Debit cards (including prepaid cards) continue to be featured in MasterCard (NYSE: MA) earnings and in their earnings calls. Today, MasterCard reported higher than expected quarterly earnings thanks, in part, to reduced costs, and greater usage of MasterCard debit cards.
On the MasterCard third quarter earnings call (available for replay here), MasterCard CEO Robert Selander spent a good amount of time discussing debit and prepaid cards. Here are a few tidbits:
- Worldwide debit volume grew 15.2% for the quarter on a local currency basis.
- In the U.S., debit volume grew 7.2%. Debit growth for the rest of the world was almost 26.5%, primarily driven once again by several countries in MasterCard’s Asia-Pacific Middle East Africa region due to market growth and customer wins.
- Selandar discussed a recent partnership announcement with USAA bank, stating: “I am also pleased to announce that USAA will be implementing our MasterCard integrated processing solutions, our world-class debit and prepaid processing platform. USAA will employ the full capabilities of the platform’s network and issuer processing services to support signature debit, pin debt, and ATM transactions.”
- Selander discussed the World Debit MasterCard issued by Fifth Third, stating that Fifth Third is “now issuing World Debit MasterCard cards which [are] the only premium debit product in the United States that gives mass affluent consumers access to enhanced rewards, unique offers, and savings opportunities. Fifth Third is the second issuer to launch world debit MasterCard since we launched this platform in the spring.”
- Selander also discussed a payroll card announcement. “Underscoring our strength in prepaid, in September MasterCard, Walmart, and First Data launched a new payroll card program for Walmart and Sam’s Clubs employees in the United States. Electronic payroll program will include the deployment of the money network MasterCard pay card and electronic pay stubs, which will cut down on paper consumption and provide associates easier access to their wages.” Apparently, this is the largest payroll card program in the world.
Prepaid debit and debit cards are, clearly, a large driver of MasterCard growth. We expect to continue to hear good numbers and good news from MasterCard and other card networks around debit and prepaid in the coming months.