Top 50 Card Issuers in Asia–Pacific Card Fraud …...7d Fraud Projected through 2027 Car7...

7 Card Fraud Projected through 2027 7 Percentage of Fraud Occurring Inside

vs. Outside the U.S.8 Fraud by Type of Card 2018

9 Global General Purpose Cards Midyear 10-11 Asia–Pacific’s Largest Credit,

Debit, General Purpose, Visa, and Mastercard Card Issuers 2018

2 – 4 Fast Facts Conferences & Seminars Management Changes

INSIDE CHARTS

Card Fraud Losses Reach $27.85 BillionGlobal brand and domestic-market-only general purpose and private label credit, debit, and prepaid cards worldwide generated $40.582 trillion in purchases of goods and services and cash advances and withdrawals (including on-us ATM activity) in 2018, an increase of 17.7% over 2017. Card issuers, merchants, acquirers of card transactions from merchants, and acquirers of card transactions at ATMs experienced gross fraud losses of $27.85 billion, an increase of 16.2% from $23.97 billion in 2017.

All card-based payment systems worldwide generated gross fraud losses that amounted to 6.86¢ for every $100 of total volume in 2018. This was a decline from 6.95¢ per $100 the previous year, and marked the second year in a row of declines when measured by cents per $100 in total volume.

Global General Purpose Cards—Midyear 2019Credit, debit, and prepaid cards with Visa, UnionPay, Mastercard, JCB, Diners Club/Discover, and American Express brands initiated 202.37 billion purchase transactions for goods and services worldwide from January 1 to June 30, 2019, an increase of 17.7%

Global Payments Expands in CanadaDesjardins Group’s merchant acquiring business and portfolio of approximately 40,000 merchants will be purchased by Global Payments. The transaction is expected to close in the first quarter of 2020. Desjardins ranked 60th largest among acquirers worldwide

Top 50 Card Issuers in Asia–PacificThe Asia-Pacific region’s 50 largest issuers of UnionPay, Visa, Mastercard, Maestro, JCB, Diners Club, and American Express general purpose credit, debit, and prepaid consumer and commercial cards as well as domestic-market-only general purpose

Four Card Manufacturing Plant AcquisitionsPayment card manufacturing assets on four continents have been purchased over the last two months. The buyers were Idemia, Toppan, HID Global, and Paragon ID. Terms were not identified in any of the transactions. Three of the acquired businesses were

U.S. Private Equity Firm Builds AcquirerMidmarket private equity firm Parthenon Capital has funded acquisitions to create a large merchant acquirer from four smaller companies. The new company, Payroc, is the result of a definitive agreement to merge Payscape, Nxgen International, and BluePay

Visa Fintech PartnershipsAmong the dozens of neo-banks (100% digital) worldwide, Revolut, headquartered in the U.K., is the largest. Since its founding in 2015, Revolut has grown to over 8 million customers who access services via a mobile app. Most are in 27 countries in Europe. The

‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23 ‘24 ‘25 ‘26 ‘27

FRAUD ($BIL.)10

15

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5.7¢5.9¢

6.4¢6.8¢6.9¢

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4.5¢

© 2019 The Nilson Report

Card Fraud Worldwide2010 – 2027

CENTS PER $100 OF TOTAL VOLUME

> see p. 5

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> see p. 9

> see p. 7

> see p. 5

> see p. 7

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FOR 49 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE NOVEMBER 2019 / ISSUE 1164

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Conferences & Seminars

FinovateEurope 2020: February 11-13, 2020. The InterContinental Berlin, Berlin, Germany. Estimated attendance: 1,200+. Cost for the three-day conference is $1,029 to $1,546 (£795 to £1,195). Subscribers to The Nilson Report will receive a 20% discount. (Use code FKV2368NRW.) Contact Tyler Ferst at The Finovate Group, (646) 895-7329, tyler.ferst@ knect365.com. Register at https://bit.ly/2NpUPcs.

Merchant Payments Ecosystem 2020 (MPE): February 18-20, 2020. The InterContinental Berlin, Berlin, Germany. Estimated attendance: 1,250+. Cost for the three-day conference is €2,500 ($2,668). Subscribers to The Nilson Report will receive a 20% discount. (Use code NLSN_20MPE .) Contact Natalia Ivanis at Empiria, 421 (917) 802-770, [email protected]. Register at www.merchantpaymentsecosystem.com.

STA Payments Summit 2020 (13th Annual): February 24-27, 2020. The Salt Lake Marriott Downtown at City Creek, Salt Lake City, Utah. Estimated attendance: 500-600. Cost for the three-day conference for members is $895 and nonmembers $1,150 until January 4. Subscribers to The Nilson Report will receive a 20% discount. (Use code STA20DISC.) Contact Shelbey Votapek at Secure Technology Alliance, (908) 319-3916, svotapek@ securetechalliance.org. Register at www.stapayments.com/registration/.

AMAZON and PAYMENTUS will facilitate utility bill payments from Alexa-enabled in-home devices. More than 14.5 billion utility company invoices are issued every year in the U.S. with only 40% covered by a standing order to pay (autopay). The Paymentus Instant Payment Network provides access to over 90% of the senders of utility bills. Consumers will link Alexa and Amazon Pay to their utility bill account. Patrick Gauthier is VP at Amazon Pay, [email protected], www.amazon.com. Dushyant Sharma is CEO at Paymentus, [email protected], www.paymentus.com.

SUNRISE will provide small business clients of WePay, the integrated payment business of JPMorgan Chase, online bookkeeping software that gives users immediate access to invoicing capabilities as well as the ability to set up recurring payments. WePay will provide integration into the Sunrise platform. Sunrise Pay users will be able to create personalized invoices and automate recurring invoices and pay reminders. Jennifer Lewis is VP of Marketing at WePay, [email protected], www.wepay.com.

JUMIO offers fully automated real-time identity verification powered exclusively by artificial intelligence. JumioGo is designed to remove friction but provide safeguards when opening online accounts. It contains integrated certified live-ness detection to identify when photos, videos, or realistic 3D masks are used instead of actual selfies to create online accounts. Robert Prigge is President, robert.prigge@ jumio.com, www.jumio.com.

TRANSACTION NETWORK SERVICES has launched its Secure Internet Gateway (SIG) in India. The IP device-level technology is specifically designed for point-of-sale payment terminals. SIG is PCI DSS compliant. It helps guard against hacking, rogue terminals, and DDoS attacks. Michael Johnson is Managing Director for FinTech Solutions, Asia Pacific at TNS, [email protected], www.tnsi.com.

LISNR’S ultrasonic data transmission technology lets mer-chants and payment providers accept mobile payment data securely in use cases including scan and go, store pickups, pay zones, point of sale, at home ecommerce, and voice- enabled purchases. Nonpayment use cases include proximity messages, authentication, and identification. Visa has made an investment in Lisnr and has a commercial relationship with the company. Eric Allen is CEO at Lisnr, [email protected], www.lisnr.com.

ONDOT SYSTEMS says its Card App lets issuers brand and deliver an Apple Card-like experience for existing credit and debit card portfolios, including instant card signup, phone wallet provisioning, spending insights, and easy self-service. The app is available on a white-label basis. Ondot provides mobile card controls and interactive alerts to over 4,000 financial institutions. Rachna Ahlawat is EVP at Ondot, [email protected], www.ondotsystems.com.

