How Do Visa’s and Master Card’s International Businesses Compare?
Visa (NYSE: V) and Master Card (NYSE: MA) are two of the largest payments companies. They get a large part of their business from international operations. Gross revenue from international operations is calculated as the revenue generated from transaction fees net of the rebate paid by each company per transaction. Over the 2011-2015 period, Master Card’s international transactions gross dollar volume (GDV) has grown faster at 9% than Visa’s at 8.1%. Both companies have kept the fee paid per transactions constant at 1% over the period. However, Visa’s rebates paid per transaction have grown much slowly compared to Master Card’s, leading to the outcome that its revenues have grown faster than Master Card over the period. If this trend continues in the future, expansion might not result in as much growth for Master Card as it might expect.
Have more questions about MasterCard? See the links below:
- How Much Did MasterCard’s Revenue & Gross Profit Grow In The Last Five Years?
- How Much Can MasterCard’s Revenue Grow In The Next Five Years?
- What Is MasterCard’s Fundamental Value Based On Expected 2016 Results?
- How Has MasterCard’s Revenue Composition Changed In The Last Five Years?
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