What Is Master Card’s Revenue Breakdown In Its Core Payments Network Business
Master Card (NYSE: MA) generates revenue from charging a fee every time its network facilitates a transaction. That is, every time a customer makes a payment using a Master Card issued credit or debit card, the company earns money. Depending on whether the transaction was made in the country in which the card was issued, the company earns either an assessment fee or a cross-border volume fee. Over the first three quarters of the fiscal year 2016, the cumulative revenue earned by the company from the three fees has been increasing. Moreover, the growth rate has also been increasing.
However, comparing the first three quarters of the fiscal years 2016 and 2015 also shows another trend. While the company has grown its revenue from this business by over 13%, transaction fees have grown by 18.6%, while assessment fees have grown by only 8.6% and cross border volume fees by 11.6%. This suggests that the company has been able to generate more transactions from its customers but at the expense of lower assessment and cross border volume 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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