PULSE, the U.S.-based debit POS and ATM network owned by Discover, has deployed the FICO Falcon Platform to provide enhanced fraud detection services to more than 4,100 debit card issuers. Falcon gives Pulse the ability to customize fraud-blocking rules for its issuers and to imple-ment the rules faster than was previously possible. TJ Horan is VP of Product Management at FICO, [email protected], www.fico.com. Dave Schneider is President at Pulse, [email protected], www.pulsenetwork.com.

ACI WORLDWIDE has received a contract extension from Cardtronics, which operates nearly 290,000 ATMs in 10 countries. Cardtronics will connect to ACI’s UP Retail Pay-ments, an integrated platform for all payment channels. Stuart Mackinnon is CIO and EVP, Global Operations and Technology at Cardtronics, [email protected], www.cardtronics.com. Ruth Fornell is EVP at ACI Worldwide, [email protected], www.aciworldwide.com.

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Asia-Pacific CanadaEurope

Latin America

United States

Middle East and Africa

1,080 Card Issuers

280 Merchant Acquirers

11th Edition

The World’s

Top Card Issuers

and MerchantAcquirers

Figures include cards in circulation and spending for credit & debit in each world region.

More than 115 countries listed

Visa • Mastercard

UnionPay • JCB

American Express

Diners Club • Discover

Order Todaywww.nilsonreport.com/research

AMERICAN EXPRESS virtual cards will be available as a payment option in Coupa’s cloud-based business spend management platform to Amex Corporate Card customers in the U.K. and Australia this year and the U.S. in mid-2020. Once a business’s American Express account is tied to Coupa Pay, virtual cards can automatically be sent to authorized suppliers. Monika Saksena is VP Product Partnerships B2B Automation and Networks, Global Commercial Services at American Express, [email protected], www.americanexpress.com.

DISCOVER will begin issuing dual-interface contactless/contact credit cards this month. Discover it and Discover More cardholders who need cards reissued or replaced will be the first to receive the new cards. Beginning in December, all new Discover cardholders will receive dual-interface cards. Szabolcs Paldy is SVP Marketing, [email protected], www.discover.com.

BREX offers a corporate card and rewards program specifically designed for startups. Inxeption will offer Brex to its customers along with a $1,000 sign-up bonus. Customers also gain access to working capital and flexible payment terms without a personal guarantee. Arthur Levy is VP Business Development at Brex, [email protected], www.brex.com.

MASTERCARD’S Bill Pay Exchange lets consumers view, manage, and pay telecom, utility, rent, credit card, mortgage, and other personal bills without having to set up accounts with different billers, remember multiple passwords, and log in to multiple websites. Avidia Bank, Aliaswire, OSG Billing Services, and Transactis will offer Bill Pay Exchange to their customers. Ron Shultz is EVP, New Payment Flows, North America at Mastercard, ronald.shultz@ mastercard.com, www.mastercard.com.

DELUXE CORPORATION’S Deluxe Bill Pay for customers of mid- to large-sized corporations and financial institutions streamlines billing and payment processing through a cloud-based service. Customers pay invoices using their favorite bill pay service or secure payment portal using their computer, tablet, or smartphone. Payments are automatically matched to outstanding invoices. Deluxe configures the portal with the appropriate logos and colors, so custom-ers always see the brands they expect. Samuel Golbach is Product Manager, Treasury Management Solutions at Deluxe, samuel.golbach@ deluxe.com, www.deluxe.com.

WESTERN UNION BUSINESS SOLUTIONS has deployed full application programming interface (API) access to its front-end domestic and international payment applications, giving approximately 37,000 business customers the opportunity to integrate their financial institutions, accounting, and enterprise resource planning systems with their account on GlobalPay. Scott Johnson is Global Head of Product, [email protected], www.business.westernunion.com.

KROGER CO. subsidiaries Smith’s Food & Drug Stores and Foods Co. have dropped their ban on accepting Visa credit cards.

ALIANT PAYMENTS, provider of payment card, ACH, & cryptocurrency pay-ment processing for merchants, will pay its employees part of their compensa-tion in a combination of Bitcoin and Litecoin cryptocurrencies. Eric Brown is CEO at Aliant Payments, [email protected], www.aliantpayments.com.

MAZOOMA’S eCheck Select Xpress product gives igaming and online sports wagering customers the opportunity to top up their accounts by drawing funds from banks without requiring an online banking login. They can make a single-click deposit without leaving the merchant’s site. Justin Ferrabee is CEO, [email protected], www.mazooma.com.

SMART2PAY, a Netherlands-based payment service provider that claims to have the world’s largest coverage of online alternative payment methods, has added Indian-based wallet provider Paytm to its portfolio. Paytm is a QR code mobile payment service. It has over 450 million registered customers, of which 130 million are active. Stefan Iancu is CTO at Smart2Pay, stefan.iancu@ smart2pay.com, www.smart2pay.com.

ASIAPAY, the leading epayment service and technology player in Asia, will offer its merchants the ability to accept Discover, Diners Club, and affiliate network cards through PayDollar, its omnichannel payment management platform in more than 12 markets in Asia. Aileen Repizo Ibarrola is Sr. Business Development and Product Manager at AsiaPay, [email protected], www.asiapay.com. Amy Parsons is SVP of Global Acceptance at Discover, [email protected], www.discoverglobalnetwork.com.

© HSN Consultants, Inc. 2019 THE NILSON REPORT 2NOVEMBER 2019 / ISSUE 1164 / THE NILSON REPORT© 2019 HSN Consultants, Inc. THE NILSON REPORT 3NOVEMBER 2019 / ISSUE 1164 / THE NILSON REPORT


MOBEEWAVE and IDEMIA have collaborated since 2017 to deliver a white-labeled mobile point-of-sale application in Australia. The partners have expanded to deploy software-based NFC-enabled contactless payment ac-ceptance and validation on mobile devices without the need for hardware of any kind. They also offer a fare validation app that lets transit officers validate contactless payments using off-the-shelf devices. James King is SVP of Sales and Global Markets, Digital Business Unit at Idemia, [email protected], www.idemia.com. Benjamin du Hays is co-CEO at Mobeewave, [email protected], www.mobeewave.com.

WORLDLINE, Europe’s 9th largest merchant acquirer, is adding WeChat Pay to its payment acceptance service in Switzerland. Visitors from China can pay with their smartphone using QR codes, as they do at home. Chinese tourists spent almost $665 million (CHF660 million) in Switzerland in 2018. Marc Schluep is CEO at Worldline Switzerland, [email protected], www.worldline.com.

WNET and EWPN have formed an alliance. The Women’s Network in Electronic Transactions (Wnet) and the European Women Payments Network (EWPN) will publish dedicated landing pages where members can access each organization’s intelligence, networking opportunities, events, and program-ming. EWPN serves over 1,000 individual members and 11 corporate members. Wnet serves over 3,000 women each year in the U.S. Martha Mghendi-Fisher is Founder at EWPN, [email protected], www.ewpn.eu. Lisl Dutterer is Executive Director at Wnet, [email protected], www.wnetonline.org.

