8.6 C
New York
Wednesday, October 4, 2023
Home News Trillion $ companies? Visa and Mastercard likely joining the club of few

Trillion $ companies? Visa and Mastercard likely joining the club of few

The first companies that succeeded to reach $1 trillion in stock market value were mostly tech and internet businesses. However, the next U.S. companies that could join this prestigious club are Mastercard Inc. and Visa Inc.

Revenue for both Visa and Mastercard practically doubled over their past five fiscal years, to nearly $23 billion for Visa, and about $17 billion for Mastercard, according to Refinitiv data. Adjusted earnings per share more than doubled for both companies over that period.

Lisa Ellis, senior analyst at MoffettNathanson says that approximately 43% of consumer purchases around the world ( without China) are made through some sort of digital payment.

She added that Visa currently has a 60% share of the credit and debit card market. Mastercard has 30%, and American Express holds 8.5%.

Even though at first it seems those two companies are far inside the financial sector, according to S&P500, they fit into the information technology sector.

The big run for Visa and Mastercard shares has also come during a more than 10-year US bull market, and gains could be more muted in any downturn. Stocks started 2020 strong but have pulled back amid concerns over the spread of a virus from China.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

The Future of Payments: Wearable Technology Revolutionising Transactions

In this blog, we'll delve into the exciting world of wearable payment technology and explore how it's poised to reshape the future of transactions.

Demystifying Payment Engines, Gateways, Processors, and Channels

The payment infrastructure is the foundation of all financial transactions in the dynamic world of digital commerce.

Cross-Border Payments, Deep Dive

It will take a deliberate strategy grounded on in-depth local market and industry knowledge to navigate this complicated and diversified market.

Achieving Product-Market Fit: A UX Designers Guide 

The Product-Market Fit framework, coupled with key insights and practical methods, offer organizations a road map for navigating this vital phase successfully.