are counted with credit card figures. American Express, which has prepaid card volume but no debit card volume, counts prepaid with credit cards.
Credit, debit, and prepaid cards in circulation declined by 38.8 million to 1.08 billion by year-end 2009.
UY
U.S. General Purpose Cards — 2009 vs. 2008 Dollar Volume (bil.) Transactions (bil.) Cards Brand Total Chg. Purchases Chg. Cash Chg. Total Chg. Purchases Chg. (mil.) Chg.
Visa Credit $830.10 –13.0% $764.20 –7.3% $65.90 –49.3% 9.12 –2.7% 9.04 –2.4% 270.1 –11.1%
MasterCard Credit $525.40 –16.8% $476.90 –12.9% $48.50 –42.2% 5.95 –6.0% 5.91 –5.8% 203.0 –21.9%
American Express Credit $423.70 –10.1% $419.84 –9.8% $3.86 –34.4% 3.62 –7.4% 3.59 –7.4% 48.9 –9.4%
Discover Credit $108.69 –9.6% $100.43 –5.4% $8.26 –41.0% 1.67 –0.9% 1.64 –0.3% 54.4 –5.5%
CREDIT CARD TOTALS $1,887.89 –13.3% $1,761.38 –9.4% $126.52 –45.9% 20.35 –4.4% 20.16 –4.2% 576.4 –14.6%
Visa Debit & Prepaid $1,184.10 8.5% $882.60 7.9% $301.50 10.4% 26.88 13.0% 23.91 13.8% 382.0 18.3%
MasterCard Debit & Prepaid $450.40 6.5% $326.80 5.8% $123.60 8.5% 9.34 10.9% 8.34 11.7% 125.0 0.8%
DEBIT CARD TOTALS $1,634.50 8.0% $1,209.40 7.3% $425.10 9.8% 36.22 12.5% 32.25 13.2% 507.0 13.4%
CREDIT & DEBIT TOTALS $3,522.39 –4.6% $2,970.78 –3.2% $551.62 –11.1% 56.58 5.7% 52.42 5.9% 1,083.4 –3.5%
American Express and Discover include business from third-party issuers. Fgures include PIN-based debit figures for Visa (Interlink) and MasterCard to match their reporting. However, card figures for Visa do not include Plus cards that are not Visa cards. © 2010 The Nilson Report
Chg. in Brand Share Basis Pts.
Purchase Volume on U.S.General Purpose Cards 2009
©2010 The Nilson Report
Credit & Debit Cards
Chg. in Brand Share Basis Pts.
Credit Cards Only
Visa 55.4% 194
MasterCard 27.1% –84
Amex 14.1% –102
Discover 3.4% –8
$2.971 Tril.
Visa 43.4% 97
MasterCard 27.1% –110
Amex 23.8% –10
Discover 5.7% 24
$1.761 Tril.debit purchaSe tranSactionS accounted For 61.52% oF the total, up From 57.51%.
general purpose cards — u.s. 2009(from page 1)...
6 FebruarY2010 issue942theNilsoNreport IF YOU ARE READING THIS NEWSLETTER BY WAY OF A WEB SITE OR SERVER, there has been a violation of copyright law which carries substantial fines. No company has been granted the right to post this publication.
Visa increased its share 435 basis points to 60.19% with the addition of 25.4 million cards. MasterCard’s share decreased by 394 basis points to 30.28% due to a decline of 56.0 million cards. American Express’s share declined by 30 basis points to 4.51% with a decline of 5.1 million cards, and Discover’s share declined 11 basis points to 5.02% with a decline of 3.1 million cards.
Credit card outstandings for all Visa, MasterCard, Ameri-can Express, and Discover
general purpose card accounts decreased by $90.22 billion in 2009, down 10.5%. Outstand-ings on MasterCard credit cards decreased by 12.3%, followed by American Express, down 10.6%. Visa fell by 9.8%, and Discover fell by 4.7%. Visa and Discover increased market share last year.
The 507.0 million Visa and MasterCard debit and prepaid cards accounted for 46.80% of all general purpose cards in circulation, up from 39.83%
in 2008. Prepaid cards were the main contributors to that increase. The $1.209 trillion in purchase volume generated by debit and prepaid cards equaled 40.71% of total general purpose card spending at merchants last year, up from 36.70% in 2008. The 32.25 billion purchase transactions on debit and pre-paid cards accounted for 61.52% of all general purpose card purchase transactions last year, up from 57.51% in 2008. Prior issues: 924, 902, 895, 894, 874
volume on Visa all products combined grew by $4.44 bil-lion or 0.3%, compared to a decline of $52.59 billion,
or 6.1% for MasterCard products. Visa’s market share versus MasterCard grew to 67.20% from 65.73% in 2008.
Combined signature and PIN-based purchase vol-ume on Visa debit and prepaid cards increased by $64.62 billion, up 7.9%, while credit card purchase volume, which is all signature-based, decreased by $60.18 billion or 7.3%. MasterCard signature and PIN-based debit and prepaid card purchase volume increased by $17.92 billion, up 5.8%, while credit cards fell by $70.51 billion, a 12.9% decline.
