The news: Visa and Mastercard reported strong payments growth in their earnings, with both card networks well past their pandemic declines.
Visa’s total payment volume increased 17% year over year (YoY) in its fiscal Q4 (ended September 30), spurred by strong debit spending and improved credit spending, Visa CEO Al Kelly said on the company’s earnings call.
Mastercard’s gross dollar volume (GDV) surged 20% YoY, and purchase volume jumped 23% YoY in Q3.
How we got here: Visa and Mastercard benefited from improved economic metrics like unemployment, which at the end of Q3 stood at 4.8%, down 3 percentage points from the same quarter last year, per the US Bureau of Labor Statistics.
Improved employment bumped up spending and—coupled with successful COVID-19 vaccine campaigns—likely increased consumers' risk appetite, which could’ve translated to higher card spending. In September, US retail sales excluding automotive and gasoline increased 5.4% YoY (+11.5% Yo2Y), per Mastercard SpendingPulse.
What’s next? Both card networks can expect a volume boost from the holiday season, which is expected to turn in $1.147 trillion in US retail sales, according to eMarketer forecasts from Insider Intelligence.
Here’s what else is going on with these titans:
Go deeper: Check out “The Payments Ecosystem” to read more about Visa’s and Mastercard’s relationships with players in the payments space.
11 Times SquareNew York, NY 100361-800-405-0844