Global credit card networks purchase dollar volume (PDV) for Visa, Mastercard, American Express and Discover/Diners cards (credit + debit) globally rose 8.2% year-on-year (YOY) on a nominal dollars basis (NFX) for the fourth quarter (4Q/18). However, on a currency adjusted basis (FX), global 4Q/18 PDV increased 13% YOY.
The major four U.S.-based global networks posted $3681 billion in global PDV for 4Q/18, compared to $3519 billion in the prior quarter and $3403 billion for the year ago quarter, according to figures collected by CardData.
Mastercard continues to Major 4 card networks globally in YOY growth, primarily driven by debit cards, according to recent analysis by RAM Research.
Visa Global PDV
Visa reported a 10.7% YOY gain in global PDV for 4Q/18 on an FX basis. Visa posted $2196 billion in 4Q/18 PDV, compared to a revised $2112 billion in the prior quarter and a revised $2051 billion for the year ago quarter. On a nominal basis (NFX), Visa PDV YOY was up 7.1%.
Among Visa’s six regions, PDV, on an FX basis, was up 21.5% YOY in the Central Europe Middle East Africa (CEMEA) region; in the Latin America Caribbean (LAC) region +16.5%; in Asia-Pacific +9.7%; Europe +8.6%; Canada +8.4% and the U.S. +10.6%; all YOY for 4Q/18.
Mastercard Global PDV
Mastercard reported an 15.4% YOY gain for global PDV for 4Q/18, on an FX basis. Mastercard reported $1145 billion in 4Q/18 PDV, compared to $1082 billion in the prior quarter and $1032 billion for the year ago quarter. On a nominal basis (NFX), Mastercard PDV YOY was up 10.9%.
Among Mastercard’s five regions, PDV, on an FX basis, was up 23.0% YOY in Europe; Latin America +21.5%; Asia Pacific Middle East Africa (APMEA) +13.4%; U.S. +11.4%; Canada +11.6%; all YOY for 4Q/18.
American Express PDV
American Express reported global PDV for 4Q/18, on an FX basis, was up 8%. American Express had an estimated $293.6 billion in 4Q/18 PDV, compared to an estimate $280.8 billion in the prior quarter and $276.5 billion for the year ago quarter. On a nominal basis (NFX), American Express PDV YOY was up 6.2%. (American Express reports Gross Dollar Volume (GDV) only)
Among American Express’ four regions, PDV, on an FX basis, increased +11% in the Latin America Canada (LACC) region; +8% in the Europe Middle East Africa (EMEA) region; +5% in the Japan Asia Pacific Australia (JAPA) region region; U.S. +9%; all YOY for 3Q/18.
Discover/Diners Global PDV
Discover and Diners Club International reported PDV rose 5.0% YOY, on a nominal basis (NFX), for the fourth quarter to $45.9 billion, from $44.3 billion in the prior quarter and $43.7 billion for the year ago quarter. Discover was up 5.3% YOY for 4Q/18 and Diners increased 3.6% (FX basis is not material to the global total).
Credit card debt and cash advances in Australia declined again in December, declining in each month of 2018. The amount Australians owe declined 1.9% year-on-year (YOY) in December, compared to a YOY decline of 0.2% in November, according to data released today by the Reserve Bank of Australia. The amount of purchases slipped 1.2% YOY in December, compared to a 1.0% YOY drop in the prior month, according to figures collected by CardData.
British credit card lending noses down a tad more. According to the latest consumer credit statistics released this morning by the Bank of England (BOE), annual consumer credit growth slowed to 6.6% in December, reflecting the continuation of relatively weak flows of new lending. The net monthly flow in December fell to £0.7 billion, reflecting less extra borrowing on credit cards.
Consumer revolving debt, mostly credit card debt (95%), remained above the $1 trillion level for the sixth consecutive quarter. However, the year-over-year change in U.S. credit card debt, slowed dramatically in the last three months of 2018, from a revised 11.6% in October, to a revised 5.6% in November and 2.0% in December.
V+M+A+D Global Purchase Dollar Volume (Nominal$ NFX)
4Q/16: $2988 billion
4Q/17: $3403 billion
4Q/18: $3681 billion
Visa Global Purchase Dollar Volume (Nominal$ NFX)
4Q/16: $1802 billion
4Q/17: $2051 billion
4Q/18: $2196 billion
Mastercard Global Purchase Dollar Volume (Nominal$ NFX)
4Q/16: $896 billion
4Q/17: $1032 billion
4Q/18: $1145 billion
American Express Global Purchase Dollar Volume (Nominal$ NFX)
4Q/16: e$250.0 billion
4Q/17: e$276.5 billion ($291.4b GDV)
4Q/18: e$293.6 billion ($309.0b GDV)
Discover/Diners Club Global Purchase Dollar Volume (Nominal$ NFX)
4Q/16: $39.8 billion
4Q/17: $43.7 billion (inc $8.4b Diners)
4Q/18: $45.9 billion (inc $8.7b Diners)
NOTE: American Express Discloses GDV; PDV is historically 95% of GDV
Source: Visa; Mastercard; American Express; Discover; Diners Club; RAM Research; CardData