The Discover card portfolio continues to defy gravity, posting a 2.3% YOY (year-on-year) gain in the fourth-quarter (4Q/20) GDV and growing at a solid 5.29% five-year CAGR (compound annual growth rate). Furthermore, Discover increased its U.S. GDV marketshare from 4.0% to 4.3% over the past twelve months, Credit Card Networks U.S. GDV (gross dollar volume)…
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Global purchase volume for payment cards rebounded from a year-on-year 14.2% collapse for the second-quarter to a mere 1% gain in the third-quarter due to impact of pandemic-related consumer payments, including beefed-up unemployment benefits, but hampered by the downward spiral of travel activity. Global purchase volume for payment cards (PDV) in the third-quarter (3Q/20) among…
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Credit card forbearance has driven 30+ day delinquency, among the nation’s Top 100 credit card issuers, to drop to levels not seen in more than 30 years. As a result, credit card delinquency plunged to the historic 2.00% level in the third-quarter (3Q/20), and dropping another 39 basis points (bps) from the prior quarter, according…
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Credit Card Networks U.S. GDV (gross dollar volume) for second-quarter credit/charge card products, among the Major 4 payment networks (Visa [V], Mastercard [MA], American Express [AXP], and Discover [DFS]), nose-dived, declining 23.9% year-on-year (YOY), compared to an 3.1% YOY gain for the prior quarter, and 8.1% YOY for the year ago quarter. On an annual…
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Some of the payment conferences for March and April have been rescheduled, postponed, or under review due to COVID-19, most are going forward, according to PYVNTS. However, expect extensive sanitation practices with all events inside or outside the U.S. for the next several months, notes CardTrak. Even those events going forward, especially outside the U.S.,…
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A perfect storm is brewing for the banking and payments business as the impact of the coronavirus-driven spending collapse and the sharp rise in unemployment pushes consumer loan defaults to new heights. Adding to these two components is the unprecedented decline in oil prices, likely producing massive defaults on oil-related loans and the layoffs it…
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Payments performance for both networks and issuers are poised to face the profitability challenges of 40 years ago as the coronavirus impacts rage through all levels of life. The likely impact of the first two quarters of this year will wipe out profitability for 2020 and if COVID-19 extends into the third quarter, the impact…
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Global card spending growth started to unwind in the fourth-quarter but the catastrophic worldwide impact of the coronavirus will be stunning for the first-quarter and far beyond. Business spending on travel could fall by more than $150 billion in the first three months. Consumer spending on travel will likely decline by $300 billion in Q1.…
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The payments forecast between 2020 and 2025 is not pretty. Top-line and bottom-line performance metrics will likely weaken as a global slowdown drives down U.S. payment card purchase dollar volume (PDV) and pre-tax profits. The outlook is exclusive of the global COVID-19 pandemic impact and its potential major impact on the global payments in the…
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Artificial intelligence in financial payments will be explored fully in March by the AI In Financial Services event and the AI In Finance Summit event in March. The AI In Financial Services event is scheduled for March 17th at the America Square Conference Centre in London. The AI in Finance Summit is slated for March…
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Sub-prime cards are gathering more steam as a major deal closes. Credit card debt skyrocketed in December by a record 14%. Majority of Americans want a 36% rate cap. Women in Payments recently recognized exceptionally talented leaders and rising stars in Fintech and Banking. Despite years of warnings, those computers inside your computer remain disturbingly unprotected.…
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Loan delinquency across the board is projected to rise sharply in the next five years. The outcome of the 2020 U.S. election cycle will have a unprecedented and profound impact on the U.S. economy, the global economy, and the payment card industry through 2025. Solid projections point to early stage credit card delinquency among the…
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