The Nilson Report

Issue 1174 | Apr 2020

FEATURED COMPANIES

Companies featured in this issue include:

Top Debit Card Issuers in the U.S. 2019—Ranked by Purchase Volume

Debit Product Market Shares for Top 50 U.S. Issuers

Top 50 Debit Card Issuers—Ranked by Purchase Volume Per Card

Top 50 Debit Card Issuers in the U.S.—Ranked by Purchase Volume in 2019

Debit Product Market Shares for Top 50 U.S. Issuers

Spending on debit and prepaid cards issued in the U.S. for the top 50 issuers reached $2.119 trillion in 2019. That spending was divided among debit cards (signature based and PIN based) and prepaid cards. Spending and market shares figures are shown

1. Signature
$1,246.0 billion purchase volume, 59% market share
2. PIN
$684.5 billion purchase volume, 32% market share
3. Prepaid
$188.6 billion purchase volume, 9% market share

Full access to the Debit Product Market Shares for Top 50 U.S. Issuers is available when you subscribe to The Nilson Report.

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POSTED APR 30, 2020 | PRINT

PPS Prepaid-Credit Products in Europe

When it opened for business in 2000, PPS was known as PrePay Solutions, a company focused on creating its own merchant acceptance network in the U.K. for underbanked consumers who wanted a payment card product. The economic downturn of 2001 motivated PPS to alter its focus. The company revamped it operations, calculating commercial prepaid cards in the U.K. could generate $40 billion in purchase volume annually compared to $4 billion to $5 billion annually for consumer prepaid cards. In addition to the huge discrepancy in revenue opportunity from interchange fees paid by merchants, commercial prepaid cards offer additional revenue from service fees. By comparison, regulations in some countries present challenges to issuers of prepaid cards related to ATM, per-transaction, and monthly account fees. 

PPS has grown by focusing on converting paper vouchers used for meals and other employee benefits provided by employers to physical and virtual cards. Also available for employees are corporate travel and expense management products as well as loyalty and promotional card products businesses distribute to consumers. 

Five years ago, when open banking via APIs took hold in the U.K., PPS began to provide prepaid card, banking, and regulatory compliance services to online-only banks via APIs. The PPS platform integrates with the core banking platforms of these digital-only banks.

PPS has experienced annual revenue grow of 60% to 70% for five years. The company expects Mastercard and Visa card payment purchase volume processed will reach $50 billion this year from clients including Monese, Tide, and Sainsbury’s. PPS is licensed to issue cards throughout Europe from the U.K. and Belgium. It is a principal member of Mastercard and Visa.

Part of this year’s purchase volume will come from a new credit card product from client Koto in the U.K. That fintech analyzes transaction data received from PPS in real time to conduct risk management on credit it funds directly into a mobile wallet. PPS is the Mastercard issuer but Koto carries the loans on its balance sheet. By comparison, credit cards available from Koto’s digital bank competitors such as Revolut and N26 are products owned by a third-party issuer. Koto is a brand that originated from Monobank in Ukraine. 

Mastercard became a shareholder in PPS in 2009 and it still owns a stake. However, 70% of PPS is owned by Edenred. 

Ray Brash is CEO at PPS in London, U.K., ray.brash@prepaysolutions.com, www.prepaysolutions.com.



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