Credit Card Giants, Visa and Mastercard, Show Recovery in Q3 2021; Travel Remains Sluggish
In the final quarter of 2021, both Visa and Mastercard demonstrated significant growth in their payment volumes, with a focus on cross-border transactions and the burgeoning crypto market.
Visa processed over 5 billion transactions across almost 550 enablers in FY 21, with a 35% increase in transactions in Q4. Although this represents a smaller increase compared to the past few quarters, it still marks a strong performance for the company. Visa's total global payments volume in Q4 2021 was 84% of 2019 levels, showing a 12% year-on-year growth. Cross-border volume excluding intra Europe for Visa was 86% of 2019 in Q4, representing a 46% jump year-on-year.
Mastercard, on the other hand, processed over 4 billion transactions through Mastercard Direct in FY 21, and saw a 15% increase in transactions in Q4. Mastercard's cross-border travel volumes in Q4 2021 are at 88% of 2019 levels, showing a 36% increase from Q3. Ecommerce (cross-border card-not-present) remains the strongest for Mastercard, with volumes at 45% above 2019 levels in Q4.
Both companies have shown growth in cross-border volume fees, with Mastercard seeing a 59% growth in Q3 and Visa capturing $3.5bn+ crypto payment volume in FY 21, although specific figures for Q4 were not available.
In terms of their strategic partnerships, Visa has almost 60 crypto platform partners with Visa credential issuance capabilities, while Mastercard has over 50 crypto platform partners with Mastercard credential issuance capabilities.
Looking at their broader financial performance, Visa typically emphasizes its robust financial performance and market dominance, while Mastercard reports strong earnings and strategic expansions. Both companies face regulatory pressures, such as interchange fees, which can impact their pricing strategies.
For detailed insights into their Q3 2021 pricing strategies, it would be necessary to review their specific earnings reports or press releases from that period. However, the search results do not provide that information. Mastercard expects net revenues to grow in the low 20s in Q4, while Visa saw a record total global payments volume of $4.8tn in Q4 2021.
[1] [Interchange Fees: A Comprehensive Guide](https://www.mastercard.us/en-us/about/newsroom/stories/interchange-fees-a-comprehensive-guide.html) [2] [Visa Faces Antitrust Lawsuit Over Interchange Fees](https://www.wsj.com/articles/visa-faces-antitrust-lawsuit-over-interchange-fees-11601710523) [3] [Mastercard Faces Antitrust Lawsuit Over Interchange Fees](https://www.reuters.com/article/us-mastercard-antitrust-idUSKBN27S14E) [4] [EU Fines Visa and Mastercard Over Interchange Fees](https://www.nytimes.com/2018/12/05/business/european-union-visa-mastercard-fines.html)
The growth in cross-border transactions for both Visa and Mastercard, a key aspect of their business, is partially driven by financial technology advancements. The increased focus on the crypto market has led to significant growth in cross-border volume fees for these companies. Despite regulatory pressures such as interchange fees, both Visa and Mastercard continue to show strong financial performance in the technology-driven finance sector.
