The above graph represents the Mastercard quarterly revenue by segment, starting from fiscal Q1 2008 to the recently completed quarter. The company’s net revenue is classified into five categories: domestic assessments, cross-border volume fees, transaction processing, other revenues and rebates and incentives (contra-revenue). It is important to note that the transaction processing has always been the Mastercard’s largest revenue stream.
Mastercard Segment Revenues: In-Depth
In Q1 2020, transaction processing fees contributed 54.9% to Mastercard global revenue. Mastercard revenue from transaction processing segment increased an appreciable 14.5% YoY during the first quarter, to $2,200 million. However, it’s a 2.8% decline from Q4 2019 when the company generated its highest-ever revenue of $2,263 million from transaction processing fees.
|Source||Mastercard quarterly reports & SEC Filings|
|Note||Mastercard fiscal year starts from January 1st|
Mastercard revenue from domestic assessment amounted to $1,683 million in Q1 2020, representing 4.9% YoY growth. However, on a quarterly basis, the company recorded a 5.1% decline in its domestic assessment revenue during the first quarter.
Mastercard revenue from cross-border volume also declined a notable 16.2% QoQ and 3.6% YoY in Q1 2020, amounting to $1,217 million.
Mastercard other revenue also declined a strong 13.9%, from a record $1,233 million in Q4 2019 to $1,062 million in Q1 2020. The other revenue includes data analytics and consulting fees, cyber and intelligence fees, loyalty and rewards solutions fees, ATM withdrawal fees, etc.
About Mastercard Inc.
Mastercard Incorporated (NYSE: MA) is an American multinational financial services company, offering an array of products and services to consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations globally. The company has its headquarters in Purchase, New York, United States.
In 1966, the several bankcard associations joined together to form a company named “Interbank Card Association (ICA)”. After three years, in 1969, ICA started a new national brand “Master Charge: The Interbank Card”, which was renamed “MasterCard” in 1979.
Mastercard Inc. was incorporated as a Delaware corporation in May 2001.
Mastercard launched its IPO (initial public offering) on May 25, 2006, at a price of $39 per share. With market value of $247.1 billion as of May 2020, Mastercard stands at #334 on the Forbes 2000 list of the World’s Largest Public Companies.
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