Saturday , September 21, 2019

A Pair of Banking Giants Report Quarterly Numbers Indicating Robust Payments Growth

Two of the nation’s largest banks on Friday released some details about their payments businesses indicating robust growth despite their size.

JPMorgan Chase & Co., which operates one of the nation’s biggest merchant-processing centers, reported its merchant volume grew 12% in the quarter ended June 30, to $330.8 billion. For the first half of the the year, volume was $647.1 billion, up 14% from $568.7 billion in the first six months of 2017, the New York City-based money-center bank said.

The bank’s Card, Merchant Services, & Auto unit booked $5.02 billion in revenue for the latest quarter, as 6% increase from $4.75 billion in the same period last year. Chase reported, however, that revenue growth in the unit was “largely offset by lower Card net interchange income” brought about by a $330 million adjustment the bank took related to a rewards-liability adjustment.

Chase also reported active customers using it mobile-banking app increased 12% year-over-year, though it did not release a number.

On the opposite coast, Wells Fargo & Co. reported point-of-sale transactions on its debit cards totaled 2.22 billion in the quarter ended June 30, up 7% over the first quarter and 6% from the same quarter in 2017. Volume on the cards reached $87.5 billion, up 7% from the first quarter and 9%  year-over-year.

Purchase volume on consumer general-purpose credit cards was up 10% over the first quarter, totaling $19.2 billion. That was also a 7% jump from the second-quarter last year.

In its digital business, Wells said active online and mobile users now number 28.9 million, including more than 22 million mobile users. The bank did not say how much these numbers have grown in the past year.

Looking to ease the consumer experience on mobile, the bank in May moved frequently used payment services to the home screen of its app, before the customer signs in. However, in June USAA sued Wells in federal court, alleging the San Francisco-based bank is infringing on four of USAA’s mobile remote deposit capture patents.

Check Also

The PCI Council Plans More Rule Flexibility As It Eyes a Major Revision of Its Flagship Standard

Recognizing there is no one-one-size-fits-all approach to data security, the PCI Security Standards Council continues …

Do NOT follow this link or you will be banned from the site!