X-Border transaction volume growth FX (currency adjusted) YOY (year-on-year) is driven solely by Mastercard. Third-quarter global cross-border transaction volume for Mastercard has consistently outpaced Visa more than double for the past two years.
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’s cross-border currency adjusted (FX) gross dollar volume (GDV) increased 7.0% YOY, while MasterCard rose 17.0% YOY for FX GDV in the third-quarter (3Q/19), according to CardData.
Visa reported its FX cross-border GDV rose 7.0% YOY in 3Q/19, compared to 7.0% in 2Q/19 and 10.0% YOY in 3Q/18. In the third-quarter of 2015 Visa reported an 5.0% YOY gain.
Mastercard reported its FX cross-border GDV rose 17.0% YOY in 3Q/19, compared to 16.0% in 2Q/19 and 18.0% YOY in 3Q/18. In the third-quarter of 2015 Mastercard reported a 16.0% 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 4.0% in 3Q/19, compared to 2.0% in 2Q/19 and a gain of 18.0% YOY in 3Q/18. In the third-quarter of 2015 Visa reported a 4.0% YOY decline.
Mastercard reported its NFX cross-border transaction volume was up 13.0% in 3Q/19, compared to 10.0%% in 2Q/19 and 15.0% YOY in 3Q/18. In the third-quarter of 2015 Mastercard reported no 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 purchase dollar volume in the third-quarter, notes Robert McKinley, Senior Analyst for CardData, CardFlash, CardTrak and head of RAM Research.
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.