Mastercard (MA) 28 Oct 212021 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the MasterCard Third Quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

further press any X. require you assistance, star please If conference to your I like the over would now hand to Mr. speaker today, Warren Relations. of Head Kneeshaw, Investor ahead. go Please

Thank Sachin me today you Michael And Miebach, Third you Executive morning, Chief are XXXX joining Officer, Financial Chief and Quarter With us for our Jumarian thank Call. Earnings our Good Mehra, (ph). for everyone. Officer.

then into session. from will open announce to only get operator It will and Q&A your the the the the Sachin, Michael for for Following comments queue queue that is opportunity questions.

release access our the performance can our slide You the section deck Relations accompany earnings website, in supplemental call data this in mastercard.com. of that Investor

the Additionally, morning. earlier this the furnished release with SEC was

currency the unless released reported neutral It was Our their deck measures slide noted. basis, will today comments our non-GAAP financial otherwise and regarding reconciliations GAAP results to of include amounts. non-GAAP a be on

earnings Officer, remind will about include Finally, in differ detail website that Miebach. filings. as would our performance I Information our Actual these performance our regarding posted SEC in end Michael this turn call materially the A now be affect will our for our future will could I call factors Executive forth today's could from are replay to forward-looking in set to forward-looking of future performance. that statements. release, earnings on XX Chief the recent like days. of that, MasterCard's summarized statements more the at release With over call everyone

you, Thank Good morning, everyone. Warren.

EPS year-ago. net revenue revenue highlights up the and Strong The earnings you and growth the giving by XX% a continued. XX% versus start of me Let up quarter.

basis. As always, a currency-neutral on non-GAAP

quarter XXXX. pre-Covid continued at rules XXXX revenues Quarter in above XX% for significant We've spending cross-border in growth the levels. planned and We're fronts volumes product in the net strategic domestic back crypto X levels in continuing area basis, are about IOP our there acquisition Though remains on now overall and On of of progress still cross-border CipherTrace with seen priorities this are now strength banking. and our same in and our travel. acquisition we're against deal the good services open to excited - execute

ex e-commerce are shopping those XX% Pulse chain an spending reflecting continue economy, gas and on rising report, even check, year-ago X% quarter some versus and strength. X% energy were based ongoing though levels and facing improve to the up types, at are retail XXXX, domestic were highlights, broader economies versus just sales ex-auto, So Pulse quarter constraints, in According our versus the also pressures. cash Spending including U.S. three in-person in other looking XXXX. and to X% return Spending sales, a European indicated retail up X the supply all payment the overall prices, to inflationary

inbound As the opening continues in The it phase and relates pipeline, some the of restrictions progress general better. outlook easing the in specifically, to businesses new the seeing with a number's notably therapeutics vaccinations the U.S. We're more trend travel agile into case get becoming COVID also remaining of restrictions. of corridors, in Asia. to generally improving, in and

many to growth up. turning the markets phase in in is business, now but is not And we're domestically. Now fully behind the us, local in most cross-border pandemic markets spending

from beyond of on ahead opportunity We for the full managing that the focus turn XX business the phase move the and page and framework will us months the last therefore us. guided growth

benefits. to commercial in MasterCard consumer We saw trends, spend in and particular although switched moderated has improved recent strength wining Looking at volumes weeks it remains due Debit credit. elevated, quarter-over-quarter. in stimulus spending part

improve card-present volumes shopping and more. out how are as terms people people getting spending, of continue In to are

Although card-not-present spent. in strength still seeing sustained we're

that support shop to want our solutions as well and choice So regardless people full whether of or position online strength. [Indiscernible] person, in

take and it's levels XXXX not-present well in travel, in let's driven August, as at as cross-border. by travel. consumer a improvements card with of Now commercial spending cross-border returns cross-border the Overall, look ongoing strength

travel the leading services. still Our the while second level access open. to to [Indiscernible]. through improved X, XXXX applications. [Indiscernible] driving XX% we're this offer choice upside strategic directly investing customers of substantial this on netbook like inland quarter faster enhancing our XX% providing mult-rail as differentiating with to our connect capabilities, expanding our remain of core the ends in remaining digital. cloud, X, inch from to business, our and shift Against backdrop, quarter of potential our for growth and on boarders in products with the cross-border our including to And we capabilities diversifying X course, our the easier And our leveraging across Number and products focused growing services. to technology

them take Let's one-by-one.

