Chase card marketshare, based on U.S. purchase dollar volume (PDV) of Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS] jumped to nearly 20% in the first-quarter (1Q/19). Chase, the nation’s largest credit card issuer on outstandings and the fastest growing issuer based on PDV among the top issuers, surged 90 bps (basis points) from the prior quarter.
Besides Chase, the second largest U.S. issuer, Capital One, added 50 bps in U.S. marketshare over the course of the last twelve months.
Top 4 Peer Group Marketshare
As a peer group, the Top 4 U.S. issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], Citibank [C]), control 46.6% of the U.S. credit card PDV market (Visa, Mastercard, American Express, Discover) at the end of the first-quarter. By comparison the Top 4 marketshare in the fourth-quarter was 45.6% and for the year ago quarter stood at 44.9%. For the first-quarter of 2015, the Top 4 marketshare posted at 40.1%, according to figures gather by CardData.
The Top 4 increased 7.5% YOY (year-on-year), posting $404.6 billion in 1Q/19 U.S. credit card PDV, compared to $443.7 billion in the prior quarter, and $376.2 billion for 1Q/18.
Top 4 Issuers Marketshare
Chase, the largest issuer of U.S. credit cards, PDV marketshare increased 120 bps from 18.7% one-year ago, to 19.9%. For 4Q/18 Chase marketshare posted at 19.0%. Five-years ago Chase U.S. credit card marketshare posted at 17.5%. Chase reported a 9.8% YOY gain in U.S. PDV, with $172.5 billion in 1Q/19, compared to $185.3 billion for 4Q/18, and $157.1 billion for 1Q/18.
Capital One, the nation’s second largest credit card issuer based on outstandings, increased PDV marketshare by 50 bps in the first-quarter to 9.9%, compared to 9.9% for 4Q/18, and 9.4% for 1Q/18. Five-years ago Capital One marketshare computed to 8.1%. Capital One posted a 8.2% YOY gain in U.S. PDV, with $85.7 billion in 1Q/19 PDV, compared to $96.8 billion in the prior quarter, and $79.2 billion in the year ago quarter.
Bank of America’s U.S. credit card PDV marketshare declined 10 bps to 7.2% in 1Q/19, compared to 7.2% for the prior quarter and 7.3% for year ago quarter. Five-years ago Bank of America marketshare posted at 7.9%.
Bank of America reported a 2.4% YOY gain in U.S. PDV, with $62.8 billion in 1Q/19, compared to $70.0 billion for 4Q/18, and $61.3 billion for 1Q/18.
Citibank’s U.S. credit card PDV marketshare rose 20 bps to 9.6% in 1Q/19, compared to 9.4% in the fourth-quarter and 9.4% one-year ago. Five-years ago Citibank’s marketshare computed to 6.4%. Citibank posted an 6.4% YOY gain in U.S. PDV, with $83.6 billion in 1Q/19, compared to $91.6 billion in the prior quarter, and $78.6 billion in the year ago quarter.
Rest of Market
The rest of the U.S. credit card industry, including regional banks, community banks and credit unions, has watched PDV marketshare dwindle 650 bps over the past five-years from 59.9% for 1Q/15 to 55.1% for 1Q/18, and 53.4% for 1Q/19, according to analysis by RAM Research.
Considering the U.S. PDV CAGR (compound annual growth rate) for the Top 4 U.S. issuers running at 12.13%, for the Major 4 U.S. networks at 7.99% and Visa and Mastercard at 9.52%, it is very like U.S. PDV marketshare for the Top 4 issuers will top 48% by mid-year 2020, says Robert McKinley, Senior Analyst for CardData, CardFlash and CardTrak.