This story was delivered to BI Intelligence " Payments Briefing " subscribers. To learn more and subscribe, please click here . MasterCard, the second-largest US card network, posted strong growth in several key areas during its Q3 2016 earnings call. The firm saw a $350 million increase on net revenue, marking 14% year-over-year (YoY) growth, as well as increases in a few other key categories, which points to success. But as the US credit card environment becomes increasingly competitive, the firm will need to continue find ways to balance impressive rebates and incentives with profitability. Three key categories produced positive results in the third quarter. MasterCard now has a worldwide network of 2.3 billion cardholders. The firm has added 143 million cards in the past year to hit that total, marking 6% cardholder growth. It’s worth noting that card growth came entirely from MasterCard-branded products — the number of Maestro cards decreased for the fourth straight quarter on a YoY basis. And volume growth points to the idea that those cardholders are spending. MasterCard’s worldwide gross dollar volume (GDV) increased by $62 billion in Q3 YoY, representing 11% growth. That comes from both US and international volume saw positive growth, increasing by 5% and 14% YoY, respectively. The firm’s total processed transactions also grew 18% YoY, which contributed to that revenue increase. The rate of growth in GDV vastly exceeds that of cardholders, which points to the idea that as MasterCard increases the size of its network, it’s also finding ways to capitalize on rising consumer penchant for spending and incentivize ongoing engagement. Those incentives likely come in the form of rewards and rebates, which the firm must continue to spend on but maintain balance. MasterCard’s 14% YoY increase in net revenue was offset by a 20% increase in […]
