What Led to Growth in Mastercard’s Cross-Border Volumes?
On a local currency basis, Mastercard (MA) witnessed a 14% rise in 2Q17 on a YoY (year-over-year) basis in its cross-border volumes. Europe contributed to this growth on the back of its UK outbound and inbound volumes. Other major contributors include France, Italy, and Russia.
However, some signs of recovery have also been witnessed in Latin America. With respect to the Asia-Pacific region, the company saw growth in its cross-border volumes from Japan, China, and South Korea.
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Mastercard (MA) is expected to see an increase in its cross-border payments in 2H17 on the back of its joint venture called HomeSend. According to the company’s management, by utilizing the capabilities of HomeSend, cross-border payments can be enabled to more than 85 markets.
Rise in operating expenses
On a currency-neutral basis, Mastercard (MA) posted a 17% increase on a YoY basis in its total operating expenses, which stood at $1.4 billion in 2Q17. This increase occurred on the back of the acquisition of VocaLink and higher foreign exchange charges.