The Nilson Report

Issue 1154 | May 2019

FEATURED COMPANIES

Companies featured in this issue include:

Global Card Brands in 2018—Ranked by Purchase Transactions

Global Cards in Circulation Credit & Debit 2018

Global General Purpose Cards 2018

Purchase Transactions on Global Cards 2018

Purchases by Card Type 2017 vs. 2018

Global Debit & Prepaid Cards 2018

Global Credit Cards 2018

Consumer ACH Transactions in the U.S. 2018

Global Cards in Circulation Credit & Debit 2018

As of December 31, 2018, there were 13.19 billion payment cards in circulation worldwide carrying UnionPay, Visa, Mastercard, JCB, American Express, and Diners Club/Discover brands.

1. 1. UnionPay
57.6% share
2. 2. Visa
24.7% share
3. 3. Mastercard
15.3% share
4. 4. JCB
1.0% share
5. 5. American Express
0.9% share

Full access to the Global Cards in Circulation Credit & Debit 2018 results is available when you subscribe to The Nilson Report.

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POSTED MAY 31, 2019 | PRINT

Kabbage Working Capital Loans

Online lending platform Kabbage has provided $6.50 billion in loans to small businesses in the U.S. since 2011, with $2.00 billion of that working capital distributed last year. In the first quarter of this year, privately held Kabbage originated more than $600 million in new loans, which surpassed new loans booked by publicly traded OnDeck. 

Kabbage has more than 175,000 customers. Each customer averages 18 loans over a 5-year period. Distribution partners of Kabbage include China-based Alibaba, which offers Kabbage loans as a financing tool to U.S. buyers on its marketplace. Loans of up to $150,000 are available. Sprint offers Kabbage loans to small businesses that want to finance equipment purchases. 

Kabbage’s newest distribution channel is Azlo, an online banking platform for small businesses in the U.S. 

The partners have created Mission Street Capital, which aims to bring loans to small businesses in rural areas, gig economy workers, entrepreneurs, and other market segments comprised largely of the underbanked.

Mission Street will leverage the fully automated online lending platform Kabbage has built over the last 8 years. Kabbage says its decision engine gets better as it learns from the accumulation of data from existing customers as well as outside sources. Kabbage says it can fund loans traditional banks consider to be too risky.

Kabbage offers small business customers the opportunity to receive proceeds of their loan on a prepaid Visa card issued by Republic Bank & Trust in Louisville, Kentucky. Marqeta does the account processing. All Kabbage loans are originated by Celtic Bank, a Utah-chartered industrial bank. Kabbage has the right to purchase participation interest. 

Competitors to Kabbage in small business lending include OnDeck Capital, Resolve, Fundbox, BlueVine, QuickBooks Capital, PayPal Working Capital, Funding Circle, Opportunity Fund, BFS Capital, Avant, SoFi, GreenSky, Upgrade, Payoneer, Square Capital, and Honeycomb Credit.

Kabbage’s largest investor is Japan-based SoftBank Group, which invested $250 million in 2017.

Laura Goldberg is Chief Revenue Officer at Kabbage in Atlanta, Georgia, lgoldberg@kabbage.com, www.kabbage.com

© Copyright 2019 The Nilson Report

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