The Nilson Report

Issue 1158 | Jul 2019


Companies featured in this issue include:

Asia–Pacific Market Shares of Purchase Volume

Largest U.S. Issuers of Consumer Visa and Mastercard Cards 2018

Asia–Pacific Market Shares of Purchase Transactions by Brand 2018

Asia–Pacific General Purpose Cards 2018 vs. 2017

Year-Over-Year Growth/Decline in Purchase Volume on Cards Issued in Asia–Pacific

Prepaid Cards in the U.S. 2018

U.S. Visa & Mastercard Commercial Cards–Purchase Volume 2018

U.S. Visa & Mastercard Commercial Cards–Purchase Volume 2018

Visa and Mastercard commercial card purchase volume reached $982.69 billion last year, up 12.4%. Credit cards accounted for $718.73 billion of that total.

1. Small Business
$356.18 billion purchase volume, +18.2%
2. Purchasing & Fleet
$316.08 billion purchase volume, +12.3%
3. Debit & Prepaid
$263.96 billion purchase volume, +6.5%
4. Corporate
$46.46 billion purchase volume, +7.6%
5. Total
$982.69 billion purchase volume, +12.4%

Small business cards had the greatest growth among commercial cards in the U.S. when ranked by purchase volume in 2018. Full access to these results is available when you subscribe to The Nilson Report.



Visa Network Installment Payments

Installment payments for in-store, mobile, and online purchases by Visa credit and debit cardholders will be facilitated by the Visa network in 2020. Pilot tests in the U.S. will be completed this year. Outside the U.S., tests will occur with Mahindra Bank in India; Alpha Bank, eMAG, ING Bank Romania, and PayU in Romania; Russian Standard Bank in Russia; and Abu Dhabi Commercial Bank and Mashreq Bank in the United Arab Emirates. 

Installments are the second set of beta APIs available through Visa Next, a platform launched earlier this year. Visa Next opened with support for creation of instant digital consumer card accounts. 

For installment loans, cardholders will have the option to divide their total purchase amount into smaller, equal payments over a defined time period. Parameters such as 30 days, 60 days, 90 days, or more will be determined by participating issuers and merchants. 

All credit underwriting will be handled by those issuers, which will preapprove cardholders, who will then use an API to upload their participating account numbers or ranges to Visa. 

When cardholders are shopping, or prior to completion of a purchase at a POS terminal or online/mobile checkout page, merchants will send Visa a request to determine their eligibility for installment credit. Those merchants will then present the installment payment options. In the future, the Visa network will be able to facilitate installment payments on cross-border transactions. 

POS terminal manufacturers can upgrade their devices to facilitate installments using APIs available from Visa. Merchants will add code at their checkout pages to support the service online. Visa is working with third-party cardholder account processors and large issuers to facilitate integrations. 

The U.S. will be the first market in which Visa’s installment loan service will launch. Installment payments, commonplace in the U.S. in the decades before revolving credit cards became ubiquitous, are gaining popularity again through companies including Affirm, ChargeAfter, Uplift, Sezzle, Afterpay, Klarna, Splitit, and Divido, as well as American Express and Blispay. 

Cardholders worldwide, particularly younger people, are interested in installment credit. In Brazil, approximately 50% of all credit payment volume is tied to installment payments. That figure is in the 25% range in Turkey. 

Sam Shrauger is Senior VP, Global Head of Issuer and Consumer Solutions at Visa in San Francisco, California,,

© Copyright 2019 The Nilson Report

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