Visa’s 72.98% share of debit/prepaid purchase
volume versus MasterCard in 2009 compared to 72.59% in 2008.
The average annual purchase volume per Visa debit card was $2,310 in 2009, down from $2,532 in 2008. The average annual purchase volume per MasterCard debit card was $2,614, up from $2,491. Combined, the average amount declined to $2,385 from $2,521.
Debit and prepaid cards combined generated 49.35% of all purchase volume in the Visa and MasterCard systems, up from 45.10% in 2008.
Visa purchase transactions at merchants on credit, debit, and prepaid cards combined held a market share of 69.81% in 2009, up from 68.79% in 2008. Visa’s share of credit card purchase transactions increased to 60.46% from 59.62%, while its share of debit card purchase transactions increased to 74.14% from 73.79%.
Visa and MasterCard credit, debit, and prepaid cards in circulation in the U.S. declined by 30.6 million to 980.1 million in 2009. Visa added 25.4
80%
70%
60%
50%
40%
30%
20%
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‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09
Credit Debit
Debit’s Growing Shareof Purchase Transactions*
*On U.S. general purpose cards. Note: Starting in 2006, PIN debit for Visa (Interlink) and MasterCard is included to match how those companies report figures. ©2010 Nilson Report
22.9
%
34.2
%
36.9
%
39.8
%
41.9
%
57.5
%
U.S. Credit Card Outstandings Brand 2009 (Bil.) Share 2008 (Bil.) Share ‘09 vs. ‘08
Visa $366.05 47.40% $405.80 47.05% –9.8%
MasterCard $267.57 34.65% $305.22 35.39% –12.3%
American Express $86.06 11.15% $96.30 11.17% –10.6%
Discover $52.51 6.80% $55.08 6.39% –4.7%
TOTAL $772.19 100.00% $862.40 100.00% –10.5%
* Includes third-party issuers. © 2010 The Nilson Report
mastercard & Visa — u.s. 2009(from page 1)...
... turn to page 8
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mastercard & Visa — u.s. 2009 (from page 7)...
million credit, debit, and prepaid cards, compared to a 56.0 million decline by MasterCard. Visa’s
share of cards in circulation was 66.53%, up from 62.01%. Visa’s debit and prepaid card base
Visa MasterCard Amex Discover Category 2009 Chg. 2009 Chg. 2009 Chg. 2009 Chg.
ACCEPTANCE LOCATIONS (mil.) 8.2 4.0% 8.2 3.8% 4.9 5.7% 7.4 5.0%
CARDHOLDERS (mil.) 100.0 –7.4% 80.0 –20.0% 34.4 –4.9% 40.0 –5.6%CARDS (mil.) 270.1 –11.1% 203.0 –21.9% 48.9 –9.4% 54.4 –5.5%
Per Cardholder 2.70 –4.0% 2.54 –2.4% 1.42 –4.8% 1.36 0.1%Per Account 1.19 1.1% 1.19 –0.3% 1.47 –0.9% 1.19 –0.3%
ACCOUNTS (mil.) 227.1 –12.0% 170.0 –21.7% 33.2 –8.6% 45.6 –5.2%Per Cardholder 2.27 –5.0% 2.13 –2.1% 0.96 –3.9% 1.14 0.4%
Active Accounts (mil.) 122.0 –5.9% 90.0 –19.5% 23.6 –9.9% 19.3 –4.7%Percent Active 53.7% 3.5 pts. 53.0% 2.7 pts. 71.0% –1.0 pt. 42.4% 0.2 pt.
TRANSACTIONS (mil.) 9,119.8 –2.7% 5,945.6 –6.0% 3,622.4 –7.4% 1,667.1 –0.9%Per Account 40.2 10.6% 35.0 19.9% 109.2 1.3% 36.6 4.5%Average Amount $91 –10.6% $88 –11.4% $117 –2.9% $65 –8.7%
Purchases (mil.) 9,036.9 –2.4% 5,908.8 –5.8% 3,588.4 –7.4% 1,635.1 –0.3%Percent of Total 99.1% 0.4 pt. 99.4% 0.3 pt. 99.1% 0.0 pt. 98.1% 0.7 pt.Average Amount $85 –5.0% $81 –7.6% $117 –2.5% $61 –5.2%
Cash Advances (mil.) 82.9 –29.7% 36.8 –36.1% 34.0 –5.6% 32.0 –26.7%Percent of Total 0.9% –0.4 pt. 0.6% –0.3 pt. 0.9% 0.0 pt. 1.9% –0.7 pt.Average Amount $795 –27.8% $1,318 –9.5% $113 –30.5% $258 –19.6%
TOTAL VOLUME (bil.) $830.10 –13.0% $525.40 –16.8% $423.70 –10.1% $108.69 –9.6%Per Card $3,073 –2.2% $2,588 6.6% $8,665 –0.7% $2,000 –4.4%Per Account $3,655 –1.1% $3,091 6.2% $12,772 –1.6% $2,383 –4.6%
Purchases (bil.) $764.20 –7.3% $476.90 –12.9% $419.84 –9.8% $100.43 –5.4%Percent of Total 92.1% 5.7 pts. 90.8% 4.1 pts. 99.1% 0.3 pt. 92.4% 4.1 pts.
