Second-quarter U.S. gross dollar volume (GDV), among the Major 4 payment networks (Visa [V], Mastercard [MA], American Express [AXP], and Discover [DFS]), lost momentum, growing 8% year-on-year (YOY), compared to a 9% YOY gain for the year ago quarter.
The Major 4 reported $1028 billion in U.S. credit card gross dollar volume for the second-quarter (2Q/19), compared to a revised $932 billion for the prior quarter, and a revised $951 billion for 2Q/18. In the second-quarter of 2015 the Major 4 posted $738 billion in U.S. credit card GDV.
Second-Quarter Analysis
The Major 4 payment networks posted an 8.1% YOY increase in the second-quarter U.S. credit card GDV, compared to a 9.4% YOY gain in 2Q/18; a 9.7% YOY increase in 2Q/17, and a 7.3% jump in 2Q/16. The four-year current CAGR (compound annual growth rate) for the Major 4 credit card GDV is running at 8.64%.
On an annual or YOY basis, Mastercard led the Major 4 in U.S. credit card GDV, as the only payments network posting a double-digit gain. On a CAGR basis, Visa is the only payments network posting a double-digit increase in U.S. credit card GDV, mainly due to the 2016 Citibank acquisition of American Express Costco accounts. Visa continues to hold sway in the U.S. credit card market with a 52.7% marketshare.
Visa U.S. Credit Card GDV
Visa reported an 6.9% YOY gain with second-quarter U.S. credit card GDV of $542 billion, compared to a revised $488 billion for 1Q/19 and a revised $507 billion for 2Q/18. Visa U.S. credit card GDV grew 10.2% YOY for 2Q/18. In the second-quarter of 2015, Visa posted $352 billion in U.S. credit card GDV. Visa is currently growing at a CAGR of 11.39% for U.S. credit card GDV, driven primarily by the migration of American Express cobranded cards to Citibank and Visa in 2016.
Mastercard U.S. Credit Card GDV
Mastercard reported an 12.3% YOY gain with second-quarter U.S. credit card GDV of $237 billion, compared to a revised $212 billion for 1Q/19 and a revised $211 billion for 2Q/18. Mastercard U.S. credit card GDV grew 7.7% YOY for 2Q/18. In the second-quarter of 2015, Mastercard posted $172 billion in U.S. credit card GDV. Mastercard is currently growing at a CAGR of 8.34% for U.S. credit card GDV.
American Express U.S. Credit Card GDV
American Express reported a 7.2% YOY gain with second-quarter U.S. credit card GDV of $209 billion, compared to a revised $196 billion for 1Q/19 and a revised $195 billion for 2Q/18. American Express U.S. credit card GDV grew 9.6% YOY for 2Q/18. In the second-quarter of 2015, American Express posted $182 billion in U.S. credit card GDV. American Express is currently growing at a CAGR of 3.52% for U.S. credit card GDV, dampened by the migration of American Express cobranded cards to Citibank and Visa in 2016.
Discover U.S. Credit Card GDV
Discover reported a 3.9% YOY gain with second-quarter U.S. credit card GDV of $40 billion, compared to a revised $36 billion for 1Q/19 and a revised $38 billion for 2Q/18. Discover U.S. credit card GDV grew 8.6% YOY for 2Q/18. In the second-quarter of 2015, Discover posted $32 billion in U.S. credit card GDV. Discover is currently growing at a CAGR of 5.74% for U.S. credit card GDV.