Nilson Report

THE CURRENT ISSUE: Issue 1201 | Jul 2021


Today's Download: The Current Issue
FEATURED COMPANIES

Companies featured in this issue include:

Asia-Pacific Global Network Cards 2020—Purchase Transactions

Asia-Pacific Spending, Transaction and Cards by Global Brand

Asia-Pacific Market Shares of Purchase Transactions—2008-2020

U.S. Debit Card Issuers—Ranked 51-100

U.S. Merchant Processing Fees—2020

Mergers & Acquisitions and Corporate Financing Transactions—January-June 2021

U.S. Merchant Processing Fees—2020

Merchants in the United States paid $110.32 billion in processing fees in 2020 to accept $7.630 trillion in credit and debit card purchase volume. Fees paid declined 5.2% from 2019.

Visa/Mastercard Credit
$61.63 billion fees, $2,776.21 billion purchase volume
Visa/Mastercard Debit
$22.60 billion fees, $3,138.74 billion purchase volume
American Express
$15.77 billion fees, $691.52 billion purchase volume
PIN Debit
$4.21 billion fees, $637.33 billion purchase volume
Discover
$3.11 billion fees, $142.80 billion purchase volume

Full access to the United States Merchant Processing Fees–2020 is available when you subscribe to the Nilson Report.

POSTED JUL 15, 2021 | PRINT

PUSH-TO-BUSINESS REAL-TIME PAYMENTS

Middleware that can create person-to-business (P2B) payments that clear and settle on real-time payment networks in the U.S. is available from AppBrilliance. P2B payments can be in-app, in-store or online. 

Payments are pushed by the consumer to the seller. Consumers verify every transaction in real time using their mobile phone. They register their credentials once, and subsequent payments are handled on a one-click basis. AppBrilliance gains access to their demand deposit account (DDA) only with permission of the consumer. This occurs only at the time of payment when consumers can also see their account balances.

AppBrilliance doesn’t hold any personally identifiable information (PII), DDA details or funds. Only the merchant’s name, transaction amount and transaction ID number are stored. 

Merchants are credited instantly with funds. Transactions can range in value from $1 to $3,000. When real-time push payments from a consumer’s DDA displace Visa and Mastercard debit card transactions, merchants save on interchange fees.  

Merchants and financial institutions link to the AppBrilliance network in the cloud through web services. Neither merchants nor banks need direct integrations with the real-time networks that clear and settle payments. AppBrilliance handles that function.

Payment card acquirers that currently earn an average of 22 cents for the majority of payments they handle in the government-regulated Mastercard and Visa debit processing business could see margins grow to a flat fee of 50 basis points per transaction with P2B payments over real-time networks. 

SoftPoint, a hospitality management system provider, which integrated with AppBrilliance in 10 days, will work with AppBrilliance to offer P2B payments to its customers. 

AppBrilliance APIs work with the five largest retail banks that participate in the Zelle money transfer network. Those banks and others could offer P2B payment options on a white-label basis to their merchant customers. 

Real-time networks in the U.S. include The Clearing House, which handles person-to-person payments within the Zelle system.

AppBrilliance closed a $3.5-million seed round in November 2020.

Interviewed for this article

Eric Smith is Chief Executive Officer at AppBrilliance in Austin, Texas, eric@appbrilliance.com, www.appbrilliance.com.

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