Mastercard’s cross-border volume, on a currency adjusted basis (FX), soared in the second quarter (2Q/18) outpacing Visa by 158 basis points (bps) year-on-year (YOY).
Sequentially, quarter-to-quarter (QTQ), Mastercard slipped a 121 bps, compared to Visa’s flat performance YOY.
Cross-border transaction volume refers to payments and cash volume where the issuing country is different from the merchant country.
Visa Cross-Border Transactions
Visa’s cross-border currency adjusted (FX) gross dollar volume (GDV) increased 10.0% YOY, while MasterCard rose 19.4% YOY for FX GDV in the second quarter.
Visa reported its FX cross-border GDV rose 10.0% in 2Q/18, compared to 11.0% in 1Q/18 and 10.0% YOY in 2Q/17.
Mastercard Cross-Border Transactions
Mastercard reported its FX cross-border GDV rose 19.4% in 2Q/18, compared to 21.5% in 1Q/18 and 13.6% YOY in 2Q/17.
On a nominal basis, not current adjusted (NFX), there is a dramatic difference between the two major networks.
Visa reported its NFX cross-border GDV increased to 12.0% in 2Q/18, compared to 12.0% in 1Q/18 and a gain of 15.0% YOY in 2Q/17.
Mastercard reported its NFX cross-border GDV was 23.8% in 2Q/18, compared to 31.8% in 1Q/18 and 10.1% YOY in 2Q/17.
Visa cross-border volume includes cards carrying Visa, Visa Electron, Interlink and PLUS brands.
Mastercard cross-border volume includes all MasterCard-branded programs.
Visa & Mastercard Global GDV
CardData and CardFlash recently reported Visa posted a 8.9% YOY gain in global GDV on a nominal basis, however, on an FX basis Visa was up 8.3%. Visa reported $2830 billion in 2Q/18 GDV, compared to $2721 billion in the prior quarter and $2599 billion for the year ago quarter.
Among Visa’s six regions, GDV, on a FX basis, was up 8.6% in Asia-Pacific and up 7.4% in the Latin America Caribbean (LAC) regions. Central Europe Middle East Africa (CEMEA) increased 6.6%, the U.S. grew 9.3% while Canada was up 9.8% YOY and Europe up 7.3%.
Mastercard reported a 14.2% increase YOY in global GDV on a nominal basis, however, on an FX basis Mastercard was up 14.5%. MasterCard reported $1475 billion in 2Q/18 GDV, compared to $1408 billion in the prior quarter and $1279 billion for the year ago quarter.
Among Mastercard’s five regions, GDV, on a nominal dollar basis, was up 9.1% in Canada, Europe up 19.2%, Latin America 17.1%, Asia Pacific Middle East Africa (APMEA) 14.5% and the U.S. at 9.4%.
Visa YOY FX
Visa YOY NFX
Mastercard YOY FX
Mastercard YOY NFX
Source: Visa; Mastercard; CardData; CardData; RAM Research