Visa Cryptocurrency Partners

Mastercard and Visa report quarterly gains, eye BNPL and crypto to fuel growth

NCUA green lights crypto partnerships for credit unions
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news: Visa And Master Card Credit Card It reported strong payout growth in its earnings, as both card networks weathered the epidemic regression period.

Total Visa payment volume increased 17% year-over-year Q4 المالية Finance (Expired September 30th)Driven by robust discount spending and improved credit spending, Visa CEO Al Kelly He said On the company’s earnings call.

  • Total payment volume in Q3 exceeded Q4 2020 growth of 4% YoY. Volume was also 121% from 2019, according to Kelly.
  • Visa’s total credit and debit volume is up 18% year over year and 15% year over year, respectively.

MasterCard’s total dollar volume (GDV) increased 20% year-over-year, purchase volume jumped 23% year-over-year in Q3.

  • Mastercard’s GDP outperformed its annualized growth rate of 1% in the third quarter of 2020. The measure was up nearly 21% year over year, putting spending solidly above pre-pandemic levels.
  • In the third quarter of 2021, the volume of US Mastercard credit and fee programs increased 36.1% year-on-year, and the volume of US debit programs grew 9% year-on-year.

How did we get here: Visa and Mastercard benefited from improved economic metrics such as unemployment, which at the end of the third quarter stood at 4.8%, down 3 percentage points from the same quarter last year, according to the US Bureau of Labor Statistics.

Improved hiring led to increased spending – combined with successful COVID-19 vaccine campaigns – likely increasing consumers’ appetite for risk, which can translate into increased card spending. In September, US retail sales excluding autos and gasoline Up 5.4% YoY (+11.5% YoY)And for every Spending from MasterCard.

What then? Both card networks can expect an increase in volume from the holiday season, which is expected to begin $1.147 trillion in retail sales in the United StatesAnd according to eMarketer forecast from Insider Intelligence.

Here’s what else is happening with these giants:

  • The US Department of Justice is looking into whether the financial incentives Visa has offered to fintech companies such as PayPal And Square prevent them from using competing card networks, for every The Wall Street Journal. The investigation is part of a larger investigation into Visa, and while the investigators are yet to come to any conclusions, it is possible that it will make operational changes to Visa’s business that could dampen revenue. But, Visa too expansion A Buy Now, Pay Later (BNPL) solution that should help drive payments growth.
  • MasterCard recently announce Its BNPL offering, which will be launched in Australia, the United Kingdom and the United States in early 2022. The solution could help the network gain market share from players such as Postpaid And Klarna. It also made a file Huge step In Crypto: Any bank or merchant on the Mastercard network will soon be able to integrate cryptocurrency into their products – something that can increase GDV value and revenue.

deepen: paying off “Payment systemTo read more about Visa and Mastercard’s relationships with payments players.

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