Nilson Report

Issue 1172 | Mar 2020


Companies featured in this issue include:

Latin America Purchase Transactions and Market Shares in 2019

Latin America Market Shares of Purchase Volume by Brand 2019

Market Shares of Purchase Transactions in Latin America 2000–2019

Latin America General Purpose Cards 2019

Second 50 Largest Mastercard & Visa Credit Card Issuers in the U.S.—Ranked by Outstandings 2019

Second 50 Largest Mastercard & Visa Credit Card Issuers in the U.S.—Ranked by Outstandings 2019

On pages 10 and 11 are the 51st – 100th largest Mastercard & Visa credit card issuers in the United States ranked by outstanding receivables at year-end 2019.

51. Comdata, Tennessee
$413.4 million outstandings, +27.3%
52. Zions Bancorporation, Utah
$413.0 million outstandings, -1.6%
53. Security Service FCU, Texas
$402.0 million outstandings, -0.6%
54. First Tech FCU, Oregon, California
$378.4 million outstandings, +1.5%
55. Virginia CU, Virginia
$350.0 million outstandings, +0.9%

Full access to the Second 50 Largest Mastercard & Visa Credit Card Issuers in the U.S.—Ranked by Outstandings in 2019 is available when you subscribe to The Nilson Report.



Payment Processing for Games/Apps/Streaming

Mobile network operators (MNOs) worldwide billed their customers over $20 billion last year on behalf of sellers of apps, games, and streaming services such as Google, Microsoft, Apple, Spotify, Samsung, and Amazon. Less than 50% of the value of those sales are processed through direct payment acquiring contracts between the MNOs and the sellers. About 90% of the sellers connect to the MNO by way of third-party payment facilitators that focus on carrier-based billing.

Among those third-party providers is publicly traded (London Stock Exchange) Bango. The company has doubled payment volume processed every year for five years. Last year, Bango handled $1.40 billion (£1.20 billion) for its merchant customers. 

Driving that level of growth is expansion into new markets in Africa, Latin America, and Asia, new products and services available from sellers, and new business channels, including payments for services such as streaming (HBO, Disney, and Star), payments for road tolls, and payments for physical goods (in Japan for Amazon).

Bango helps itself grow by enabling sellers to use payment data, for example when they launch products/services in new countries. Its Marketplace platform, built on assets acquired in 2018 in the takeover of Audiens, handles the creation of marketing audiences for sellers. 

Data that Bango has gathered from prior sales processed and third-party sources is aggregated and anonymized, then overlaid on prospects in the seller’s desired demographic and used for Facebook and Google campaigns. Bango says it helps its customers focus on consumers more likely to spend, and that campaign ROI improves from 3 to 10 times over simply marketing to a general demographic. 

Sellers of digital goods that bill through the big app stores receive 70% to 80% of the price paid by the consumer. When carrier billing is used, companies, including Bango, share the balance with the MNO. 

For Bango, the incremental cost of any new payment handled is negligible because its platform operates at a fixed cost. It has no credit risk. MNOs and app stores handle regulatory compliance.

Bango’s chief competitors among providers of carrier-based billing are Boku, Fortumo, and Docomo Direct. Third-party providers of carrier-based billing services handle about 60% of all sales, with the MNOs acquiring the remaining 40% through direct contracts with sellers.

Anil Malhotra is Chief Marketing Officer at Bango in Cambridge, England,,

© Copyright 2020 Nilson Report

You have 2 free articles remaining. Subscribe today. View Subscription Offer
New subscribers receive over 130 articles in the 22 issues published each year,
plus the last five years of issues (that's over 1,200 articles) on a searchable flash drive.