by our we're driving through products core and In through growing core and Mastercard continuing fintech space. in terms momentum winning our on how the deals the installments by shifts digital,

At let recently enabled options pay you merchants. tell avoids First, later to Mastercard payment secured is now, and roll faster. invented, to consumers solutions banks, deliver buy for solution. installments to investor open consumer enables them more one-by-one buy need fintechs tokenized out, to lenders, engage to scalable, pay to scale now, me wallets loop, this more With in no solution and for manner. our the integration installments, merchants, merchants a bring and differentiated, announced little the our Mastercard about later seamlessly our

choice brings Network. Our delivered Mastercard scale through the at solution

loyalty, on provide value ecosystem data fraud credit area. such interests click-to-pay in to to consumers to with additional Mastercard directly able bank's through [Indiscernible] be and different buy-now through installments mobile their with offers services will banking pay-later choose repayment our as partnerships look from point payments enabled options. us the and easily core this consumers We've and our strong analytics, app, and at all soon tools. Our checkout, decisioning the seen of enable to access sides through growing forward players of

deal Canada, across to along cards we quarter. In to bank. that we Sao and Also And co-brand won buses. with on our it always, the position DLU mass the signed and their to remain Brazil, our from exclusive and deals leading Auto XX In Costco Syntex globe partnering of Paulo trends money this we're area UK, and extended debit preferred Pass than concept the continuing the Chase mobile acceptance As in as focused million city Canada. issue open users digital with trains we've the with the grow share, of providers. retail more subways, across building with partner

fintech for payments. be products get Finicity for leverage fintechs cyber their We strategic Yandex expanded into will mobile since cash-outs the extended miles leverage an that Partnering the all X and Vodafone, all with market security international And transactions and our equally innovative directly partnerships in cut there domestic bill our cards Here of debits third Russia the leader and cases constant its markets financial in in and business are marks PXP, to banks [Indiscernible]. PXP [Indiscernible] partner use Synctera, first examples. few wallet of PayPal U.S. with into money to will our PayPal has cash-outs, Europe. recent initiatives. across in and PayPal their connects in digital U.S. Egypt also

Now, shifting services. to

in Our many critical services have played mentioned. the support role wins products a of and differentiate enabling core and just I our

banks National experiments including wins this through space, players, like insights globe's cybersecurity and transparency. quarter. with innovate then received and Starting visibility capabilities Of rolled solutions wins elsewhere in with Ethica Saudi area in of and the the In new Bank. and is bulk new our course, the UAE, this managed also MecardoLibre Hungary, are and on engagement. trial innovative using And leveraging online our products the campaigns. had by to analytics, Greece, in authenticate is and creating term opportunities. the services. consumer in having deeper digital Back the trends hereby greater tourism help space insights diversify test the helping And like We've agencies many tourism to new driving reduced interest our for to players services purchase using tourism First profitability, and leveraging better and in varies improve customer on Europe, behavioral collaboration, chain capabilities multiple AT&T to data identifying intelligence is artificial business. drive chargebacks with biometrics Data experiences, learn the of support fitness transactions. loyalty increased success thousands out Together, new

planned progress assets. made offering our would acquisition platform equal we're about the IOs' we've banking, consumers capabilities banking applications choice with and an connectivity, happy payment and whose banking to open turn payment expertise, capabilities, our let's player multi-real IOs. a existing European open of open to crypto. COD In complement across from API strong Now, which our leading banking,

players This [Indiscernible] our across opening with payments. best-in-class Talking plans the as count us JPMorgan will products track to future credit U.S. information is with continue make enable to connectivity verifications payment [Indiscernible] each in in BXB, with to We our progress scoring, other combine In working one will business extend Chase. European continued of key Intercard on -- with and markets [Indiscernible], markets. banking Australia. the expansion we capabilities and into IOs applications payment to markets, like to with services, organizations' U.S. open credit such account about footprint we companies. partners in leading And the the Europe, Scandinavia's card credit to network to like Usio service along like expand allow

in the largest And acquirer such in heating acquirer U.S. Commercial Canada. leading of technology Payments, merchant as transactions Priority the payments commercial well Company Moneris, and As a BXB as solutions payment in processor