Cash Advances (bil.) $65.90 –49.3% $48.50 –42.2% $3.86 –34.4% $8.26 –41.0%Percent of Total 7.9% –5.7 pts. 9.2% –4.1 pts. 0.9% –0.3 pt. 7.6% –4.1 pts.
OUTSTANDINGS (bil.) $366.05 –9.8% $267.57 –12.3% $86.06 –10.6% $52.51 –4.7%Percent of Total Volume 44.1% 1.6 pts. 50.9% 2.6 pts. 20.3% –0.1 pt. 48.3% 2.5 pts.Per Card $1,355 1.4% $1,318 12.3% $1,760 –1.3% $966 0.8%Per Account $1,612 2.5% $1,574 11.9% $2,594 –2.2% $1,151 0.6%
Delinquencies (bil.) $22.48 2.0% $16.80 –1.3% $2.77 –35.8% $2.94 14.6%Pct. of Outstandings 6.14% 0.7 pt. 6.28% 0.7 pt. 3.22% –1.3 pts. 5.60% 0.9 pt.
GROSS CHARGE-OFFS (bil.) $40.23 43.9% $29.27 38.6% $6.98 29.0% $4.63 47.8%Pct. of Outstandings 10.99% 4.1 pts. 10.94% 4.0 pts. 8.11% 2.5 pts. 8.82% 3.1 pts.Pct. of Total Volume 4.85% 1.9 pts. 5.57% 2.2 pts. 1.65% 0.5 pt. 4.26% 1.7 pts.
Recoveries (bil.) $2.93 31.2% $2.01 19.5% $0.60 33.1% $0.43 26.1%Pct. of Gross Charge-offs 7.28% –0.7 pt. 6.86% –1.1 pts. 8.63% 0.3 pt. 9.30% –1.6 pts.
NET CHARGE-OFFS (bil.) $37.30 45.0% $27.27 40.2% $6.38 28.6% $4.20 50.4%Pct. of Outstandings 10.19% 3.9 pts. 10.19% 3.8 pts. 7.41% 2.3 pts. 8.00% 2.9 pts.Pct. of Total Volume 4.49% 1.8 pts. 5.19% 2.1 pts. 1.51% 0.5 pt. 3.86% 1.5 pts.
Credit/Nonfraud (bil.) $36.75 46.5% $26.91 41.3% $6.24 29.5% $4.12 58.0%Pct. of Total Volume 4.43% 1.8 pts. 5.12% 2.1 pts. 1.47% 0.5 pt. 3.79% 1.6 pts.
Net Fraud Loss (bil.) $0.55 –14.9% $0.36 –10.3% $0.14 –2.6% $0.08 –5.2%Pct. of Total Volume 0.07% 0.0 pt. 0.07% 0.0 pt. 0.03% 0.0 pt. 0.07% 0.0 pt.
Some prior year figures have been restated. American Express and Discover include third-party issuers. Third-party outstandings are not owned nor managed by Discover or Amex. © 2010 The Nilson Report
U.S. General Purpose Credit Cards
8 FebruarY2010 issue942theNilsoNreport DO NOT COPY THIS REPORT. Reproducing or allowing reproduction of any portion of this newsletterin any manner for any purpose constitutes a copyright violation subject to substantial fines.
increased by 59.0 million, while its credit card base decreased by 33.6 million. MasterCard’s debit and prepaid card base increased by 1.0 million, while its credit
card base decreased by 57.0 million.
Of the 980.1 million total Visa and MasterCard cards in circulation, 51.73% were debit
and prepaid, up from 44.23% in 2008. Visa’s card base was 41.42% credit, down from 48.46%. MasterCard’s card base was 61.89% credit, down from 67.71%,
Prepaid Visa and MasterCard cards increase the number of debit cards in circulation to a greater extent than they increase debit purchase volume because most are the one-time-use type and spending per card is low compared to a debit card tied to a traditional deposit account.
Visa and MasterCard credit card purchase volume combined declined by $130.69 billion, or 9.5% in 2009. Visa held a 61.57% share, up from 60.10% in 2008. Annual average pur-chase volume per Visa credit card was $2,829, up from $2,714 the prior year. For MasterCard, the annual average credit card purchase volume was $2,349, up from $2,105.
Visa MasterCard Total Category 2009 Chg. 2009 Chg. 2009 Chg.
CARDS (mil.) 652.1 4.1% 328.0 –14.6% 980.1 –3.0%
ACCOUNTS (mil.) 509.1 4.5% 291.0 –12.6% 800.1 –2.4%Active Accounts (mil.) 281.8 9.4% 149.4 –10.7% 431.3 1.5%
Percent Active 55.4% 2.5 pts. 51.3% 1.1 pts. 53.9% 2.1 pts.
