Card Cash Transactions Continue Downward Spiral

Mastercard and Visa card cash transactions (CTX) for credit and debit cards in the U.S. declined by 7.1% year-on-year (YOY) in the first-quarter (1Q/19) compared to a 2.3% YOY decline in the fourth-quarter. The decline was across-the-board for both Visa and Mastercard U.S. payment card CTX on a YOY basis and on a CAGR basis.

U.S. payment card cash transactions for Visa and Mastercard (debit+credit) posted at 1208 million in 1Q/19, compared to a revised 1253 million in 4Q/18, and a revised 1301 million for 1Q/18. In the first-quarter of 2015, Visa and Mastercard reported 1217 million in credit and debit card U.S. CTX, according to figures collected by CardData.

Visa + Mastercard U.S. Payment Card CTX

U.S. cash transactions for Visa and Mastercard credit cards dipped by 4.3% YOY for 1Q/19, compared to no gain YOY for 4Q/18. U.S. CTX for credit cards for 1Q/19 was 22 million, compared to a revised 25 million for the prior quarter and a revised 23 million in the year ago quarter. In the first-quarter of 2015, Visa and Mastercard reported 23 million in credit card U.S. CTX.

In the first-quarter U.S. cash transactions for Visa and Mastercard debit cards declined 7.2% YOY, compared to a YOY decrease of 2.3% for 4Q/18. U.S. CTX for credit cards was 1186 million, compared to a revised 1228 million for the prior quarter and a revised 1278 million in 1Q/18. In the first-quarter of 2015, Visa and Mastercard reported 1194 million in debit card U.S. CTX.

Visa and Mastercard credit and debit card U.S. CTX declined by 7.1% YOY for 1Q/19, compared to a gain of 4.0% for 1Q/18; -1.8% YOY for 1Q/17; and +4.4% YOY for 1Q/16. Visa and Mastercard credit card U.S. CTX decreased by 4.3% YOY for 1Q/19, compared to a 4.2% decline for 1Q/18; -4.0% YOY for 1Q/17; and +8.7% YOY for 1Q/16. Visa and Mastercard debit card U.S. CTX decreased by 7.2% YOY for 1Q/19, compared to a 4.2% gain for 1Q/18; -1.5% YOY for 1Q/17; and +4.4% YOY for 1Q/16, according to analysis by RAM Research.

The combination of a government shutdown, nationwide bad weather, and shaky economic measurements with increasing uncertainty, accelerated the historical decline in CTX for both Visa and Mastercard in the first-quarter. Together both networks have a four-year compound annual growth rate (CAGR) of -0.19% for payment card CTX, -1.11% CAGR for credit cards, and -0.17% CAGR for debit cards, notes Robert McKinley, Senior Analyst for CardData, CardFlash and CardTrak.

VISA U.S. Payment Card CTX

Visa posted a 6.7% YOY decline in U.S. credit card cash transactions for 1Q/19, compared to no gain in the prior quarter. Visa reported 14 million in 1Q/19 U.S. credit card CTX, compared to a revised 16 million in 4Q/18 and a revised 15 million in 1Q/18. For the first-quarter of 2015 Visa reported 16 million in U.S. credit card CTX. The four-year CAGR for Visa U.S. credit card CTX is -3.28%.

Visa posted a 9.1% YOY decrease in U.S. debit card cash transactions for 1Q/19, compared to -2.3% YOY for 4Q/18. Visa reported 871 million in 1Q/19 U.S. debit card CTX, compared to a revised 908 million in 4Q/18 and a revised 958 million in 1Q/18. For the first-quarter of 2015 Visa reported 875 million in U.S. debit card CTX. The four-year CAGR for Visa U.S. debit card CTX is -0.11%.

Mastercard U.S. Payment Card CTX

Mastercard posted no gain in U.S. credit card cash transactions for 1Q/19, compared to no gain for 4Q/18. Mastercard reported 8 million in 1Q/19 U.S. credit card CTX, compared to a revised 9 million in 4Q/18 and a revised 8 million in 1Q/18. For the first-quarter of 2015 Mastercard reported 7 million in U.S. credit card CTX. The four-year CAGR for Mastercard U.S. credit card CTX is +3.39%.

Mastercard posted a 1.6% YOY decline in U.S. debit card cash transactions for 1Q/19, compared to a 1.3% YOY gain in the prior quarter. Mastercard reported 315 million in 1Q/19 U.S. debit card CTX, compared to a revised 320 million in 4Q/18 and a revised 320 million in 1Q/18. For the first-quarter of 2015 Mastercard reported 319 million in U.S. debit card CTX. The four-year CAGR for Mastercard U.S. debit card CTX is -0.31%.