HSBC functionality through launched business to BXB finance working platform. We UK, account the their to card And empowers track with businesses product, first solution are partnering EPS And Mastercard allows and our Dysfunctionality to that program with with track innovative transfer card this space, access players make the supplier adding capability. payments supply providers commercial Coinmotion supplier, number to card Mastercard and an Seneca Again, the finally, to it issue also new their crypto be accept ZEN.com, to payments. use network. chain of true to track affordable directly quarter, payment [Indiscernible] payment exchanges a a provide agents in does including wallet capital up customers new offering. and BPS to that for crypto the crypto easier by to if signed we're not even multi-rail a We making CoinJar. connect in any and will

buy and seeing spend cryptocurrencies. of [Indiscernible] [Indiscernible]. more monitoring or the XXX crypto Our Mastercard with than also security earn MasterCard technologies, Mastercard We're growing crypto consumers and crypto easy assets crypto their even to allows s, of in send their based opportunity their in balances month proceeds is Cash-out is a we services on into Company fraud insights form this accepted. program, NFT. CipherTrace, rewards wherever with acquired which engagement, principles a expertise with Earlier

also recently announced was expanding crypto add services [Indiscernible] our Our to portfolio.

We're one more strength most revenue earnings XXXX up against deal this we're with while you. there in while spending for quarter, sum domestic all this time. We seeing of managing So carefully growth our executing of fronts, We're in continued to significant expenses. strategic travel. back lobbies and me. at And delivered it overall cross-border me cross-border let heard. as remains our room strong Sachin, that growth you've product good in over levels, the doing priorities progress for are markets. That's

include XX% XX the was net decrease the to was Due income net rules up of related also Further, X morning, and income Operating X which up Thanks, ppt strategy a up impacted XX%, and by recovery income good were X to our impact Michael. including ongoing of currency-neutral an increased for losses PPT Operating investments. PPT positively acquisitions. up the $X.XX, from PPT. shows recognition U.S. our and performance related Net recent to a X, revenue to contribution tax versus expenses basis, reflecting includes the dilution of and which increase acquisitions everyone. Returning was which special from benefits ago. the contributed higher on excluding acquisitions. to of growth. $X.XX spending. XX%, of on EPS $X.XX in our by offset gains discrete continued the page equity to this share was Acquisitions And items quarter year repurchases. execution our one-time XX% year-over-year XX% financial most

and million $XXX October additional During worth the XXXX. XXth, $X.X quarter, of we an stock repurchased billion through

PPT and So gross continued We're now is sequentially, Outside XX% of X debit XX% credit. can at in where U.S., To XX% let's XXX% debit of X the growth or you local a increased XXX% debit turn XX%. with XXX% sequentially X% at seeing GDV the quarter-over-quarter. volume and by put operational U.S. in up currency flat a X percentage of with up Worldwide a XX% metrics by growth on see GDV, perspective, of of credit volume a to with third growth XX%. levels, year-over-year this quarter. trends a both and increased for dollar as basis. increased debit GDV page of credit XXXX growth the at and credit PPT

[Indiscernible] volume XXXX cross-border was up for was with months at and the up with our reflecting levels, XX%, in Europe XX% pandemic at up the other improvement September. growth Our of of inquiry quarter year. at and cross-border above XXX% XX% XXXX other cross-border quarter levels of on continued volume third last XX% globally Notably, a at levels. cross-border and In the XX% the volumes of volume averaged [Indiscernible] volumes or XXXX quarter of quarter, August XXX% volumes

present strong, XXXX remained levels. transactions and in present grew not Turning XX% and year-over-year growth at growth aided purchase of last a by QX, represented continued XX% in were Card part card present quarter. transactions on in in several page page was XX% globally, In up to X, of in-person rates XXX% increases Card QX, improve. regions. penetration X. to switched contactless growth from contactless transactions

growth X%. there are addition, cards Mastercard and was Maestro-branded In X.X issued. Globally billion our

in page in partially to transaction by and the well on for domestic driven a increase on higher volume items, a revenue unless was go by XX% primarily services, net line highlights otherwise noted. X currency-neutral basis, of described as and growth again offset of cross-border and let's revenue growth, as strong rebates incentives. few Now The

revenue X PPT mentioned, net growth. previously acquisitions As contributed approximately to

up volumes while than GDV grew interior Cross-border XX% XX%. quarter. cross-border remaining mostly XX%. items, line while Looking primarily and PPT The growth were up is increased XX this XX% cross-border that due mix intelligence domestic [Indiscernible] were XX%, were up a XX transaction data contribution XX%, higher as the services assessments our individual increased and acquisitions. cross-border Other volumes with transaction growth volume revenues switched including volumes processing fees grew of fee revenue and XX% favorable worldwide driven fees difference by to from generally quickly solutions. line cyber was faster at yielding in

