Expansion of Cross-Border Transactions for Visa and Mastercard: Perspectives from the Third Quarter of 2024
Visa and Mastercard See Double-Digit Growth in Cross-Border Payments
In the latest quarterly earnings reports, both Visa and Mastercard have demonstrated significant growth in their cross-border services, with strong top-line results in Q3 2024.
Cross-border payments are a key component of the businesses for both Visa and Mastercard, and fees earned on these transactions contribute significantly to their top-line revenue.
Visa's Q3 2024 cross-border business showed a robust performance, with international transaction revenues rising 14% year over year to $3.6 billion. This growth was driven by higher cross-border volumes, which increased about 11% year-over-year excluding intra-European transactions. The Cross-Border Volume Index stood at 154.1 in Q3 2024, projected to rise to around 170 in Q3 2025.
The overall global transaction volume increased 8%, with U.S. domestic transactions up 7% and international volumes up 10%. Service revenues and data processing revenues also grew by 9% and 15% respectively year over year. However, adjusted operating expenses increased 13% due to higher marketing and administrative costs.
Regional growth for Visa's cross-border business was particularly strong in Latin America (+8.6%) and CEMEA (+14.2%), indicating a rebound linked to international travel and e-commerce growth. Visa also emphasised its focus on fintech partnerships, enhanced security, and innovation to maintain a competitive advantage in the cross-border payments ecosystem.
Mastercard's Q3 2024 earnings have been reported, but specific metrics on their cross-border consumer and B2B2X business performance were not found. The available information does suggest some volatility, as Mastercard's stock dipped alongside Visa in the market context, but no concrete cross-border business performance figures or growth rates were provided.
| Metric | Visa Q3 2024 Performance | Mastercard Q3 2024 Performance | |-------------------------------|----------------------------------------|---------------------------------------| | Cross-border volume growth | ~11% YoY increase (excl. intra-Europe) | Not specified in available sources | | International transaction revenue | $3.6 billion (+14% YoY) | Not specified | | Service revenue growth | +9% YoY | Not specified | | Data processing revenue growth | +15% YoY | Not specified | | Regional cross-border growth | Latin America +8.6%, CEMEA +14.2% | Not specified | | B2B2X business performance | Supported via fintech initiatives, partnerships | Not specified |
As both companies offer various B2B2X offerings, selling the use of their network capabilities to various organizations beyond Visa Direct and Mastercard Move, this report aims to analyse their performance in terms of cross-border payments and their B2B2X offerings. It also seeks to highlight any differences in strategies and successes between the two companies. Visa's Q4 2024 earnings will be reported soon, providing further insights into their continued growth.
In light of Visa's impressive Q3 2024 cross-border volume growth of around 11%, and an increase in international transaction revenues by 14% to reached $3.6 billion, it is apparent that the company's financial performance in financing global business transactions and investing in cross-border payment solutions has been robust. However, Mastercard's Q3 2024 earnings report did not specify growth rates or performance in their cross-border consumer and B2B2X business, highlighting a potential opportunity for analysis and comparison between the two financial giants as they continue to compete in the business sector.
