X-border transaction volume growth FX (currency adjusted) YOY (year-on-year) is driven solely by Mastercard. Second-quarter global cross-border transaction volume for Mastercard soared by 800 bps (basis points) over Visa. Cross-border transaction (X-Border) volume refers to payments and cash volume where the issuing country is different from the merchant country.
X-Border Transaction Volume FX
Visa reported its FX cross-border transaction volume rose 7.0% YOY in 2Q/19, compared to 4.0% in 1Q/19 and 10.0% YOY in 2Q/18. In the second-quarter of 2015 Visa reported an 8.0% YOY gain.
Mastercard reported its FX cross-border transaction volume rose 16.0% YOY in 2Q/19, compared to 13.0% in 1Q/19 and 19.0% YOY in 2Q/18. In the second-quarter of 2015 Mastercard reported a 17.0% YOY gain.
X-Border Transaction Volume NFX
On a nominal basis, not current adjusted (NFX), there is a dramatic difference between the two major networks, according to analysis by RAM Research.
Visa reported its NFX cross-border transaction volume increased 2.0% in 2Q/19, compared to a 2.0% decline in 1Q/19 and a gain of 15.0% YOY in 2Q/18. In the second-quarter of 2015 Visa reported no YOY gain.
Mastercard reported its NFX cross-border transaction volume was up 10.0% in 2Q/19, compared to 6.0%% in 1Q/19 and 24.0% YOY in 2Q/18. In the second-quarter of 2015 Mastercard reported a 1.0% YOY gain.
Visa cross-border volume includes cards carrying Visa, Visa Electron, Interlink and PLUS brands.
Mastercard cross-border volume includes all MasterCard-branded programs.
The growth differential between Mastercard and Visa is also apparent in the figures for gross dollar volume in the second-quarter, notes Robert McKinley, pro bono Senior Analyst for CardData, CardFlash, CardTrak and head of RAM Research.
Second-Quarter Visa Global GDV
Visa reported a 6.2% YOY FX gain in global GDV (gross dollar volume) and a 2.2% YOY NFX gain for the second-quarter, compared to an 8.8% YOY FX and a 10.3% NFX increase in 2Q/18. Visa reported US$2931 billion in 2Q/19 GDV, compared to a revised US$2765 billion in the prior quarter and a revised US$2868 billion for the year ago quarter.
Among Visa’s six regions, GDV, on a FX basis, was up 3.0% YOY in Asia-Pacific and up 7.5% YOY in the Latin America Caribbean (LAC) regions. Central Europe Middle East Africa (CEMEA) increased 8.9% YOY, the U.S. grew 7.7% YOY, while Canada was up 5.6% YOY and Europe up 4.6% YOY.
Second-Quarter Mastercard Global GDV
Mastercard reported an 12.9% YOY FX gain in global GDV and an 8.3% YOY NFX gain for the second-quarter, compared to a 14.1% YOY FX and a 15.3% NFX increase in 2Q/18. Mastercard reported US$1598 billion in 2Q/19 GDV, compared to a revised US$1483 billion in 1Q/19, and a revised US$1475 billion for 2Q/19.
Among Mastercard’s five regions, GDV, on a FX basis, was up 7.6% YOY in Canada, Europe up 18.6% YOY, Latin America 15.9% YOY, Asia Pacific Middle East Africa (APMEA) 10.6% YOY and the U.S. at 9.9% YOY.