Nilson Report

Issue 1188 | Dec 2020

FEATURED COMPANIES

Companies featured in this issue include:

U.S. Consumer Payment Systems–Market Shares of Transactions in 2019

Personal Consumption Expenditures in the U.S.

Consumer Payment Systems in the U.S

Largest Credit Card Issuers Worldwide–Ranked by Purchase Volume in 2019

Card Manufacturers 2019–Part 2

U.S. General Purpose Card Brands–3Q 2020 and change vs. 3Q 2019

Investments & Acquisitions–November 2020

U.S. General Purpose Cards Jan 1-Sep. 30, 2020

Purchases of goods and services (purchase volume) generated by Visa, Mastercard, American Express and Discover credit cards issued in the U.S. totaled $2.610 trillion in the first three quarters of 2020, a decline of 10.4%.

1. Visa, Credit
$1,403.44 billion purchase volume, -8.6%
2. Mastercard, Credit
$605.21 billion purchase volume, -9.0%
3. American Express, Credit
$499.45 billion purchase volume, -17.7%
4. Discover, Credit
$101.84 billion purchase volume, -4.8%

Full access to the General Purpose Cards—January 1-September 30, 2020 results in the United States is available when you subscribe to the Nilson Report.

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POSTED DEC 21, 2020 | PRINT

Buy Now, Pay Later for B2B Payments

For 10 years, QuickFee has provided installment loans that accounting agencies and other kinds of professional services firms can offer to their commercial customers. Loans average $9,000 and are repaid in 3, 6, 9 or 12 monthly installments. Interest rates range from 1.79% to 7.95%. QuickFee has contracts with 30% of the top 100 U.S. accounting agencies. In Australia, it provides loans through 70% of the top 100. Clients include Ernst and Young, KPMG and BDO.

Installment loans from QuickFee are distributed through professional services firms that have more than $1 million in annual revenue. If borrowers can’t fully repay, those firms cover the balance.

The company recently launched a buy now, pay later (BNPL) product to be distributed through the 97% of professional services firms with annual revenues below $1 million. Customers of those firms access the BNPL product using their existing credit card. 

No new loan applications are required. 

The product is presented at QuickFee’s payment portal. 

QuickFee pays the professional services firm’s invoice in full upfront and becomes the merchant of record. It facilitates payment in full over four consecutive monthly installments using Adyen to handle the processing. Wells Fargo is Adyen’s settlement bank into Visa and Mastercard.

Professional services clients of QuickFee pay 4.99% of the total ticket to offer the BNPL service. The expectation is that these companies will use BNPL as a collections tool as well as an opportunity to gain new business. QuickFee, believed to be the first company to offer BNPL on a B2B basis, says the product will open up new distribution channels such as smaller legal firms.

QuickFee’s stock has traded on the Australian Securities Exchange since June 2019. 

INTERVIEWED FOR THIS ARTICLE

Richard Formoe is Chief Revenue Officer at QuickFee in Los Angeles, California, richard@quickfee.com, www.quickfee.com.



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