While the average yield for U.S. Visa and MasterCard-branded credit cards, issued by the top four issuers, declined 10 basis points (bps) sequentially (QOQ) in the second quarter to 11.44%, the peer group has bumped up by 6 bps year-on-year (YOY). In Q2/15, Chase was the only top issuer with an increase in yield QOQ, according to CardData.
U.S. bank credit card rates for all accounts edged up slightly in May by 6 basis points (bps) from the prior month to 12.04%. However, annual interest rates for all accounts accruing interest charges declined slightly in the second quarter by 5 bps to 13.49%.
Self-serve sales continued to increase as USA Technologies’ (USAT) ePort terminals reports average annual cashless sales are up from $2,719 as of May 2014 to $3,477 as of May 2015 (28%). Consumers are spending, on an average, 32 percent more when they pay with a card versus cash.
U.S. bank credit card rates edged down slightly in February, 15 basis points (bps) from the prior month of 13.68%, however the stage is set for substantial rate hikes this year due to anticipated rate hikes by the FOMC in the second half. RAM Research forecasts U.S. bank credit card rates for accounts assessed interest will hit 13.77% at mid-year, then climb to 14.24% by end-of-year (EOY) 2015.
The average yield for U.S. Visa and MasterCard-branded credit cards, issued by the top four issuers, will likely decline by eight basis points (bps) for the first quarter, and down 30 bps from mid-year 2014. Forecaster RAM Research projects an average yield for the Big 4 of 11.30% in the first quarter, compared to 11.59% one-year ago.
Discover’s U.S. end-of-period (EOP) credit card loans grew 5.5% year-on-year (YOY) and continues to outpace the top Visa and MasterCard issuers. Since 2009, Discover has experienced sequential growth at a compound annual growth rate (CAGR) of 5.5%, exceeded only by Capital One among the top ten issuers.
Discover’s U.S. Purchase Dollar Volume (PDV) is growing 4.7% annually. slower than its peer group, however Discover is outpacing the top Visa and MasterCard in outstandings growth. RAM Research forecasts Q1/15 U.S. PDV will slightly exceed $27 billion.
With the exception of Chase, the average yield for U.S. credit cards issued by the top four issuers, remained flat throughout 2014. However, RAM Research predicts U.S. credit card yields will decline slightly in the first quarter, despite the historical seasonality of Q1.
The Swedish distributor of the SEQR mobile wallet reported net revenues for the fourth quarter, on an annualized basis, increased by 6% in comparison with the previous year.
Prepaid card specialist Green Dot reported a 10.4% year-on-year (Y/Y) gain in Gross Dollar Volume (GDV) and a 6.9% increase Purchase Dollar Volume (PDV), for the fourth quarter.
Discover continues to outpace the top Visa and MasterCard issuers with solid growth in fourth quarter outstandings. However, Discover’s gross dollar volume (GDV) rose 4.4% to $33.2 billion, below the average for the Big 4 Visa and MasterCard issuers.
UK-based Monitise reports it is commencing a review of all options open to the Company to maximize value for shareholders, i.e. “we are for sale.” The Board believes the Company has an exciting future as an independent business, however it recognizes that there may be other businesses which could leverage Monitise’s capabilities for digital commerce enablement to significantly accelerate the growth of the business and take maximum advantage of the growth opportunities in the market today.