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The statistic highlightsMasterCard’s Average Take Rate starting from Q1 FY 2016 to the latest quarter.
Mastercard Incorporated (NYSE: MA) is a multinational financial services corporation headquartered in Purchase, New York, United States. Globally, MasterCard’s principal business is to process payments between the banks of merchants and the card-issuing banks of the purchasers who use the “Mastercard” brand credit, debit, and prepaid cards make purchases. Mastercard is traded on the NYSE, since 2006, under the symbol MA. The company stands with a market capitalization of $236.15 billion as of August 2016. Before its IPO, Mastercard was a cooperative owned by more than 25,000 financial institutions that issue its branded cards.
Take rates for payment services providers like Mastercard, is a percentage of every transaction in exchange for facilitating the transaction between the buyer and the seller.
The year 2016
Over the quarters, the average take rate dropped from 6.22% to 6.06%. In Q1, the rate was 6.22%, but in the subsequent quarter, it slightly increased to 6.26%. A subtle change of 0.64% is increasing the processing fees for the payment company, in response to the increase in purchase volume across the globe to $838 billion. The Q3 witnessed another drop to 6.22% and continuing the streak of fall to 6.06% till the end of the quarter.
The year 2017
The year reported the constant take rates across the quarters with some minor fluctuations after the third quarter. In Q1, the average take rate slightly decreased to 6.0%, dropped by 1.0%, to attract new customers and facilitate more transactions. In the second quarter, the take rate again dropped to 5.97%, the third quarter, the purchase volume increased to $981 billion, which increased the rate to 6.06%. The last quarter of the year again reported a drop-in take rate of 6.04%, a minute drop of 0.33%.
The year 2018
The whole year reported a consistent drop in the take rates. In Q1, the average take was 6.07%, which grew by 0.5% quarterly. Following the streak, the second quarter reported the decline of taking the rate to 5.80%, which is a substantial drop in the past few quarters. In the last quarter, the take rate dropped to 5.51, which is a slight decline after the fall in the third quarter.
The year 2019
This year, the take rates were entirely consistent, after a substantial drop in the first quarter. In Q1, the average take rate fell to 4.92%, drop by 10.7% compared to the last quarter. Again, after the significant improvements in the purchase volume, the take rate increased to 5.28%. Till the previous quarter, subtle nuances marked the average take rate to 5.23%, overall yearly drop by 5.08%.
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* Billed annually, local taxes extra.
* Local taxes extra.