Nilson Report

Issue 1226 | Sep 2022

FEATURED COMPANIES

Companies featured in this issue include:

Results for US Card Networks at Midyear–2022

US General Purpose Cards Midyear with change vs. 2021

US General Purpose Cards at Midyear Purchase Volume—Credit vs. Debit

Market Shares of Purchase Transactions at Midyear

Spending, Transactions and Cards by Global Brand in Middle East and Africa

Market Shares of Purchase Transactions in Middle East and Africa—2001 through 2021

Store Card Spending in the US—Purchase Volume and Market Share

US Store Credit Cards 2021 with change vs. 2020

Investments & Acquisitions—August 2022

Publicly Traded Companies in Payments

Spending, Transactions and Cards by Global Brand in Middle East and Africa

Global brand general purpose cards—Visa, Mastercard, American Express and Discover/Diners Club cards–generated $768.39 trillion in purchase volume in 2021, up 39.7% over 2020.

Visa
$405.16 billion in purchase volume
Mastercard
$342.26 billion in purchase volume
American Express
$13.67 billion in purchase volume
Diners Club
$7.30 billion in purchase volume

Full access to the Spending, Transactions and Cards by Global Brand results in Middle East and Africa is available when you subscribe to the Nilson Report.

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POSTED SEPT 15, 2022 | PRINT

Store Cards in the US—2021

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

Private label store credit cards generated $207.81 billion in purchase volume in 2021, an increase of 14.7%. By comparison, American Express, Discover, Mastercard and Visa general purpose credit cards generated purchase volume of $4.565 trillion in 2021, up 25.8%. 

Store card outstanding receivables dipped 0.8% last year to $116.49 billion. Outstandings on general purpose credit cards grew by 7.7% to $932.85 billion.

The number of private label store credit cards in circulation as of December 31, 2021 was 300.6 million, a decline of 10.1% from the prior year. The drop was mostly due to a purge of inactive, consolidated and terminated client accounts ahead of Bread Financial’s now-complete migration from in-house to a third-party processor. The number of active credit card accounts, which are those with at least one purchase in the fourth quarter of 2021, increased 2.4% to 129.7 million. 

Figures shown here do not include store credit cards that some of these companies issue in Canada as well as credit cards that some of these companies issue in the US for medical and dental expenses and fuel purchases. Also not counted here is activity on cards that are co-branded with a retailer’s logo and either the Visa, Mastercard or American Express brand. Some issuers offer separate credit lines for these co-branded cards, one for purchases made at the retailer and a second one for all other purchases. Only purchases made at the retailer are counted here.

Synchrony Financial remained the largest provider of store credit cards based on outstanding receivables. Its store card receivables were $48.40 billion at year-end 2021, down 0.1% from 2020. The company held 41.55% of all US store card outstandings, up from 41.28% in 2020. 

Purchase volume generated by store credit cards issued by Synchrony was $82.85 billion, up 13.1%. Synchrony’s market share of store credit card purchase volume dropped to 39.87% from 40.43%. 

Citi Retail Services remained the second largest provider of store credit cards in the US. It held a 23.11% share of store card outstandings. Citi’s market share fell from 23.96% in 2020. However, the company’s 22.33% market share of store card purchase volume increased from 22.07%.

Capital One moved into third place among store credit card specialists with $10.69 billion in outstandings, giving it a 9.18% market share. This was up from 9.00%. Its purchase volume market share of 15.56% was up from 15.25%. 

Bread Financial (formerly Alliance Data Systems) ranked fourth largest among store credit card providers based on outstandings of $9.90 billion. This was a decline of 7.0%. The company’s market share of store credit card receivables was 8.50%, a drop from 9.06% in 2020. Its purchase volume market share was 7.47%, down from 7.87%. 

Wells Fargo had the largest percentage increase in store card outstandings. Its receivables grew by 10.1% to $8.06 billion. This resulted in an increase in market share to 6.92% from 6.23%. Wells Fargo’s purchase volume market share was 4.19%, up from 3.74%.

TD Bank’s share of store card outstandings was 5.91%, up from 5.89%. Its purchase volume market share at 7.11% increased from 7.08%.

Army & Air Force Exchange’s share of outstandings slipped to 1.89% from 1.93%. Its share of purchase volume dropped to 0.90% from 0.98%.

Prior issues: 1204, 1181, 1159, 1135, 1112, 1087, 1062, 1039, 1019, 996



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