XX%, transactions new Finally, volumes of rebates and the renewed deal up growth were strong and and activity. incentives and reflecting

a increased see on currency acquisitions. on expenses you to X, page impact basis, can an including Moving from that neutral XX%, total HPPD operating

Excluding sorry, our grew costs. and spending primarily increased on acquisitions, strategic we to personnel invest advertising in due operating initiatives including higher -- marketing, processing expenses XX% costs increased as and data

Turning first X discuss the the October. X, of for to specific let's Page weeks metrics

are continued metrics We strength our in across seeing growth operating rates versus XXXX.

related when impact provide into In percentage and To as of volumes fact, showing the due that to of year. amounts, the experiencing to XXXX pandemic last the the visibility transactions we're better XXXX planning lapping we again you levels, the effect spending once a pandemic. began are not

as October. versus residue overall with switch X of in in you the the at steady XXXX and XXXX up a for levels if we're roll-off of seeing first Presence, weeks a levels stimulus The growth PPT from with U.S. QX. at So, switched tracking generally look XXX% of transactions percentage of X spending has recent which trends volumes moderation trends volumes of levels, are continued through we're outside due remains volumes. to some earlier the and improvement. switched held U.S. the seeing The steady

That August. of in cross-border, of pre I weeks and to by we This terms are driven spending of as -pandemic both improvement levels. levels continued at through XXXX, XXX% volumes. starting levels X travel has In improving non-travel noted as percentage first a we're as is XXXX now in the back increases a of earlier, cross-border October [Indiscernible]

into notably up Canada As in regions, to Europe all and well. it as and it seen picking we within to travels, relates recently have

Turning current Page share want I thoughts to looking our forward. X. to

progress and in off, First international well service to encouraged position revenues we objectives. be strong expected lines against to deal growth our travel. as healthy, our levels spending and recent resurgence continued Domestic the diversify our remain are strategic momentum for and by and remain

including the about increased or in restrictions optimistic are we in reported seen like We borders and travel U.S. UK, border net would have domestic long-haul expect XXs past. as pickup given on opened rate have cross-board continue to that trends assuming a spending to relative revenues low Further the excluding bookings QX context, this when we travel. acquisitions. to airlines currency a grow year-over-year and XXXX the recently -neutral With announced the cases at improve, travel are the relaxation basis,

As a spending recovered reminder, progressively in XXXX.

X uncertainty to will third potential scenario It ppt relative in therefor fourth is quarter be related we So, the as remains of just to approximately of difficult and a linear. recovery of more be that comp the may the pace point not also is important a quarter. one level facing out to this pandemic the

fourth In to keep acquisitions. open on management in cyclic payments, acquisitions will and and double-digits net This and boost in now expense versus transaction QX. operating to headwinds a real-time operating banking, digital terms acquisitions, a in mind, neutral X innovation payment of to respect expenses to several already our to QX. to Other agenda contribute a and approach acquisitions revenue and quarter, brand the of in expenses identity, areas. and we This product to X PPT reflects disciplined With we we in expenses of the the X about half expense a to to about revenues expected trace integration the achieved items operating be PPT operating have growth year and services, end to new are PPT expect for promising ago grow on marketing. expect low low the investment advancing currency excluding at reflects adjacencies continued and on across basis, our close pleased

the a losses our the at interest fourth gains to XX% forward ground XXth, be in look This given per expense our the you at expect I exceed that and are Virtual line, which I turn quarter. our Investment we over the Meeting Community will from metrics. excluded rate discussing our hope approximately call equity on And Thanks. quarter with non-GAAP an rates. to you other November to back $XXX tax will And we with of rate for million increment Warren. approximately And plans on participate future to investments, expense we are of the time. On able XX% that finally, prevailing

Thanks, Sachin. ready Drew now we're Maria, questions. for

compile we stand Please Q&A roster. Instructions]. while by [Operators the

come from Moffettnathanson. will question first question. Ellis Our line your proceed from with Lisa Please the of

expecting my Since color launched now you for installments morning. few give from Hi, good question. and some trade-off that some can ago, elements Thanks you're will what the that l Fintech making Mastercard the you what use taking you. seeing and be Thank providers or of may a would of your why specialized also, bank there. installments, be partners, you why weeks reaction on MasterCard not, BNPL are like they

