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Global Cards — 2011

This report appeared in Issue 992 of The Nilson Report, published April 17, 2012.

The Nilson Report • 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 • Tel. 805.684.8800 • [email protected] • http://www.nilsonreport.com

Transactions at merchants on cards carrying the American Express, Diners

Club, JCB, MasterCard, UnionPay, and Visa brands totaled 135.33 billion for

2011, up 14.56 billion or 12.1% over 2010. These purchase transactions include

commercial and consumer credit, debit, and prepaid cards. Prepaid cards are

included in debit figures. Visa figures include both Visa Inc. and Visa Europe.

While UnionPay had the highest

percentage increase in purchase

transactions (up 32.3%), it only added

1.56 billion transactions compared

to an increase of 8.08 billion for Visa

(up 10.2%) and 4.28 billion for

MasterCard (up 14.1%).

Brand Share

Global Cards in CirculationCredit & Debit 2011

©2012 The Nilson Report

UnionPay 45.11%Visa 35.93% MasterCard 16.21%Amex 1.49%JCB 1.17%Diners 0.09%

6.54 bil.

Debit and prepaid cards accounted for 54.36% of purchase transactions, up from 53.87% in 2010. Visa brand purchase transactions were 64.61% debit, up from 64.31% in 2010. MasterCard purchase transactions were 40.23% debit, up from 38.45%. UnionPay purchase transactions were 48.40% debit, up from 48.00%.

The number of credit, debit, and prepaid cards in circulation reached 6.54 billion at the end of 2011, up 12.4% or 718.7 million. UnionPay added the most cards (534.0 million) for a 22.1% increase. Visa followed with an increase of 88.5 million cards, up 3.9%. MasterCard added

86.4 million cards, up 8.9%, JCB added 3.3 million cards, up 4.6%, American Express added 6.4 million cards,

up 7.0%, and Diners Club added 0.2 million cards, up 3.1%.

UnionPay accounted for 45.11% of cards in circulation, up from 41.51%, followed by Visa with 35.93%, down from 38.85%, MasterCard with 16.21%, down from 16.72%, American Express with 1.49%, down from 1.56%, JCB with 1.17%, down from 1.26%, and Diners Club with 0.09%, down from 0.10%.

Of the payment cards in circula-tion carrying these global brands, 68.80% were debit, up from 66.60%. UnionPay’s share of debit cards was 59.23%, Visa’s was 32.90%, and MasterCard’s was 7.87%. Debit cards increased by 622.6 million compared to a 96.1 million increase for credit cards. The

largest contributor to the increase in debit cards was UnionPay (up 478.6 million), followed by Visa (up 85.4 million), and MasterCard (up 58.7 million).

Debit cards accounted for 63.00% of Visa’s card base, up from 61.69%. For MasterCard, 33.41% were debit, up from 30.35%. For UnionPay, 90.34% were debit, down from 90.49%.

Total volume of consumer and commercial purchases and cash on these global card brands, credit and debit cards combined, increased by $2.295 trillion in 2011. Visa and MasterCard gen-erated 75.59% of total volume, down from 78.59% in 2010.

In 2011 purchase volume for goods and services, which excludes cash advances on credit cards and cash withdrawals on debit cards, increased by $1.740 trillion or 18.5%. Visa and MasterCard purchases accounted for $70 of every $100 in purchase volume, compared to $73 the prior year. Visa cards generated $48 of every $100, down from $51.

Of Visa’s purchase volume, 50.66% came from debit cards, an increase from 50.41% in 2010. For Master-Card, debit cards accounted for 25.76%, up from 24.72%. For UnionPay, debit cards accounted for 73.00%, down from 75.00%.

When comparing purchase volume on credit cards only, Visa’s share dropped 188 basis points, from 45.44% to 43.56%. MasterCard’s share fell 50 basis points, from 30.12% to 29.63%. American Express’s share dropped 29 basis points, from 13.56% to 13.27%. UnionPay’s share increased by

277 basis points, from 7.69% to 10.46%. JCB’s share declined by 7 basis points, from 2.70% to 2.63%, and Diners Club’s share fell 3 basis points, from 0.49% to 0.46%.

When comparing purchase volume on debit cards only, Visa’s market share was down 465 basis points, from 58.36% to 53.71%, Union-Pay’s share increased by 481 basis points, from 29.14% to 33.95%, and MasterCard’s share fell 15 basis points, from 12.50% to 12.34%.

Worldwide purchase volume on UnionPay debit cards was up 41.9% to $1.722 trillion and its credit card purchase volume was up 57.5% to $636.78 billion.

