U.S. card transactions for the two largest payment networks increased 6.2% YOY (year-on-year) in the first-quarter, and now running at a CAGR (compound annual growth rate) of 7.81%. Visa [V] and Mastercard [MA] combined, posted a 6.8% YOY gain in U.S. credit and charge card GTX (gross transactions), compared to a 5.9% YOY gain in first-quarter U.S. debit and prepaid card GTX.
U.S. Payment card (credit, charge, debit, prepaid) GTX totaled 25,064 million for the first-quarter (1Q/19), compared to 26,382 million for 4Q/18, and 23,598 million for the year ago quarter. Visa and Mastercard credit and charge card GTX ended the first-quarter at 7970 million, compared to 8833 million for the fourth-quarter, and 7461 million for 1Q/18. Visa and Mastercard debit and prepaid card GTX posted at 17,094 million for 1Q/19, compared to 17,549 for 4Q/18, and 16,137 million for 1Q/18, according to figures collected by CardData.
U.S. GTX Analysis
Notable in the U.S. GTX data are the YOY growth rates have been slowing for Visa and Mastercard. While GTX grew 6.2% YOY in the first-quarter, this compared to 9.3% YOY for 1Q/18, 4.4% YOY in 1Q/17, and 11.4% YOY in 1Q16. At the end of the first-quarter Visa and Mastercard U.S. GTX for payment cards calculated to a 7.81% four-year CAGR, compared to a 10.97% CAGR for credit and charge cards, and a 6.49% CAGR for debit and prepaid cards, based on analysis by RAM Research.
Interestingly, Visa and Mastercard, based on growth rates, are essentially tied in U.S. debit and prepaid card GTX. However, Mastercard is outpacing Visa GTX in credit and charge card growth by a wide margin, jumping 11.3% YOY, compared to Visa’s 5.1% YOY gain. Nonetheless, Visa’s 11.93% CAGR in credit and charge card GTX trumps Mastercard’s 6.49% CAGR. While Mastercard has posted leadership growth in international debit and prepaid card GTX, in the U.S. market Mastercard has taken the growth leadership position in charge and credit card GTX notes Robert McKinley, Chief Analyst for CardData, CardFlash and CardTrak.
Visa U.S. GTX Stats
Visa’s first-quarter gross U.S. credit/charge card GTX came in at 5712 million, compared to a revised 6340 million for the prior quarter and a revised 5433 million in 1Q/18 for 5.1% YOY gain and a current CAGR of 11.93%.
Visa’s 1Q/19 gross U.S. debit/prepaid GTX increased 5.7% YOY at 12135 million, compared to a revised 12472 million for the prior quarter and a revised 11478 million in the year ago quarter. The current CAGR is 6.43%.
Mastercard U.S. GTX Stats
Mastercard’s first-quarter gross U.S. credit card transactions came in at 2258 million, compared to a revised 2493 million for the prior quarter and a revised 2029 million in the year ago quarter, for an 11.3% YOY gain and a current CAGR of 8.72%.
Mastercard’s 1Q/19 gross U.S. debit card transactions increased 6.4% YOY at 4959 million, compared to a revised 5077 million for the prior quarter and a revised 4659 million in the year ago quarter. The current CAGR is 6.69%.