Nilson Report

THE CURRENT ISSUE: Issue 1196 | Apr 2021


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FEATURED COMPANIES

Companies featured in this issue include:

Six Largest U.S. Debit Card Issuers—Purchase Volume in 2020

Largest U.S. Debit Card Issuers–Purchase Transactions 2010-2020

Top 50 Debit Card Issuers in the U.S.–Ranked by Purchase Volume in 2020

Top U.S. Debit Card Issuers–Ranked by Purchase Volume per Card

Market Shares of Debit Products Among Top 50 U.S. Issuers–Based on Purchase Volume in 2020

Top U.S. Debit Card Issuers–Ranked by Purchase Volume per Card

Issue 1196 features a ranking of the 50 largest issuers of Visa and Mastercard debit cards in the U.S. The five issuers shown here are the largest based on average amount of purchase volume for each of their cardholders in 2020.

FirstBank, Colorado
$13,009 per card
Golden 1 Credit Union
$11,637 per card
Regions Bank
$11,072 per card
Synovus
$10,435 per card
First Horizon
$10,359 per card

Full access to the Top Debit Card Issuers–Ranked by Purchase Volume per Card results in the U.S. is available when you subscribe to the Nilson Report.

POSTED APR 30, 2021 | PRINT

COMPOSECURE METAL CARDS AND CRYPTO COLD WALLETS

Twenty-year-old CompoSecure is the global leader in the manufacture of full- metal and hybrid-metal payment cards, particularly those with embedded contactless technology. This year, the company expects to manufacture 22 million cards, an increase of 7% over 2020. 

CompoSecure will go public by way of a special purpose acquisition company (SPAC) merger with Roman DBDR Tech Acquisition Corporation in a deal that values the company at $1.20 billion. In addition to the SPAC trust, CompoSecure raised $175 million in convertible note and common stock private investment in public equity financing that is expected to close concurrent with the merger. After the merger, existing CompoSecure shareholders will own approximately 60% of the equity in the publicly traded company. Shares will trade on Nasdaq.

More than 100 card issuers worldwide use CompoSecure products, including 6 of the top 10 issuers in the U.S. The company generated net revenue of $261 million in 2020, and predicts 15% year-over-year growth for the next five years. Some of that growth is expected to come from metal cards with embedded biometric fingerprint verification technology and dynamic CVV for which CompoSecure has developed intellectual property rights related to metal cards. 

CompoSecure plans to use its ability to raise funds as a publicly traded company to support expansion of its existing metal card business worldwide and to enter the cryptocurrency wallet business. 

Currently, when a consumer or business buys Bitcoin or other cryptocurrencies, those digital funds are stored at a crypto exchange in what is called a hot wallet. 

In recent years, there have been multiple examples of hacking of crypto exchanges as well as malfeasance. Owners lost all of their cryptocurrency, without any recourse to get it back, because they did not control the private keys that protected access to their wallet.

CompoSecure has developed a cold storage wallet for cryptocurrency that lets owners hold the private keys. Security involves 

three-factor authentication—biometrics, PIN and a smart card CompoSecure calls Arculus. The secure element in the Arculus key card will provide air-gapped storage for private crypto keys. The cards, which will be manufactured by CompoSecure, do not have a battery that needs to be recharged. Arculus key cards are expected to be available in the third quarter of 2021.

Interviewed for this article

Jon Wilk is Chief Executive Officer at CompoSecure in Somerset, New Jersey, jwilk@composecure.com, www.composecure.com.

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