Top card issuer marketshare, based on U.S. purchase dollar volume (PDV) of Visa [V], Mastercard [MA], American Express [AXP] and Discover [DFS], increased 30 bps (basis points) in the third-quarter (3Q/19). Chase, the nation’s largest credit card issuer on outstandings and the fastest growing issuer, based on PDV at 19% YOY (year-on-year), led the Top 4.
Besides Chase, the second largest U.S. issuer, Capital One, both added 30 bps in U.S. marketshare over the course of the last twelve months.
Top Card Issuer Marketshare
As a peer group, the Top 4 U.S. issuers (Chase [JPM], Capital One [COF], Bank of America [BAC], Citibank [C]), control 45.5% of the U.S. credit card PDV market (Visa, Mastercard, American Express, Discover) at the end of the third-quarter. By comparison the Top 4 marketshare in the second-quarter was 45.7% and for the year ago quarter stood at 45.2%. For the third-quarter of 2015, the Top 4 marketshare posted at 40.9%, according to figures gather by CardData.
The Top 4 increased 9.1% YOY (year-on-year), posting $457.3 billion in 3Q/19 U.S. credit card PDV, compared to $454.1 billion in the prior quarter, and $419.0 billion for 3Q/18.
The Major 4 Networks (Visa [V], Mastercard [MA], American Express [AXP], and Discover [DFS]) increased 8.4% YOY (year-on-year), posting a record $1006 billion in 3Q/19 U.S. credit card PDV, compared to $994 billion in the prior quarter, and $928 billion for 3Q/18.
Top 4 U.S. Card Issuers Marketshare
Chase, the largest issuer of U.S. credit cards, PDV marketshare increased 30 bps from 18.9% one-year ago, to 19.2%. For 2Q/19 Chase marketshare posted at 19.3%. Five-years ago Chase U.S. credit card marketshare posted at 17.6%. Chase reported a 10.0% YOY gain in U.S. PDV, with $193.6 billion in 3Q/19, compared to $192.5 billion for 2Q/19, and $176.0 billion for 3Q/18.
Capital One, the nation’s second largest credit card issuer based on outstandings, increased PDV marketshare by 30 bps in the third-quarter to 9.9%, compared to 9.9% for 2Q/19, and 9.6% for 3Q/18. Five-years ago Capital One marketshare computed to 8.9%. Capital One posted a 11.1% YOY gain in U.S. PDV, with $99.1 billion in 3Q/19 PDV, compared to $98.1 billion in the prior quarter, and $89.2 billion in the year ago quarter.
Bank of America’s U.S. credit card PDV marketshare declined 10 bps to 7.1% in 3Q/19, compared to 7.1% for the prior quarter and 7.2% for year ago quarter. Five-years ago Bank of America marketshare posted at 7.9%.
Bank of America reported a 6.9% YOY gain in U.S. PDV, with $71.1 billion in 3Q/19, compared to $70.3 billion for 2Q/19, and $66.5 billion for 3Q/18.
Citibank’s U.S. credit card PDV marketshare declined 10 bps to 9.3% in 3Q/19, compared to 9.4% in the second-quarter and 9.4% one-year ago. Five-years ago Citibank’s marketshare computed to 6.5%. Citibank posted an 7.1% YOY gain in U.S. PDV, with $93.5 billion in 3Q/19, compared to $93.2 billion in the prior quarter, and $87.3 billion in the year ago quarter.
Rest of U.S. Market
The rest of the U.S. credit card industry, including regional banks, community banks and credit unions, has watched PDV marketshare dwindle 460 bps over the past five-years from 59.1% for 3Q/15 to 54.5% for 3Q/19, according to analysis by RAM Research and PYRPTS.
Considering the U.S. PDV CAGR (compound annual growth rate) for the Top 4 U.S. issuers running at 11.72%, for the Major 4 U.S. networks at 8.80% and Visa and Mastercard at 10.61%, it is very like U.S. PDV marketshare for the Top 4 issuers will top 47% by mid-year 2020, says Robert McKinley, Senior Analyst for CardData, CardFlash and CardTrak.
Sources: Visa; Mastercard; American Express; Discover; RAM Research; CardFlash; CardData; CardTrak; Chase; Citibank; Bank of America; Capital One; Bankcenter; CardBuzz; PYRPTS; PYVNTS; Ruebud Media; Red3 Media