Nilson Report

Issue 1169 | Feb 2020


Companies featured in this issue include:

U.S. General Purpose Brands Purchase Volume

Investments & Acquisitions—January 2020

Card Processors Market Capitalization

General Purpose Cards Issued in the U.S. 2019 vs. 2018

Shares of Purchase Volume on U.S. General Purpose Cards 2019

Credit Card Outstandings—U.S. 2019 vs. 2018

General Purpose Credit Cards Issued in the U.S.

Purchase Transactions on Mastercard & Visa Credit & Debit Cards

Cards in Circulation Visa vs. Mastercard

Visa and Mastercard—U.S. Debit & Prepaid Cards

Visa and Mastercard—U.S. Credit, Debit, & Prepaid Cards

Credit Card Outstandings—U.S. 2019 vs. 2018

Credit card outstandings tied to consumer and commercial cards issued in the U.S. reached $1.018 trillion at year-end 2019, up 4.6% from the prior year.

1. Visa, $492.05 billion
+4.4% from prior year
2. Mastercard, $325.18 billion
+5.1% from prior year
3. American Express, $124.03 billion
+3.5% from prior year
4. Discover, $77.18 billion
+5.9% from prior year

Full access to the Credit Card Outstandings—U.S. 2019 vs. 2018 is available when you subscribe to The Nilson Report.



Phone-to-Phone Global Money Transfers

Cross-border money transfers are a $700- to $800-billion-a-year business on the path to becoming a $1-trillion annual opportunity this decade. Mobile network operators (MNOs) worldwide want in. Samsung SDS and Syniverse are creating a platform MNOs can use to offer consumers mobile wallet-based cross-border money transfers, as well as in-country person-to-person payments, person-to-business payments, and business-to-business payments. 

Syniverse connects most MNOs operating worldwide to its clearing and settlement service, which allows for billing voice and data services on the more than seven billion mobile phones worldwide when they roam between networks. Samsung sells phones and tablets to those same companies. The Syniverse intercarrier clearing and settlement service, which has an integrated foreign currency exchange engine, is not connected to the internet. 

Samsung SDS will contribute to the partnership its proprietary Nexledger enterprise blockchain platform. Samsung SDS figured out a way to accelerate verification of transactions within its blockchain to 10,000 per second. Nexledger will work with the Syniverse permission-based blockchain that supports clearing and settlement services. Both blockchains are built to the Hyperledger open source protocol. 

The Samsung SDS/Syniverse mobile payment platform will be wallet and application agnostic. It will provide MNOs all anti-money laundering and know your customer regulatory compliance as well as fraud-fighting services.

The partners will begin a pilot test in the second or third quarter of this year. The transactions will originate in the U.S. and be completed in another country. 

Samsung SDS and Syniverse say their platform will be more successful in fighting fraud than the mobile wallets currently available from MNOs in Africa and Asia. Samsung created the highly regarded Blockchain Keystore security technology used in Samsung Galaxy phones. 

The partners expect merchants will find accepting payments from MNO-branded wallets desirable because they will be less expensive than handling global brand card payments in-store or online. 

The Samsung SDS Nexledger blockchain has been in use in South Korea with 18 financial institutions that use it to provide digital certificates they all accept as valid authentication for more than 100,000 users. 

Ted Kim is Senior VP, Head of Blockchain Team at Samsung SDS America in San Jose, California,,

Chris Rivera is Chief Technology Officer at Syniverse in Tampa, Florida,,

© Copyright 2020 Nilson Report

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