TRANSBANK, merchant acquiring and card issuing processor to banks in Chile, will offer its acquirer customers AEVI’s platform of payment services, hardware vendors, and value-added applications. There are 170,000 mer-chants connected to Transbank. Ricardo Blumel is Manager Division Marketing and Development at Transbank, [email protected], www.transbank.cl. Mike Camerling is CEO at AEVI, [email protected], www.aevi.com.

OmaSp, a Finland-based savings bank, will offer Google Pay for Visa credit cardholders this year. Debit cards will be added in 2020. Nets’s Life Cycle Management (LCM) services will support the rollout. Nets’s LCM includes multiple services and support for Google Pay, Apple Pay, and Fitbit Pay. Sirpa Nordlund is Country Director, Finland at Nets, [email protected], www.nets.eu. Pasi Sydanlammi is CEO at OmaSp, [email protected], www.omasp.fi.

ZONG 4G, Pakistan’s top mobile network operator, offers 35 million subscrib-ers the opportunity to pay for apps and in-app content from the Google Pay app store. Fortumo managed the Google Play integration. Only 21% of the adults in Pakistan have a bank account. Payment card ownership is below 1%. Taavi Krusell is VP of Carrier Sales at Fortumo, [email protected], www.fortumo.com.

BLIK mobile-phone-based bank account to bank account payments are avail-able as an acceptance option for online merchants that use Ppro processing and gateway services. More than 90% of bank customers in Poland use Blik. Jack Ehler is Director of Product, Payment Networks, and Business Development at Ppro, [email protected], www.ppro.com.

RECURLY supports subscription commerce. Its platform has over 23 million active subscriptions under management. A partnership with GoCardless will enable Recurly merchants selling globally, about 30% of its customer base, to benefit from collecting recurring payments around the world via bank debit. Dan Burkhart is CEO at Recurly, [email protected], www.recurly.com. Hiroki Takeuchi is CEO at GoCardless, [email protected], www.gocardless.com.

PRIVATBANK in Ukraine has signed a license to build a JCB card acceptance network and begin merchant acquiring operations. The bank’s network in Ukraine comprises over 7,300 ATMs and 200,000 POS terminals, most of which handle contactless payments. Evgen Vasiltsov is Head of Trade Enterprises De-partment at PrivatBank, [email protected], www.privatbank.ua.

PAYPAL BUSINESS LOAN is being offered in Canada to PayPal merchants who have been invited to apply. The company expects the program to be more widely available to business accountholders in 2020. PayPal financing products are also available in the U.S., the U.K., Australia, Germany, and Mexico (with partner Konfio). Paul Parisi is President at PayPal Canada, [email protected], www.paypal.com.

YANDEX.CHECKOUT, the top online payment service in Russia, is offering merchants online and offline payment acceptance for WeChat Pay, the digital wallet connected to China-based WeChat. Ilia Sokolov is Head of Asian Business Development at Yandex.Checkout, [email protected], https://checkout.yandex.com. Jeff Hu is Regional Director, Europe, at WeChat Pay, [email protected], https://pay.weixin.qq.com/index.php/public/wechatpay.

Gabriel de Montessus has been appointed Executive Vice President of the Retail Business Unit at Ingenico, [email protected]. Jaime De La Vega has been appointed Vice President of Sales at Certified Payments, [email protected]. Shane Desrochers has been appointed Chief Revenue Officer at BillingPlatform, [email protected]. Ram Bajaj has been appointed Chief Information Officer at CheckAlt, [email protected]. Jean Beaubois has been appointed Chief Strategy Officer at myPOS, [email protected]. Patrick Chan has been appoint-ed General Manager for Canada at Sezzle, [email protected]. Rob Orgel, formerly at Apple, has been appointed President and Chief Operating Officer at Flywire, [email protected]. Gereen Langmeyer has been appointed Vice President of Payment Products at Payrailz, [email protected]. Darren Busby has been appointed Global Head of Sales at MYHSM, [email protected]. Matt Miller has been appointed Senior Vice President of Sales at NMI, [email protected]. Bill Zielke, formerly at Ingo Money, has been appointed Chief Marketing Officer at BitPay, [email protected]. Steve Gray has been appointed Head of Fraud and Risk Solutions at i2c, [email protected]. Stephen Herbert has resigned as Chief Executive Officer at USA Technologies. David Jimenez has been appointed Chief Commercial Officer at UATP, [email protected]. Michelle Beetar has been appointed Managing Director, Sub-Sharan Africa at FICO, [email protected]. Billi Jo Wright, formerly at Elavon, has been appointed Chief Risk Officer at Payrix, [email protected].

Management Changes



https://pay.weixin.qq.com/index.php/public/wechatpay

https://pay.weixin.qq.com/index.php/public/wechatpay

among the largest payment card manufacturers worldwide in our ranking published in issue 1163.

France-based Idemia, the second largest payment card manufacturer worldwide, purchased Smart Metal Art, the metal payment card business and patents of U.S.-based XCore Technologies, in October. Visa, Mastercard, and American Express have certified

Smart Metal Art cards, which use a proprietary metal card design combined with a proprietary encapsulation process that holds an RFID antenna and other electronic components needed to support contactless payment cards. Most importantly, the technology is compatible with standard hot

lamination card manufacturing processes, allowing for printing to be placed on cards, expanding

the design possibilities for all metal cards.

Idemia will manufacture Smart Metal Art cards from its plant in Exton, Pennsylvania, where it has the capacity to meet the growing demand for metal cards for the mass affluent card portfolios worldwide.

Idemia will continue to work with CompuSecure, Rosan Diamond, and BioSmart—manufacturers of metal cards for high-net-worth portfolios.

bank began offering a Visa prepaid card in 2017. The companies have signed an expanded partnership deal to offer Visa payment cards (prepaid, debit, and credit) and banking services supported by Visa APIs in more than 20 new countries, including in the U.S. and 7 other markets beginning in January 2020.

Revolut is a licensed Visa issuer in Europe and Asia. In other markets, Visa will help Revolut find issuer and card account processing partnerships.

Metropolitan Commercial Bank in the U.S. and Agillitas in Brazil will issue for Revolut. Marqeta will provide card

account processing. Revolut, which

currently is 50%-50% Visa and Mastercard for the prepaid cards it issues in Europe, has committed

to becoming up to 75% Visa for cards issued outside Europe as well as becoming 100%

Visa for credit cards in Europe.

Fintechs benefit Visa by driving new digital payments over VisaNet.

Digital banks include those aimed at one billion unbanked consumers around the globe. Business-to-business fintechs can provide virtual card payments for up to $20 trillion in spending that could migrate

to card networks, including payroll, disbursements, spend management, as well as accounts payable. Digital wallets that started as single-use payment instruments for ride sharing, delivery, and other use cases can expand to open-loop prepaid wallets. There are more than 200 worldwide. Visa is working with 50. Other use cases include installment credit and cross-border remittances.

Partnerships, investments, and structured programs are the elements of Visa’s strategy to gain new payment flows. In addition to Revolut, Visa has announced partnerships in the last year with Currencycloud, Flutterwave, ininal, N26, PayActiv, Rappi, Razer, and Remitly. Visa has made investments in fintechs Anchorage, Bankable, Branch, Finix, Minna Technologies, and PayMate. Terry Angelos is Senior VP and Head of Global

Fintech at Visa in San Francisco, [email protected],

www.visa.com.

