2006 Annual Bank Card Profitability Study
Cards&Payments has announced the results of its 2006 Annual Bank Card Profitability Study reporting that "U.S. issuers of Visa and MasterCard credit cards in 2005 posted a collective after-tax return on assets of 1.99%, up from 1.59% in 2004. Total revenue among issuers of Visa and MasterCard consumer and commercial credit cards last year reached $109 billion, up 5% from $103.4 billion in 2004."
"With rising consumer debt and home-heating expenses going up, 2006 could be a challenging year for the credit card industry if consumers find it more difficult to pay their bills. But there are promising signs as well," stated Jeffrey Green, "Cards&Payments" editor. "The contactless card market continues to grow, and a variety of new merchant segments, including quick-service restaurants, are beginning to accept credit cards," added Green. "And perhaps as soon as next year, consumers will be able to use their cell phones to initiate payments with their cards, which could further drive industry growth."
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