PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

College, Pizza, Beer and SEC football: A Credit Card Issuer’s Delight

Brian Riley by Brian Riley
January 10, 2018
in Analysts Coverage
0
American Express Introduces Enhanced Business Travel Account to Help Companies Manage the Reality of Business Travel - PaymentsJournal

Background from bank plastic cards. Figures on the card. Small depth of sharpness. Indoors. Horizontal format. Gray, green, yellow. Color. Photo.

2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The Card Act of 2009 put an end to a college parent’s nightmare: college students who activated credit cards with little chance of repayment, backed by parents who understand that poor credit bureau scores can undo four years of study. Transactions went beyond books into the usual college diet of pizza and beer.

In the sixth report to Congress on student credit cards, CFPB presents interesting factoids:

  • Bank of America, via its subsidiary FIA Card Services, remains the largest player in this market. By examining solely the number of agreements by issuer, Bank of America’s presence is relatively stable, representing 81 of 225 agreements, 36% as compared to 34% in 2015.

  • Bank of America represented 78% of all accounts open under such agreements and 70% of payments made to institutions and their affiliates under such agreements. The nearest competitors by those metrics have a 4% and 8% market share, respectively.

In total of year-end open accounts, BoA had 574,050 college accounts, of which 27,222 were newly booked, versus the national total of 741,475 total accounts, with 57,786 booked.

BoA has a home court advantage because of its acquisition of MBNA a decade ago.  Alumni associations have more than 40% of total college accounts, albeit graduates rather than undergrads.

This is an important segment for issuers particularly as issuers contend for millennials.  The Card Act probably curtailed some of the pizza and beer transaction volume, but you can expect no-one in Alabama was empty-handed during overtime!

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

Read the full story here

Tags: CFPBCredit Cards
2
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    On-Demand Webinar: Solving the Digital Onboarding Challenge​ – Increasing Conversions without Increasing Risk

    February 8, 2023
    legacy infrastructure

    How Modernizing IT Can Help Banks Compete With Fintechs

    February 7, 2023
    Buy Now Pay Later BNPL, B2B BNPL

    B2B BNPL Offers a High-Potential New Chapter in Payments

    February 6, 2023
    eCommerce On Social Media, social commerce

    The Rise of Social Commerce and Social Payments

    February 3, 2023
    Electroneum AnyTask; ETN Crypto, sales enablement

    Ethical Financial Selling: The Role of Compliance Technology and Sales Enablement

    February 2, 2023
    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Equinix report - Dojo Delivers Fast, Reliable and Secure Card Payments to Businesses on Platform Equinix