Visa: Debit Stays Steady
Visa reported better-than-expected earnings on the back of steady organic growth and a return to cross-border payment volumes that are equivalent to pre-pandemic levels. Payment volumes grew + 1% year-on-year, or 7% on a constant currency basis. The company reported earnings per share of $2 18 vs the street’s estimates of $2.01. Revenue came in at $7.94 billion slightly ahead of analysts’ estimates.
Mastercard: Masters of the universe
We initiate coverage of Mastercard Inc (NYSE: MA) with a BUY rating. The company offers a payment network which is accepted globally by +40 million merchants. Together with Visa (NYSE: V) the two form a payment network duopoly. We see the primary drivers for Mastercard’s success as rising global incomes and a continued shift to a cashless society.
