MasterCard Inc. (MA) recently said that processed volume in the U.S. declined less in July and August than in the second quarter of 2009. This reflects a rebound from the gloomy days of the financial crisis and reinforces sentiment that the payment industry is stabilizing.
U.S. processed volume fell about 8% in July and August compared with a year ago. In the second quarter, processed volume declined 9.7%. The decline in July and August was driven by fewer credit card transactions, partially offset by higher use of debit cards.
On Monday, Visa Inc. (V), the world’s largest payment network, also noted the same trend with its US payment volume falling less in August than in July as more consumers used their debit cards.
MasterCard’s cross-border volume dropped about 1% in July and August, compared with a 2.1% contraction in the second quarter of 2009. Worldwide processed transactions grew 8% in the two months, in line with the second quarter. Transaction growth has stabilized as consumers continue to increase the use of their debit cards.
MasterCard is partially cushioned from the global credit crisis as it processes transactions rather than extending credit. However, revenue growth has slowed along with transaction volume as liquidity has tightened and consumers are trying to reduce their debts.
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