Global processed transactions (GTX), or switched transactions, in the second-quarter (2Q/19), for Visa and Mastercard combined, remains solidly in double-digits year-on-year (YOY), hovering above a 12% annual growth rate for six consecutive quarters. MasterCard posted more than a 600 bps (basis points) spread over Visa in 2Q/19 for global processed switched transactions.
Combined Visa and MasterCard processed 56,857 million transactions in 2Q/19, representing an 14.3% YOY gain, compared to a 12.5% YOY gain the prior quarter. For the first-quarter, the two networks switched 51,749 million transactions, and compared to 49,889 million transactions one-year ago, according to data collected by CardData.
Global Processed Transactions Growth Analysis
The YOY aggregate gains of the two networks has remained fairly stable: 11.5% in 2Q/14; 10.1% for 2Q/15; 11.4% for 2Q/16; 32.9% for 2Q/17 and 12.2% for 2Q/18, according a recent analysis by RAM Research.
The growth rate in 1Q/17 of 32.9% was skewed by the acquisition of Visa Europe by Visa in 3Q/16, adding nearly seven billion transactions. The five-year CAGR (compound annual growth rate) is running at 15.83% including Visa Europe, but realistically is running at 12.89%, notes Robert McKinley, pro bono Senior Analyst of CardData, CardFlash and CardTrak.
Visa Global Processed Transactions
Visa’s processed transactions for 2Q/19 were up 11.6% YOY, compared to 11.0% YOY in 1Q/19, and 11.5% YOY for 2Q/18. Visa reported 35,428 million transactions for the second-quarter, compared to 32,544 million for the prior quarter, and 31,728 million for the year ago quarter. For 2Q/14 Visa reported 16,662 million transactions. Visa’s current five-year CAGR is 16.29% unadjusted, and 11.32% adjusted for the Visa and Visa Europe merger.
Visa data represent transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa’s networks.
Mastercard Global Processed Transactions
Mastercard’s processed transactions for 2Q/19 were up 18.02% YOY, compared to 15.1% YOY in 1Q/19, and 19.4% YOY for 2Q/18.
Mastercard reported 21,429 million switched transactions for the second-quarter, compared to 19,205 million for the prior quarter, and 18,161 million for the year ago quarter. For 2Q/14 Mastercard reported 10,609 million switched transactions. Mastercard’s current five-year CAGR is 15.01%.
Excluding Venezuela and equalizing period lengths Mastercard YOY gain is 18% for 2Q/19, 15% for 1Q/19 and 17% for 2Q/18.
Global Visa + Mastercard PTX
The two networks combined, processed 73.0 billion (72,988 million) global purchase transactions (PTX) in 2Q/19, compared to a revised 66.1 billion (66,065 million for the first-quarter and a revised 63.5 billion (63,456 million) one-year ago,
Visa Global Payment Card PTX
Visa posted a 12.0% YOY gain in PTX to 46.2 billion for 2Q/19, compared to a revised 42.2 billion for 1Q/19, and a revised 41.2 billion for 2Q/18. One-year ago Visa global purchase transactions increased 12.3% YOY. In the second-quarter of 2015 Visa posted 22,709 million in global PTX. Visa is now growing at a CAGR of 19.42%, or adjusted, minus Visa Europe, a CAGR of 12.36%
Visa’s Asia-Pacific (AP) region PTX increased 11.9% YOY to 7.4 billion in 12Q/19; Canada declined 10.0% YOY to 1.0 billion; Central Europe Middle East Africa (CEMEA) exploded 26.4% YOY to 5.1 billion; Latin America Caribbean (LAC) was up 12.9% YOY to 3.6 billion; and Europe rose 13.8% YOY to 10.3 billion. Visa U.S. reported a 5.7% YOY gain to 18.6 billion for 2Q/19 PTX.
Mastercard Payment Card PTX
Mastercard posted a 20.5% YOY gain in PTX to 26.8 billion for 2Q/19, compared to a revised 23.9 billion for 1Q/19, and a revised 22.2 billion for 2Q/18. One-year ago Mastercard global purchase transactions increased 19.8% YOY in the second-quarter. In the second-quarter of 2015, Mastercard posted 14.7 billion in global PTX. Mastercard is now growing at a CAGR of 16.16%.
Mastercard’s Asia-Pacific Middle East Africa (APMEA) region PTX grew 19.2% YOY to 6.2 billion in 2Q/19; Canada grew 11.8% YOY to 0.7 billion; Europe exploded 30.8% YOY to 9.6 billion; and Latin America Caribbean (LAC) was up 24.5% YOY to 2.7 billion. Mastercard U.S. reported an 10.1% YOY gain to 7.6 billion for 2Q/19 PTX.