Nilson Report

Issue 1207 | Oct 2021

FEATURED COMPANIES

Companies featured in this issue include:

U.S. Payment Cards Projected—2020 vs. 2025

U.S. Payment Cards Projected—Purchase Volume

U.S. Payment Cards Projected—Purchase Transactions

U.S. Payment Cards Projected—Total Volume

U.S. Payment Cards Projected—Total Transactions

U.S. Payment Cards Projected—Outstandings

U.S. Payment Cards Projected—Cardholders

U.S. Payment Cards Projected—Cards

Commercial Bank Credit Cards in Canada—Mastercard and Visa

Commercial Bank Credit Cards in Canada—Cards by Product

POS Terminal Manufacturers—Other POS Devices Shipped in 2020

Investments & Acquisitions—September 2021

Commercial Bank Credit Cards in Canada

The 18 largest issuers of Visa and Mastercard brand commercial card products generated $37+ billion in purchase volume in 2020. The five largest are ranked below based on their combined small business, corporate and purchasing card purchase volume.

1. RBC Royal Bank
$17.82 billion purchase volume
2. TD Bank
$11.99 billion purchase volume
3. BMO
$7.44 billion purchase volume
4. Scotiabank
$5.65 billion purchase volume
5. Desjardins
$5.41 billion purchase volume

Full access to the Commercial Bank Credit Cards—Mastercard and Visa results in Canada is available when you subscribe to the Nilson Report.

< BACK TO NEWSLETTER ARCHIVE

POSTED OCT 31, 2021 | PRINT

Payment Cards in the U.S. Projected

Please note: Only subscribers can access the charts included with this article.

Consumer and commercial credit, debit and prepaid general purpose and private label cards combined generated $7.974 trillion in purchase volume for goods and services in 2020, up 0.8% from 2019. Purchase volume on credit cards ($3.875 trillion) accounted for 48.59% of the 2020 total, down from 53.75% the year before. Debit card purchase volume, which includes prepaid, was $4.100 trillion, an increase of 12.0%. Credit and debit card purchase volume combined is projected to reach $12.862 trillion in 2025, with 51.24% generated by debit cards and 48.76% generated by credit cards.

Visa debit cards held the largest market share of combined credit and debit card purchase volume in 2020 at 27.98%. The second highest market share position was held by Visa credit cards at 24.32%, followed by Mastercard debit cards at 11.38%, Mastercard credit cards with 10.50% and American Express credit cards with 8.67%. All other cards combined—domestic debit; private label prepaid; store credit; Discover; oil company credit; medical credit; airline, car rental, hotel and restaurant credit; and ACH debit—accounted for 17.15%. 

By 2025, Visa debit cards are projected to hold a 29.27% market share of purchase volume, followed by Visa credit cards at 23.76%, Mastercard debit cards at 11.82%, Mastercard credit cards at 10.71%, American Express credit cards at 9.77% and all other cards combined at 14.67%. 

Purchase transactions initiated by consumer and commercial general purpose and private label credit, debit and prepaid cards issued in the U.S. totaled 138.52 billion in 2020, down 0.1% versus 2019. 

Debit card purchase transactions held a 68.35% market share and credit cards held the remaining 31.65%. By 2025, purchase transactions are projected to total 196.94 billion, with debit cards accounting for 67.90% and credit cards accounting for 32.10%. 

Visa debit cards held a 35.42% market share of combined credit and debit card purchase transactions last year. By 2025, they are projected to hold a 36.96% share.

Credit cards with the Visa brand held a 16.62% share of purchase transactions last year. By 2025, that share will increase to 16.77%.

Debit cards with the Mastercard brand held a 14.84% share of purchase transactions in 2020 and are projected to grow to a 14.95% share in 2025. Credit cards with the Mastercard brand held a 6.88% share in 2020. That share is projected to be 6.91% in 2025. 

Debit card purchase transactions settled through the domestic debit networks (Star, Pulse, Nyce, Accel, etc.), the vast majority of which were PIN based, held a 12.40% share in 2020. By 2025, domestic debit networks are projected to hold an 11.18% share. Interlink (Visa) and Mastercard signature and PIN-based transactions are counted with Visa and Mastercard debit figures. 

