Nilson Report

Issue 1187 | Dec 2020


Companies featured in this issue include:

Card Fraud Worldwide—in Cents per $100 of Total Volume

Fraud by Type of Card in 2019

Card Fraud Projected Worldwide 

Card Fraud Inside vs. Outside the U.S.

Global General Purpose Cards—Midyear 2020 vs. Midyear2019

Largest Debit Card Issuers Worldwide

Payment Card Manufacturers 2019

Top Manufacturer of Payment Cards—Ranked by Shipments in 2019

Top Manufacturer of Payment Cards—Visa and Mastercard

Top Manufacturer of Payment Cards—UnionPay

Top Manufacturer of Payment Cards—Other Payment

Top Manufacturer of Payment Cards—Other High Security

Global General Purpose Cards—Midyear 2020 vs. Midyear 2019

Global brand credit and debit cards—Visa, UnionPay, Mastercard, American Express, JCB and Discover/Diners—purchase volume and transactions are shown on page 8. Figures for debit cards are shown below.

1. UnionPay Debit & Prepaid
$3.528 trillion purchase volume, +0.4%
2. Visa Debit & Prepaid
$2.022 trillion purchase volume, +6.0%
3. Mastercard Debit & Prepaid
$0.899 trillion purchase volume, +11.2%

Full access to the Global General Purpose Cards—Midyear 2020 vs. Midyear 2019 results is available when you subscribe to the Nilson Report.



Krowd’s Marketplace for Card-Linked Offers

Using proprietary deep learning and artificial intelligence algorithms, Krowd combines card transaction data with data from third-party sources to predict consumer reaction to merchant offers. The company’s Offer Bidding Marketplace (OBM) for card-linked offers lets merchants bid on cardholders in real time, allowing for a campaign that can target for new or existing customers, age, gender, budget, offer level and offer conditions.

The company’s technology supports traditional offers but also high-frequency and high-reward (food and beverage, health and beauty) offers. These offers are desired by cardholders but are harder to source because they tend to come from independent merchants, not the high-volume mass retailers typical of traditional card-linked offers. Krowd says its OBM can scale up to 10,000 merchants and 100 million cardholders per card client and that it can automatically adjust discounts for individual cardholder price sensitivity. 

The ability to incorporate more than 250 million external data points on merchants (sourced from reviews, blogs, social media, menus) is integral to Krowd’s self-learning merchant directory and knowledge graph. The technology supports highly predictive customer redemption results from personalized offers to targeted cardholders. Krowd claims its prediction algorithms are 50% more effective than those of its competitors and five times more effective than campaigns issuers operate in-house. 

The offers are not only relevant to specific cardholders, but the auction method of OBM inclines merchants to make the offers more lucrative because they are in competition for cardholders with other merchants. Krowd claims its service increases consumer spend by as much as 18% and improves the merchant’s return on marketing investment by up to 30%.

Krowd can extend its OBM offers outside bank communication channels, including integration with nonbanking apps such as those of restaurant and ride-hailing companies and mobile network operators. 

Clients using Krowd’s OBM include banks in the U.K. and U.A.E. Banks in India, Saudi Arabia and the U.S. will launch the marketplace in 2021. Krowd, a partner in Visa’s Fast Track Program, has raised $1.5 million in seed funding from investors, including Barclays.

Issuers provide Krowd with a unique identification number for cardholders but not their primary account number or any personally identifiable information. Krowd needs transaction data including the merchant and the amount of a purchase. Issuers pay Krowd a set-up fee for OBM but no subsequent subscription fees. Krowd’s revenue comes primarily from merchants that only pay on redeemed offers. 

The OBM can be made available on a white-label basis to merchant acquirers. Krowd will share revenues with them. Issuers that also operate merchant acquiring portfolios can leverage the OBM for offers to their own cardholders or other bank partners.


Omar Rafii is Chief Executive Officer at Krowd in London, U.K.,,

© Copyright 2021 Nilson Report

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