Credit card spending for MasterCard in the US increased in April and May of this year, but declined 3% for Visa. Chief Executive for MasterCard, Ajay Banga, stated that cross border payments in Europe increased 17% and that US volumes rose 9.5%.
One of the chief concerns of Banga is the crisis in Greece. Banga stated that MasterCard is ready for an orderly exit of Greece from the Euro currency zone, but an overnight exit would cause some major problems. If Greece exited suddenly, many cardholders cards would no longer work.
Banga stated that MasterCard would have to shut off some cards because I wouldn’t want to take a Greek card traveling to Germany paying for something in euros and then I end up having to settle based in the euros or the drachma (exchange) rate that I have no conclusion to draw on, or no way to hedge myself against.
Consumer confidence in Europe is still a problem, although it is starting to rebound in the United States.