Visa and Mastercard continue to dominate the global payments industry, pulling in billions in revenue each quarter. A breakdown of their most recent financials for the quarter ending March 31, 2025, reveals where the money comes from—and where it goes.
Visa Q2 FY25: A Snapshot of Strength
Visa reported $13.3 billion in total revenue, up 11% year-over-year (Y/Y), driven by growth across all major service lines.
Where the Money Comes From:
- Data Processing: $4.7B (↑10% Y/Y)
- Service Fees: $4.4B (↑9% Y/Y)
- International Transactions: $3.3B (↑10% Y/Y)
- Other: $0.9B (↑24% Y/Y)
- Interest: $3M (↓98% Y/Y, negligible impact)
Net Revenue & Incentives:
After subtracting $3.7B in client incentives (↑15% Y/Y), Visa reported $9.6B in net revenue, marking a 9% increase year-over-year.
Profitability:
- Operating Profit: $5.4B (↓1% Y/Y)
- Operating Costs: $4.2B (↑22% Y/Y)
- Net Profit: $4.6B (↓2% Y/Y)
Despite rising costs, Visa maintained strong profitability. However, litigation provisions surged by 133% to $1.08B, cutting into profits.
Mastercard Q1 FY25: Focused on Services and Efficiency
Mastercard brought in $7.3 billion in revenue, a 14% jump from the previous year, emphasizing their strength in digital services and global transactions.
Where the Money Comes From:
- Transaction Processing: $3.5B (↑14% Y/Y)
- Value-Added Services: $2.8B (↑16% Y/Y)
- Domestic Assessments: $2.7B (↑8% Y/Y)
- Cross-Border Assessments: $2.6B (↑16% Y/Y)
- Other: $0.2B (↑2% Y/Y)
Net Revenue & Incentives:
Mastercard issued $4.6B in rebates and incentives, bringing their net revenue to $9.0B, up 12% Y/Y.
Profitability:
- Operating Profit: $4.1B (↑15% Y/Y)
- Operating Expenses: $3.1B (↑13% Y/Y)
- Net Profit: $3.3B (↑9% Y/Y)
Mastercard showed robust earnings growth while keeping costs relatively contained. Their G&A expenses hit $2.5B, the largest single line item, but litigation costs remained modest at $200M.
Key Differences Between the Giants
| Category | Visa | Mastercard |
|---|---|---|
| Total Revenue | $13.3B (↑11% Y/Y) | $7.3B (↑14% Y/Y) |
| Net Revenue | $9.6B (↑9% Y/Y) | $9.0B (↑12% Y/Y) |
| Client Incentives | $3.7B (↑15% Y/Y) | $4.6B (↑12% Y/Y) |
| Net Profit | $4.6B (↓2% Y/Y) | $3.3B (↑9% Y/Y) |
| Operating Expenses | $4.2B (↑22% Y/Y) | $3.1B (↑13% Y/Y) |
| Litigation Costs | $1.08B (↑133% Y/Y) | $0.2B (↑20% Y/Y) |
Conclusion: Who’s Winning the Swipe War?
Both Visa and Mastercard are riding the wave of digital transactions, data services, and international activity. Visa leads in raw revenue and net profit, but Mastercard appears more nimble in managing operating costs and growing earnings faster.
While litigation and political scrutiny may weigh on both, especially Visa, the core businesses remain strong. These financial giants aren’t just profiting from swipes—they’re building financial ecosystems.