Master Card Will Benefit From Increased Spending On Promotions Over The Last Three Years
Master Card (NYSE: MA) has grown its revenue from $ 11.3 billion in 2013 to $ 13.7 billion in 2015. The growth over this three-year period was driven almost equally by increases in revenue from transaction fees, international fees, assessment fees and other services. Over the next three-year period, we expect the company’s revenue growth to increase a little bit as the result of both the company’s entry into the Chinese market and the increasing presence of shopping via smart phones and on e-commerce websites in the lives of customers. These make it more likely that a customer pays through credit or debit cards as opposed to cash or internet banking, thereby increasing possibilities of revenue growth for payment companies like Master Card.
Over the last three year period, the company has been focused on spending heavily on marketing and promotions and rebates for customers, in order to bring in more partners into the Master Card payment network. We expect the company to realize benefits of these efforts over the next three years and as a result expect more than 40% of the revenue growth to come from increase in revenue from transaction fees.
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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