Second-quarter GDV (gross dollar volume) marketshare, including credit, debit, charge and prepaid card products, among the Major 4 payment networks shows Mastercard picking up 50 basis points (bps) over the past twelve months, mostly at the expense of Visa, in the U.S. market.
Based on gross dollar volume, Visa’s U.S. marketshare peaked one-year ago at 61.6%, when Mastercard held a 25.1% marketshare. Since then Visa has declined 30 bps to 61.3%, and Mastercard expanded to a 25.6% marketshare.
During the same two year period American Express U.S. payment card marketshare dropped from 11.2% to 11.0%. Discover’s payment card marketshare slipped 10 bps from 2.2% to 2.1%, according to calculations by RAM Research.
CAGR GDV Growth Analysis
The major four networks: Visa [V]; Mastercard [MA]; American Express [AXP]; and Discover [DFS] produced $1901 billion in U.S. GDV in 2Q/19 for a 8.2% year-on-year (YOY) gain. In the prior quarter the Major 4 networks posted $1754 billion in U.S. GDV and $1757 billion in the year ago quarter, according to figures gathered by CardData.
U.S. payment card GDV for the Major 4 is running at an 8.18% CAGR (compound annual growth rate) since 2014. The Visa CAGR is 9.54%; Mastercard CAGR is 7.49%; American Express is 3.52%; and Discover is running at a 5.74% CAGR. The migration of American Express cobranded cards to Visa in 2016 explains the CAGR disparity, notes Robert McKinley, Senior Analyst for CardFlash, CardData and CardTrak.
Visa U.S. GDV Marketshare
Visa’s marketshare stands at 61.3% for 2Q/19, compared to 61.1% for 1Q/19, and 61.6% for 2Q/18. Visa posted a 7.8% YOY gain in second-quarter U.S. GDV of $1166 billion, compared to $1071 billion for 1Q/19 and $1082 billion for 2Q/18.
Mastercard U.S. GDV Marketshare
Mastercard’s marketshare stands at 25.6% for 2Q/19, compared to 25.7% for 1Q/19, and 25.1% for 2Q/18. Mastercard posted a 10.0% YOY gain in second-quarter U.S. GDV of $486 billion, compared to $451 billion for 1Q/19 and $442 billion for 2Q/18.
American Express U.S. GDV Marketshare
American Express’ marketshare stands at 11.0% for 2Q/19, compared to 11.2% for 1Q/19, and 11.1% for 2Q/18. American Express posted a 7.2% YOY gain in second-quarter U.S. GDV of $209 billion, compared to $196 billion for 1Q/19 and $195 billion for 2Q/18.
Discover U.S. GDV Marketshare
Discover marketshare stands at 2.1% for 2Q/19, compared to 2.1% for 1Q/19, and 2.2% for 2Q/18. Discover posted an 3.9% YOY gain in second-quarter U.S. GDV of $40 billion, compared to $36 billion for 1Q/19 and $38 billion for 2Q/18.