TRANSACTIONS (mil.) 33,998.9 8.6% 15,289.1 3.6% 51,288.0 7.1%Per Account 70.7 3.9% 52.5 18.6% 64.1 9.7%Average Amount $56 –9.3% $64 –10.7% $58 –9.9%
Purchases (mil.) 32,945.5 8.8% 14,249.7 3.8% 47,195.2 7.3%Percent of Total 91.5% 0.2 pt. 93.2% 0.1 pt. 92.0% 0.2 pt.Average Amount $50 –7.9% $56 –9.5% $52 –8.6%
Cash (mil.) 3,053.4 5.9% 1,039.4 2.0% 4,092.8 4.9%Percent of Total 8.5% –0.2 pt. 6.8% –0.1 pt. 8.0% –0.2 pt.Average Amount $120 –13.9% $166 –14.7% $132 –14.4%
TOTAL VOLUME (bil.) $2,014.20 –1.5% $975.80 –7.4% $2,990.00 –3.5%Per Account $3,956 –5.8% $3,353 5.9% $3,737 –1.1%
Purchases (bil.) $1,646.80 0.3% $803.70 –6.1% $2,450.50 –1.9%Percent of Total 81.8% 1.5 pts. 82.4% 1.1 pts. 82.0% 1.3 pts.
Cash (bil.) $367.40 –8.8% $172.10 –13.0% $539.50 –10.2%Percent of Total 18.2% –1.5 pts. 17.6% –1.1 pts. 18.0% –1.3 pts.
Includes PIN-based debit figures for MasterCard and Visa (Interlink). © 2010 The Nilson Report
U.S. Visa & MasterCard Credit & Debit & Prepaid Card Totals
Debit includes PIN-based figures.©2010 The Nilson Report
Visa & MasterCardPurchase Volume
Market Shares 2009
CreditVisa
from 60.1%
MasterCardfrom 39.9%
DebitVisa
from 72.6%
MasterCardfrom 27.4%
Credit &Debit
Visafrom 65.7%
MasterCard from 34.3%
61.6%
38.4%
67.2%
32.8%
73.0%
27.0%
Visa MasterCard Total Category 2009 Chg. 2009 Chg. 2009 Chg.
CARDS (mil.) 382.0 18.3% 125.0 0.8% 507.0 13.4%
ACCOUNTS (mil.) 282.0 23.1% 121.0 4.3% 403.0 16.8%Active Accounts (mil.) 159.9 24.9% 59.4 7.1% 219.3 19.5%
Percent Active 56.7% 0.8 pt. 49.1% 1.3 pts. 54.4% 1.2 pts.
TRANSACTIONS (mil.) 26,879.1 13.0% 9,343.5 10.9% 36,222.6 12.5%Per Account 95.3 –8.2% 77.2 6.3% 89.9 –3.7%Average Amount $44 –4.0% $48 –3.9% $45 –4.0%
Purchases (mil.) 23,908.6 13.8% 8,340.9 11.7% 32,249.5 13.2%Percent of Total 88.9% 0.6 pt. 89.3% 0.7 pt. 89.0% 0.6 pt.Average Amount $37 –5.2% $39 –5.3% $38 –5.2%
Cash Withdrawals (mil.) 2,970.5 7.4% 1,002.6 4.3% 3,973.1 6.6%Percent of Total 11.1% –0.6 pt. 10.7% –0.7 pt. 11.0% –0.6 pt.Average Amount $101 2.8% $123 4.1% $107 3.0%
TOTAL VOLUME (bil.) $1,184.10 8.5% $450.40 6.5% $1,634.50 8.0%Per Account $4,199 –11.9% $3,722 2.1% $4,056 –7.6%
Purchases (bil.) $882.60 7.9% $326.80 5.8% $1,209.40 7.3%Percent of Total 74.5% –0.4 pt. 72.6% –0.5 pt. 74.0% –0.4 pt.
Cash Withdrawals (bil.) $301.50 10.4% $123.60 8.5% $425.10 9.8%Percent of Total 25.5% 0.4 pt. 27.4% 0.5 pt. 26.0% 0.4 pt.
Includes PIN-based debit figures for MasterCard and Visa (Interlink). © 2010 The Nilson Report
U.S. Visa & MasterCard Debit & Prepaid Cards
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‘09 ‘08 Outstandings ‘09 ‘08 Total Volume ‘09 ‘08 Purchase Volume ‘09 Total Accounts ‘09 Active Accounts ‘09 Credit Cards ‘09 Visa Cards ‘09 MasterCard Cards Issuer, State of Charter Rank Rank (mil.) Chg. Rank Rank (mil.) Chg. Rank Rank (mil.) Chg. Rank (000) Chg. Rank (000) Chg. Rank (000) Chg. Rank (000) Chg. Rank (000) Chg.
