Mastercard (NYSE: MA) and Visa (NYSE: V) are two of the largest payments companies in the world. As a result, they have a great view on consumer spending that’s taking place. With both companies reporting their earnings results for the second quarter of 2026 earlier this week, the bottom line is that consumer spending remains strong in the USA and other parts of the world. Here’s what they are seeing.
*What’s shown in italics between the two horizontal lines below are quotes from Mastercard and Visa’s management teams that I picked up from their earnings conference calls.
From Mastercard
1. Mastercard’s management sees consumers and businesses being healthy and continuing to spend and they are supported by positive job growth, low unemployment, and purchasing power; management is monitoring geopolitical risks; management is seeing economies around the world adapting to changing conditions; the fundamentals of consumer and business spending and travel remain healthy
Consumers and businesses are healthy and continue to spend, supported by positive job growth, low unemployment, and real purchasing power in many major economies. At the same time, we continue to monitor geopolitical uncertainty and its potential economic impacts…
…Around the world, economies are adapting to changing conditions, with consumers and businesses continuing to demonstrate resilience…
…Overall, the underlying fundamentals of consumer and business spending and travel remain healthy.
2. Worldwide GDV (gross dollar volume) was up 8% year-on-year in 2026 Q2 in constant-currency basis; cross-border volume was up 12% globally in constant-currency, driven by both travel and non-travel cross-border spending (cross-border volume growth was 13% in 2026 Q1); switched transactions was up 9% year-on-year in 2026 Q2; card growth was 5% in 2026 Q2, with Mastercard ending the quarter with 3.7 billion cards in circulation (there were 3.7 billion cards in 2026 Q1, and year-on-year growth was 5% then); domestic assessments were up 10%, cross-border assessments were up 20% and transaction processing assessments were up 12%
I’ll speak to the growth rates of our key volume drivers for the second quarter on a local currency basis. Worldwide gross dollar volume, or GDV, increased by 8% year-over-year. In the U.S., GDV increased by 6%, with credit growth of 10% and debit growth of 1%. As a reminder, the Capital One debit portfolio migration was basically complete in Q1. Excluding the impacts from that migration, our U.S. debit GDV growth would have been 8%. Outside of the U.S., GDV increased 9%, with credit growth of 9% and debit growth of 10%. Cross-border volume increased 12% globally for the quarter, reflecting continued growth in both travel and non-travel related cross-border spending…
…Switched transactions grew 9% year-over-year in Q2…
…Card growth was 5%. Globally, there are 3.7 billion Mastercard and Maestro-branded cards issued…
…All growth rates are described on a currency-neutral basis unless otherwise noted. Looking quickly at each key metric. Domestic assessments were up 10%, while worldwide GDV grew 8%. The two PPT difference is primarily driven by pricing. Cross-border assessments increased 20%, while cross-border volumes increased 12%. The eight PPT difference is driven primarily by pricing in international markets and mix. Transaction processing assessments were up 12%, while switched transactions grew 9%. The three PPT difference is primarily due to favorable mix and pricing, partially offset by lower revenue from FX volatility, and other network assessments were $326 million this quarter.
3. In 2026 Q2, Mastercard’s operating metrics had good year-on-year growth and were stable sequentially; in July 2026 so far, Mastercard’s operating metrics continue to be strong with worldwide switched volume growth of 9% (6% in the USA, and 11% outside of the USA), switched transactions growth of 9%, and cross-border volume growth of 11%; card-not-present ex-travel’s sequential decline in growth rate was driven by timing; Mastercard’s US business had some benefit from the World Cup in 2026 Q2, but it was hard to quantify; Mastercard’s US business continues to have healthy consumer and business spending trends; management is seeing strong spending trends in both mass and affluent consumers in the US and around the world, although affluent consumers have higher growth in spending
Let me comment on the operating metric trends for Q2 and the first four weeks of July. Switched metrics were generally in line with Q1, and underlying spend remained stable. Of note, excluding Capital One debit, on a like-for-like basis, U.S. switched volume growth was 10%, or two PPT higher sequentially. This increase was driven by higher spend on fuel and overall strong consumer and business spending.
