Mastercard is currently the second-largest card network in the U.S., accounting for over a quarter of all purchase volume using a payment card. While Visa outpaces Mastercard in almost every aspect, Mastercard’s stock has outperformed Visa’s over the past five years. This could be due to various factors, including Mastercard’s stronger position in the international market, particularly in Europe. This international presence has allowed Mastercard to outgrow Visa significantly in Europe, which is a significant cross-border hub, providing a double benefit to revenue.

Mastercard’s value has continued to increase as the world transitions towards a more cashless society. As of May 2023, the company had a market cap of over $360 billion, and its shares have seen a nearly 100% gain over the past five years. From the post-financial crisis period to the pre-pandemic period, Mastercard grew its earnings at a 10-year compound annual growth rate (CAGR) of 20%, which is significantly higher than the overall earnings growth of the S&P 500, which is in the high single digits​¹​.

Mastercard has also maintained its relevance and growth through strategic acquisitions. In February 2020, it announced plans to acquire RiskRecon, a provider of artificial intelligence and data-driven risk assessment solutions. This acquisition was part of Mastercard’s larger strategy to provide customers with proactive, real-time intelligence on threats and targeted attacks and to secure digital assets, functions, and data. Mastercard’s acquisition of RiskRecon was intended to enhance its cybersecurity solutions, which are becoming increasingly important as digital transactions and online activity continue to grow​.