JPMorgan Chase Delaware 1 1 $156,197.3 –15% 1 1 $339,828.9 –10% 1 1 $314,370.7 –8% 1 75,041 –18% 1 42,473 –19% 1 93,801 –18% 1 55,701 –19% 2 38,100 –17% Bank of America Delaware 2 2 $134,723.7 –16% 2 2 $250,666.1 –21% 2 2 $220,447.3 –12% 3 46,252 –34% 3 25,088 –13% 3 54,088 –29% 2 36,914 –28% 5 17,174 –33% Citigroup S. Dak., Nev., Md. 3 3 $103,200.0 –3% 3 3 $204,557.0 –17% 3 3 $187,744.0 –12% 2 56,623 –11% 2 36,239 –11% 2 79,200 –14% 6 15,200 –14% 1 64,000 –13% Capital One Virginia 4 4 $53,880.0 –10% 4 4 $101,274.0 –13% 4 4 $93,500.0 –9% 4 33,571 –8% 4 20,174 –7% 4 40,874 –12% 4 22,874 –5% 4 18,000 –19% Wells Fargo South Dakota 5 5 $31,966.0 –12% 6 6 $53,940.0 –7% 6 6 $46,360.0 6% 7 15,200 2% 6 6,800 1% 7 17,400 0% 5 15,400 1% 12 2,000 –2% HSBC Delaware 6 6 $23,225.0 –15% 7 7 $35,344.0 –19% 7 7 $32,144.0 –16% 5 27,643 –12% 5 13,588 –11% 5 32,615 –13% 9 6,721 –12% 3 25,894 –13% U.S. Bank North Dakota 7 7 $21,247.1 15% 5 5 $73,898.9 0% 5 5 $67,885.6 0% 9 9,687 10% 7 5,709 8% 9 12,373 11% 7 12,031 11% 17 342 16% USAA Savings Nevada 8 8 $12,697.5 4% 9 8 $25,996.6 –2% 9 8 $24,061.6 0% 13 3,184 3% 12 2,774 6% 12 2,774 6% 27 390 6% 8 4,103 3% Barclays Delaware 9 9 $11,247.2 2% 8 9 $30,126.9 17% 8 9 $28,344.1 23% 10 5,792 –13% 8 4,668 –2% 10 10,757 –1% 10 4,019 –2% 7 6,738 7% Target South Dakota 10 10 $7,655.0 –11% 12 13 $10,068.9 –20% 12 12 $9,981.0 –20% 6 22,001 2% 10 3,450 –18% 6 23,887 2% 3 23,887 2% — 0 — Navy FCU Virginia 11 14 $4,618.0 11% 14 16 $6,951.9 0% 14 16 $6,353.6 4% 21 1,793 12% 19 787 –6% 21 1,738 11% 18 1,469 10% 20 269 15% PNC Bank Delaware 12 13 $4,584.8 7% 10 11 $16,575.0 18% 10 11 $12,875.9 –1% 15 2,603 –6% 16 1,092 2% 14 3,514 –6% 12 3,433 –5% 30 81 –36% First Nat’l of Omaha Nebraska 13 12 $4,121.3 –16% 13 14 $8,053.1 –14% 13 15 $7,811.9 –6% 12 3,733 –27% 15 1,136 –8% 11 4,564 –26% 11 3,978 –26% 15 586 –28% GE Money Utah 14 15 $2,966.7 4% 15 18 $5,769.9 2% 15 17 $5,733.6 5% 8 12,093 3% 11 2,972 4% 8 14,511 3% 8 6,961 24% 6 7,550 –11% Fifth Third Bank Ohio 15 18 $2,492.5 8% 16 17 $5,449.1 –4% 19 19 $4,719.0 –1% 16 2,587 19% 18 914 8% 19 2,242 8% 33 286 28% 13 1,956 6% Cabela’s WFB Nebraska 16 17 $2,412.0 3% 11 14 $10,700.0 4% 11 14 $10,000.0 4% 18 2,110 11% 14 1,250 10% 17 2,470 10% 13 2,470 10% — 0 — RBS Citizens Rhode Island 17 16 $2,368.0 –5% 17 19 $5,254.8 1% 17 20 $4,823.1 7% 17 2,222 –5% 17 957 –1% 16 2,519 –9% 114 20 –60% 11 2,499 –8% BB&T Financial Georgia 18 21 $1,767.9 16% 20 21 $4,839.7 4% 20 22 $4,554.2 4% 24 1,071 5% 25 545 11% 18 2,339 52% 14 2,208 53% 23 131 41% Nordstrom Arizona 19 22 $1,581.7 9% 18 20 $5,161.0 0% 16 18 $5,132.6 0% 20 1,979 8% 20 772 8% 23 1,502 –6% 17 1,502 –6% — 0 — State Farm Bank Illinois 20 20 $1,581.2 –3% 21 23 $3,905.4 –11% 22 25 $3,749.7 –3% 26 793 0% 27 429 –4% 26 1,154 4% 19 1,154 4% — 0 — Pentagon FCU Virginia 21 23 $1,564.9 14% 26 28 $2,656.8 15% 26 30 $2,272.6 17% 33 413 11% 33 246 4% 29 619 12% 22 608 12% 56 12 –11% Associated Bank Wisconsin 22 24 $1,259.0 –7% 59 50 $490.0 –38% 130 103 $55.6 –68% 63 85 –27% 63 50 –12% 64 100 –21% 54 100 –20% 81 <1 –99% Town North Bank Texas 23 25 $1,131.8 –9% 27 30 $2,090.9 –1% 27 29 $1,939.8 –2% 29 592 –15% 26 430 –12% 28 693 –15% 39 233 33% 16 460 –28% SunTrust Bank Georgia 24 30 $1,020.0 9% 19 22 $4,985.7 8% 18 21 $4,810.7 9% 34 289 –5% 32 287 8% 34 375 –4% 28 375 –4% — 0 — Merrick Bank Utah 25 27 $1,009.7 –7% 49 44 $728.6 –22% 49 47 $671.3 –20% 27 722 –18% 22 628 –18% 30 565 –32% 23 477 –41% 28 89 273% Credit One Bank Nevada 26 26 $981.0 –16% 36 36 $1,015.0 –22% 36 37 $958.1 –21% 19 2,049 –18% 13 1,715 –15% 22 1,706 –15% 16 1,697 –15% 61 9 –14% 1st Financial Bank S. Dakota 27 28 $946.0 –1% 43 41 $858.7 –15% 43 41 $831.4 –15% 28 641 –3% 29 402 –13% 32 534 –9% 25 430 –9% 27 104 –9% ICBA Bancard Virginia 28 29 $945.0 1% 23 24 $3,594.0 –18% 23 23 $3,344.0 –17% 25 1,020 –14% 24 560 –12% 25 1,160 –12% 20 880 –12% 19 280 –13% San Diego County CU Calif. 