Thank Lisa. you,

Let take question first. me that

We've space. [Indiscernible] exciting as [Indiscernible] of proposition, ago. talked know late Mastercard about you The X, invested for and off to installments it partnerships with as now I So, our said. installment banks own years years, X

of is thought built all mean, I strong to our remind into initially, proposition it's a the saw that here You initial partners a have partners, bank lineup everybody, is we network. again,

for point really for this no with delivered of So, at lenders merchants is sale. the or hassle

is thanks a believe over weeks similar Italy, conversation in perspective. of banks the the the really roads from from U.S. over we into Europe. significant announcement the consumer and our is after for that's emerged sense, the a headache So, where for get U.S. a is vending in partners last days was. saying that it of makes important here couple three time all But space there just while, of on and it us a it's lot reaction And spent I've in lineup strong

novel lenders, lean On we with Syntex. lenders, the Syntex fintech in side,

lending enable that these marketing of be We distractors. to our are partnerships. anybody market the And who to and we going have we're network. should ensure good them wants called that on offerings. Some That's breadth We in has merchants. to come full for consumers terms feel the of what certainly

to space, more a come. I this proposition. But watch compelling it's very think So,

Thank you.

Fandetti from the question Our Please with of from Wells next proceed line come Don Fargo. your will question.

consumer if talk direct that wondering it you investors was after-pay I a your little bit about are Can intermediation. you thoughts after this more talk on deal. seems Michael, about and payments more like U.S.? morning. could good in accounts out on of the Hi, the focused It square

Don, demand the always, Mastercard consumers. specifically theme Choice for great think the now merchants account-to-account so X the have investments from for for basically Right, and a question. in payments with I We years. dollar and last but space been over see

we've makes we be certainly I direct you the that business could it spend something not all it with. it one That some this opportunity. And as to would forth. finance This account. consumer but merchant mean, something on that might that consumers one historically like at involved European into and all aspect because volumes was be so bank been the an watch, can debit We For opportunity. say business. was additional sense will be This consumer what that to just be in that's you like it. countries could disintermediation see seen look we've

the broadly really we half just matters. to not around to a because a, whole at that's stack money it. of A your how We the that's that build it's of from this Probably experience So the full story get even that story. but half B, helps look

to got push here. Some money do those of want over and a build best that have the cards decades payment, You is if what to we've security. you we're your you practices last intending the happens learned in back? What

see it's account how So, interesting account to look there like. on might out blogs to

what's proposition for of by difference. really the a make UK. that those have account the would markets the looks what the economic is very model clearly knowing ahead here ship We in pay We've We're years works, learnings. in like, what got now

acquirers be in this all space. for playing will who merchants, For

opportunity new us risk, So, see for partnerships and to I our disintermediation gain I extend don't see an flows. a

around what reasons is benefit system, scale, we specifically loop for we're very in will Michael on to powerful. I believe on of just to fluids said the big I the your mean, the Look, open the you of very add have merchant open, which is that I the business as mean, acceptance which we And just that's believers customer you to Michael to bring mentioned, drag very far. just globally question consumers loops. take rapidly. can payment the And points it heavily, thread relates XX [Indiscernible] in down why And growing we competitive. acceptance. be at is acceptance when million by is that bring invested north of

Thank you.

line Our next Bank. Keane question question. from Please comes your Bryan the with of Deutsche proceed from

Hi. cross-border getting Good Wanted about cross-border the until travel about not ask morning. to 'XX. Visa. two-year Yesterday, I travel of XXX% was year a summer on calendar talking to

get travel. just number faster, when on some like far. of reach guys driving what looks a the to wondering bit a little cross-border of might for think secondly, factors get so running And little ahead little demand cross-border And that are Visas wanted Thanks. for if be stronger you Just will thoughts on your a then are it you to travel. bit XXX% a we back guys to you

Sure.