Toppan Gravity plans additional card plant acquisitions.

Revolut is a licensed Visa card issuer in Europe and Asia.

Four Card Manufacturing Plant Acquisitions from page 1...

Visa Fintech Partnerships from page 1...

> see p. 6

© 2019 HSN Consultants, Inc. THE NILSON REPORT 5NOVEMBER 2019 / ISSUE 1164 / THE NILSON REPORT

http://www.visa.com

Canada with Payroc. The build-up, which will operate under the Payroc name, will be a full-service merchant acquirer and payment facilitator with more than 55,000 merchants. It will process $23 billion annually in bank card volume.

Payroc is a registered Visa and Mastercard third-party processor, payment facilitator, and encryption support organization for Fifth Third Bank, Wells Fargo, and U.S. Bank. Its Canadian business is registered with Wells Fargo and Peoples Trust.

Parthenon started with the 2018 purchase of Nxgen, which supports merchants in 40 countries. It

subsequently added Payscape, which specializes in software products and enablement of payment facilitators. The purchase of BluePay from First Data provided proprietary front-end and back-end processing

platforms. Payroc focuses on integrated payments and independent

sales organizations. Parthenon plans additional acquisitions for Payroc, including outside the U.S.

Other Parthenon Capital investments in the consumer payment industry include BillingTree, BlueSnap, and CardWorks. Previous investments included Cayan (sold to TSYS) and Official Payments (sold to ACI Worldwide). James Oberman is CEO at Payroc in Tinley Park, Illinois,

[email protected], www.payroc.com.

Hong Kong-based Toppan Gravity, part of Japan-based

Toppan Group, purchased FutureCard last month. FutureCard, which operates a high-capacity plant in the United Arab Emirates, provides cards to customers in Africa, Latin America, and Europe, as well as in the Middle East. The plant’s current management will continue to run the company. In time, the Toppan name will be added to the FutureCard brand.

Last year, Toppan manufactured 52.7 million high-security payment cards and FutureCard manufactured 46.1 million. The transaction moves Toppan to 11th place worldwide among all

payment card manufacturers. Toppan Gravity plans additional

card plant acquisitions. HID Global, headquartered

in the U.S., is known for card printers, encoders, and instant card issuance systems,

as well as smart cards for access, transit, and other applications. It purchased Australia-based Placard in September. That company

ranks 28th worldwide among payment card manufacturers. Last year Placard shipped

17.1 million Visa, Mastercard, UnionPay, and American Express cards to customers in the Asia-Pacific region.

Switzerland-based Paragon ID, best known as a provider of identification products for transport, e-ID track & trace, and brand protection, has purchased U.K.-based Thames Technology, a Visa and Mastercard certified

card manufacturer. Thames manufactures 250 million cards annually for banks, retailers, governments, and leisure/tourism clients. It ranks 33rd largest among manufacturers of high-security payment cards worldwide.

Parthenon Capital plans addition-al acquisitions for Payroc.

CONTACTS

HID Global Marc Bielmann is VP and Managing Director in Bern, Switzerland, mbielmann@ hidglobal.com, www.hidglobal.com.

Idemia Olivier Nora is Senior VP, Products & Systems, Financial Institutions in Courbevoie, France, [email protected], www.idemia.com.

Paragon ID Clem Garvey is CEO in Paris, France, [email protected], www.paragon-id.com.

Toppan Gravity Jean-Pierre Ting is Managing Director in Hong Kong, [email protected], www.toppan.com.

U.S. Private Equity Firm Builds Acquirer from page 1...

Four Card Manufacturing Plant Acquisitions from page 5


http://www.payroc.com


Fraud losses in the United States of $9.47 billion compared to $8.98 billion in 2017. The U.S. accounted for 21.54% of total card volume worldwide in 2018 and 33.99% of gross card fraud losses worldwide. The prior year, the U.S. accounted for 23.43% of total volume and 37.47% of total fraud.

Not included in the $27.85 billion figure for losses to fraud are the expenses issuers,

merchants, and acquirers bear related to operations, call centers, and chargeback management of fraudulent transactions, including investigation costs and external recovery expenses. Those costs grew by more than 15% in 2018 over 2017. In addition, the gross fraud figure of $27.85 billion applies only to cards. It does not include fraud losses tied to QR code-based payment systems or from bank account to bank account payment systems.

The global general purpose brands—American Express, Diners Club/Discover, JCB, Mastercard, Visa, and UnionPay—combined for $33.731 trillion or 83.12% of total worldwide card volume (purchases and cash) in 2018.

Gross fraud for the global brand cards amounted to $24.86 billion in 2018, an increase of 16.9% over $21.27 billion the previous year. The global brand cards combined to account for 89.26% of gross fraud losses worldwide for all cards in 2018, up from 88.75% the prior year.

Our annual survey identified 88 general purpose domestic-market-only card brands worldwide. They were debit or credit or both. Domestic-market-only general purpose credit and debit cards combined to generate $4.001

trillion in total volume in 2018, an increase of 17.5% over 2017. Gross fraud losses amounted to $0.81 billion, up 14.2% over 2017. Domestic-market general purpose cards accounted for 2.89% of gross card fraud losses worldwide.

Payment cards used only at select fueling stations, retail stores, airlines, medical practices, and

based on processing 892.3 million Visa, Mastercard, Amex, Discover/Diners, and Interac card payments in 2018. Global Payments ranked second in Canada

among merchant acquirers. It will continue to rank second after the Desjardins deal is finalized. Moneris is Canada’s top acquirer.

The agreement calls for Global Payments to enter into an exclusive 10-year agreement under which Desjardins will refer members to Global Payments for payment technology and acquiring services.

Since 2013, Desjardins has been in an alliance with Credit Mutuel-CIC Group in France for merchant processing. The sale to Global Payments ends that alliance. Cameron Bready is President and Chief Operating

Officer at Global Payments in Atlanta, Georgia, cameron.

[email protected], www.globalpaymentsinc.com.

Percentage of Fraud OccurringInside vs. Outside the U.S.


INSIDE OUTSIDE

‘00

’02

’04

’06

’08

’10

’12

’14

’16

‘18

YEAR

39.6

39.8

44.5

45.3

46.0

46.9

47.3

39.8

39.5

34.0

60.4

60.2

55.5

54.7

54.0

53.1

52.7

60.2

60.5

66.0

2019 The Nilson Report

Total Vol. Fraud Cents perYear ($tril.) ($bil.) $100 Vol.

2011 19.394 9.84 5.07

2012 21.608 11.27 5.22

2013 25.155 13.70 5.45

2014 28.844 18.11 6.21

2015 31.310 21.84 6.97

2016 31.878 22.80 7.15

2017 34.472 23.97 6.95

2018 40.582 27.85 6.86

2019 43.916 30.07 6.85

2020 47.384 32.39 6.83

2021 50.764 33.59 6.62

2022 53.919 34.69 6.43

2023 57.080 35.67 6.25

2024 60.305 36.55 6.06

2025 63.623 37.34 5.87

2026 67.178 38.96 5.80

2027 71.593 40.62 5.68

Card Fraud Projected Worldwide

Card Fraud Losses Reach $27.85 Billion from page 1

> see p. 8

Global Payments Expands in Canada from page 1...


http://www.globalpaymentsinc.com

other private label locations combined for $902.60 billion in total volume in 2018, an increase of 7.5% over $839.69 billion the prior year. Losses to fraud in

2018 of $0.60 billion increased 19.7% from 2017. This private label card fraud equaled 2.16% of gross card fraud losses worldwide.

