While Americans continue to pay down credit card balances at a record pace, card spending activity remained soft in the first-quarter for the nation’s top networks. However, the extra $1400 stimuli checks along with the continued enhanced unemployment benefits, expansion of Covid vaccinations and relaxation of social distancing standards, point to a very strong second…
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)…
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…
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…
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…
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…
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.…
Visa Mastercard payment cards (credit, charge, debit, and prepaid) cards-in-force (CIF) in the U.S., for the fourth-quarter (4Q/19) posted an increase of 5.2% year-on-year (YOY), compared to a 5.8% YOY gain in payment cards for the prior quarter (3Q/19). Visa and Mastercard U.S. credit cards increased 3.7% YOY, while CIF for debit cards rose 6.2%…
Fourth-quarter card GDV (gross dollar volume) for credit/charge card products, among the Major 4 payment networks (Visa [V], Mastercard [MA], American Express [AXP], and Discover [DFS]), lost momentum, growing 7.5% year-on-year (YOY), compared to an 8.2% YOY gain for the prior quarter, and 8.6% YOY for the year ago quarter. On an annual or YOY…
AR, VR & music are on the menu for 2020 courtesy of Mastercard while Visa ponies up $5 billion for a hot fintech consumer app. Interest in biometrics for payment cards may emerge this year after a sleepy 2019. The IRS has crypto-to-crypto transactions on the radar this tax season, according to Bankcenter and CardBuzz.…
Payment earnings reports for the nation’s top credit card issuers, global payments networks and supporting businesses gets underway before the market opens on Tuesday, January 14th. First out of the shoot is Chase (JPM), Citibank (C) and Wells Fargo (WFS), according to CardData and PYRPTS. U.S. Bank (USB) and Bank of America (BAC) are scheduled…
X-Border transaction volume growth FX (currency adjusted) YOY (year-on-year) is driven solely by Mastercard. Third-quarter global cross-border transaction volume for Mastercard has consistently outpaced Visa more than double for the past two years. Cross-border transaction (X-Border) volume refers to payments and cash volume where the issuing country is different from the merchant country. X-Border Transaction…