Moving to our cross-border metrics, our overall cross-border volume growth remained healthy at 12% in the second quarter. Cross-border card-not-present ex-travel remained strong at 20%, benefiting from increased card-not-present spend from Venezuela and the timing of large retail promotional events. While cross-border travel was down sequentially, relative to the April metrics we discussed on our last earnings call, we saw improved growth in the quarter due to lower impacts from the developments in the Middle East and timing of holidays.
As we look at the first four weeks of July, our metrics remain relatively stable and strong. Looking specifically at card-not-present ex travel, let’s focus on July compared to June. The sequential decline is primarily driven by timing, including the large retail promotional events that happened in June this year as compared to July last year, and by mix of days…
…The strong underlying consumer and business spending, which we’re seeing in the U.S. There has been a tailwind which has come on account of higher fuel prices, so let’s recognize that. You probably have some impact coming through from the World Cup as well, as it relates to the second quarter in particular. Hard to really quantify what that is just because we can’t really identify exactly what that is. I would tell you the underlying consumer and business spending trends continue to hold up well in the U.S. To your point, if I look at it’s broad-based. We see it across credit and debit. We see it across consumer and commercial…
…I would say they’re holding up well, both across mass and affluent. Certainly in the U.S., but across the world as well. We try and track the best we can as it relates to what we’re seeing in spending patterns based on the product codes that are out in the market, which serve the different categories of customers. When we look at that, we’re seeing generally strong trends, across both mass and affluent. What you do tend to see is higher growth in the affluent side of spending. That’s kind of not a new phenomenon. That’s been with us for some time now.
From Visa
1. US payments volume growth was good at 10% in 2026 Q2 (FY2026 Q3), a growth rate not seen since FY2019; there was good growth in both US credit and debit volumes; growth across consumer spend bands improved sequentially, with the highest spend band continuing to grow the fastest; both discretionary and non-discretionary spend remained strong; management did not see a deterioration in spend in the lower bands
U.S. payment volume grew 10% year-over-year, up about two points from Q2, a growth rate not seen since fiscal 2019, excluding the post-COVID recovery, with both card present and card not present growth accelerating strongly. U.S. payments volume growth was the result of several factors, including higher tax refunds, the cost of fuel, retail, including the timing of promotional shopping events, strong Visa Direct growth, and FIFA-related spend. U.S. credit rose 11% year-over-year, up more than a point from Q2. Debit accelerated by more than two points from Q2 to grow 9% year-over-year. Growth across consumer spend band saw incremental improvement from Q2, with the highest spend band continuing to grow the fastest. Across our volume, both discretionary and non-discretionary spend remained strong. We do not see signs of the lower spend consumer weakening in our volumes.
2. Visa’s cross-border volume growth remained strong in 2026 Q2 (FY2026 Q3) at 12%, up from 11% in 2026 Q1
Q3 total cross-border volume grew 12% year-over-year, up more than a point from Q2. Cross-border e-commerce volume was up 16%, three points above Q2, primarily driven by retail, including the timing of promotional shopping events. Travel-related cross-border volume was up 10%, consistent with Q2. While the conflict continued to be an offsetting factor, commercial and U.S. inbound continued to improve, and in June, the FIFA World Cup boosted inbound North America and Latin America volume.
3. Payments volume on Visa’s network continues to grow in July 2026, with US payments volume up 9%, cross-border volume up 14%, e-commerce volume up 18%, and processed transactions up 9%
Now, let’s look at drivers through July 21st, with volume growth in constant dollars. U.S. payments volume was up 9%, with both credit and debit up 9% year-over-year. A step down from June, primarily due to retail, including the timing of promotional shopping events, a lack of a day’s mix benefit that helped June, and the change in the cost of fuel. For cross-border volume excluding transactions within Europe, total volume grew 14% year-over-year, with e-commerce up 18% and travel up 12%. Processed transactions grew 9% year-over-year.
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