Consumer purchase volume running through the Mastercard network rose by 14% during Q3 2019, accelerating slightly from Q2, driving revenue and earnings per share past Wall Street’s expectations.
Consumer purchase volume send Mastercard beyond results expectations
Revenue at Mastercard increased by 15% on an annual basis, to $4.5 billion, against analysts’ estimates of $4.4 billion. During the quarter, the company acquired the Danish real-time payments company Nets for $3.2 billion, as part of its strategy to expand beyond card payments and become a “multi-rail” payments company.
Mastercard is also investing in its business-to-business payments tools. Last week, rival Visa reported its payment volumes rose 9% in its Q4 2019 report.
“Our fourth quarter results demonstrate our ability to grow the top line, invest thoughtfully in the business to drive future growth, and return capital to shareholders. An important indication relative to the health of our network is transaction growth. In this regard, Q4 ended strongly, with over 47 billion payment transactions, an increase of 5.3 billion or 12.6% compared to this quarter last year,” said Alfred F. Kelly, Chairman & Chief Executive Officer, Visa, Inc on the Q4 2019 Earnings Call.
“Payments volume grew at 9% globally, 10% excluding China. We also saw strong growth in payments volume across every region, and growth accelerated versus the last quarter in every international region.”
Credit-card issuing banks such as Citigroup, JPMorgan and Capital One have reported solid results from their card operations, too, as US consumers continue to spend and interest rates on loan balances remain near multi-decade highs.
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