Credit and debit card transactions at ATMs outside the global general purpose card networks (Plus, Cirrus, etc.) amounted to $1.947 trillion in cash volume in 2018, a decrease of 2.0% versus 2017. Losses to fraud of $1.58 billion increased 6.5% versus 2017. This ATM activity accounted for 5.69% of global card fraud losses.

U.S. fraud losses amounted to 10.83¢ per $100 in 2018, a decline from 11.12¢ the previous year. The U.S. has seen a decline in basis points of fraud for three consecutive years even as the dollars lost has risen every year.

Fraud losses for all other countries in the world amounted to $18.39 billion in 2018—5.77¢ per $100 in total volume. This compared to $14.99 billion and 5.68¢ in 2017.

In five years (2023), total payment card volume worldwide is projected to reach $57.080 trillion and gross card fraud is projected to reach $35.67 billion. However, fraud per every $100 in total volume will have declined to 6.25¢. U.S. fraud losses are projected to reach $12.02 billion by 2023.

In 10 years (2027), total payment card volume worldwide is projected to reach $71.593 trillion and gross card fraud losses are expected to reach $40.63

billion. Fraud is projected to drop to 5.68¢ per every $100 in total volume.

Last year, losses to fraud incurred by card issuers worldwide reached $19.21 billion, up from $16.78 billion in 2017. Card issuers accounted for 68.97% of gross fraud losses worldwide. Merchants, merchant acquirers, and ATM acquirers accounted for the other $8.64 billion, which equaled 31.03% of total fraud losses.

Issuer losses occurred when criminals took over valid accounts, cards were lost or stolen or counterfeited, new accounts were opened with the intent to commit fraud, accounts were opened using a mix of valid and bogus information (synthetic fraud), cardholders or their family members made purchases and then disputed the charges (friendly fraud), and a few smaller categories.

Account takeover and synthetic fraud losses grew in 2018, helped by the abundance of personally identifiable information (PII) available for sale on the dark web. Both are made easier for criminals by new credit account applications that originate from mobile devices. Data breaches can provide 100% of the information needed for an account takeover. The theft of healthcare records, which are rich in PII, are a particular problem. Criminals purchase PII, gain access to a valid account, change key details, and have a new card mailed to a different address. Account

takeovers can result in a quick loss to fraud. With synthetic fraud, criminals play a waiting game before they bust out

and hit an issuer or issuers. The U.S. and Japan saw synthetic fraud rise in 2018.

Account takeover is measurable, while most synthetic fraud is not even counted as card fraud. Instead, issuers typically write it off as nonperforming loans. Friendly fraud, most of which is tied to digital goods, grew in 2018. This type of theft occurs in every country. However, there is no official fraud loss category for it.

Counterfeit cards used to make purchases in retail stores or at ATMs declined in 2018 but were still a problem, including in the U.S. where gas stations are not yet EMV-compliant. Stolen card data can be considered a counterfeit “card” when used in an online payment anywhere in the world.

While card-not-present (CNP) purchase volume amounts to less than 15% of all purchase volume worldwide, it accounts for 54% of all losses to fraud.

By 2023, card fraud is projected to reach $35.67 billion.

$27.85bil.


Global Brands 1 24.86 33.731 7.37¢

ATM 2 1.58 1.947 8.13¢

Domestic 3 0.81 4.001 2.01¢

Private Label 4 0.60 0.903 6.68¢

Fraud by Type of Card 2018 Fraud Volume Per $100Type ($bil.) ($tril.) in Vol.

1 Visa, Mastercard, UnionPay, American Express, Diners, Discover, and JCB. 2 From transactions processed by nonglobal

networks such as Cirrus and Plus. 3 Maestro, Elo, RuPay, Interac, Cartes Bancaires, Mir, and 82 others. 4 Includes store,

gasoline, airline, medical, ACH debit, prepaid, etc.

Card Fraud Losses Reach $27.85 Billion from page 7...



over the same period in 2018. Purchase transactions by debit and prepaid cards accounted for 55.76%, up from 53.56%.

Purchase volume for the first six months of 2019 amounted to $14.475 trillion, up 10.1% over

the same period in 2018. Credit card purchase volume was up 13.0%. Debit/prepaid purchase volume was up 6.7%. Credit cards held a 55.63% share of combined credit, debit, and prepaid purchase volume, up from 54.21% in 2018.

The top market share was held by Visa when measuring combined credit, debit, and prepaid card purchase transactions worldwide for the first six months of 2019 with 43.66%, down from 46.11%. UnionPay credit and debit cards

gained share, moving up to 27.45% from 25.03%. Market share for Mastercard increased to 25.05% from 24.67%. American Express dipped to 2.24% from 2.42%. JCB slid to 0.91% from 1.01%, and Diners Club/Discover dropped to 0.70% from 0.76%.

When measuring combined credit and debit card purchase volume worldwide, UnionPay held the top spot with a market share of 48.80%, a gain from 48.49% in 2018. Market share for Visa fell to 29.81% from 30.27%. For Mastercard, its market share increased to 15.68% from 15.32%. Amex’s share declined to 4.14% from 4.27%. JCB’s share slid to 0.98% from 1.02%, and Diners Club/Discover slipped to 0.59% from 0.62%.

Prior issues: 1140, 1117, 1095

CNP fraud losses grew in 2018 over 2017 everywhere in the world. However, progress is being made. While the dollars lost to CNP fraud increased last year, particularly in the U.S. where the volume of inbound online commerce is robustly growing, the approval rates increased for online transactions, which made the percentage of fraudulent transactions fall. Top merchants with layers of security generate the kind of data that enables the algorithms used in machine

learning models to perform better. Merchants and issuers caught more fraud in 2018.

Merchants absorbed a higher percentage of all fraud losses in 2018. This has been a trend, and it will continue with the steady increase in CNP transactions, including cross-border online commerce. Merchants bear the full burden of fraud on CNP transactions except when 3D Secure protocol is

Dollar Volume (bil.) Purch. Trans.Brand Total Chg. Purchases Chg. Cash Chg. (bil.) Chg.

