Payment card profits for the top four U.S networks are poised to rise 11% in the third quarter, despite the fuel price collapse, says CardData and RAM Research. Visa, MasterCard, American Express and Discover reported a combined 2Q/15 profit of $4103 million, compared to $3705 million for 2Q/14.
U.S. credit card outstandings end-of-period (EOP) among the Big 6 issuers will likely be flat in Q3/15 driven by falling fuel prices and increasingly debt sensitive consumers. U.S. credit card outstandings end-of-period (EOP) among the Big 6 issuers rose by a mere 2.3% year-on-year (YOY) in the second quarter to $474.5 billion.
Purchase transactions (PTX) for U.S. Visa and MasterCard debit cards will slow to 7.5% in the second quarter, compared to 7.7% in the first quarter.CardData and RAM Research says U.S. credit card purchase transactions are quickly ramping up this quarter.
One of the nation’s largest commercial card issuer is expected to report $17.8 billion in outstandings and $16.8 billion in purchase dollar volume (PDV) for the second quarter, according to RAM Research. CardData reports U.S. Bank posted an 6.3% year-on-year (YOY) increase in purchase dollar volume (PDV) in the first quarter (Q1/15).
While the nation’s second largest Visa and MasterCard has been experiencing slight erosion in credit card outstandings year-on-year (YOY), and sluggish growth in purchase dollar volume (PDV), credit card issuance for Bank of America (BofA) remains strong, according to CardData. Forecaster RAM Research expects credit card outstandings to be $89.1 billion for Q2, a slight gain YOY.
Discover’s quarterly net income will likely exceed $600 million in the third quarter of this year, followed by the “kitchen sink” quarter. Forecaster RAM Research predicts Discover’s net income for the first quarter of 2016 will approach $700 million or up 14.8% YOY due to its strong U.S. marketing and international adjustments.
American Express’ (AmEx) quarterly net income for U.S. cards could exceed $1 billion next year. Forecaster RAM Research predicts AmEx net income for the first quarter of 2016 will come in at $996 million, driven by higher spending.
MasterCard’s net income will likely top a record $1.2 billion in the first quarter of 2016. Forecaster RAM Research predicts MasterCard net income for the second quarter will be $1091 million, due to the continued strengthening of the U.S. dollar.
Visa’s quarterly net income is projected to slow for this year and hover at the $1.5 billion mark in the fourth quarter and the first quarter of 2016. Forecaster RAM Research predicts Visa net income for the first quarter will be $1504 million, due to the continued strengthening of the U.S. dollar.
CST Brands and Cardtronics Canada inked a deal to be the exclusive provider of ATM services at Corner Store locations across Quebec, Atlantic Canada and eastern Ontario locations.
Visa and MasterCard control 98% of the U.S. debit and bank-issued prepaid card market and it continues to grow faster than credit cards by 210 basis points (bps). RAM Research projects U.S. debit and prepaid Gross Dollar Volume (GDV) will grow from $2.6 trillion this year to $3.5 trillion for 2019.
The nation’s fastest growing Visa and MasterCard major issuer, and the #1 near-prime/sub-prime issuer continues to plow along with solid growth in purchase dollar volume (PDV) and growth in credit card outstandings. RAM Research projects Capital One (COF) will deliver $50.9 billion in PDV and $72.4 billion in outstandings for the first quarter.