The number of American small business owners reporting increases in company revenue this year are beginning to decline.
A majority of small business owners are unaware of the impending EM liability shift coming in October. Less than half of small business owners who accept point-of-sale card payments today report being aware of the October 1 liability shift, the date when a card issuer or merchant that does not support EMV chip card technology will assume liability for any fraudulent point-of-sale card transactions.
Gross Dollar Volume (GDV) for debit cards among Visa’s international regions dropped sharply in the first quarter to 9.5%, compared to 11.9% in the year ago quarter on a currency adjusted basis (FX), according to CardData. RAM Research projects the year-on-year (YOY) growth in Q2/15 will rise 40 basis points (bps).
Gross Dollar Volume (GDV) for debit cards among MasterCard’s international regions declined in the first quarter to 20.8%, compared to 22.9% in the year ago quarter on a currency adjusted basis (FX), according to CardData. RAM Research projects the year-on-year (YOY) growth in Q2/15 will rise 60 basis points (bps).
The nation’s fourth largest Visa and MasterCard issuer ended 2014 with declining outstandings, below industry average purchase dollar volume (PDV) and a slight uptick in delinquencies, but profits remained flat sequentially. Forecaster RAM Research projects Citibank (Citi) will post $64.1 billion in outstandings and $41.1 billion in PDV for the first quarter.
Outstandings for Citibank-branded (Citi) cards in North America continues to erode, declining 4.3% last year from $70.5 billion at EOY 2013. Since 2009, Citi’s outstandings posted a compound annual growth rate (CAGR) of -3.39%, according to CardData. Among Citi’s peers, BofA and Chase are also in negative CAGR territory.
Visa’s Central Europe – Middle East – Africa (CEMEA) region remains the fastest growing international region with Gross Dollar Volume (GDV) up 16.8% Year-on-Year (YOY). However, Visa’s Asia Pacific region continues to claim the lion’s share of the international market with a 45.3% share, but Quarter-to-Quarter (QOQ) growth is slowing, according to CardData.
Visa’s global gross dollar volume (GDV) rose 3.3% on a nominal U.S dollar basis in 2014, but currency adjusted is up 10.5% year-on-year (YOY). The CEMEA and LAC regions are the big drivers behind the growth. RAM Research projects Visa’s global GDV will log in around $1788 billion in Q1/15.
The nation’s second largest issuer, Bank of America (BofA), has slowly recovered from the “Great Credit Meltdown” of 2008-2009. BofA’s End-of-Year (EOY) U.S. credit card outstandings have produced a compound annual growth rate (CAGR) of -8.25% between 2009 and 2013, according to CardData.
The number of payment card portfolios sold in 2014 dipped to just five portfolios worth $2.7 billion. This was down significantly from year end 2013 and the record card deals done in 2012. In 2013 an estimated $17.2 billion in 10 portfolios were done, not including numerous tiny card portfolio sales ( < $10MM).
Citibank’s U.S. bank credit card profits rose 22.4% year-on-year (Y/Y) and retail credit card profits rose 1.4% Y/Y in the fourth quarter of 2014 (Q4/14). End of Period (EOP) bank credit card outstandings declined 4.3% Y/Y, while purchase dollar volume (PDV) rose 3.9% Y/Y.
Profits among the world’s largest payment card networks rose 4.4% in the third quarter (Q2/14), compared to one year ago. However, sequentially net income dipped by 5.1%, according to CardData.