Nilson Report

THE CURRENT ISSUE: Issue 1224 | Jul 2022


Companies featured in this issue include:

Global Network Cards–Purchase Transactions with Market Shares

Market Shares of Purchase Transactions on Global Network Cards

Global Debit & Prepaid Cards

Debit vs. Credit Market Shares of Purchase Transactions

Global Credit Cards

Global Network Cards in Circulation with Market Shares

Global Network Cards

Purchase Volume by Product on Global Network Cards

Top 25 US Issuers of Prepaid Cards

Publicly Traded Companies in Payments

Global Network Cards

The table on page 7 presents statistics for UnionPay, Visa, Mastercard, American Express, JCB and Diners Club/Discover cards worldwide. Purchase volume for the three largest brands is shown here.

UnionPay totals
$17.312 tril. purchase volume
Visa totals
$10.892 tril. purchase volume
Mastercard totals
$5.975 tril. purchase volume

Full access to the Global Network Cards results is available when you subscribe to the Nilson Report.



Fighting fraud is expensive for online merchants. At merchants that sell physical goods, the combined cost of packaging and shipping, implementing fraud fighting technology, the internal staff needed to oversee questionable transactions as well as chargeback management and resolution can more than double the monetary value of the goods lost to criminals. 

FIS is the world’s largest merchant acquirer. Its Worldpay division supports more than a million merchants worldwide. The company has joined with top fraud fighter Signifyd to launch a new service for ecommerce merchants that guarantees most purchases against fraud losses. Signifyd has been embedded into FIS’s platform, payment gateways and hosted payment pages. 

All FIS merchant and marketplace customers that opt-in will have automatic access to the guaranteed service through their existing integration to FIS. When fraud does occur on a guaranteed transaction, the liability will shift to Signifyd, which will pay all related costs. 

Many merchants overreact and reject questionable transactions for fear of fraud. Those false positives rarely amount to less than 5% of the total transactions a merchant handles and can run up to 15%, depending on what the merchant sells and the world region (such as Latin America) in which the buyer is located. Overreacting to false positives results in lost sales. Significantly reducing them boosts revenues from 5% to 9%.

FIS will offer its guarantee to customers worldwide, even in countries that use 3-D Secure systems. While 3-D Secure moves the liability for fraud to the card issuer, a guarantee through FIS gives the same protection without adding any friction for the cardholder during the checkout process.

The company sees a competitive advantage with its merchant customers tied to the ease with which they automatically obtain a guarantee versus the integration effort required to link directly to Signifyd or other guarantee providers such as Riskified and Forter. 

Within three to five years, FIS hopes to guarantee up to 15% of purchase volume at merchants that sell physical goods, handle crypto transactions or operate online gaming sites. In time, it will offer Signifyd technology to card issuers using FIS for account processing. FIS will send a signal in the authorization request that a guarantee has been made and that fraud liability is covered by FIS.

Signifyd, which has been fighting online fraud for 11 years, says that criminality is an issue in only 1% of all transactions, and it focuses its fraud fighting on identifying that activity. The company’s existing customer base of merchants provides the opportunity to build AI systems that learn from transactions initiated by 350 million buyers, a number that exceeds the base of buyers at Amazon.

Signifyd says it can accept up to 97% of all transactions for the merchants it serves. Before deploying Signifyd’s service, those same merchants would reject an average of 10% of potential purchases for fear of fraud. In particular, a guarantee means that online sellers can better serve high-value, returning customers with little friction. 

Guaranteeing online commerce enables merchants to enter new sales channels such as offering buy online, pick up in-store sales to help fight lost sales to Amazon as well as curbside delivery services. Signifyd customers include Walmart, Samsung and Rite Aid.

The company’s technology can also be used by card issuers. Capital One, the fourth largest US credit card issuer, uses Signifyd to approve more online transactions. Future growth for Signifyd will be driven by card issuers that can make authorization decisions using the same datasets that help protect merchants.

Signifyd, which is profitable, has achieved enough scale to launch an initial public offering. However, market conditions are not currently optimal for existing investors that include Bain Capital, American Express and FIS.  

Revenue at Signifyd is derived from taking a fraction of the value of all guaranteed transactions. Higher risk merchants pay more.

Interviewed for this article

Indy Guha is Chief Marketing Officer & Alliance Leader at Signifyd in San Jose, California,,

John Winstel is Senior Director and Head of Fraud Solutions at FIS Global in Cincinnati, Ohio,,

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