Cross-border expansion of Visa and Mastercard, illuminated by Q3 2024 data insights
In the dynamic world of global payments, two giants, Visa and Mastercard, continue to dominate the landscape. This article aims to highlight differences in strategies and successes between the two companies, with a focus on their performance in cross-border payments and beyond.
Both organizations have significant and growing B2B2X offerings, providing network capabilities to payment service providers and other organizations. These offerings, such as Visa Direct and Mastercard Move, are designed to support real-time payments across ecosystems, a key aspect of their businesses.
As of Q3 2024, Visa continues to experience strong year-over-year cross-border transaction growth. International transaction revenues are expected to rise approximately 12.2%-12.8%, driven by sustained increases in cross-border volumes. Despite rising expenses and client incentives offsetting some volume gains, Visa projects an overall positive performance in cross-border and transaction-based revenues for the quarter.
Mastercard, on the other hand, while specific Q3 2024 cross-border financial metrics are not detailed in the results, continues to gain market share in regions like Latin America, competing closely with Visa in cross-border and general-purpose card payment volumes. Mastercard Move, their real-time payment and money movement platform aimed at B2B2X models, is a testament to their commitment to expanding in this sector.
The growth of cross-border card payments for both Visa and Mastercard is a notable trend. Market dynamics in 2024, including regulatory developments in Europe (e.g., EU Instant Payments Regulation), impact both firms' strategies in cross-border payments, emphasizing instant, interoperable, and compliant solutions like Mastercard Move and Visa Direct.
In summary, Visa shows robust Q3 2024 cross-border revenue growth, underpinned by real-time payment solutions including Visa Direct in B2B2X contexts. Mastercard continues strengthening its cross-border presence and B2B2X offerings with Mastercard Move, particularly in markets like Latin America. Both firms are adapting to evolving regulatory environments such as the EU’s instant payment mandates to enhance their cross-border, real-time payment capabilities and compliance.
This article requires a free account for access to extensive research and analysis on cross-border payments globally, including an industry-leading newsletter. By delving into the performance of both organizations in terms of cross-border payments and beyond, we aim to provide valuable insights for readers interested in the global payments industry.
[1] Visa Inc. (2024). Visa Reports Q3 2024 Results. [Press release]. Retrieved from https://investor.visa.com/news-releases/news-release-details/visa-reports-q3-2024-results
[2] Mastercard Incorporated (2024). Mastercard Q3 2024 Earnings Release. [Press release]. Retrieved from https://investors.mastercard.com/news-releases/news-release-details/mastercard-inc-reports-third-quarter-2024-results
[3] The European Central Bank (2024). The EU's Instant Payment Regulation: An Overview. Retrieved from https://www.ecb.europa.eu/paym/t-2/tips/html/ecb.tp24_202412_1.en.html
[4] Visa Inc. (2024). Visa Reports Q3 2024 Results - Supplemental Information. [Press release]. Retrieved from https://investor.visa.com/news-releases/news-release-details/visa-reports-q3-2024-results---supplemental-information
- In the realm of business and finance, both Visa and Mastercard are expanding their B2B2X offerings, specifically their real-time payment solutions like Visa Direct and Mastercard Move, to support cross-border transactions and improve their performance in the global payments industry.
- Despite Q3 2024 financial metrics for cross-border transactions not being detailed for Mastercard, the company is gaining market share in regions like Latin America, and its commitment to the B2B2X sector is demonstrated through the development of Mastercard Move, a platform designed to compete closely with Visa in cross-border payment volumes.
