The Nilson Report

THE CURRENT ISSUE: Issue 1092 | Aug 2016

FEATURED COMPANIES

Companies featured in The Current Issue include:

Payment Card Manufacturer Shipments

Top Issuers in the Middle East and Africa

U.S. General Purpose Card Brands - Midyear 2016

Splitit eCommerce Installment Payments

P2P, B2C, and G2C Real-Time Payments

Identity Theft Protection Platform

Investments & Acquisitions - July 2016

Castles Technology Mobile Terminal

Final Visa Card

Top Manufacturers of Payment Cards Worldwide

Investments & Acquisitions - July 2016

U.S. General Purpose Cards Midyear 2016 vs. Midyear 2015

Top Manufacturers of Payment Cards Ranked by Shipments 2014 vs. 2015

Top Payment Card Shipments by Manufacturer 2015

Payment Card Shipments by Type of Card 2015

Credit Card Issuers in Mideast/Africa 2015

Debit Card Issuers in Mideast/Africa 2015

Top General Purpose/Visa/Mastercard Card Issuers in Mideast/Africa

U.S. General Purpose Cards Midyear 2016 vs. Midyear 2015

In the first six months of 2016 Visa, Mastercard, American Express, and Discover credit cards issued in the United States generated $1.467 trillion in purchases of goods and services, up 8%.

1. Visa Credit:
$710.34 billion purchase volume,+10.8%
2. American Express Credit:
$359.01 billion purchase volume, +2.9%
3. Mastercard Credit:
$338.88 billion purchase volume, +8.9%
4. Discover Credit:
$58.84 billion purchase volume, +3.5%
5. Credit Card Totals:
$1,467.07 billion purchase volume, +8.0%

Full access to the U.S. General Purpose Cards Midyear 2016 vs. Midyear 2015 results is available when you subscribe to The Nilson Report.

POSTED AUG 15, 2016 | PRINT

P2P, B2C, AND G2C REAL-TIME PAYMENTS

Early Warning’s ClearXchange network is known for its person-to-person (P2P) money transfers, though it also provides business-to-consumer (B2C) and government-to-consumer (G2C) disbursement payment processing on behalf of its 10 members — Bank of America, JPMorgan Chase, Wells Fargo, Capital One, PNC, BB&T, U.S. Bank, BNY Mellon, First Bank, and First Tech Federal Credit Union.

When P2P, B2C, and G2C transactions occur between ClearXchange member financial institutions, funds are made available immediately upon posting of the transfer or disbursement. When transactions occur between a member bank and a nonmember bank, ClearXchange has used the Automated Clearing House (ACH), but delivering and settling those funds can take from one to three days. New partnerships with Visa and Mastercard will allow for almost immediate availability. 

Initially, ClearXchange will add Visa Direct and Mastercard Send for debit-card-based P2P payments. This will help it compete with P2P money transfer services available from PayPal (Venmo), Square (Cash), Facebook (Messenger), and Google (Gmail). In time, ClearXchange will use Visa and Mastercard for B2C disbursements — such as insurance claims, shared-economy payments, tax refunds, and one-day salary payments — a significantly larger market opportunity than P2P transfers since so many U.S. disbursements still rely on paper checks.

Mandates in place at Mastercard and Visa require issuers who receive card-based funds transfers to make them available to cardholders in 30 minutes or less. To accomplish this, Mastercard and Visa have established gateways to regional debit networks and to each other able to reach nearly 97% of all U.S. debit card accounts. The speed at which internetwork transactions post and are made available depends on the receiving bank. 

Almost 90% of Visa consumer debit card activity involves accounts that are certified as Visa Direct for fast funds availability. Mastercard Send can reach all U.S. Mastercard consumer debit accounts. Certification for Visa and Mastercard business debit cards is in progress. Both networks treat prepaid cards as debit accounts, but not all prepaid accounts can participate in P2P transfers. Those not using Know Your Customer compliance practices are excluded. 

Card-based money transfer systems have been available from both Visa and Mastercard for over a decade, but most users have been located in countries outside the U.S. where services from other kinds of money transfer businesses were inadequate. 

The U.S. Federal Reserve’s faster payment initiative has raised the profile of Visa Direct and Mastercard Send in the U.S. Both services have also benefited from the ubiquity of mobile phones since P2P transfers work best in the mobile channel. 

Other Visa Direct customers include Fiserv, PayPal (soon), Ingo Money, and Square. Other Mastercard Send customers include Google and Berkshire Hathaway Travel Protection.

Cecilia Frew is Senior VP and Head of Push Payments at Visa in San Francisco, California, (415) 805-4596, cfrew@visa.com, www.visa.com.

Jorn Lambert is EVP, Digital Channels and Regions in Purchase at Mastercard International in New York, (914) 249-3926, jorn.lambert@mastercard.com, www.mastercard.com.

Lou Anne Alexander is Group President, Payments at Early Warning  in Scottsdale, Arizona, (480) 656-6880, louanne.alexander@earlywarning.com, www.earlywarning.com.

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