How Do Visa And Master Card’s Transaction Processing Businesses Compare?

August 3rd, 2016 by Trefis Team
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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.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Visa and our complete analysis for Master Card
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