THE CURRENT ISSUE: Issue 1035 | Feb 2014
Top U.S. Credit Card Issuers
Visa/MasterCard Support HCE
Top U.S. MasterCard/Visa Credit Card Issuers
Geolocation Security & Commerce Services
Online EMV Chip & PIN Terminal
Visa and First Data Are EMV Debit Partners
Bell ID’s NFC in the Cloud
Credit Card Outstandings for Top Issuers of U.S. General Purpose Cards
Shares of Purchase Volume for U.S. Credit Card Issuers
Top 20 Issuers - Purchase Volume
Top 20 Issuers - Outstandings
Top Issuers - Visa & MasterCard, All Credit Cards, Total Volume, and Purchase Transactions
Top 50 Visa & MasterCard Credit Card Issuers in the U.S.
50 Largest Visa & MasterCard Credit Card Issuers
The 50 largest Visa and MasterCard credit card issuers in the U.S. are ranked by their outstanding receivables at year-end 2013. Also shown are purchase volume at merchants and total credit cards issued.
1. JPMorgan Chase
$126.2 bil. Outstandings
2. Bank of America
$97.3 bil. Outstandings
$83.7 bil. Outstandings
4. Capital One
$68.5 bil. Outstandings
5. Wells Fargo
$31.0 bil. Outstandings
Full access to the 50 Largest Visa & MasterCard Credit Card Issuers results is available when you subscribe to The Nilson Report.
POSTED MAR 4, 2014 | PRINT
VISA/MASTERCARD SUPPORT HCE
Visa and MasterCard will support Host Card Emulation (HCE) to initiate contactless EMV-compliant NFC-based payments at the point of sale. HCE emulates NFC-based payments found in services such as Isis in the United States in which card account details are stored on the smartphone in its Secure Element (SE). In mobile wallets of this type, issuers rent space on a SE for their card account data from a mobile network operator (MNO).
HCE uses a payment application in an Android smartphone’s memory to connect to the NFC controller in the phone. When triggered, the application communicates with the remote server controlled by the issuer where card account details are held. Unlike SE-based contactless payments, no card account details are ever sent to the merchant’s POS system.
HCE lets issuers disintermediate MNOs from card payments. However, it means that cardholders must download a separate application for each issuer, and while possible, it is technically complex to store data for multiple card accounts in a single HCE digital wallet along with details for loyalty programs and merchant offers. Isis can store multiple payment accounts along with commerce applications.
Visa has announced the availability of specifications, requirements, and guidelines for putting HCE-based EMV-compliant contactless Visa payWave payments into a mobile app. Later this year a software development kit (SDK) for HCE will be available to issuers wanting to process in-house. Soon afterward, Visa expects to offer issuers a hosted service if they prefer to outsource HCE functionality. That platform will also be able to secure contactless payments by delivering digital tokens rather than the 16-digit payment account number. No changes to the existing POS infrastructure will be required to handle tokens.
The Visa HCE specification will not require the mobile device to be in contact with the remote data center at the time of payment, a condition that is not always possible, as when paying for underground transit. Handsets will deliver a token from a cache stored inside the device to complete a transaction.
MasterCard will also publish its HCE specifications by midyear with an SDK to follow. It too will offer a hosted service by next year. That platform will support tokenization as well as allow for a cache of tokens on the handset to support payments made when connectivity to the cloud is not available. MasterCard’s specification will require a PIN to be entered on the handset before each transaction.
There are two million merchant locations worldwide with NFC-enabled card readers. Year-over-year growth was 180% in 2013. This installed base does not include several hundred thousand U.S. locations in which terminals are installed but not functioning because merchants and their processors have not yet activated the devices.
The earliest deployments of HCE will occur by year-end. Markets showing the most promise include Canada, Spain, Hong Kong, Singapore, the U.K., the U.S., and Australia, where the contactless terminal infrastructure is already so ubiquitous that one of every three face-to-face payments on the Visa network is a payWave transaction.
Prior issue: 1,032
Copyright © 2014 The Nilson Report