29 33 $941.3 21% 50 51 $680.2 –12% 61 62 $379.3 –6% 71 64 –1% 59 61 20% 70 81 –2% 57 81 –2% — 0 — Commerce Bank Missouri 30 31 $935.7 4% 24 26 $3,310.8 10% 25 26 $2,973.0 16% 30 542 2% 30 340 2% 27 814 –5% 21 736 –2% 33 77 –26% Premier Bankcard So. Dakota 31 32 $913.0 7% 31 37 $1,405.7 11% 31 35 $1,379.9 12% 11 4,099 6% 9 3,459 7% 13 3,895 7% 29 350 –18% 9 3,545 11% Suncoast Schools FCU Florida 32 34 $701.5 –1% 51 52 $639.4 –12% 52 56 $536.0 –8% 44 164 1% 41 123 1% 42 249 16% 37 249 16% — 0 — CompuCredit Georgia 33 19 $650.0 –68% 79 33 $285.0 –79% 82 36 $250.0 –80% 22 1,620 –45% 21 750 –70% 20 1,900 –49% 15 1,700 –48% 21 200 –60% BECU Washington 34 37 $607.9 10% 32 34 $1,282.2 –5% 32 34 $1,209.2 –3% 48 151 2% 40 133 3% 43 248 3% 38 248 3% — 0 — Compass Bank Alabama 35 36 $604.5 2% 38 43 $946.7 –2% 41 48 $844.5 4% 32 430 1% 38 135 0% 33 440 5% 24 431 5% 63 9 –12% TIB-The Ind. Bankers Texas 36 35 $562.4 –20% 28 29 $1,828.4 –19% 28 28 $1,760.5 –18% 31 534 –17% 28 428 –21% 31 536 –20% 26 423 –19% 25 114 –22% America First CU Utah 37 39 $424.0 22% 37 42 $960.0 –4% 47 49 $748.1 –3% 47 151 0% 50 90 0% 46 203 1% 41 203 1% — 0 — SchoolsFirst FCU California 38 38 $407.4 3% 54 55 $585.0 –13% 54 55 $515.0 –12% 43 172 1% 52 85 0% 47 202 0% 42 202 0% — 0 — Pa. State Employees CU Pa. 39 43 $403.0 22% 60 61 $466.1 2% 57 58 $458.5 1% 52 131 6% 54 85 6% 51 182 5% 46 182 5% — 0 — BMW Bank Utah 40 40 $394.7 8% 47 48 $821.7 –8% 46 46 $801.0 –5% 39 221 6% 44 103 3% 49 188 –19% 43 188 –19% — 0 — M&I Bank Nevada 41 41 $370.2 5% 30 32 $1,454.0 –3% 30 32 $1,433.8 –2% 37 229 4% 36 139 0% 41 261 2% 36 260 2% 80 <1 –13% First Hawaiian Bank Hawaii 42 42 $362.0 3% 29 31 $1,625.4 –6% 29 31 $1,595.1 –6% 42 181 –3% 35 142 –2% 45 241 –6% 74 57 –12% 22 184 –4% TD Bank Delaware 43 48 $341.0 35% 41 54 $916.1 29% 40 51 $846.2 31% 41 202 17% 39 133 14% 40 265 30% 35 265 30% — 0 — Digital FCU (DCU) Mass. 44 44 $329.6 1% 46 45 $826.3 –11% 44 43 $816.9 –11% 45 164 2% 47 94 5% 50 187 3% 44 187 3% — 0 — First Citizens N.C. 45 46 $313.7 7% 33 38 $1,145.1 5% 33 38 $1,107.4 5% 40 220 9% 45 101 4% 36 321 2% 31 289 2% 41 32 3% VyStar CU Florida 46 45 $307.9 0% 63 64 $399.0 –9% 63 63 $373.2 –7% 58 107 2% 62 55 2% 59 130 1% 50 127 1% 75 3 –16% Columbus B&T Georgia 47 47 $303.1 13% 40 49 $921.9 4% 38 45 $898.2 4% 36 252 2% 42 122 10% 35 342 22% 30 322 25% 48 21 –9% UMB Missouri 48 51 $273.3 18% 34 39 $1,063.2 4% 34 39 $1,052.2 4% 35 283 15% 34 165 16% 39 282 14% 34 282 14% — 0 — Wescom CU California 49 49 $233.9 –7% 69 63 $352.8 –19% 68 67 $332.2 –13% 56 113 –1% 51 88 7% 57 133 3% 49 133 3% — 0 — American Savings Hawaii 50 68 $222.2 48% 87 86 $242.8 –10% 119 127 $116.0 –9% 114 31 9% 113 21 2% 112 38 10% 96 38 10% — 0 — Totals, Top 50, 2009 $603,992.5 –11% $1,236,938.7 –13% $1,125,901.4 –8% 341,849 –14% 182,988 –12% 422,930 –14% 228,370 –12% 194,561 –16%
50 Largest Visa & MasterCard Credit Card Issuers United States 2009, Ranked by Outstandings
Includes both consumer and commercial cards. Some prior year figures have been restated. Use percent change to calculate the 2008 results. IIssuers with total volume in the top 50 but with outstandings less than the top 50 include Comdata (#22, $3,803.6 mil.), Wright Express (#25, $3,082.8 mil.), BMO Harris (#35, $1,040.0 mil.), Zions (#39, $945.9 mil.), Comerica (#42, $887.9 mil.), Regions (#44, $846.5 mil.), First Horizon (#45, $828.5 mil.), and RBC (#48, $748.3). © 2010 The Nilson Report
