Global card PDV (purchase dollar volume) in the second-quarter (2Q/19) among the Major 4 U.S. payment networks continued to spiral down over the past year. On an FX (currency adjusted) basis, Major 4 global payment card (credit + charge + debit + prepaid) PDV declined from a 12.8% YOY (year-on-year) FX gain for 2Q/18 to a 10.2% YOY FX gain for 2Q/19. On a nominal dollars, or not currency adjusted, basis (NFX) for the second-quarter, PDV rose 5.7% YOY, compared to 14.6% one-year ago.
The Major 4 U.S.-based global networks: Visa [V]; Mastercard [MA]; American Express [AXP]; and Discover [DFS], posted $3750 billion in global PDV for 2Q/19, compared to $3497 billion in the prior quarter and $3548 billion for the year ago quarter, according to figures collected by CardData.
Mastercard continues to lead the Major 4 global payment card networks worldwide in YOY FX PDV growth, primarily driven by international debit cards and U.S. credit card. Mastercard grew 13.4% YOY FX in global payment card PDV, or 320 bps (basis points) above the peer group average, based on recent analysis by RAM Research.
Global Card PDV Analysis
The Major 4 global second-quarter PDV increased on a NFX basis by 14.6% YOY in 2017; 21.2% YOY in 2016; and 7.2% YOY in 2015. The calculations are skewed by the inclusion of Visa Europe to the Visa Global figures beginning 3Q/16. In 3Q/16 Visa Europe reported $335 billion in PDV and for 2Q/19 Visa Europe PDV was $429 billion.
The Major 4 are now growing at a four-year CAGR (compound annual growth rate) of 12.01% NFX. If Visa Europe is excluded following its merger with Visa in 3Q/16, the CAGR NFX computes to a more realistic 8.08%, notes Robert McKinley, Senior Analyst for CardData, CardFlash and CardTrak.
Visa Global Card PDV
Visa reported an 8.7% YOY gain in global PDV for 2Q/19 on an FX basis, compared to 11.6% YOY FX for 2Q/18. Visa posted $2230 billion in 2Q/19 PDV, compared to a revised $2085 billion in the prior quarter and a revised $2125 billion for the year ago quarter. On a nominal basis, Visa global PDV was up 4.9% YOY NFX for 2Q/19. Visa is currently growing at a 15.48% CAGR (unadjusted) or an 8.38% CAGR (adjusted for Visa Europe).
Among Visa’s six regions, PDV, on an FX basis, was up 22.1% YOY in the Central Europe Middle East Africa (CEMEA) region; in the Latin America Caribbean (LAC) region +15.8%; in Asia-Pacific +5.4%; Europe +7.8%; Canada +6.0% and the U.S. +8.8%; all YOY for 2Q/19.
Mastercard Global Card PDV
Mastercard reported an 13.4% YOY FX gain for global PDV for 2Q/19, compared to a 15.5% YOY FX for 3Q/18. Mastercard reported $1179 billion in 2Q/19 PDV, compared to a revised $1090 billion in the prior quarter and a revised $1083 billion for the year ago quarter. On a nominal basis, Mastercard global PDV was up 8.9% YOY NFX. Mastercard is currently growing at a 8.78% CAGR.
Among Mastercard’s five regions, PDV, on an FX basis, was up 20.6% YOY in Europe; Latin America +20.2%; Asia Pacific Middle East Africa (APMEA) +9.3%; U.S. +11.1%; Canada +7.7%; all YOY for 2Q/19.
American Express Global Card PDV
American Express reported global PDV for 2Q/19, on an FX basis, was up 7%, compared to 9.0% YOY FX for 2Q/18. American Express had an estimated $296.1 billion in 2Q/19 PDV, compared to an estimate $280.9 billion in the prior quarter and $281.7 billion for the year ago quarter. On a nominal basis, American Express PDV was up 5.1% YOY FX. American Express is currently growing at a 4.44% CAGR. (Note: American Express reports gross dollar volume (GDV)
Among American Express’ four regions, PDV, on an FX basis, increased +12% in the Latin America Caribbean Canada (LACC) region; +5% in the Europe Middle East Africa (EMEA) region; +5% in the Japan Asia Pacific Australia (JAPA) region region; U.S. +7%; all YOY for 2Q/19.
Discover/Diners Global Card PDV
Discover and Diners Club International reported PDV rose 3.9% YOY NFX, compared to 8.8% YOY NFX for 2Q/18. Discover/Diners Club reported global PDV for the second-quarter of $45.2 billion, from $41.2 billion in the prior quarter and a revised $43.5 billion for the year ago quarter. Discover was up 4.6% YOY for 2Q/19 and Diners was flat YOY. Discover and Diners Club are growing at a 5.27% CAGR. (Discover/Diners FX basis is not material to the global Major 4 total).
Complete Second-Quarter Report on Major 4 Global Payment Card Purchase Dollar Volume [2015-2019] Available for Immediate Download
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