Here's why Chase could overtake American Express as the U.S. credit card leader (V, COST, AXP, C)

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We could soon have a new leader in the credit card world.

Chase is in position to overtake American Express as the largest credit card issuer in the U.S. by sales once Amex's split from Costco closes, according to data from JPMorgan Chase's Investor Day presentation.

Amex officially sold its Costco co-brand portfolio to Citigroup on Monday after a full year preparing to make the move. The deal is expected to close in June, at which time all eligible Costco Amex cards will be transferred to Citibank accounts that run on Visa's network.

Chase and Amex are headed in opposite directions if the data is any indication. Chase's sales volume has grown by 9% since 2012, and the company had 39% more new co-brand accounts in 2015 than it did in 2012.

Amex did increase its purchase volume by 6% in 2015, but it will soon transfer millions of cardholders and $80 billion in volume to Citi because of the Costco situation.

That loss could drop Amex into second place. Amex had volume of $492 billion without Costco in 2015, while Chase had $496 billion.

This is a situation that bears watching but however it plays out, one thing is clear: the world of payments continues to change. Established players are shifting, and even how we pay for goods is evolving.

And the more complex the payments world becomes, the harder it is to stay on top of it.

To that end, Evan Bakker and John Heggestuen, analysts at BI Intelligence, Business Insider's premium research service, have compiled a detailed report on the payments ecosystem that drills into the industry to explain how a broad range of transactions are processed, including prepaid and store cards, as well as revealing which types of companies are in the best and worst position to capitalize on the latest industry trends.

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Here are some key takeaways from the report:

• 2016 will be a watershed year for the payments industry. Payments companies are improving security, expanding their mobile offerings, and building commerce capabilities that will give consumers a more compelling reason to make purchases using digital devices.
• Payments is an extremely complex industry. To understand the next big digital opportunity lies, it's critical to understand how the traditional credit- and debit-processing chain works and what roles acquirers, processors, issuing banks, card networks, independent sales organizations, gateways, and software and hardware providers play.
• Alternative technologies could disrupt the processing ecosystem. Devices ranging from refrigerators to smartwatches now feature payment capabilities, which will spur changes in consumer payment behaviors. Likewise, blockchain technology, the protocol that underlies Bitcoin, could one day change how consumer card payments are verified.

In full, the report:

• Uncovers the key themes and trends affecting the payments industry in 2016 and beyond.
• Gives a detailed description of the stakeholders involved in a payment transaction, along with hardware and software providers.
• Offers diagrams and infographics explaining how card transactions are processed and which players are involved in each step.
• Provides charts on our latest forecasts, key company growth, survey results, and more.
• Analyzes the alternative technologies, including blockchain, which could further disrupt the ecosystem.

To get your copy of this invaluable guide, choose one of these options:

1. Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
2. Purchase the report and download it immediately from our research store. >> BUY THE REPORT

The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the payments ecosystem.