Behind Mastercard’s Gross Dollar Volumes



Worldwide GDV

Mastercard (MA) saw a year-over-year (or YoY) rise of 13.0% in its worldwide gross dollar volumes (or GDV) in 4Q17 on a local currency basis. Compared to 3Q17, its worldwide GDV rose 2.0%. The company witnessed strong growth across the US. 

The company saw GDV growth of 9.0% in 4Q17 on a YoY basis in the US and 3.0% compared to 3Q17. In the US, Mastercard’s total GDV (including both credit and debit volumes) stood at $423.0 billion in 4Q17. Its total GDV in 4Q16 was $387.0 billion.

Of the company’s total US GDV in 4Q17, $215.0 billion relates to the debit and prepaid volumes, and $207.0 billion relates to its credit volumes.

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Rest of the world

From the rest of the world, Mastercard (MA) witnessed a substantial 15.0% adjusted growth in 4Q17 on a YoY basis. Compared to 3Q17, it rose 2.0% mainly due to APMEA[1. Asia-Pacific, Middle East, and Africa] as well as Europe. The company’s total GDV from the rest of the world stood at $998.0 billion in 4Q17 compared to $843.0 billion in 4Q16.

Of the company’s total GDV in 4Q17, its debit and prepaid volumes totaled $467 billion, and its credit volumes stood at $530.0 billion. In 4Q16, its total debit and prepaid volumes reached $377.0 billion, and its credit volumes totaled $466.0 billion.

Mastercard reported an EBITDA[1. earnings before interest, tax, depreciation, and amortization] margin of ~56.9% on an LTM (last-12-months) basis. Among its peers (XLF), Euronet Worldwide (EEFT), Global Payments (GPN), and Western Union (WU) have EBITDA margins of ~17.2%, ~22.6%, and ~12.9%, respectively, on an LTM basis.


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