On the heels of Visa’s latest earnings report, payments network Mastercard is on tap to deliver earnings on Thursday morning (Oct. 28) that will likely show gains in credit spending and robust cross-border activity.
Last quarter, CEO Michael Miebach pointed to “pent up demand” as being a key driver of double-digit gross volume payments growth of 33% and cross-border volume rising by nearly 60% versus a year ago.
Read more: Mastercard X-Border Volumes Surge 58 Pct On ‘Pent Up’ Demand
Looking for Cross-Border Volume Growth
Cross-border volumes, of course, rise when people travel, and we’re likely to see a continued jump in that metric. Visa, by way of comparison said in its fiscal fourth-quarter results on Tuesday that cross-border volumes gained 38% on a currency adjusted basis.
Mastercard pointed out last quarter that cross border travel-related payments volume — card present and card not present — was up more than 130% of last year’s levels, but was still slightly less than half of pre-pandemic levels, indicating there is room for growth.
We’ll likely get some additional details on credit spending, which was up 38% in the most recent quarter, worldwide, roughly in line with increases in debit spending.
In a sign that momentum carried into the September quarter, an update through July, presented on the last earnings call at the end of that month, shows that total switched volume was up 28% year on year, and 130% of July 2019 levels.
And B2B efforts may be touched upon in the conference call, where, in past commentary, management has detailed a $125 trillion opportunity tied in part to a snapback in commercial travel and an uptake in commercial virtual cards. The continued emergence of cryptocurrencies in commerce, and the possible issuance of a central bank digital currency (CBDC) might spur some discussion on the conference call with analysts.
As had been reported earlier this month, Mastercard said that it will embed Bakkt’s crypto offerings across its banking and shopping platforms.
In terms of the mechanics of that partnership, users will be able to buy, sell and hold digital currencies in their digital wallets. Mastercard partners — including restaurants and merchants — can also issue cryptocurrency credit and debit cards and offer crypto as loyalty program rewards.
Also read: Bakkt Stock Nears $25 Per Share After Mastercard Crypto Team-Up
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