Nilson Report

Issue 1207 | Oct 2021


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.



X1 Visa Signature Card

A startup company has launched a consumer credit card with the expectation it will generate most of its revenues from interchange and partnerships with merchants, a tactic more like buy now, pay later (BNPL) companies than issuers that pursue revolving credit outstandings. 

X1, which is promoting a Visa Signature card, has signed deals with affiliate networks to promote brands including Sephora, Wayfair and in its app. When cardholders make purchases, X1 receives revenue as a distribution partner, which it then shares with cardholders in the form of higher (10X) reward points versus the level of rewards it credits for other spending. When purchases occur at partner merchants, cardholders can also pay with reward points. 

The X1 risk engine that determines the size of cardholder credit lines incorporates their income and cash flow based on an evaluation of bank account records. The company uses Plaid to access bank account data. The aim is to provide higher credit limits to position X1 as the first choice of cardholders. The company says that annualizing cash flow and income allows it to offer credit lines that are up to five times larger than what might be offered using only traditional scoring.

The X1 app allows for easy use of virtual card numbers, which the company expects will be widely used by its target audience for payment of digital subscription services and other online purchases. X1 says that participants in its beta test group typically held 5 to 10 subscriptions. Virtual cards for subscriptions are desirable because they can’t be automatically renewed. The X1 target audience is also expected to embrace the company’s monthly, biweekly and weekly repayment plans. 

The no-annual-fee X1 card is manufactured by CompoSecure. It weighs 17 grams and is made of stainless steel. The typical PVC plastic card weighs 5 grams. 

Fiserv provides account processing for the X1 card. Coastal Community Bank, based in the Puget Sound region of the State of Washington, is the card issuer.

The company has received over $20 million in funding from investors including the CEO of Affirm and a former President at American Express.


Deepak Rao is Chief Executive Officer at X1 Card in San Francisco, California,,

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