UnionPay Credit $ 3,436.13 20.7% $ 3,422.86 21.0% $ 13.27 –27.1% 26.04 14.5%

Visa Credit $ 2,484.23 6.3% $ 2,359.20 6.7% $ 125.03 0.1% 32.74 8.7%

Mastercard Credit $ 1,538.34 9.7% $ 1,443.04 10.2% $ 95.30 3.7% 22.97 16.0%

American Express Credit $ 607.40 6.7% $ 599.83 6.7% $ 7.57 5.7% 4.52 8.7%

JCB Credit $ 146.57 6.0% $ 142.18 6.3% $ 4.40 –3.6% 1.84 5.6%

Discover/Diners Credit $ 93.07 3.9% $ 85.52 4.4% $ 7.55 –0.8% 1.41 8.7%

CREDIT CARD TOTALS $ 8,305.74 12.5% $ 8,052.63 13.0% $ 253.11 –0.5% 89.52 12.1%

UnionPay Debit & Prepaid $ 3,853.85 –0.9% $ 3,640.42 2.6% $ 213.43 –37.5% 29.51 45.3%

Visa Debit & Prepaid $ 3,211.55 5.7% $ 1,955.57 10.5% $ 1,255.98 –1.0% 55.62 13.1%

Mastercard Debit & Prepaid $ 1,543.15 14.8% $ 826.09 17.3% $ 717.06 12.1% 27.73 22.6%

DEBIT CARD TOTALS $ 8,608.55 4.1% $ 6,422.08 6.7% $ 2,186.47 –2.8% 112.85 22.5%

CREDIT & DEBIT TOTALS $16,914.29 8.1% $14,474.71 10.1% $ 2,439.58 –2.6% 202.37 17.7%

Visa Totals $ 5,695.78 6.0% $ 4,314.77 8.4% $ 1,381.01 –0.9% 88.35 11.4%

Mastercard Totals $ 3,081.49 12.2% $ 2,269.13 12.7% $ 812.36 11.1% 50.70 19.5%

Visa & MC TOTALS $ 8,777.27 8.1% $ 6,583.90 9.8% $ 2,193.37 3.2% 139.05 14.2%

UnionPay Totals $ 7,289.98 8.2% $ 7,063.28 10.8% $ 226.70 –37.0% 55.54 29.1%

Includes all consumer, business, and commercial credit, debit, and prepaid cards. Currency fi gures are in U.S. dollars. Change fi gures for dollar volume refl ect a year-over-year comparison in local currency. Figures are for January 1 through June 30. American Express, JCB, and UnionPay include business from third-party issuers. Visa includes Visa, Visa Electron, V Pay, Visa Direct, and Interlink. Mastercard excludes Maestro and Cirrus fi gures. JCB fi gures are for October 1, 2018 through March 31, 2019, and are estimates. © 2019 The Nilson Report

Global General Purpose Cards MY 2019 vs. MY 2018

Global General Purpose Cards—Midyear 2019 from page 1...

> see p. 12


UnionPay, Visa, Mastercard, Amex, Diners, JCB, and general purpose domestic consumer and commercial credit cards. © 2019 The Nilson Report

2018 Purchase PurchaseVolume Cards Volume

Rank Issuer, Country (bil.) (000) per card1 China Merchants, China $ 555.35 102,004 $ 5,444 2 China Construction, China $ 443.42 121,400 $ 3,653 3 Bank of Communications, China $ 442.20 68,830 $ 6,424 4 ICBC, China $ 437.84 148,572 $ 2,947 5 China Everbright, China $ 351.66 60,527 $ 5,810 6 China CITIC, China $ 319.70 56,505 $ 5,658 7 China Minsheng, China $ 310.41 44,162 $ 7,029 8 Agricultural Bank, China $ 265.40 87,615 $ 3,029 9 Bank of China, China $ 244.67 77,768 $ 3,146

10 China Industrial, China $ 234.01 35,393 $ 6,612 11 Ping An, China $ 213.35 36,153 $ 5,901 12 Shanghai Pudong Dev., China $ 190.46 26,445 $ 7,202 13 China Guangfa, China $ 183.51 55,397 $ 3,313 14 Sumitomo Mitsui Card, Japan $ 165.29 44,200 $ 3,740 15 Mitsubishi UFJ Nicos, Japan $ 140.42 32,544 $ 4,315 16 Samsung Card, South Korea $ 108.76 14,424 $ 7,540 17 Shinhan Card, South Korea $ 91.01 21,364 $ 4,260 18 KB Kookmin Card, South Korea $ 79.40 13,141 $ 6,042 19 Hyundai Card, South Korea $ 69.64 11,218 $ 6,208 20 Credit Saison, Japan $ 65.62 36,164 $ 1,814 21 Commonwealth, Australia $ 54.31 3,776 $ 14,383 22 Westpac Banking, Australia $ 50.25 4,102 $ 12,252 23 UC Card, Japan $ 47.05 14,521 $ 3,240 24 ANZ Banking, Australia $ 46.82 3,002 $ 15,598 25 Lotte Card, South Korea $ 45.77 7,617 $ 6,008 26 Aeon Financial Serv., Japan $ 44.33 41,409 $ 1,071 27 Toyota Finance, Japan $ 42.10 15,186 $ 2,772 28 HuaXia, China $ 41.64 11,753 $ 3,543 29 National Australia, Australia $ 35.30 2,498 $ 14,132 30 Woori Card, South Korea $ 35.02 6,269 $ 5,586 31 HSBC, Hong Kong $ 26.49 4,245 $ 6,240 32 NongHyup Bank, South Korea $ 24.48 3,890 $ 6,293 33 HDFC, India $ 23.10 12,234 $ 1,888 34 Industrial Bank, South Korea $ 21.11 7,071 $ 2,985 35 KEB Hana Card, South Korea $ 20.46 4,380 $ 4,672 36 Hang Seng, Hong Kong $ 17.09 2,614 $ 6,538 37 Orient Corporation, Japan $ 16.80 10,733 $ 1,565 38 Citi, Australia $ 16.66 1,332 $ 12,506 39 CTBC, Taiwan $ 16.45 6,836 $ 2,406 40 Cathay United, Taiwan $ 16.25 6,352 $ 2,559 41 SBI Card/SBI Bank, India $ 13.63 7,525 $ 1,811 42 Epos Card, Japan $ 12.44 6,620 $ 1,879 43 Maybank, Malaysia $ 12.09 1,953 $ 6,193 44 E. Sun Comml, Taiwan $ 11.17 4,869 $ 2,295 45 Kasikornbank, Thailand $ 11.09 2,681 $ 4,138 46 SMBC Trust, Japan $ 10.88 1,074 $ 10,136 47 JACCS, Japan $ 10.46 7,002 $ 1,494 48 Taishin Intl, Taiwan $ 9.59 4,645 $ 2,065 49 Krungsriayudhya Card, Thailand $ 9.28 4,300 $ 2,158 50 ICICI, India $ 9.17 6,040 $ 1,518

Credit Card Issuers in Asia–Pacifi c

Visa, Mastercard, Maestro, and domestic debit & prepaid cards. © 2019 The Nilson Report

2018 Purchase PurchaseVolume Cards Volume

Rank Issuer, Country (bil.) (000) per card1 China Construction, China $ 1,882.19 1,041,000 $ 1,808 2 ICBC, China $ 1,127.21 840,000 $ 1,342 3 Agricultural Bank, China $ 832.87 988,298 $ 843 4 Bank of China, China $ 697.95 627,619 $ 1,112 5 China Merchants, China $ 381.03 112,401 $ 3,390 6 Bank of Communications, China $ 120.14 137,170 $ 876 7 HuaXia, China $ 79.38 38,342 $ 2,070 8 China Industrial, China $ 78.76 52,550 $ 1,499 9 China Everbright, China $ 65.17 65,080 $ 1,001