asking And So, Bryan, yes, for travel, cross-border, specifically you've component as kind you're have is take I'm has growth seen put headline cross-border there, very out seen. of big the a that. about strong to but to in QX travel as that. going a I been which -- Suppose of know want we whole, just I

which can more of if going very seeing I right like at burdens up XX% will we're And now the is really specific. the what space to when gone People that in weeks on from now. that's QX. of in then signals and And levels Specifically you standpoint, And to people important overlay demonstrated be orders XX% QX that from clearly what will they travel, QX. that look, what in it's around they of they've XX%. has would with nature QX to travel recognize. through tracking us what and first think these October, opening will And like said what's travel. quarantining was between is XXXX have announcements X travel,

that They're it. want So people to I travel showing tell net which use is I do. you, do willingness something to think when

we the Now the to I've or about. well it's seeing borders up reflected month, talked we generally, reach And remain countries a question which XXX% tell will in which other which which in optimistic analyzer so on is as to up which XXXX addition going of to boarding we really you're in open the this just bookings, the this more a it's trend the you front. day of levels. right can't specifically direction. I moving But

and for you’re quite coming the being to Right, few road weeks. on back a

You'll start see to also changing. the mix

this you initially to another demand really make. of family want a really business And just customers. happening. their first, the was one see their that While It's travel channels. across to all start to coming now they see to travel, That is signal they their People leisure us gives point in. it final kicking see customers, see want wanted point I'll

best and on the our see in for been as portfolio many as for of actually to strength been You deals And years we travel, we doing of we've even travel, to remember this this the over from capabilities on our have travel pandemic, can. making and we've also ground the which but the back, anticipation winning investing our we teams have in been our last are been the the soon boosting few start through quarters jump focused to we've ready sure how talked return travels actually now, about we're We're seeing standpoint. optimizing in very come we now. terms

Great. question. Thanks for taking the

Sure.

line next the will come your from question. with proceed from Cowen. Our of George question Please Mihalos

XQ Sachin just question. bit should going to rebates on asking little down for aggregate, and maybe of back 'XX. But cap thinking a strongly thinking a similar. we focus XQ. flash, to was should of again, revenues kind a not cross-border Maybe incentives sort be bit little this Great. even and actually onto little should Thank next XXXX forward, maybe guys. do we of of for dovetailing should a taking meaning level for obviously. then coming as percentage a you you. I be and Bryan's incentives that in sort my have as from guidance bit on how eclipsing Thanks year, kind of be wanted it, is revenue, similar question, And level about rebates

Sure.

So, George, just and rebates kind things on of incentives. couple of I point out

to know model in normal you mix and I'll to QX, here. you of and this just there. Rebate we between timing mix a it volume of of expect kind the of also of sequentially incentives you cross-border, dependent should what and QX, domestic into on think be to and how as I and deals bring is it in play point around your state that's And and QX us due what's that pretty goes the this, rebates all increased [Indiscernible] is year. up but how percentage for growth very out. and that expect In This deal going and activity. incentives

end like. of to like day, the said, the is I upon, the going going lot what's mix to depend look a at So, is

in from index We [Indiscernible] and are incentive have a said the that past standpoint. cross-border rebates revenues

double kind So going where incentives basis. go again, domestic of forward depending a rebates views informer on that's cross-border, on will mix between and around and

we deals, in Of a on and Ultra factor. contributing is course, markets the remain active going very be renew which to new

you. Thank Great.

your question. line from Our with next Huang question JPMorgan, Tien-Tsin please will of the come proceed from

Hey so much. thanks morning, Good guys.

really to at the with the Maestro heating to understand that? on perspective, banking are ask think to Thanks. P&L the cars you is from here, the press to a look here. wanted XXX when million the front What time up there convert better trying a as trying been discontinuance that's Just Europe from just open in of implications I'm

progress really this first MasterCard form. see we're and form give P&L journey the world, that because we've is other put then can front doesn't use participants, when are start come we that, important the a you've side because forth, years, made ground in in of ecosystem conversions the online. been it Why to and substantial me this for we associations, would XXX consumers of doing products. Master and a in of Sachin its let as Mastercard on end things. to felt so a banks, the latest on online as here's cannot it Maestro debit that assurance heard the digital stake on well who We've around million it available years. talk be on over work to life consumers Europe, the for us now In of number Mastercard we David's about a in of doing banking Tien-Tsin,

you It card if do. physical if full a wanted to want Or that's any need just even contact them. the what choice. longer of don't you to breadth you You gives

