Payments Industry Stock Price Tracker
First Annapolis monitors the movement in stock prices and market capitalization for companies across the payments value chain. After a challenging January for many firms, the payments sectors that First Annapolis tracks posted positive gains when compared to the overall market’s 5% increase in February (see Figure 1).
The issuing sector experienced an aggregate gain of 9% and significantly outperformed the broader market’s (+5%) performance in February. Positive momentum across issuers occurred alongside news from the Federal Reserve that it will consider raising interest rates on a “meeting-by-meeting” basis moving forward. While maintaining gains of 1% in February, Amex shares posted temporary declines on news that it would lose the Costco co-brand program in 2016 (Costco will move to Citi / Visa). Despite last month’s performance, the issuing sector as a whole has posted declines of 5% thus far in 2015 ―largely driven by the performance of the largest issuers.
The processor / acquirer sector experienced an overall gain of 7% in February; however, individual performance within the sector was mixed. FIS, Fiserv, TSYS, and Vantiv all experienced gains of 8% last month, with Heartland Payments as the only firm to post a decline for the month, and year. In aggregate, the sector has already experienced double-digit gains (+10%) in 2015 and is significantly outperforming the overall market (+2%) YTD.
Visa and MasterCard experienced an overall gain of 8% in February and increases of 4% and 5%, respectively, YTD in 2015. The network sector, as a whole, experienced gains of 4% over the same period, outperforming the overall market (+2%) by 2 percentage points.
For more information, please contact Collin Bauer, Associate, specializing in Credit Card Issuing, firstname.lastname@example.org.
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