Global purchase transactions (PTX) for Visa and MasterCard debit and credit cards increased 15.0% year-on-year (YOY) in the second-quarter (2Q/19). The PTX YOY growth rate has been steadily expanding each quarter. One-year ago the PTX YOY growth rate for the second-quarter was 14.8%. In 1Q/17, the PTX YOY growth rate soared 28.3%, skewed by the merger of Visa and Visa Europe.
The two networks combined, processed 73.0 billion (72,988 million) global purchase transactions 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, according to figures collected by CardData.
Growth Global PTX Analysis
While the combined compound annual growth rate (CAGR) is 18.18% since 2Q/15, it is skewed, however, by the aforementioned inclusion of Visa Europe data in mid-2016. Excluding Visa Europe, the CAGR is 14.40%, according to analysis by RAM Research.
Beyond the inclusion of Visa Europe in 2016, global PTX growth over the past two years has been driven by Mastercard, outpacing Visa YOY by more than 850 basis points (bps).
The Central Europe Middle East Africa (CEMEA) region, followed by the Latin America Caribbean (LAC) region have been the key drivers for Visa’s current PTX growth. The Europe and Latin America Caribbean (LAC) regions have been the powerhouses for Mastercard’s recent global purchase transactions growth, notes Robert McKinley, Senior Analyst for CardFlash, CardData and CardTrak.
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.