Cash volume on all credit, debit, and prepaid cards with global brands — the combined advances against lines of credit and with-drawals from funds on deposit — increased by $554.12 billion. For Visa, cash accounted for 35.97% of total volume, up from 35.80%. For MasterCard, cash accounted for 25.20%, up from 24.81%. For UnionPay, cash accounted for 14.02%, down from 15.18%. For JCB, cash accounted for 3.40%, down from 3.60%. For Diners

CARDS IN CIRCULATION REACHED 6.54 BIL., UP 12.4%.



Club, cash accounted for 5.05%, down from 5.58%. For American Express, cash accounted for 1.69%, down from 1.80%.

Credit cards issued to U.S. cardholders with the Visa, Master-Card, and American Express brands generated 36.78% of their total credit card purchase volume worldwide, down from 37.65% in 2010.

For American Express, the percent change in credit card purchase volume was slightly greater on cards issued inside the U.S. (13.4%) than on those issued outside the U.S. (13.2%). However, the number of American Express cards in circulation outside the U.S. increased by 4.7 million, while the number circulating in the U.S. increased by 1.7 million. The purchase volume per card issued outside the U.S. was $5,731, up 1.8%, while the purchase volume per U.S. card was $10,675, up 9.6%.

For MasterCard, the percent change in credit card purchase volume was significantly greater on cards issued outside the U.S. (up 17.3%) than those issued inside the U.S. (up 6.1%). The number of Master-

Card credit cards in circulation increased by 22.7 million outside the U.S. compared to a 5.0 million card increase inside the U.S. The purchase volume per credit card issued outside the U.S. was $2,447 in 2011, up 12.2%, while the purchase volume per U.S. credit card issued was $2,891, up 3.1%.

For Visa, the percent change in credit card purchase volume was also greater on cards issued outside the U.S. (up 11.7%) than

those issued inside the U.S. (up

9.7%). The number of Visa credit

cards in circulation increased

by 9.0 million outside the U.S.

compared to a 5.9 million card

decline inside the U.S. However,

the purchase volume per credit

card issued outside the U.S. was

$2,779 in 2011, up 10.1%, while

the purchase volume per U.S.

credit card issued was $3,793

in 2011, up 12.5%.

© 2012 The Nilson Report

Transactions per Card 37.1 8.9% 30.7 6.2% 54.7 4.0% 12.0 5.6% 18.6 1.4% 29.6 3.0%

Purchase Transactions per Card 35.6 8.8% 29.3 6.5% 53.8 4.1% 11.6 5.7% 18.2 1.5% 28.2 3.4%

as Percent of Total 96.2% 0.0 pt. 95.4% 0.2 pt. 98.4% 0.2 pt. 96.5% 0.1 pt. 97.7% 0.1 pt. 95.2% 0.5 pt.

Cash Transactions per Card 1.4 9.4% 1.4 1.7% 0.9 –5.2% 0.4 3.3% 0.4 –3.2% 1.4 –5.9%

as Percent of Total 3.8% 0.0 pt. 4.6% –0.2 pt. 1.6% –0.2 pt. 3.5% –0.1 pt. 2.3% –0.1 pt. 4.8% –0.5 pt.

Average Amount per Transaction $93 1.7% $95 2.4% $154 1.7% $193 19.8% $117 6.3% $166 1.7%

Average Purchase Amount $86 1.6% $87 2.8% $154 1.7% $192 20.0% $115 6.4% $166 1.8%

Average Cash Amount $272 1.5% $259 2.8% $160 4.4% $195 14.8% $174 5.1% $175 0.6%

Total Volume per Card $3,438 10.7% $2,926 8.8% $8,441 5.8% $2,316 26.5% $2,165 7.8% $4,924 4.7%

Purchase Volume per Card $3,052 10.6% $2,557 9.4% $8,299 5.9% $2,234 26.9% $2,091 8.0% $4,676 5.3%

as Percent of Total 88.8% 0.0 pt. 87.4% 0.5 pt. 98.3% 0.1 pt. 96.5% 0.2 pt. 96.6% 0.2 pt. 95.0% 0.5 pt.

Cash Volume per Card $386 11.0% $368 4.5% $142 –1.0% $82 18.6% $74 1.8% $249 –5.3%

as Percent of Total 11.2% 0.0 pt. 12.6% –0.5 pt. 1.7% –0.1 pt. 3.5% –0.2 pt. 3.4% –0.2 pt. 5.0% –0.5 pt.

Visa MasterCard American Express UnionPay JCB Diners Club Category 2011 Chg. 2011 Chg. 2011 Chg. 2011 Chg. 2011 Chg. 2011 Chg.

Global Credit Cards



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