10 FebruarY2010 issue942theNilsoNreport 11FebruarY2010 issue942theNilsoNreportDO NOT COPY THIS REPORT. Reproducing or allowing reproduction of any portion of this newsletterin any manner for any purpose constitutes a copyright violation subject to substantial fines.
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argus information & adVisory serVices(from page 1)...
profitability. It is best known for syndicated benchmark studies based on data supplied by issuers. Argus receives the full master file of data on each cardholder pertaining to behavior, transactions, pricing, and risk. Contributors are the 20 largest U.S. issuers, which
collectively account for 600 million accounts and 95% of the consumer card and 90% of the small business card mar-kets. In the U.K., Argus now supplies services to 9 of the top 10 issuers. Collectively those portfolios account for more than 80% of the market.
The economic crisis has in-creased issuers’ need to assess and track internal performance relative to external bench-marks. Participating issuers typically request benchmarks that reflect combinations of product type, vintage, and risk. All metrics in the studies aggregate data across at least five competitors to safeguard each participant’s confidential data. Issuers don’t see compet-itor data and Argus doesn’t see the names of cardholders. No marketing lists are generated.
In addition to its syndicated studies of the external market-place, Argus sells CardProfit software, which makes an issuer’s internal data ware-house, or its data held at a third-party processor, more useful. CardProfit provides a model with all of the data, reports, and ongoing main-tenance needed for customer and portfolio management. The software has been deployed at 8 of the top 20 U.S. credit card issuers.
Argus also provides advisory services on product design and development, risk management, and mar-keting. Clients have included nearly all of the top consumer financial services providers in the U.S. and U.K. Projects have included activation and retention programs, spending programs, balance generation programs, credit line increase and decrease programs, and collections.
First Data offers its cardhold-er account customers Argus studies and CardProfit. SAS Institute software is used by Argus for modeling. TransUnion works with Argus to develop custom and generic
models and provides credit bureau attributes to enhance benchmark data. Last year, the Office of the Comptroller of the Currency gave Argus a contract to provide data aggregation support. The com-pany is looking for additional partners to provide added value to its customers. It is also looking to expand its current staff with consumer financial
services executives with data management, data analysis, modeling, and consulting experience.
Argus has been ma-jority owned by Oak Investments since 2007. Funding has been used
to broaden its product range and to help scale its business. In the U.S., Argus has begun broadening data aggregation beyond cards to include de-posit accounts. Leonard Laufer is CEO at Argus Information & Advisory Services in White Plains, New York, (914) 307- 3152, llaufer@ argusinformation.com. Prior issues: 940, 807
...majority owned by oak inVeSt-mentS Since 2007.
mastercard & Visa — u.s. 2009 (from page 9)...
Visa issuers lost $39.75 billion in outstandings, while MasterCard issuers lost $37.65 billion. Visa held a 57.77% market share at year-end, up from 57.07% the prior year.
