Card payment industry leaders Visa and Mastercard are reaping the benefits of expanding overseas income. Both companies recently announced a significant jump in percentage of revenue coming from use of cards outside the United States. Now about half of card payment industry income comes from overseas transactions. Increased focus on international revenue sources is paying off for both Visa and Mastercard.

Percentage of revenue from overseas card use grew dramatically in 2011. Growth worldwide increased despite the tsunami in Japan and political unrest in the Middle East.  Mastercard had previously reported in first quarter results that more than 50 percent of its income was derived from world use of its card, with worldwide volume increasing 12.9 percent in 2011. Visa reported comparable results. In second quarter 2011 Visa reported that overseas transactions accounted for 45 percent of it business.  Significantly, Visa also announced that 60 per cent of its growth in revenue came from abroad.

Both Visa and Mastercard plan to explore expansion of mobile and e-commerce payment solutions in countries without developed banking systems. New payment solutions will make it easier for merchants in developing countries to sell goods and for consumers to purchase items worldwide.  Who would have thought even a few years ago that a consumer in Europe could purchase genuine pashmina wool clothing from a small shop in Nepal using a credit card?  This capability is coming in the near future!

The prospect for growth of international income in the card payment industry looks bright. Percentage of card transactions performed outside the United States already accounts for half or more of card transactions.  Percentages will continue to grow as card payment industry leaders Visa and Mastercard expand mobile and e-commerce payment solutions to world countries.