Yogesh Sangle

Mastercard Q2 FY2025 Revenue Growth Leads the Pack, But TPV Trends Mirror Visa Mastercard exceeded expectations once again in Q2 FY2025, delivering strong growth across revenue, EPS, and gross dollar volume (GDV). But like Visa, investors are watching closely as TPV growth moderates. Q2 Highlights: >Net revenue: $8.10 B, up 17% YoY (+16% currency‑neutral) >Adjusted EPS: $4.15, up 16% YoY (beat $4.03 consensus) >GAAP EPS: $4.07 versus $3.50 (+16%) >Operating margin: ~59.9% (adjusted) versus 59.4% prior year >Net income: $3.8 B (adjusted), $3.7 B GAAP (+13–14%) >Free cash flow: ~$4.37 B, shareholder returns of $5.6 B (dividends + buybacks) Volume Performance: >Gross dollar volume (GDV): +9% YoY to ~$2.6 trillion >Purchase volume: +10% >Cross-border volume: +15% These are strong growth rates, but the GDV pace is similar to Visa’s 8% TPV growth, underscoring a moderation from previous quarters. Macro & Competitive Headwinds Analysts flagged that macroeconomic softness, global tariffs, and trade uncertainty are damping discretionary and cross-border travel spend. Cross-border remains resilient, but less front-loaded than earlier in the cycle. Competitive pressures from digital wallets and fintech rails (Apple Pay, BNPL, local networks) are increasingly diverting volume away from traditional card rails, similar to headwinds Visa is facing. Value-Added Services Are Outpacing Volume -Payment network revenue up 13% YoY, supported by rebates and volume growth -Value-added services & solutions revenue grew 23% (22% currency-neutral), including AI, authentication, loyalty, and fraud tools These structural services are capturing higher-margin recurring revenue and cushioning transaction-related revenue deceleration. Macro Momentum Makes or Breaks Mastercard raised its full-year revenue growth guide to high-end mid-teens, versus Visa’s more conservative low-teen outlook. For both networks, consumer spending remains resilient, supported by wage growth and low unemployment (but that will change in Q3) but the sustainability of this tailwind matters most to investors in 2026 and beyond. Takeaway -Visa and Mastercard share a consistent theme: transaction growth is moderating, but value-added services and global volume still drive durable revenue expansion. -Mastercard’s stronger growth profile, buoyed by value-added segments and tighter guidance, positions it as a higher growth legacy fintech though both remain fundamentally sound infra plays in the short term. #Mastercard #Visa #Payments #Fintech #Infra

84

#PhiCommerce raises ₹42.74 Cr (~$5M) via Rights Issue, Doubles Valuation to ₹1,310 Cr #Omnichannel payments platform Phi Commerce is set to raise ₹42.74 crore (~$5 million) through a rights issue to its existing investors, likely including #BEENEXT and #OpusTechnologies. The company will issue 69,840 Series B CCPS at ₹6,120 each. Proceeds will be used for general corporate purposes. Post-funding, #PhiCommerce’s estimated valuation has more than doubled to ₹1,310 Cr (~$154M), up from ₹592 Cr in the previous round. Phi Commerce powers its flagship platform PayPhi, enabling seamless digital payments across online, in-store, doorstep, and on-the-go use cases. In FY24, the #Pune-based company saw: 2.3x revenue growth: ₹81.7 Cr (FY24) vs ₹35.7 Cr (FY23) Losses: ₹29 Cr With $14M raised so far, Phi competes with giants like #Razorpay (₹2,500 Cr revenue), #PineLabs (₹1,384 Cr), and other fintechs such as Cashfree. #Fintech #DigitalPayments #StartupFunding #PayPhi #Razorpay #PineLabs #IndiaStartups #VCFunding #GrowthStageStartups #BeenextBacked #PaymentsInnovation

185

13 Comments

Everyone plans for product & marketing. Few plan for payments — and that's where most APAC expansion plans stumble. Each market in APAC — home to 60% of the world's population — comes with its own complexities: fragmented acquiring landscapes, diverse local payment preferences, evolving regulations, and the constant balancing act between cost, conversion, and customer experience. Without the right payments strategy, cross-border expansion can quickly shift from opportunity to operational challenge. I recently explored this in my article on e27 (Optimatic) — and how, with the right approach and the right partner, payments can actually become a powerful growth lever. 👉 https://lnkd.in/gWjVUjBF

81

1 Comment