Dallas-based Alliance Data Systems (ADS) reported a first quarter (1Q/16) year-on-year (YOY) surge in credit card outstandings, purchase dollar volume (PDV) and Card Services revenue. Overall revenue and income were pressured by currency exchange rates (FX). ADS reported gross revenue rose 4.7% YOY in 1Q/16 to $1676 million, compared to $1749 million for 4Q/15, and…
While the stress in the U.S. energy sector should not materially impact the credit profiles of large consumer lenders with national footprints, Canada is a different story. Visa and MasterCard data reveal there was a downturn in credit card spending in the first quarter. Fitch Ratings says it expects the cost of credit to rise…
New research also reveals debit cards with the Visa brand continued to account for the most purchase transactions with a share of 35.50%, followed by Visa credit cards with 20.02%, and MasterCard credit cards with 13.14%. According to The Nilson Report, MasterCard debit cards posted a 13.13% share, UnionPay credit cards with 6.79%, UnionPay debit…
Only 4% of people in India have access to credit cards, so Fortumo’s mobile payment platform is rapidly expanding its direct carrier billing in the country. The expansion is possible under an agreement inked with mobile operator Reliance Communications (RCOM). With this development, all customers of RCOM will be able to make purchases for digital content and games…
In Other News: BANKRATE (acquisition); TIMETRIC (report); BLUEPOINT (client); and EATSTREET (app). BANKRATE – Bankrate has reached an agreement to acquire the business of NextAdvisor, an online source of independent and in-depth research and reviews of credit cards, personal finance and internet services. TIMETRIC – Timetric’s ‘The Cards and Payments Industry in Nigeria: Emerging Trends…
Wall Street ratings firms says stress in the U.S. energy sector should not materially impact the credit profiles of large consumer lenders with national footprints, says Fitch Ratings. Furthermore, the credit outlook for U.S. ABCP (Asset-Backed Commercial Paper) for the remainder of 2016 remains stable. Fitch Ratings says the recent evidence of weakening consumer credit…
To the chagrin of U.S. credit card issuers, the Consumer Financial Protection Bureau (CFPB) has proposed rules prohibiting mandatory arbitration clauses. The CFPB says these widely used clauses leave consumers with no choice but to seek relief on their own – usually over small amounts. Through the Dodd-Frank Wall Street Reform and Consumer Protection Act,…
Azimo has snagged $15 million of new investment, led by the Japanese e-commerce and fintech services company Rakuten. Azimo is the world’s largest digital money transfer network. Currently, over three quarters of Asian transactions are conducted offline through banks or money transfer operators (MTO), and as a result, the cost for senders is very high:…
It has become evident the reliance on usernames and passwords is susceptible to a wide range of attacks and they need for simpler and stronger authentication is urgent. A new Smart Card Alliance white paper, “Smart Card Technology and the FIDO Protocols,” says organizations implementing FIDO authentication standards should consider using smart card technology to…
U.K. consumer credit continues to expand at a brisk pace, hovering around 10% year-on-year YOY. In March total consumer credit grew at a 9.7% annual rate, seasonally adjusted (SA) to £182.4 billion. The three-month annualized and twelve-month growth rates were 11.6% and 9.7% respectively. The Bank of England (BOE) reports consumer credit increased by £1.9…
While not exploding, Discover’s (DFS) credit card portfolio continues to stay in positive territory. Year-on-year (YOY) growth in the first quarter (1Q/16) was limited to single digits, but charge-offs (CO) headed higher due to the historical seasonal impact of a first quarter. Discover’s total revenue rose 2.4% YOY to $2224 million, compared to $2205 million…
AmEx reported 1Q/16 gross revenue for its U.S. card business (USCS) rose 3.0% YOY to $3280 million, while net income increased 5.0% YOY to $694 million. Gross revenue for the AmEx international card business (ICNS) declined slightly (-1.0%) YOY, or +8.0% currency adjusted (FX), to $1313 million and net income slipped 5.0% YOY to $188…