Latest news with #transactionfees
Globe and Mail
6 hours ago
- Business
- Globe and Mail
Coinbase's Transaction Fees Improve: Will it Accelerate Growth?
Coinbase Global Inc. COIN generates the bulk of its revenues from transaction fees, its biggest but most volatile income source. Transaction revenues, which contribute over 50% of COIN's top line, are closely tied to trading volumes and are primarily earned from spot trades executed by both retail and institutional customers on its platform. International revenues comprised mainly transaction revenues. Transaction revenues increased 18.2% year over year to $1.3 billion in the first quarter of 2025, driven by a 26% increase in trading volume, which reflected both broader market momentum and Coinbase's rising market share in the United States. For the second quarter of 2025, COIN expects institutional transaction revenues to be impacted by $30 million to $40 million on a quarter-over-quarter basis. The surge in crypto trading activity, spurred by increasing adoption of Bitcoin ETFs and tokenized assets, continues to drive COIN's transaction-based income. To support long-term growth and improve crypto utility, Coinbase is investing in foundational infrastructure like Base, its Layer 2 Ethereum scaling solution. In 2024, Coinbase partnered with Stripe to integrate USDC on Base, advancing global crypto adoption. Additionally, the platform has broadened its asset offerings by launching tokenized equities such as cbXRP and cbDOGE on Base. Transaction revenues offer strong operating leverage, with profitability improving as volumes rise faster than costs as well as scale globally. While inherently sensitive to market conditions, this revenue stream continues to be a key growth engine. At the same time, Coinbase is steadily expanding its subscriptions and services segment to diversify income and enhance business resilience. What About COIN's Competitors? COIN competes with Robinhood Markets HOOD and Interactive Brokers Group, Inc. IBKR, two crypto-oriented companies. Transaction revenues, a key contributor to Robinhood Markets' growth, are driven by active retail trading in cryptocurrencies, options, and equities. Making up over 60% of its total revenues, these earnings reflect Robinhood's strong sensitivity to market fluctuations and the behavior of retail investors. Interactive Brokers Group's commission-based transaction revenues are a key driver of growth, reflecting its success in capitalizing on rising client trading activity. This high-margin revenue stream demonstrates strong operating leverage, as increased trading volumes translate into outsized revenue gains and improved profit margins. COIN's Price Performance Shares of COIN have gained 1.2% year to date, outperforming the industry. COIN's Expensive Valuation COIN trades at a price-to-earnings value ratio of 45.5, above the industry average of 18.72. But it carries a Value Score of F. Estimates Movement for COIN The Zacks Consensus Estimate for COIN's second-quarter and third-quarter 2025 EPS has moved down 47.1% and 37%, respectively, over the past 30 days. The same for full-year 2025 and 2026 has increased 52.3% and 16.7%, respectively. The consensus estimates for COIN's 2025 and 2026 revenues indicate year-over-year increases. While the consensus estimate for COIN's 2025 EPS indicates a decline, the same for 2026 EPS suggests an increase. COIN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Telegraph
3 days ago
- Business
- Telegraph
How to get up to £70 compensation from Mastercard, even if you've never paid with one
Millions of people in the UK could be entitled to claim compensation from Mastercard – even if they have never used one of the payment provider's cards. Following a group legal claim against the company regarding transaction fees, a resulting £200m settlement means millions of people who were making card transactions in the UK during the 1990s and 2000s could be due compensation. Here, Telegraph Money explains who could be eligible for a payment and what you need to do to claim. Why is Mastercard paying compensation? How much compensation could be available? Who is eligible? How to submit a compensation claim Compensation scams – be on your guard Why is Mastercard paying compensation? Mastercard's £200m settlement is the result of a long-running legal case initiated by the former financial ombudsman, Walter Merricks, in 2016 at the Competition Appeals Tribunal in London. Mr Merricks argued that in the years between 1992 and 2008, shoppers were being overcharged as a result of Mastercard's high transaction charges. Mastercard provides the technology that enables shoppers to make fast, secure card payments, and it charges retailers fees to use its services. Mr Merricks said retailers then effectively passed those high charges on to consumers in the form of higher prices in the shops. It's the largest settlement of a group claim in the UK. Nonetheless, it remains substantially less than the £10-£17bn Mr Merricks claimed shoppers were owed. Although the settlement between Mr Merricks and Mastercard was agreed in 2024, it was only approved by the Competition Appeals Tribunal in May. Commenting on the agreement, Mr Merricks said: 'I am very pleased that after nearly nine years of litigation with Mastercard, I have agreed a settlement that I believe will deliver meaningful compensation to class members who choose to come forward to participate in the distribution of the damages. 'Ever since I began my claim, I have aimed to ensure that the new regime for collective redress can be seen to work effectively and to do that, I had to take my case to the Supreme Court.' How much compensation could be available? This will depend on how many people come forward to make a claim, as there is a certain amount being set aside for compensation payments. Of the £200m settlement package, £100m has been ring-fenced for shoppers' compensation payouts. Although it is claimed that as many as 46 million consumers were affected by Mastercard's high charges, MoneySavingExpert has reported that only 5pc of eligible people are expected to claim. If that prediction is accurate, claimants can expect a £45 payout. However, if fewer people submit a claim, you could get as much as £70 (the maximum permitted in the settlement). The remaining £100m will be used to cover legal fees, a return for the litigation funder, and anything left over may fund further consumer payments and, potentially, a contribution to The Access to Justice Foundation. Who is eligible? To be able to claim, you'll need to meet all of the following criteria: You were living in the UK, for at least three consecutive months, between June 20 1997 and June 21 2008. If you live in Scotland, there's a larger window – ranging from May 22 1992 to June 21 2008. You were aged 16 or over during this period. You purchased goods or services in the UK during this time for non-business purposes – although proof of this won't be required. You were still living in the UK on Sept 6 2016 (the date the claim against Mastercard was filed). It doesn't matter whether you have used a Mastercard debit or credit card or not – this is because Mr Merricks argued that the company's high transaction fees hit all shoppers, irrespective of which card payment provider they used. If you were under 16 during those years, you won't be able to claim because it's argued that you would have been less likely to have been spending your own money. How to submit a compensation claim To be in with the chance of a payout worth up to £70, you'll need to submit a claim. The legal services firm, Epiq, is expected to launch an online claims portal at some point over the next few weeks on the Mastercard Consumer Claim website. Eligible consumers will then have a number of months to complete a claim online. The process is not expected to be complicated – claimants will simply have to state that they meet the criteria and provide details including date of birth, home address and bank details (so that the payment can be made electronically). There will also be no expectation for claimants to provide any evidence to support their claim. According to the claims website, payments will be made before the end of 2025. Compensation scams – be on your guard Beware of any communication or social media post that's telling you to claim now – the online claims portal is not yet live, so it's highly likely to be a scam. Fraudsters love to use compensation schemes as a hook for a scam – for example, there have been numerous bogus websites suggesting they can help the so-called Waspi women claim £2,950 compensation (the amount recommended by the Parliamentary and Health Service Ombudsman), despite the Government ruling out any such payments to date.