10 Commonwealth, Australia $ 59.66 10,104 $ 5,905 11 China Guangfa, China $ 57.06 45,776 $ 1,246 12 Shanghai Pudong Dev., China $ 44.72 66,769 $ 670 13 China Minsheng, China $ 41.90 49,340 $ 849 14 Westpac Banking, Australia $ 35.38 7,488 $ 4,725 15 Bank of Beijing, China $ 28.51 28,787 $ 990 16 KB Kookmin Card, South Korea $ 28.21 16,682 $ 1,691 17 SBI Bank, India $ 24.55 311,047 $ 79 18 ANZ Banking, Australia $ 20.97 5,512 $ 3,805 19 NongHyup Bank, South Korea $ 18.43 13,513 $ 1,364 20 National Australia, Australia $ 17.84 4,144 $ 4,305 21 Shinhan Card, South Korea $ 15.52 11,468 $ 1,353 22 Bank Central Asia, Indonesia $ 11.00 19,421 $ 567 23 CU Settlement, Australia $ 10.80 1,953 $ 5,529 24 HDFC, India $ 10.54 26,582 $ 397 25 Bank Mandiri, Indonesia $ 9.47 35,460 $ 267 26 ICICI, India $ 9.31 45,398 $ 205 27 Woori Card, South Korea $ 6.73 6,716 $ 1,002 28 KEB Hana Card, South Korea $ 6.32 9,457 $ 668 29 Axis Bank, India $ 6.03 26,165 $ 230 30 ANZ Bank, New Zealand $ 4.96 1,537 $ 3,227 31 DBS, Singapore $ 4.56 3,465 $ 1,317 32 Punjab National, India $ 2.96 69,688 $ 43 33 CTBC, Taiwan $ 2.61 3,076 $ 848 34 Maybank, Malaysia $ 2.52 6,141 $ 410 35 Canara Bank, India $ 2.42 42,652 $ 57 36 Bank of Baroda, India $ 2.30 58,459 $ 39 37 Japan Post Bank, Japan $ 2.22 1,324 $ 1,676 38 United Overseas, Singapore $ 2.00 1,711 $ 1,172 39 Kasikornbank, Thailand $ 2.00 11,750 $ 170 40 Kotak Mahindra, India $ 1.72 11,695 $ 147 41 Bank of India, India $ 1.65 57,457 $ 29 42 Citibank, India $ 1.63 1,650 $ 989 43 VietinBank, Vietnam $ 1.53 9,775 $ 156 44 Bank Negara, Indonesia $ 1.51 13,778 $ 110 45 Lotte Card, South Korea $ 1.47 266 $ 5,528 46 Union Bank, India $ 1.41 14,779 $ 96 47 Samsung Card, South Korea $ 1.39 2,610 $ 532 48 Andhra Bank, India $ 1.36 26,337 $ 52 49 IDBI, India $ 1.23 11,845 $ 104 50 Heritage Bank, Australia $ 1.21 1,188 $ 1,016

Debit Card Issuers in Asia–Pacifi c



General purpose: UnionPay, Visa, Mastercard, Maestro, American Express, JCB, Diners Club, and domestic general purpose consumer & commercial credit, debit, and prepaid cards. V/MC results exclude Maestro and cards with only the Plus or Cirrus brands. 1Includes Cedyna. 2Visa/Mastercard estimated. © 2019 The Nilson Report

GENERAL PURPOSE CARD RESULTS VISA AND MASTERCARD RESULTSRank Purch. Vol. Rank Total Vol. Rank Cards Rank Purch. Vol. Rank Total Vol. Rank Cards

Issuer, Country ‘18 (bil.) ‘18 (bil.) ‘18 (000) ‘18 (bil.) ‘18 (bil.) ‘18 (000)

China Construction, China 1 $ 2,325.61 1 $ 2,743.28 1 1,162,400 1 $ 276.85 1 $ 297.18 3 62,497 ICBC, China 2 $ 1,565.05 2 $ 1,776.74 3 988,572 8 $ 82.09 8 $ 89.39 7 45,300 Agricultural Bank, China 3 $ 1,098.27 4 $ 1,201.23 2 1,075,913 25 $ 34.34 25 $ 40.96 25 15,771 Bank of China, China 4 $ 942.62 3 $ 1,232.93 4 705,387 13 $ 54.41 13 $ 59.17 21 18,664 China Merchants, China 5 $ 936.38 5 $ 1,148.17 6 214,405 24 $ 34.53 24 $ 44.43 72 4,805 Bank of Comm., China 6 $ 562.33 6 $ 632.73 7 206,000 2 $ 249.23 2 $ 258.49 9 37,237 China Everbright, China 7 $ 416.83 7 $ 434.31 8 125,607 20 $ 43.44 20 $ 45.93 35 12,105 China Minsheng, China 8 $ 352.30 8 $ 366.04 10 93,502 22 $ 41.46 22 $ 45.43 58 6,624 China CITIC, China 9 $ 319.70 10 $ 327.09 16 56,505 3 $ 180.37 3 $ 183.84 16 25,249 China Industrial, China 10 $ 312.77 9 $ 328.64 12 87,943 15 $ 50.08 15 $ 52.18 41 9,910 China Guangfa, China 11 $ 240.57 11 $ 267.30 9 101,172 32 $ 22.02 32 $ 24.47 56 6,648 Shanghai Pudong Dev., China 12 $ 235.19 12 $ 258.82 11 93,214 7 $ 83.01 7 $ 91.62 46 8,265 Ping An, China 13 $ 213.35 14 $ 218.36 25 36,153 26 $ 34.30 26 $ 36.33 68 5,137 Sumitomo Mitsui Card, Japan 1 14 $ 166.04 15 $ 167.94 19 48,527 4 $ 166.04 4 $ 167.94 6 48,527 Mitsubishi UFJ Nicos, Japan 2 15 $ 140.42 17 $ 142.22 27 32,544 5 $ 102.51 5 $ 103.82 17 23,757 HuaXia, China 16 $ 121.02 18 $ 129.86 18 50,095 53 $ 8.63 53 $ 8.96 89 2,781 Commonwealth, Australia 17 $ 113.97 16 $ 165.25 45 13,880 6 $ 84.79 6 $ 100.55 43 9,136 Samsung Card, South Korea 18 $ 110.15 20 $ 118.18 37 17,034 19 $ 43.65 19 $ 47.78 45 8,316 KB Kookmin Card, South Korea 19 $ 107.61 21 $ 116.10 31 29,823 12 $ 62.29 12 $ 66.42 23 17,160 Shinhan Card, South Korea 20 $ 106.53 19 $ 128.31 26 32,833 11 $ 66.07 11 $ 75.17 22 17,509 Westpac Banking, Australia 21 $ 85.63 22 $ 99.35 54 11,589 9 $ 80.29 9 $ 90.16 40 10,322 Hyundai Card, South Korea 22 $ 70.79 24 $ 76.48 53 11,708 29 $ 31.89 29 $ 34.85 81 3,596 ANZ Banking, Australia 23 $ 67.79 23 $ 87.10 61 8,514 10 $ 66.93 10 $ 86.24 44 8,514 Credit Saison, Japan 2 24 $ 65.62 26 $ 69.30 24 36,164 16 $ 48.52 16 $ 51.36 14 26,939 National Australia, Australia 25 $ 53.14 32 $ 54.90 69 6,643 14 $ 52.90 14 $ 54.65 57 6,643 Lotte Card, South Korea 26 $ 47.24 30 $ 63.31 63 7,884 18 $ 44.23 18 $ 59.26 50 7,504 UC Card, Japan 2 27 $ 47.05 34 $ 47.27 42 14,521 17 $ 47.05 17 $ 47.27 28 14,521 Aeon Financial Serv., Japan 2 28 $ 44.43 33 $ 49.20 21 42,690 30 $ 30.16 30 $ 32.48 13 28,175 NongHyup Bank, South Korea 29 $ 42.90 37 $ 46.17 36 17,403 73 $ 5.01 73 $ 5.26 113 1,739 Toyota Finance, Japan 2 30 $ 42.10 40 $ 42.41 40 15,186 28 $ 32.00 28 $ 32.13 37 11,514 Woori Card, South Korea 31 $ 41.75 36 $ 46.29 50 12,985 21 $ 41.72 21 $ 46.25 33 12,980 SBI Card/SBI Bank, India 32 $ 38.18 13 $ 224.83 5 318,572 23 $ 38.18 23 $ 224.83 1 318,572 Bank of Beijing, China 33 $ 33.96 41 $ 37.77 29 31,079 114 $ 1.40 114 $ 1.44 162 509 HDFC, India 34 $ 33.64 29 $ 64.81 22 38,816 27 $ 33.64 27 $ 64.81 8 38,816 KEB Hana Card, South Korea 35 $ 26.78 44 $ 28.93 46 13,837 36 $ 16.35 36 $ 17.79 47 8,104 HSBC, Hong Kong 36 $ 26.49 45 $ 28.76 88 4,245 31 $ 26.48 31 $ 28.75 76 4,233 Industrial Bank, South Korea 37 $ 21.39 47 $ 26.76 65 7,502 33 $ 21.11 33 $ 26.47 52 7,071 CTBC, Taiwan 38 $ 19.06 50 $ 19.38 59 9,912 81 $ 3.33 81 $ 3.40 42 9,262 ICICI, India 39 $ 18.49 35 $ 47.11 17 51,438 34 $ 18.49 34 $ 47.11 5 51,438 Hang Seng, Hong Kong 40 $ 17.11 56 $ 17.48 100 2,647 35 $ 16.84 35 $ 17.19 98 2,377 Citi, Australia 41 $ 17.05 54 $ 17.97 115 1,977 38 $ 15.09 38 $ 15.96 112 1,766 Orient Corporation, Japan 42 $ 16.80 55 $ 17.72 58 10,748 40 $ 13.05 40 $ 13.80 48 7,611 Cathay United, Taiwan 43 $ 16.25 58 $ 16.35 71 6,352 37 $ 16.25 37 $ 16.35 60 6,352 Bank Central Asia, Indonesia 44 $ 16.04 25 $ 70.38 33 23,030 86 $ 3.12 86 $ 3.14 111 1,768 Maybank, Malaysia 45 $ 14.61 60 $ 14.86 62 8,094 46 $ 11.28 46 $ 11.48 49 7,583 Axis Bank, India 46 $ 14.47 42 $ 36.24 28 31,614 39 $ 14.47 39 $ 36.24 10 31,614 ANZ Bank, New Zealand 47 $ 13.55 59 $ 15.62 105 2,454 48 $ 10.14 48 $ 10.69 106 1,922 Kasikornbank, Thailand 48 $ 13.09 28 $ 65.75 43 14,431 41 $ 13.01 41 $ 65.65 29 14,244 Epos Card, Japan 49 $ 12.44 62 $ 13.92 70 6,620 42 $ 12.44 42 $ 13.92 59 6,620 CU Settlement, Australia 50 $ 12.23 63 $ 13.79 113 2,157 43 $ 12.23 43 $ 13.79 101 2,157