big be So thing do what And leading a that news The the right. to we want the news. tabloids, a page to rightly more is this. But timing in do. hands. can of reaction front a of use has then onto just European right start With we've all people you perspective, doing it tool we what Europe in we're your It essentially, the from is that's across that. performance Sachin, about very engaging payment encouraged look The as in it's channels. made this. seen okay, is it to it And some at with said. you is that it was why And

retain take continuing in the were talked currently from as is debit been trend right underway not until this Maestro this to this will just here not Europe-specific. here couple Maestro issuing cards shift been The path. what effect Mike, Again, moving years of direction XXXX. last better on And some new been approximately which There's we've and on makes the about we've it's learned a be Right, we'll Mastercard been now. last aspect over the to step we world. this business is in concerns Maestro time opportunity on a is for We've one imminent don't journey front, globally. debit have path. as cards is and continue be this as a on for on million And an about have of products sense. XXX debit our Existing not is you reality our on reality cards. will digital in migration this the to business -- is only increasingly use how do front, this It we expand our view is provides that operation. It so Maestro utility also that to but front. any we the the

the Understood. Thanks fronts. for

with Our Research, the of Wolfe Darrin next from please Peller question. your question with comes line proceed

medium-term minute, And your obviously much we your perspective model then was now in, mean, are lenses second on different, growth is Day, business Thinking how question change. pricing last Investor from structural model about of the we to impacts Investor or curiosity? I are at to job. of than you of entered first Thanks, Listen, but that would be, impact what out using ahead quick would better, in when couple basis thinking long-term look the the a when you points and where similar, think is of the also, a potential it guys. inflation Nice pandemic worse be. Day volume-driven, from the and power a on time we and it

Sure.

So, on Darrin, I'll question inflation. your take

is there's mean, So, it's of recently I whether whether loan obviously term, a got just about inflation of is we've levels, price. been to how structure we transitionary. high price, right. it The it's relates reality of points, lot quite bulk because the going we it's basis way the got whether look, model we've business permanent, our transaction I conducive as mean, per cents to

and standpoint So, we inflation going be business moderate, to the to We again, moderate is painter to which gradual the comes sort to following, I event from of inflation sort view with that interest along with positive and which goes our measures economy, an comes a come is that that any And bring tend reason the with be is right. think tailwind helpful. extent oftentimes rate is shock pressures to up the wind cost that. hype any industry in of drastic

business. It's positive moderately extend can you our for So [Indiscernible] this

it's subject services The what business. see flows the would and products relevance and And basket actually important of the are and the place what taking of services goods which amount the thing electronification in is say depletion. our to to is I to are of are other which

extent which relate payments. for consumer that’s and to spending to amount things inflation point back mean, the it's in here. inflation on are place us moderate unrelated electrified around general I which positive to extent taking my to card a the [Indiscernible] to that So, goes being categories inflation, been which have

what thinking question, question, of last, we're give but upfront question, makes Fascinating All about on the don't a Darrin, are Investor your Day, since I'll I to to changes trend? asked right, now, couple that. here the you how highlights you on second they a want structural

to So, thing understand is business. helps the psyche of first the the it the changing of consumer small

space not So, as XX looking independent everybody the months and this user, numbers at have really now an changed. we end of was have studies and

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the line Togut your question. ISI, from come David from will question Evercore with next Our proceed of please

given during being out you are if of of adoption really customer to account-to-account see say a throughout morning. key Europe? your Thank Good the Europe, What that pace year next the really you've account-to-account for affect, shift you. online banking? really payments the authentication, wondering over let's in European strong broadly payments I'm underscored in enough payments of under particular, broader which account-to-account adoption rolled COVID expectations is and, open Especially to

to start that on in. chime [Indiscernible], maybe Sachin wants let me and

still I it's towards journey the to account account Europe, think So, early days. in

at authentication in longer. starting journey. right can customer Dates look how this transaction long that out in including occasions has and September right the get the any XXXX, to it PSDX been you give Europe a get isn't been means nobody if to multiple on strong secure time that moved So, rolled use industry have has so to the

the that consumer and our a actually security balanced experience And balance starting engagements So, we're struck. is in is is trade-off between seeing to be Europe what found in in way.

