The third largest card issuer in the U.S. is bucking for the #2 spot following plans to gobble up another large portfolio. The move will also add a full percentage point to the market share held by the top ten U.S. issuers. MBNA confirmed this week it is buying the credit card portfolio of First Union. The deal involves $5.5 billion in credit card loans and more than three million accounts. If #2 ranked Bank One/First USA remains flat for the next three months, then MBNA will most likely pass BankOne/First USA by $1 billion or more in card loans. The acquisition of First Union’s card portfolio by MBNA further consolidates the market power of the nation’s top ten issuers. According to data compiled by CardData (www.carddata.com), the market share of the nation’s top ten issuers will increase to 79% following the acquisition. At mid-year the nation’s ten largest issuers held 78% of the total outstandings. Ten years ago the top ten market share stood at 49%.
Top Ten Bank Credit Card Issuers as of June 30, 2000 (ranked by $billions in credit card loans) 1. Citibank $79.1 2. Bank One/First USA $66.3 3. MBNA $61.1 4. Discover $44.2 5. Chase Manhattan $31.9 6. American Express $25.9 7. Providian $21.5 8. Bank of America $20.0 9. Capital One $16.4 10. Fleet $14.0 Total Top 10: $380.4 billion Total Market: $490.0 billion Market Share: 78% Source: CardWeb.com's CardData Top Ten Bank Credit Card Issuers as of June 30, 1990 (ranked by $billions in credit card loans) 1. Citibank $25.3 2. Discover $9.3 3. Chase Manhattan $7.5 4. First Chicago $6.3 5. MBNA $5.7 6. American Express $5.7 7. Bank of America $5.2 8. Bank of New York $3.6 9. Manufacturers Hanover $3.3 10. Wells Fargo $2.7 Total Top 10: $74.6 Total Market: $151.2 Marketshare: 49% Source: CardWeb.com's CardData