At year-end 2020 there were 7.37 billion credit, debit and prepaid cards in circulation in the United States, an increase of 3.0% versus 2019. By 2025, payment cards in circulation are projected to reach 8.62 billion.

Credit Cards Projected

At year-end 2020, there were 1.09 billion general purpose and private label consumer and commercial credit cards in circulation in the U.S., a decline of 0.9% versus year-end 2019. 

By 2025, credit cards issued in the U.S. are expected to total 1.21 billion.

Purchase volume for goods and services generated by U.S. credit cards totaled $3.875 trillion in 2020, down 8.9% versus 2019. By 2025, credit cards are projected to generate $6.271 trillion in purchase volume. 

Private label card purchase volume was $263.99 billion in 2020, down 6.7% versus 2019. This spending occurred at general merchandise stores, specialty and department stores, gasoline stations, health and wellness facilities and other select locations. 

By 2025, purchase volume on private label cards is projected to increase to $343.25 billion.

General purpose and private label credit card purchase transactions combined were 43.85 billion in 2020, down 6.8% versus 2019. Purchase transactions are expected to total 63.22 billion in 2025. 

Outstanding credit card receivables reached $1.003 trillion at the end of 2020, down 14.3% versus the prior year. By 2025, outstandings are expected to reach $1.249 trillion. 

Debit Cards Projected

General purpose and private label debit and prepaid cards issued in the U.S. generated purchase volume of $4.100 trillion in 2020, an increase of 12.0% over 2019. Visa’s debit card market share was 54.42% of all debit card purchase volume, an increase from 52.93% in 2019. Mastercard’s market share grew to 22.14% from 21.64%.

Domestic-only network cards combined had purchase volume of $637.33 billion in 2020, an increase of 3.2% over 2019. Their market share slipped to 15.54% from 16.88% in 2019. 

Private label debit cards, which are settled through the ACH (automated clearing house) network, generated purchase volume of $13.77 billion in 2020. This was a decline of 19.8% versus the prior year. General merchandisers, convenience stores and gasoline retailers issued those cards, which held a 0.34% market share in 2020, down from 0.47% in 2019. Private label prepaid cards generated $310.12 billion in purchase volume last year, an increase of 5.0% versus 2019. The market share of private label prepaid cards at 7.56% declined from 8.07% in 2019. General purpose card figures are included with the Visa and Mastercard debit card numbers.

By 2025, general purpose and private label debit and prepaid purchase volume on cards issued in the U.S. is expected to reach $6.591 trillion. At that time, Visa debit card purchase volume is expected to be $3.764 trillion, with Mastercard at $1.520 trillion and domestic debit networks at $864.75 billion. 

Purchase volume on private label prepaid cards is projected to reach $422.89 billion and ACH debit card purchase volume is projected to reach $18.34 billion. 

General purpose and private label debit and prepaid cards combined generated 94.67 billion purchase transactions in 2020, an increase of 3.3% over 2019. Combined general purpose and private label debit and prepaid card purchase transactions are projected to reach 133.71 billion in 2025. 

In 2025, Visa debit card purchase transactions are expected to reach 72.79 billion, with Mastercard at 29.44 billion, domestic debit networks at 22.01 billion, private label prepaid at 9.19 billion and ACH at 0.28 billion.

At the end of 2020, general purpose and private label debit cards in circulation totaled 6.28 billion, up 3.8% versus 2019. At year-end 2025, debit and prepaid cards in circulation are expected to reach 7.42 billion, led by private label prepaid cards (6.21 billion), followed by Visa (815.8 million), domestic debit networks (355.1 million), Mastercard (322.4 million) and ACH (33.9 million). 

Prior issues: 1185, 1163, 1141, 1119, 1097, 1074, 1051, 1028, 1005, 984, 961



© Copyright 2021 Nilson Report

You have 0 free articles remaining. Subscribe today. View Subscription Offer
New subscribers receive over 130 articles in the 22 issues published each year,
plus the last five years of issues (that's over 1,200 articles) on a searchable flash drive.