Top General Purpose/Visa/Mastercard Card Issuers in Asia–Pacifi c


cards in the Asia–Pacific region are included in charts on pages 10 and 11. Collectively, the top 50 issued 5.94 billion payment cards that generated purchase volume of $11.377 trillion in 2018.

China placed 15 issuers on the list. That group had combined purchase volume of $9.676 trillion from

5.03 billion cards. They accounted for 85.1% of all purchase volume among the 50 largest issuers. The 9 issuers in South Korea had combined purchase volume of $575.13 billion from 151.0 million cards. The 8 issuers in Japan combined for purchase volume of $534.90 billion from 207.0 million cards. Australia’s 6 issuers generated $349.81 billion from 44.8 million cards. Australia led with average annual spending per card of $7,815, followed by South Korea with $3,808, Japan with $2,584, and China with $1,924.

Among the 50 largest credit card issuers in the Asia-Pacific region, those in China generated $4.234 trillion from 932.5 million cards. Issuers in Japan generated $555.38 billion from 209.5 million cards, in South Korea $495.64 billion from 89.4 million cards, and in Australia $203.34 billion from 14.7 million credit cards. New to the top 50 were ICICI (India) and Krungsriayudhya Card (Thailand).

The 50 largest debit card issuers generated $5.772 trillion in purchase volume from 5.00 billion cards. Issuers in China accounted for $5.437 trillion from 4.09 billion cards, followed by Australia with $145.86 billion from 30.4 million debit cards, South Korea with $78.06 billion from 60.7 million cards, and India with $67.13 billion from 703.8 million cards. New to the top 50 was Andhra Bank (India).

When measuring only Mastercard and Visa purchase volume, issuers in China combined for $1.196 trillion from 261.5 million cards. Japan’s issuers generated $451.76 billion from 167.7 million cards, South Korea’s issuers generated $332.32 billion from 84.0 million cards, and Australia’s accounted for $312.24 billion from 38.5 million cards.

Card Fraud Losses Reach $27.85 Billion from page 9...

involved. Those transactions were less than 2% of online payments in the U.S. in 2018. Merchants are hit hard by account takeover fraud in card-not-present transactions.

Fraud at ATMs came from skimming, PIN compromise, dispenser jackpotting, cash trapping, malware, skimming chip card data, network packet switching, and more. Fraud as a percentage of $100 in total volume increased in 2018 over 2017.

Organized professional criminal groups, large and small, grew in number and sophistication in 2018. So-called “social engineering” attacks increased, including man-in-the-middle software facilitated by Wi-Fi

connectivity as well as “vishing”—criminals on the telephone posing as a bank representative. In both cases the aim is to steal PII. Criminals who stole data were usually a separate group from those that perpetrated fraud. Of particular impact in 2018 were automated botnets (software) that test issuers and merchants for vulnerabilities. The use of botnets grew by more than 15% in 2018 over 2017. These scripted challenges to security practices were used in “credential stuffing”—massive numbers of attempted logins of stolen usernames and

passwords to find those consumers who use the same credentials for multiple accounts. Criminals supported those efforts with better attack strategies designed to foil defense strategies. One strategy used more widely in 2018 was to attack during the holiday shopping season, when issuers and sellers relax fraud fighting parameters because consumers might be spending outside normal behavior. In 2018, synthetic card fraud became a focus for a larger number of organized crime rings.

Prior issues: 1142, 1118, 1096, 1068

ICICI and Krungsriayudhya Card were new to the top 50.

Top 50 Card Issuers in Asia–Pacific from page 1...

© 2019 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.

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David Robertson, PublisherNovember 18, 2019

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