The Nilson Report

THE CURRENT ISSUE: Issue 1079 | Jan 2016


Companies featured in The Current Issue include:

Headlines from The Current Issue

Global Card Spending Projected

Profits at Top U.S. Credit Card Issuers

American Express Results

Discover Financial Results

Samsung/MasterCard IoT Partners

Global Payments Mobile Acquiring in Canada

SAP/First Data Business-to-Business Partners

Alpha Payments Cloud Hub

Equinox Payments’ POS Tablet

ING’s Voice and HCE Mobile Payments

BYOD Merchant Checkout

American Express Prepaid Products

Charts in this Issue

Purchase Volume Projected Worldwide

Market Shares of Purchase Volume Worldwide

Income at Top U.S. Credit Card Issuers

Discover Card U.S. Results 2015 vs. 2014

American Express U.S. Card Results 2015 vs. 2014

Income at Top U.S. Credit Card Issuers

Profits at the eight of the largest payment card issuers in the U.S. are ranked on page 9, separated into net income from cards versus total company net income.

1. 1. Bank of America:
$4.05 Bil. Card Net Income
2. 2. JP Morgan Chase:
$3.93 Bil. Card Net Income
3. 3. Citigroup:
$3.60 Bil. Card Net Income
4. 4. American Express:
$3.41 Bil. Card Net Income
5. 5. Discover:
$2.30 Bil. Card Net Income

Full access to Income at Top U.S. Credit Card Issuers results is available when you subscribe to The Nilson Report.



MasterCard Labs has worked for eight months to bring together new technology from hardware manufacturer Samsung, grocery chain stores Fresh Direct and ShopRite, and its own online shopping cart app — for a refrigerator. Samsung’s Family Hub refrigerator will launch in the U.S. in May. It contains a 21.5-inch screen built into the door. MasterCard engineers in Dublin, Ireland, developed the multimerchant, integrated shopping cart app and a companion mobile app that will let users contact Fresh Direct and ShopRite with a list of groceries they want to buy. MasterCard will sign additional grocery chains in the U.S. for the Samsung Family Hub program. 

The refrigerator has an internal camera, which lets owners remotely view its contents. The mobile app for iOS and Android devices works with Wi-Fi and Bluetooth to sync to the app in the refrigerator, allowing items to be added to a shopping list remotely. 

Research shows that 70% of the items in the refrigerator’s shopping cart will likely be reorders of previous purchases. All transactions between the Samsung refrigerator and the grocery stores will be online. By the end of 2016 they will be tokenized. When that occurs, merchants will not keep any card accounts on file. Transactions will be routed to MasterCard’s vault where tokens will be united with the original personal account number. 

Samsung is first to market with its new Family Hub refrigerator hardware. It has said that by 2020, all devices it manufactures will have Internet connectivity. MasterCard is first to build the shopping cart and mobile app for this kind of service. 

As the Internet of Things moves to maturity, and more products become available, there will be many opportunities to add payment and commerce capabilities. 

MasterCard Labs is working on partnerships in other verticals including takeout food restaurants, pet stores, and pharmacies. 

Betty DeVita is Chief Commercial Officer at MasterCard Labs in New York, (917) 408-2719,,

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