"Despite a slowdown in travel and spending in the wake of the SARS epidemic in Asia and the war in Iraq, and ongoing economic lethargy around the world, MasterCard continued to demonstrate healthy year-on-year growth in the first half of 2003," said Robert W. Selander, MasterCard's president and CEO. "The growth we are announcing today clearly demonstrates that even in a weak global economy, MasterCard is a strong organization with a strategy that works. Our customers around the world are increasingly recognizing our commitment to bringing them value-added products and services that boost their bottom line."
Performance highlights of the first six months of 2003 include:
• Cardholders across the globe used MasterCard®-branded cards for 7.1 billion transactions in the first six months of 2003, generating gross dollar volume (GDV) of US$595.5 billion, an increase of 6.3% over the same period in 2002. Second quarter 2003 transactions reached 3.7 billion, generating GDV of $308.1, a 4.8% gain over second quarter 2002;
• As of June 30, 2003, MasterCard's 25,000 member financial institutions around the world had issued 606.4 million MasterCard-branded cards, an 8.7% increase over the first six months of 2002;
• MasterCard cardholders were able to use their cards at over 32.8 million acceptance locations around the globe as of June 30, 2003, a 15.6% increase over the same period in 2002;
• The value of purchases on MasterCard cards, a significant measure of success, continued to show double-digit growth. Globally, purchase volume (excluding cash transactions) rose 10.7% to $430.3 billion for the first six months of 2003 compared to the same period in 2002. Purchase volume was $225.4 billion in the second quarter of 2003, a 9.7% increase from the same period in 2002;
MasterCard's continued growth in the first six months of 2003 was fueled by both credit and debit programs. GDV for worldwide MasterCard credit programs grew 6% to $491.5 billion, and GDV for MasterCard offline debit programs rose 7.4% to $103.9 billion, compared to the first six months of 2002. For second quarter 2003, GDV worldwide for MasterCard credit programs rose 5.1% to $255.7 billion, and GDV for MasterCard offline debit programs grew 2.9% to $52.4 billion, compared to the same quarter in 2002.
Strong Regional Results
Strong MasterCard-branded GDV growth was reported for most regions in the first half of 2003: U.S. rose 7%; Canada, 15%; Europe, 13.8%; Latin America, 26.7%; and South Asia, Middle East/Africa, 16.8%. Asia/Pacific reported a 7.9% drop in GDV due to slow recovery from the impact of SARs for many countries in the region, continued credit card delinquencies in Korea, and the migration to a local domestic payment brand mandated by China's Central Bank.
In South Asia, Middle East/Africa, MasterCard GDV grew 16.8% during the first six months of 2003, and 17.5% for second quarter of 2003, in each case compared to the same period in 2002. Strong purchase volume growth of 17.9% and strong cash volume growth rates of 14.4% fueled the region's growth in the first half of 2003 compared to 2002.
Maestro and Cirrus Online Debit Activity
Online debit activity, which includes MasterCard's online, PIN-based global debit brand Maestro and MasterCard's ATM-only brand Cirrus, continued to grow in the first half of 2003. The Maestro brand mark appeared on 494.9 million cards worldwide at June 30, 2003, a 14.6% increase over the same period in 2002. Maestro was accepted for purchases at more than 8 million merchant terminals in 93 countries and territories, and at over 900,000 MasterCard, Maestro and Cirrus ATMs around the world.
The South Asia, Middle East and Africa region also experienced exceptional card growth with a 41.5% increase in the second quarter of 2003, compared to the same period in 2002. GDV for online debit activity in the region for the second quarter of 2003 was $12.1 billion, with purchase volume at $848.4 million. Transactions for second quarter 2003 totaled 135.0 million.
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MasterCard reports continued growth in its payment programs for second quarter, first six months of 2003
- United Arab Emirates: Wednesday, October 01 - 2003 at 14:58
- PRESS RELEASE
MasterCard International today reported that performance results for its payment programs for the three and six month periods ended June 30, 2003 continued to increase over the previous year despite ongoing weakness in the global economy, demonstrating that MasterCard's customers and their cardholders continue to turn to MasterCard as their payment brand of choice.
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Notes and media contacts
The data in this press release is provided by the member financial institutions of MasterCard International Incorporated and its affiliates ("MasterCard") and is subject to revision and amendment by such members subsequent to the date of its release. A portion of the information contained in this press release is estimated. In addition, a portion of the data relating to accounts and cards reflects the impact of routine portfolio changes among members and other practices that may lead to over counting of the underlying data in certain circumstances. Information with respect to gross dollar volumes ("GDV") includes the impact of balance transfers and convenience checks. The number of cards includes virtual cards, which are MasterCard-, Maestro- or Cirrus-branded payment accounts in connection with which functional cards are not generally issued.Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard, Maestro and/or Cirrus volumes are reported.
Period-over-period rates of change in volume-based information are provided on a local-currency basis. Accordingly, the period over period rates of change in this press release cannot be extrapolated directly by reference to the U.S. dollar volume information presented for the current and historical periods.
MasterCard-branded data regarding GDV, purchase volume, purchase transactions, cash volume and cash transactions is derived from information provided by MasterCard members that is subject to logical and statistical verification by MasterCard and partial cross checking against information provided by MasterCard's transaction processing systems. MasterCard-branded data concerning accounts and cards, and all Maestro- and Cirrus-branded data, is derived from information provided by MasterCard members that is subject to certain limited logical and statistical verification by MasterCard. Certain information with respect to ATM locations is provided by third parties and has not been independently verified by MasterCard.
The data in this press release includes information with respect to MasterCard-, Maestro- and Cirrus-branded transactions that are not processed by MasterCard and transactions for which MasterCard does not earn revenues. The substantial majority of Maestro- and Cirrus-branded transactions reported in this press release are not processed by MasterCard. Accordingly, the data in this press release cannot be taken as an indication of the financial performance of MasterCard Incorporated.
Acceptance locations include merchant locations, ATMs and other locations where cash may be obtained using the relevant card. In certain countries, merchant locations include data relating to all acceptance terminals deployed at individual merchants; terminals supporting multiple acquirers may be counted more than once in the compilation of the data.
The data in this press release relating to Maestro- and Cirrus-branded activity principally reflects the performance of members and the bankcard industry as a whole in connection with card programs carrying these brands. In certain regions and countries, a substantial portion of such information is estimated and has not been verified by MasterCard.
About MasterCard International
MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard International manages a family of well-known, widely accepted payment cards brands including MasterCard®, Maestro® and Cirrus® and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless® advertising campaign is now seen in 98 countries and in 46 languages, giving the MasterCard brand a truly global reach and scope.
Contacts:
Sharon Gamsin, 914-249-5622,
Veronika Clough, 914-249-3198
Posted by Anne-Birte Stensgaard, Senior News EditorWednesday, October 01 - 2003 at 14:58 UAE local time (GMT+4)
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