What’s Driving Master Card’s Revenue Growth
Master Card ‘s(NYSE: MA) main business involves its payment network. The company charges a transaction fee for every transaction made using a credit or debit card issued by it. Depending on whether or not the card was issued by a bank in the same country as the transaction was made, the company also charges an assessment fee or a cross border volume fee. In addition to this business, the company also offers a whole host of other services. These include, but are not limited to, identity and theft protection services, reward programs for customers and other kinds of analytics. Growing this revenue stream involves a huge amount of investment on part of this company, and it is primarily this kind of investment that gives the company an advantage over competitors.
Comparing the first three quarters of the fiscal years 2016 and 2015, the company has grown its revenue by around 14.4%. However, the payments network business alone has only grown by 13.1%. It is the 22.5% growth in revenue from other services that has led to the company’s high growth. Since, these services only make up around 1/6th of the company’s overall revenue so far, the overall impact from this growth is low, but it is possible that continual investment in this area could eventually become the biggest growth driver for the company going forward.
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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