Credit card accounts in the U.S. market slowed a tad in the second-quarter (2Q/19), by 80 basis points (bps), compared to the prior quarter. However, 2019 is shaping up to be the strongest year for expansion in the U.S. since 2015, despite exhibiting all the signs of saturation. Currently, the U.S. general purpose credit card market is growing at a five-year compound annual growth rate (CAGR) of 4.12%.
Credit card accounts in 2Q/19, for the U.S. Major 4: Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS], hit an estimated 556.8 million, compared to a revised estimated 551.4 million for 1Q/19, and a revised, estimated 528.9 million for 2Q/18, according to figures gathered by CardData.
Credit Card Account Analysis
For the second-quarter the YOY (year-on-year) growth rate calculated to 5.3%, compared to 4.0% one-year ago, a 50 bps decline in 2Q/17, and an 8.0% YOY surge in 2016. Mastercard led the Major 4 peer group with a 9%+ YOY gain in 2Q/19, followed by American Express, with an 5% YOY increase in 2Q/19 credit card accounts, according to analysis by RAM Research.
Over the past five-years the Major 4 U.S. credit card accounts annual growth rate is down 270 bps but up 130 bps since the second-quarter of last year. Over the past year, there has been an explosion in the issuance of sub-prime (FICO<660) credit cards and an expansion of reward cards by American Express, notes Robert McKinley, Senior Analyst of CardFlash, CardData and CardTrak.
Visa U.S. U.S. Credit Accounts
Visa U.S. credit card accounts for 2Q/19 increased 2.6% YOY to an estimated 272 million, compared to a reported 271 million in the prior quarter, and 265 million in the year ago quarter. For the second-quarter of 2015, Visa reported 236 million U.S. credit card accounts. Visa is currently growing at a 3.61% CAGR. Visa reports accounts and cards-in-force on a one quarter delay basis.
Mastercard U.S. U.S. Credit Accounts
MasterCard U.S. credit card accounts for 2Q/19 jumped 9.6% YOY to an estimated 196 million, compared to an estimated 192 million in the prior quarter, and an estimated 179 million in the year ago quarter. For the second-quarter of 2015, Mastercard reported 155 million U.S. credit card accounts. Mastercard is currently growing at a 6.07% CAGR. Mastercard reports cards-in-force.
American Express U.S. Credit Accounts
American Express estimated U.S. credit card accounts for 2Q/19 grew 5.3% YOY to an estimated 43.7 million, compared to a revised estimated 43.8 million in the prior quarter, and 41.5 million in the year ago quarter. For the second-quarter of 2015, American Express had an estimated 44.2 million U.S. credit card accounts. American Express is currently growing at a -0.28% CAGR, due to its sale of co-branded cards in 2016. American Express reports cards-in-force.
Discover U.S. U.S. Credit Accounts
Discover’s estimated U.S. credit card accounts for 2Q/19 increased 3.5% YOY to an estimated 44.9 million, compared to an estimated 44.6 million in the prior quarter, and to an estimated 43.4 million in the year ago quarter. For the second-quarter of 2015, Discover had an estimated 38.6 million U.S. credit card accounts. Discover is currently growing at a 3.85% CAGR. Discover does not report accounts or cards-in-force.
Full Report
Complete Second-Quarter Report on Major 4 U.S. Credit/Charge Gross (Open) Accounts [2015-2019] Available for Immediate Download
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Source: Visa; Mastercard; American Express; Discover; CardData; RAM Research; CardTrak; CardFlash