While we have a commanding 48% payment volume share on the net, our ultimate goal is for an ever-increasing number of consumers to recognize that the fastest, safest, and easiest way to transact online is with a Visa branded product.
To that end, among other upgrades, we are on the cusp of rolling out an enhanced consumer platform that will ultimately assist Internet shoppers in three ways. First, pre-purchase activities like a best price search capability; second, check-out activities like aliasing and auto form fill; and third, post-purchase capabilities like tracking and shipping.
Saunders said he'd "have more to say about this in the coming months."
In the U.S., we believe this is a $1 trillion potential market while globally it could be as high as $3 trillion.
Stacked up against worldwide Visa payment volume for the 12 months through March of $2.7 trillion, it’s easy to see that even a nominal penetration of this market could be needle moving for us.
The largest opportunity globally is penetrating the under-banked segment with general purposed reloadable cards.
MasterCard reported net income of $349 million, up 26.4% year over year. Net revenue was $1.3 billion, a 2.7% increase.
MasterCard’s gross dollar volume was down by 0.6% on a local currency basis, versus the second quarter of 2008, to $595 billion. Worldwide purchase volume during the quarter was down by 0.7% on a local currency basis, versus the second quarter of 2008, to $450 billion. US purchase volume declined 8.8% - reporting the largest decline of any of MasterCard's regions.
The company reported adjusted quarterly net income of $507 million (excluding the gain on the VisaNet do Brasil shares) on net operating revenue of $1.6 billion, an increase of 2% over the prior year. Visa's payments volume growth declined 5% over the prior year to $617 billion and total volume, on a nominal basis and inclusive of cash volume, was $969 billion, a 7% decline over the prior year. Total processed transactions, which represent transactions processed by VisaNet through June 30, 2009, totaled 10.3 billion, an 8% increase over the prior year.
From the abstract:
"While the economic recession continues to threaten the financial security of low- and middle-income households, its effects have been heightened by the reality that, even before the downturn, millions of households were experiencing difficulties meeting the most basic expenses. Now, as families experience declining home values and tightened credit markets, many are falling behind on their mortgage and credit card payments.
The following report shows how skyrocketing costs, dwindling savings, stagnant wages and medical debt have forced low and middle-income families to turn to plastic as the de-facto safety net.
The report is based on a survey conducted between April and August 2008-consisted of 1,205 phone interviews with low- and middle-income households whose incomes fell between 50 percent and 120 percent of local median income; such households comprise roughly half of all households in the country.
"The new agreements include credit card processing contracts with Yaodu Credit Cooperative; Shandong Provincial City Commercial Banks Alliance, an alliance of 14 city commercial banks; Yunan Rural Credit Union and Guangxi Beibu Gulf Bank. The new agreements also include a prepaid processing contract with KargoCard, a Malaysia-based retail marketing company that will be introducing innovative stored-value and reloadable gift card programs to retail brands and merchants in Asia."
Javelin says "that conditions are growing ripe for potential widespread consumer use of mobile devices to send payments between one another: smartphones are now used by 17 percent of consumers, mobile banking is used by many, and use of the internet for banking and shopping has been common for years. These are just some of the conditions that have created an increased likelihood that consumers will soon begin to use mobile person-to-person (P2P) transfers."
As part of the changes, John C. (Hans) Morris will step down as President - although he will remain with the company in a transition role through year-end. "Hans played an important role as we created Visa Inc., executed the IPO and transitioned Visa to a high performing public company," said Joseph W. (Joe) Saunders, Chairman and CEO of Visa. "We've benefitted from his energy, insight and counsel."
Visa's global sales, client service, marketing, product development and innovation functions will be consolidated, effective immediately, under John M. Partridge, Chief Operating Officer.