Captains of the Industry: Who Came Out Ahead This Quarter (updated)

As Summer starts to heat up, we enter earnings season. Some of the big players in payments have made announcements and we wanted to revisit what these Captains of the Industry had to say earlier in the year.



MasterCard’s net revenue for the second quarter of 2010 was $1.4 billion, a 6.7 percent increase versus the same period in 2009. The company also reported $3.49 per diluted share. (Full report)

“Solid GDV growth, particularly in markets outside the U.S., continued momentum in worldwide cross-border volumes, and thoughtful expense management all contributed to good financial results this quarter,” said Ajay Banga, MasterCard president and chief executive officer, in a press release.

Gary Flood, President of Global Products and Solutions, revealed to earlier this year where he believes the focus of U.S. payments will shift.



Visa’s net income for the fiscal third quarter dipped to $716 million, compared to $729 for the same period in 2009. The company’s press release stated GAAP net operating revenue was $2.0 billion, an increase of 23 percent over the prior year, which Visa attributed in particular to data processing and international transaction revenues. (Full report)

“Visa delivered a solid financial performance during our fiscal third quarter as we saw continued improvements in global cross border and payments volume growth,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “As we look to the remainder of our fiscal 2010 year, we remain focused on integrating our recent acquisition of CyberSource, maintaining strong financial performance and expense control discipline.”

Visa’s President for the Americas, Bill Sheedy, spoke with earlier this year and offered his views on the future of the payments industry.

American Express


At $0.84, American Express Company’s second-quarter EPS is up significantly from a year ago when diluted per share net income was only $0.09. Compared to $337 million in 2009, net income this past quarter reached $1 billion. (Full report)

“Spending rose across all segments with the largest increases coming from corporate cards, cards issued by our bank partners, charge cards and premium co-brand products where many cardmembers tend to pay in full each month,” said Kenneth Chenault, chairman and chief executive officer, in a press release.

Ken sat down with towards the beginning of 2010 to explain how American Express has navigated the financial crisis as well as government regulation.

Wells Fargo


Wells Fargo’s net income increased 20 percent from the quarter prior, growing from $515 million to $3.06 billion. The company reported diluted earnings per common share of $0.55. (Full report)

“In the six quarters since the merger with Wachovia, Wells Fargo has earned cumulative profits of $17.9 billion reflecting the breadth of our business model and the power of the consolidation with Wachovia,” said Chief Financial Officer Howard Atkins in a press release.

His colleague, Wells Fargo Card Services President Mike McCoy, divulged to his strategy to lead innovation in the payments space when we caught up with him earlier this year.



Delivering a record second quarter performance, PayPal’s net revenue reached $817 million, up from $669 million a year ago. The eBay-owned company added a million new accounts each month, and merchant services net total payment volume grew 43 percent, from $9,119 in 2009 to $13,064 in 2010. (Full report)

“PayPal is strong and getting stronger, building a robust and innovative global footprint serving all of ecommerce,” said John Donahoe, eBay Inc. President and CEO.

What’s next for PayPal? PayPal President Scott Thompson gave the inside scoop.



While basic and diluted earnings per share for the second quarter dropped $0.02 to $0.25, TSYS’ total revenues rose 5.3 percent from last year to $433.7 million. Income from continuing operations decreased 5.2 percent to $49.6 million compared to last year, according to the company’s press release. (Full report)

“The quarter’s performance is highlighted by increased overall transaction volume and expense control. Through the first six months, same client revenues grew 3.6%,” said Philip W. Tomlinson, chairman of the board and chief executive officer of TSYS.

He shared his positive outlook for 2010 with and explained how TSYS will drive innovation through their diverse business model.

What are your thoughts on this quarter’s results? Comment below.


Related Links


Ken Chenault, Chairman and CEO | American Express

Gary Flood, President of Global Products and Solutions | MasterCard

Mike McCoy, President | Wells Fargo Card Services

Bill Sheedy, President for the Americas | Visa

Scott Thompson, President | Paypal

Phil Tomlinson, Chairman of the Board and CEO | TSYS