MONDAY, JULY 10, 2017
by Robert Cardworthy, Editor-in-Chief, CardBuzz.org
Major 4 US-Based Payment Networks Near $3T in Q1 PDV - Up 7% YOY
Purchase dollar volume (PDV) for Visa, Mastercard, American Express and Discover cards (credit + debit) globally rose 21.2% year-on-year (YOY) on a nominal dollars basis for the first quarter (1Q/17). However, on a currency adjusted basis (FX), global 1Q/17 PDV increased 20.4% YOY.
The first quarter PDV figures are skewed as Visa began including Europe PDV beginning in the third quarter. Visa reported PDV for Europe of $335 billion in 1Q/17.
Discounting Visa Europe PDV the YOY gain for the Major 4 networks was 7.0% on a nominal dollar basis.
The major four networks posted $2869 billion in global PDV for 1Q/17, compared to $2990 billion in the prior quarter and $2367 billion for the year ago quarter
Visa reported an 37.2% YOY gain in global PDV for 1Q/17 on an FX basis. Visa posted $1730 billion in 1Q/17 PDV, compared to $1800 billion in the prior quarter and $1252 billion for the year ago quarter. On an adjusted (excluding Europe) non-FX basis, Visa YOY was up 11.4%.
Among Visa’s five regions, PDV, on an FX basis, was up 16.9% YOY in the Central Europe Middle East Africa (CEMEA) region; 7.1% in Asia-Pacific; 13.1% in the Latin America Caribbean (LAC) region and 9.0% in Canada. The US PDV growth was 11.7% YOY for 1Q/17.
Mastercard reported an 9.0% YOY gain for global PDV for 1Q/17, on an FX basis. Mastercard reported $862 billion in 1Q/17 PDV, compared to $898 billion in the prior quarter and $836 billion for the year ago quarter.
Among Mastercard’s five regions, PDV, on an FX basis, was up 13.2% YOY in Canada; Latin America 18.2%; Europe -3.1%; and Asia Pacific Middle East Africa (APMEA) 8.9%. The US PDV growth was 2.4% YOY.
American Express reported flat YOY for global PDV for 1Q/17, on an FX basis. American Express had an estimated $239.7 billion in 1Q/17 PDV, compared to $250.0 billion in the prior quarter and $241.1 billion for the year ago quarter. (American Express reports Gross Dollar Volume only)
Among American Express’ four regions, PDV, on an FX basis, increased 14% YOY in the Japan Asia Pacific Australia (JAPA) region followed Europe Middle East Africa (EMEA), up 12%. The U.S region declined 6% YOY, and Latin America Canada (LACC) increased 9%.
Discover and Diners Club International reported PDV rose 8.0% YOY, on a nominal basis, for the first quarter to $36.5 billion, from $39.8 billion in the prior quarter and $33.8 billion for the year ago quarter. (FX basis is not material to the global total).
TOTAL GLOBAL PDV
1Q/16: $2367 billion
2Q/16: $2541 billion
3Q/16: $3018 billion
4Q/16: $2990 billion
1Q/17: $2869 billion
Visa Global PDV
1Q/16: $1252 billion
2Q/16: $1349 billion
3Q/16: $1859 billion*
4Q/16: $1802 billion*
1Q/17: $1730 billion*
MasterCard Global PDV
1Q/16: $836 billion
2Q/16: $898 billion
3Q/16: $882 billion
4Q/16: $898 billion
1Q/17: $862 billion
American Express Global PDV**
1Q/16: e$241.1 billion
2Q/16: e$255.8 billion
3Q/16: e$238.6 billion
4Q/16: e$250.0 billion
1Q/17: e$239.7 billion
Discover/Diners Club Global PDV
1Q/16: $33.8 billion
2Q/16: $37.9 billion
3Q/16: $38.0 billion
4Q/16: $39.8 billion
1Q/17: $36.5 billion
*Visa Europe Included
**American Express Discloses GDV; PDV is historically 95% of GDV
Source: Visa; Mastercard; American Express; Discover; Diners Club; CardData
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The U.S. PIRG notes none of the superficial changes from the House bill—eliminating the continuous coverage requirement, changing the formula for (but still slashing) the subsidies that help people purchase insurance, delaying cuts to Medicaid (while making them even harsher)—are likely to change the basic facts. This bill threatens to spark chaos in health insurance markets, raise costs, degrade quality of care, weaken protections for people with pre-existing conditions, and cause millions of Americans to lose health coverage.
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Health care costs too much in this country not because too many people have access to it—we live in an affluent society that certainly can find a way to make sure that everyone has health insurance—but because the system is simply too expensive, and there’s not enough accountability for the industry to deliver better outcomes for consumers. This legislation does not even begin to address those problems.
The National Consumers League says the cruel legislation shows a brazen disregard for the well-being of Americans, and prioritizes special interests and tax breaks for the rich over affordable healthcare for all. Provisions of this bill include the elimination of essential health benefits, the establishment of ineffective high risk pools to cover America’s most vulnerable populations, and catastrophic cuts to Medicaid that surpass those included in the House bill.
The bill directly contradicts President Trump’s guarantee to leave Medicaid intact, and represents a broken promise to the American people to improve upon the House’s legislation and ensure affordable coverage for every American.
The National Consumers League urges patients and consumers to engage their Senators and ask them to vote “no” on this bill that will take healthcare away from millions of Americans. We will continue to work with our colleagues in the health and advocacy arenas to vehemently oppose this unscrupulous bill.
MORE: Senate Better Care Reconciliation Act