How Do Visa And Master Card’s Transaction Processing Businesses Compare?
Visa (NYSE: V) and Master Card (NYSE: MA) are two of the dominant players in the payments business. Revenue from Transaction Fees is one of the biggest drivers of valuation for these two companies. The revenue is calculated as the product of total number of cards in circulation, number of transactions per card and fee charged per transaction. Over the 2011-2015 period, Master Card’s revenue from this segment has grown faster than Visa’s. This is largely the result of a higher increase in the total number of Master Card issued cards in circulation and a higher increase in number of transactions made per card on Master Card issued cards in use. However, this increase has come at the cost of a decline the fee charged per transaction.
Have more questions about Visa? See the links below:
- How Much Did Visa’s Revenue & Gross Profit Grow In The Last Five Years?
- How Much Can Visa’s Revenue Grow In The Next Five Years?
- What Is Visa’s Fundamental Value Based On Expected 2016 Results?
- How Has Visa’s Revenue Composition Changed In The Last Five Years?
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