Purchase transactions generated by MasterCard and Visa debit and prepaid cards increased by 13.2% last year. Credit card purchase transactions
fell by 3.7%. Debit and prepaid signature and PIN-based purchase transactions increased by 3.77 billion compared to a decrease of 0.58 billion for credit cards. Debit and prepaid cards generated a 68.33% share of combined Visa and MasterCard card transactions at merchants, up from 64.71% in 2008.
12 FebruarY2010 issue942theNilsoNreport
David Robertson, PublisherFebruarY17,2010
C O N T I N U E DFEBRUARY 2010 ISSUE 942 THE NILSON REPORT
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1010datawww.1010data.com
1st Financial Bankwww.1fbusa.com
Alibaba Groupwww.alibaba.com
Alipaywww.alipay.com
Alliance Datawww.alliancedata.com
America First CUwww.americafirst.com
American Expresswww.americanexpress.com
American Savingswww.americansavings.com
Argus Info & Advisorywww.argusinformation.com
Associated Bankwww.associatedbank.com
B+S Card Servicewww.bs-card-service.com
Bank of Americawww.bankofamerica.com
Barclays Bankwww.barclays.com
BB&T Financialwww.bbandt.com
BECUwww.becu.org
BMW Bankwww.bmwbank.com
Cabela’s WFBwww.cwfb.com
Capital Onewww.capitalone.com
Carrefourwww.carrefour.com
Cedacriwww.cedacri.it
China UnionPaywww.chinaunionpay.com
Citiwww.citi.com
Columbus B&Twww.columbusbankandtrust.com
Commerce Bankwww.commercebank.com
Compass Bankwww.compassbank.com
CompuCreditwww.compucredit.com
Credit One Bankwww.creditonebank.com
Digital FCUwww.dcu.org
Discoverwww.discover.com
e-onlinedatawww.e-onlinedata.com
Elan Financial Serviceswww.elanfinancialser vices.com
Elavonwww.elavon.com
eCommLinkwww.ecommlink.com
Equifaxwww.equifax.com
FICOwww.fico.com
Fifth Third Bankwww.53.com
First Citizenswww.firstcitizens.com
First Datawww.firstdata.com
First Hawaiian Bankwww.fhb.com
First Nat’l of Omahawww.fnni.com
Galileo Processingwww.galileoprocessing.com
GE Moneywww.gemoney.com
Gemaltowww.gemalto.com
Global Cashwww.globalcashcard.com
GlobalPlatformwww.globalplatform.org
Heartland Payment Systemswww.heartlandpaymentsystems.com
HSBCwww.hsbc.com
HTCwww.htc.com
Hypercomwww.hypercom.com
I&M Bankwww.imbank.co.ke
ICBA Bancardwww.icba.org
IIR Españawww.iirspain.com
InCommwww.incomm.com
Integrated Bank Technologywww.ibanktech.net
IQPCwww.iqpc.com
JPMorgan Chasewww.jpmorganchase.com
M&I Bankwww.mandibank.com
Masria Cardwww.masriacard.com
MasterCardwww.mastercard.com
Mercury Payment Systemswww.mercurypay.com
Merrick Bankwww.merrickbank.com
Mobile Financial Serviceswww.mobile-financialservices.com
Navy FCUwww.navyfederal.org
FEBRUARY 2010 ISSUE 942 THE NILSON REPORT
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Netsizewww.netsize.com
NetSpendwww.netspend.com
Network Merchantswww.nmi.com
Nokiawww.nokia.com
Nordstromwww.nordstrom.com
Oak Investment Partnerswww.oakventure.com
Pennsylvania State Employees CUwww.psecu.com
Pentagon FCUwww.penfed.org
Persolvo Data Systemswww.persolvodatasystems.com
Pivotal Paymentswww.pivotalpayments.com
PKO Bank Polskiwww.pkobp.pl
PNC Bankwww.pnc.com
Premier Bancardwww.firstpremier.com
RBS Citizenswww.citizensbank.com
Retail Banking Researchwww.rbrlondon.com
San Diego County CUwww.sdccu.com
SAS Institutewww.sas.com
SchoolFirst FCUwww.schoolfirstfcu.org
Seamless ERS 360°www.seamless.se
Secure Tradingwww.securetrading.com
SIA SSBwww.siassb.eu
State Farm Bankwww.statefarm.com
Suncoast Schools FCUwww.suncoastfcu.org
SunTrust Bankwww.suntrust.com
Swedbankwww.swedbank.se
Taobao.comwww.taobao.com
Targetwww.target.com
TD Bankwww.td.com
Thales e-Securitywww.thalesesec.com
The Bancorp Bankwww.thebancorp.com
The Independent Bankers Bank TIBwww.tibsite.com
Town North Bankwww.tnbonline.com
TransUnionwww.transunion.com
Trustwavewww.trustwave.com
TSYSwww.tsys.com
U.S. Bankwww.usbank.com
UMBwww.umb.com
USAAwww.usaa.com
Vesesswww.vesess.com
Visawww.visa.com
Vision Bankcardwww.visionbankcard.net
Voltage Securitywww.voltage.com
VyStar CUwww.vystarcu.org
Wells Fargowww.wellsfargo.com
Wescom CUwww.wescom.org