On Wednesday, RBC Capital highlighted the significant growth in sales and transactions among key players in the payments ecosystem during the Black Friday Cyber Monday (BFCM) period. Block, the commerce tools provider, experienced a 17% year-over-year increase in in-store sales, while online sales jumped by 21%. The company also saw a 12% rise in restaurant transactions and a 10% growth in Buy Now, Pay Later (BNPL) transactions through Afterpay. Notably, purchases made through social media channels skyrocketed by 139%.
Shopify (NYSE:SHOP) merchants reported a remarkable $11.5 billion in sales, marking a 24% increase from the previous year. The platform served over 76 million customers, with cross-border sales accounting for 16% of global orders. Shop Pay facilitated a 58% year-over-year surge in sales. Adyen (AS:ADYEN) also saw robust activity, processing $34 million in sales volume and 670 million transactions, including 98 million in-person transactions.
Mastercard (NYSE:MA)'s SpendingPulse preliminary estimates indicated a 3.4% year-over-year rise in retail sales excluding autos on Black Friday, with online retail sales climbing 14.6%. The company's strong performance aligns with its impressive 97.8% gross profit margin and 10% revenue growth over the last twelve months, according to InvestingPro data. With an overall Financial Health Score rated as "GREAT," Mastercard continues to demonstrate robust operational efficiency.
Stripe processed a substantial $31 billion in global Total (EPA:TTEF) Payment Volume (TPV) across 465 million transactions during the BFCM period. Cross-border transactions hit a record $3.2 billion, and 428,000 transactions were made with cryptocurrency.
Adobe (NASDAQ:ADBE) reported that U.S. consumers spent $10.8 billion on Black Friday, up 10.2% year-over-year, with mobile devices accounting for 55% of sales. Cyber Monday saw consumers spend $13.3 billion, surpassing Adobe’s pre-holiday estimates and marking a 7.3% increase from the previous year. BNPL volumes also rose, reaching $991.2 million on Cyber Monday.
Salesforce (NYSE:CRM) observed a 7% growth in Black Friday spending in the U.S., totaling $17.5 billion, while global spending increased by 5% to $74.4 billion. Cyber Monday spending in the U.S. reached $12.8 billion, a 2% increase year-over-year, with global spending at $49.7 billion, up by 3%. Digital wallet payments in the U.S. grew significantly, with Apple (NASDAQ:AAPL) Pay and Google (NASDAQ:GOOGL) Pay up by 39%, representing 12% of the total volume share.
Mastercard's strong market position is reflected in its substantial dividend growth of 31.1% and its stock trading near its 52-week high of $317.42. Want deeper insights? InvestingPro subscribers have access to over 30 additional premium metrics and exclusive ProTips, along with comprehensive Pro Research Reports that transform complex financial data into actionable intelligence.
In other recent news, Visa Inc (NYSE:V). has shown impressive financial performance, with its fourth-quarter earnings exceeding expectations due to significant revenue growth. Macquarie has responded by raising its price target for the company from $300 to $335. Despite facing challenges in China during fiscal year 2024, Visa anticipates continued growth for fiscal year 2025, including a recovery in the Chinese market.
This optimism is further reflected in Visa's recent earnings call, which revealed plans for strategic acquisitions and new product launches. The company reported a 12% year-over-year increase in net revenue for FY 2024, reaching $9.6 billion, and a 16% growth in earnings per share with a Q4 figure of $2.71.
Visa also announced significant partnerships and innovations, including Visa A2A and Visa Protect for A2A payments. The company plans to acquire Prosa and Featurespace in 2025 to enhance fraud prevention capabilities. These recent developments underscore Visa's strong position and its readiness to face future growth opportunities.
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