A MasterCard decision
to enable Maestro debit cards on the internet helped boost gross
dollar volume by 13.7% in the second quarter of 2010.
The move to allow consumers to use
Maestro, MasterCard’s European domestic debit solution, led to a
“significant increase in business momentum” on debit cards in
Poland, Turkey and Belgium. It was introduced on 1 April 2010, the
first day of MasterCard’s second quarter.
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Growth in European gross dollar
volume in the same period last year was 3.1% in local currency
terms (see chart).
“Initiatives such as these have
helped, as have new card programmes and partnerships across Europe
– all going towards the double-digit GDV figure for Europe,” said a
MasterCard spokeswoman.
At a group level, MasterCard
reported net income of $458m for the second quarter of 2010, up 31%
on the same period last year.
For the six months ended June 30,
net income was up 27.5% to $913m. Revenues in the second quarter
were up 6.7% year-on-year at $1.4bn driven by an increase in
cross-border volumes of 15.2%, growth in gross dollar volume of
8.5% to $656bn and an improvement of 4 percentage points in pricing
changes.
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By GlobalData“We are pleased with our
performance in the second quarter,” said Ajay Banga, MasterCard
president and chief executive officer, who replaced former CEO
Robert Selander in April.
“Solid GDV growth, particularly in
markets outside the US, continued momentum in worldwide
cross-border volumes, and thoughtful expense management all
contributed to good financial results this quarter.”
MasterCard’s highlights for the
first six months included a recent co-brand deal with Telefonica, a
telco in Latin America, and an agreement with Bank of China to
implement its MoneySend person-to-person money transfer
programme.
The main takeaways from the
first-half results included 30.6% growth in the business’s
Asia-Pacific, Middle East and Africa gross dollar volume (GDV) at
$282bn. Latin American GDV was up 25.9% at $100bn. Worldwide
increased 12.2%.
Credit and charge GDV declined in
the US by 5% (to $248bn), but increased 16.3% in dollar terms in
its international business (to $585bn). Debit programmes improved
3.9% in the US (to $231bn) and 38% internationally ($454bn).
The number of MasterCard cards in
issue increased by around 2m globally to 942m, with growth in all
geographies other than in the US, where card numbers declined by
41m.
Meanwhile, MasterCard acquired
European payment service provider DataCash in a deal worth £333m
($518m).
DataCash develops and provides
outsourced electronic payments solutions, fraud prevention and
alternative payment options. MasterCard wants to acquire the
business to drive growth of in the e-commerce section of its
business.
“The acquisition of DataCash will
expand our already significant e-commerce merchant gateway presence
in Asia and Australia to European countries and other high-growth,
emerging markets worldwide,” said Banga.
MasterCard’s offer for DataCash is
valued at 360 pence per share and is subject to shareholder
approval.
The companies directors have
recommended shareholders accept the deal, which is expected to
close in October.
In 2009 DataCash processed more
than 240m transactions for more than 1,400 merchants across a
variety of payments sectors. The company reported revenue of £36.9m
for the year ended December 31, 2009.
