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8 Feb 2024
General Commentary & Highlights Visa and Mastercard both had another year of strong performance on the back of healthy growth in consumer spending and cross-border volumes. Cross-border continues to drive volume growth, though growth slowed from 22% to 16% for Visa and 31% to 18% for Mastercard between Dec.’22-23 and Dec.’21-22, respectively. Visa and Mastercard card counts grew 6% and 9% respectively. Average spend per card also grew 2% for both companies after experiencing declines between Dec.’21-22 (-5% and -1%, respectively). Visa and Mastercard revenue grew 9% and 13% Q/Q, respectively. Both companies continue attributing success to cross-border spending, but cross-border revenue growth slowed. International transaction revenue growth for Visa and cross-border revenue growth for Mastercard slowed from 29% to 8% and 30% to 23% between Dec.’22-23 and Dec.’21-22 for each company, respectively. Client incentives continue growing faster than net revenue on a dollar basis for both Visa and Mastercard. Visa’s client incentives as a % of GDV grew 12% Q/Q versus net revenue growth of 1%. Similarly, Mastercard’s client incentives as a % of GDV grew 8% versus net revenue growth of 1% over the same period. Key partnership wins and relationship expansions were a key talking point during earnings calls for both companies. Visa’s highlighted partnerships were heavily focused on fintechs (47% of logos mentioned), while Mastercard’s highlighted partnerships were more heavily focused on banks (50% of partnerships). Visa announced large strategic investments in payment processing (Prosa and Pismo) and A2A payments platform Form3. Mastercard’s investment activity was spread across a variety of payment use cases (international money transfer, open banking, cybersecurity, etc.) Please do not hesitate to contact Rom Mascetti at Rom@FlagshipAP.com or Salvatore LoBiondo at Slavatore@FlagshipAP.com with comments or questions.
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