Briefs – ZEBIT; SPENDGO; THREATMETRIX; and ETHOSPAY

In Other News: ZEBIT (military); SPENDGO (Shoptalk); THREATMETRIX (Intel); and ETHOSPAY (chargebacks). ZEBIT – Zebit launched a new direct-to-consumer offering exclusively available to active and retired military personnel. Dedicated to improving the financial lives of those who serve, Zebit provides access to $1,000 interest-free credit for active and retired military members associated with the U.S.…

Credit Card PDV Q3/14

Bank credit card purchase dollar volume (PDV) increased 8.6% year-on-year (Y/Y) and 0.7% quarter-on quarter (Q/Q) in the third quarter (Q3/14), as outstandings continue to contract. The change in consumer behavior is significant for issuers who rely on interest income to subsidize purchase-based reward program expenses, according to CardData.

Bill Me Later Rebranded PayPal Credit

Bill Me Later Is Now PayPal Credit, PayPal Working Capital Exceeds $150 Million and Both are Going Global – Gary Marino, SVP, Global Financial Services & North America. Since the pilot program launched last September, more than 20,000 businesses have collectively borrowed more than $150 million in PayPal Working Capital business loans through our lending partner, WebBank. The program is also expanding to the UK and Australia to fuel business growth. Businesses in these countries will have access to capital in minutes once they apply and are approved through a simple online interface. PayPal Working Capital allows these businesses to repay with a share of their sales they choose, and don’t repay on days they don’t have sales. Because the program uses a business’s sales history, there iis no credit check or extensive documentation required. The loan charges a single, affordable fixed fee instead of periodic interest so businesses know the cost of the loan up front. It’s that simple.

Evolving Credit Landscape

Offering these products more broadly is a sign of the power that credit brings to both merchants and consumers. Merchants can leverage credit as a tool to secure capital and grow their businesses. Additionally, they can offer credit with flexible payments options for their customers and immediate sales, while consumers experience freedom of choice when buying what they want – when they want it. We recognize this value isn’t limited to our US customers, so we are going global.

Big 4 Q2/14 Volume

All of the top Visa and MasterCard issuers posted significant gains in purchase dollar volume in the second quarter, with Chase and Capital One leading the pack with double digit gains. However, as reported last week bank credit card outstandings were weak in Q2 and losing momentum as there is a discernible change in recent cardholder behavior.

Big 4 Q2/14 Volume

All of the top Visa and MasterCard issuers posted significant gains in purchase dollar volume in the second quarter, with Chase and Capital One leading the pack with double digit gains. However, as reported last week bank credit card outstandings were weak in Q2 and losing momentum as there is a discernible change in recent cardholder behavior.

Big 4 Q2/14 Outstandings

Among the Big 4 Visa and MasterCard issuers for the second quarter, Chase posted the strongest gain of 1.4% Y/Y and Capital One came in second place with a 1.0% Y/Y gain. Bank of America and Citibank posted Y/Y declines of 1.7% and 2.9%, respectively. The reason for the sluggish growth is simply more Americans see bank credit cards as bank payments cards. This trend is also confirmed by a recent ABA study which found the share of cardholders who are transactor increased from 28.6% to 29.0% this year, the highest share on record. 

JCB 2013

Currently the only international payment brand originating in Japan grew leaps and bounds last year. During 2013, the JCB card reached a milestone as it now has more than 15 million cardholders outside Japan. JCB also expects annual transaction volume to surpass $200 billion in 2014. JCB now has more than 350 issuing and acquiring partners worldwide, with card issuance in 15 countries and acceptance in 190 countries and territories. More than 23 million merchants worldwide serve JCB’s 81 million affluent cardholders. Here is an overview of JCB’s progress in 2013.