Mastercard’s cross-border transactions, on a currency adjusted basis (FX), soared in the fourth quarter (4Q/18) outpacing Visa by 380 basis points (bps) year-on-year (YOY). However, Mastercard’s growth rates are adjusted to eliminate the effects of differing switching days between periods.
Sequentially, quarter-to-quarter, Mastercard jumped 180 bps, compared to Visa’s 300 bps decline, according to analysis by RAM Research.
Cross-border transaction volume refers to payments and cash volume where the issuing country is different from the merchant country.
Visa Cross-Border Transactions
Visa’s cross-border currency adjusted (FX) gross dollar volume (GDV) increased 7.0% YOY, while MasterCard rose 18.4% YOY for FX GDV in the fourth quarter.
Visa reported its FX cross-border GDV rose 7.0% in 4Q/18, compared to 10.0% in 3Q/18 and 9.0% YOY in 4Q/17.
Mastercard Cross-Border Transactions
Mastercard reported its FX cross-border GDV rose 18.4% YOY in 4Q/18, compared to 16.6% in 3Q/18 and 13.6% YOY in 4Q/17.
On a nominal basis, not current adjusted (NFX), there is a dramatic difference between the two major networks.
Visa reported its NFX cross-border GDV increased to 3.0% in 4Q/18, compared to 8.0% in 3Q/18 and a gain of 14.0% YOY in 4Q/17.
Mastercard reported its NFX cross-border GDV was up 13.8% in 4Q/18, compared to 13.5%% in 2Q/18 and 22.4% YOY in 4Q/17.
Visa cross-border volume includes cards carrying Visa, Visa Electron, Interlink and PLUS brands.
Mastercard cross-border volume includes all MasterCard-branded programs.
Visa & Mastercard Cross-Border Volume
Visa Cross-Border YOY FX
Visa Cross-Border YOY NFX
Mastercard Cross-Border YOY FX
Mastercard Cross-Border YOY NFX
Source: Visa; Mastercard; CardData; RAM Research
Visa + Mastercard + American Express + Discover/Diners Global PDV
Global PDV (Purchase dollar volume) for Visa, Mastercard, American Express and Discover cards (credit + debit) globally rose 9.0% year-on-year (YOY) on a nominal dollars basis for the third quarter (3Q/18). However, on a currency adjusted basis (FX), global 3Q/18 PDV increased 13% YOY, according to figures gathered by CardData.
Among Visa’s six regions, PDV, on an FX basis, was up 17.0% YOY in the Central Europe Middle East Africa (CEMEA) region; in the Latin America Caribbean (LAC) region +15.9%; in Asia-Pacific +10.1%; Europe +11.7%; Canada +9.3% and the U.S. +9.1%; all YOY for 3Q/18.
Among Mastercard’s five regions, PDV, on an FX basis, was up 22.0% YOY in Europe; Latin America +21.7%; Asia Pacific Middle East Africa (APMEA) +13.4%; U.S. +10.7%; Canada +10.4%; all YOY for 3Q/18.
Among American Express’ four regions, PDV, on an FX basis, increased 10% in the Latin America Canada (LACC) region; +13% in the Europe Middle East Africa (EMEA) region; +8% in the Japan Asia Pacific Australia (JAPA) region region; all YOY for 3Q/18.
Discover and Diners Club International reported PDV rose 9.3% YOY, on a nominal basis, for the third quarter to $44.3 billion, from $43.5 billion in the prior quarter and $40.2 billion for the year ago quarter. Discover was up 9.3% YOY for 3Q/18 and Diners increased 4.7% (FX basis is not material to the global total).