Citing the continued clamp down on consumer spending caused by the recession, MasterCard today reported healthier global purchase volume for the fourth quarter ended Dec. 31, while U.S. credit card volume fell.
U.S. credit and charge card sales volume during the quarter totaled $123 billion, down 7.5% from $133 billion during the same quarter a year ago. MasterCard issuers had 203 million credit and charge cards in circulation in the U.S. as of the end of 2009, down 21.9% from 260 million a year earlier. Outside the U.S., credit and charge card purchase volume totaled $263 billion, up 20.1% from $219 billion. MasterCard issuers had 501 credit and charge cards in circulation outside the U.S. at the end of 2009, up 1.4% from 494 million a year earlier.
Debit card volume in the U.S., including PIN-debit purchases switched by competing brands appearing on the same cards, totaled $85 billion, up 10.4% from $77 billion. MasterCard issuers had 125 million debit cards in circulation at the end of the year, up 0.8% from 124 million. Outside the U.S., debit card volume totaled $40 billion, up 42.9% from $28 billion. MasterCard issuers had 137 million debit cards in circulation outside the U.S. at the end of the year, up 38.4% from 99 million.
Total purchase volume on all types of cards was up in all regions except the U.S.
U.S. purchase volume totaled $207 billion, down 1.4% from $210 billion. Total purchase volume in Europe was $154 million, up 17.6% from $131 billion . Total purchase volume in the Asia-Pacific, Middle East and Africa region was $95 billion, up 33.8% from $71 billion. Purchase volume in Latin America totaled $31 billion, up 29.2% from $24 billion. Total purchase volume in Canada was $24 billion, up 20% from $20 billion.
Total global purchase volume (credit, charge and debit cards plus cash volume) for the quarter was $674 billion, up 11% from $607 billion a year earlier.
MasterCard says cross-border volume grew 3.9% on a constant-currency basis compared with the same quarter a year earlier, though it did not provide specific numbers.
Net income for the quarter was $294 million, up 23% from $239 million a year earlier. Net revenue totaled $1.29 billion, up 5.7% from $1.22 billion.
During a conference call with analysts today, Robert Selander, MasterCard CEO, said the company continues to be cautious about consumer spending because of “the slow pace of real improvement for people’s financial security,” particularly in housing values and unemployment rates.
MasterCard does not expect any “meaningful” global economic improvement until the second half of this year, he added.
