Global card PDV (purchase dollar volume) in the third-quarter (3Q/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 12.5% YOY (year-on-year) FX gain for 3Q/18 to a 10.4% YOY FX gain for 3Q/19. On a nominal dollars, or not currency adjusted, basis (NFX) for the third-quarter, PDV rose 8.7% YOY, compared to 9.8% one-year ago.
The Major 4 U.S.-based global networks: Visa [V]; Mastercard [MA]; American Express [AXP]; and Discover [DFS], posted $3824 billion in global PDV for 3Q/19, compared to a revised $3752 billion in the prior quarter and a revsied $3519 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 14.7% YOY FX in global payment card PDV, or 435 bps (basis points) above the peer group average, based on recent analysis by RAM Research.
Global Card PDV Analysis
The Major 4 global third-quarter PDV increased on a NFX basis by 6.2% YOY in 2017; and 25.7% YOY in 2016. 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 3Q/19 Visa Europe PDV was $441 billion.
The Major 4 are now growing at a four-year CAGR (compound annual growth rate) of 12.34% NFX. If Visa Europe is excluded following its merger with Visa in 3Q/16, the CAGR NFX computes to a more realistic 8.95%, notes Robert McKinley, Senior Analyst for CardData, CardFlash and CardTrak.
Visa Global Card PDV
Visa reported an 8.9% YOY gain in global PDV for 3Q/19 on an FX basis, compared to 11.7% YOY FX for 3Q/18. Visa posted $2267 billion in 3Q/19 PDV, compared to a revised $2230 billion in the prior quarter and a revised $2112 billion for the year ago quarter. On a nominal basis, Visa global PDV was up 7.3% YOY NFX for 2Q/19. Visa is currently growing at a 15.70% CAGR (unadjusted) or an 9.61% CAGR (adjusted for Visa Europe).
Among Visa’s six regions, PDV, on an FX basis, was up 24.5% YOY in the Central Europe Middle East Africa (CEMEA) region; in the Latin America Caribbean (LAC) region +18.4%; in Asia-Pacific +5.4%; Europe +8.8%; Canada +7.6% and the U.S. +8.2%; all YOY for 3Q/19.
Mastercard Global Card PDV
Mastercard reported an 14.7% YOY FX gain for global PDV for 3Q/19, compared to a 15.0% YOY FX for 3Q/18. Mastercard reported $1218 billion in 3Q/19 PDV, compared to a revised $1181 billion in the prior quarter and a revised $1083 billion for the year ago quarter. On a nominal basis, Mastercard global PDV was up 12.5% YOY NFX. Mastercard is currently growing at a 9.31% CAGR.
Among Mastercard’s five regions, PDV, on an FX basis, was up 21.3% YOY in Europe; Latin America +23.2%; Asia Pacific Middle East Africa (APMEA) +10.2%; U.S. +12.7%; Canada +9.3%; all YOY for 3Q/19.
American Express Global Card PDV
American Express reported global PDV for 2Q/19, on an FX basis, was up 6%, compared to 10.0% YOY FX for 3Q/18. American Express had an estimated $292.8 billion in 3Q/19 PDV, compared to an estimate $296.1 billion in the prior quarter and $280.0 billion for the year ago quarter. On a nominal basis, American Express PDV was up 4.6% YOY FX. American Express is currently growing at a 4.45% CAGR. (Note: American Express reports gross dollar volume (GDV))
Among American Express’ four regions, PDV, on an FX basis, increased +11% in the Latin America Caribbean Canada (LACC) region; +6% in the Europe Middle East Africa (EMEA) region; +6% in the Japan Asia Pacific Australia (JAPA) region region; U.S. +6%; all YOY for 3Q/19.
Discover/Diners Global Card PDV
Discover and Diners Club International reported PDV rose 3.4% YOY NFX, compared to 10.2% YOY NFX for 3Q/18. Discover/Diners Club reported global PDV for the third-quarter of $45.8 billion, from $45.2 billion in the prior quarter and a revised $44.3 billion for the year ago quarter. Discover was up 4.2% YOY for 3Q/19 and Diners was flat YOY. Discover and Diners Club are growing at a 5.48% CAGR. (Discover/Diners FX basis is not material to the global Major 4 total).
Complete Third-Quarter Report on Major 4 U.S. Global Payment Card Purchase Dollar Volume [2015-2019] Available for Immediate Download
Other Quarterly Payments Related Reports
Source: Visa; Mastercard; American Express; Discover; CardData; RAM Research; CardTrak; CardFlash; Bankcenter; CardBuzz; PYVNTS; PYRPTS; Ruebud Media; Red 3 Media; The Cardworthy Company; Robear’s List