ahead of That basis being in That's was in XXXX, still lead whether exactly been on be of other on out UK connectivity our still thing first last focus getting the that. Europe of been on point in the Continental want we'll will say. such When specifically, with June Europe. Europe. terms to reach the product Use years pushing that busy stood it payments indication in where a reality started open first banking really as what ahead. banking that over in up. we cases while we've forms driving to emerging is a this ecosystem strong it's was That's Europe the UK it's actually put I of in the one really So, the into connectivity quite open the a customer costs, region XXXX. comes in X

heard repayments, partnership Tesco. You Lloyd's about us talk with about card our

really open UK part proposition payment very well banking is capability here and of the So, in is leading our all the positioned.

there, So, we to I timed here. is start our acquisition the over see now Continental Europe to coming wave is see of Huya connectivity as that. perfectly

of the expect close the by year. We this end to

bring capabilities aggregation, not data. data a A because so payment forth, is it's owned additional in finance account just and also but capability, additional connectivity, So a you big personal of a kind play, data see. a opportunity. in I do management, This additional it's not payment bring also but

Thank you very much.

Rawat next Bernstein. of Please your Our proceed with the from Harshita from question line comes question.

Bakkt and I morning. including the question. Good This Mike, on Thanks my to made for see live. Mastercard one become In comments you back potentially Crypto. ways your how acquisition. when survey and you can of the year frantically, ecosystem about CBDC want Thank you. Hi. growth announcements talk come evolving? on taking several they with follow-up recent and what you've overall the Crypto [Indiscernible] the to And

Always have up. about an Harshita. call we an so earnings not brought and exciting talking Crypto, could topic I'm happy without you Yes, it

that than lot Looking space. it's going at the there's other perspectives this from on of number a in -- a

in want how we We to are on us this. clear pretty play

first volumes selling in terms actually investing in significant and see people Crypto The Crypto. of we is

as that step Central When that role As take into volume wanting a an somewhat -- a activity. ready payment a perspective, to the the and partnership that. so Bank is is We're then and issued through euro chance in out crypto this it there said asset to a will work government. real And of that when is We've us our class, play for Settlement before. wallet have there's do for what Crypto if said dollar in do. we good quite on or a to have make as I at identical been These lot our In that's network. and government on saying exchanges that ready forth, we network to tool, and time, consumers on to Bank we important facilitate on. alongside likely view just of this form to technology a digital Central they kind put versus our from differentiated comes a choose we couple exchanges programs going to that, think calls partners we digital and most exist the a currency. is of point payments in currency a of do Currency to

mile, How So, this? can figure we've out between government government put citizens the the for the a and to of done actually you that the comes if in, figure do Questions and private a provide questions That's sandbox How digital easily so the currency do would that? test Bank utility forth. but work. safe bring will banks country into your how that said. you to how that's out and acceptance governments where we how private so hands will our like sector last banks a space out Central sector

mind coin, and that, but strict we do class, a not. there CBDC this investments also when So, facilitating asset an do principles get should very stable we as for do when that, we be readying have and private sector on we to

data on authentication. because the so in privacy, let CipherTrace this in just moment, context is strong Now, space on the customer many already and about a of space touched questions for me talk authentication. an interesting Europe that on We ways, questions

fast they Crypto to be into the trust. we to questions of are Europeans right not people Mastercard What it run same when is is services will transactions. say, of into drive CipherTrace synonymous the that really now transactions that AML mean, to we [Indiscernible] well XXX and payments and We other enough opportunity. these Crypto do, are a Mastercard get deep always where security which I Cryptocurrencies. with have in strong comes checks into You the role well, of lot as course a do role. customer to play Crypto, resolved. have will the name [Indiscernible] expected and authentication actually compliance can't

we ways play, play, to services and s, CBDC class, differentiated X need want we're asset we the -- we yourself. feel that have and So, those to assets and are opportunity,

Michael. Thanks

next from the question questions. Our Mizuho. proceed comes Dolev with your Please Dan line of from

question. taking Thanks my for Hey.

Hello.

Thank So calls congenital acquirers is getting the topic. how of did on or [Indiscernible] any impacted networks there a offering general? disruption it? and with the potential say, But strategy event, lot what this the around we're you. in new Mastercard vary And the

had question I topic. So, little I a on we earlier bit that this on think touched an

the over long post to account describe So, to account. here's

as ahead what leaning been disruption. a of think learning. curve that's how we create it into really proposition? is see has acceptance the a I That's liked because additional into technology the strategy, is We all card So, it this we to How of we have it's our believe into this that account its X And And consumer up a works, We're since to also ink. And about built we that stall and for an all our of be don't to have merchants. we years and how stated choice the our is we're learned acquisition it account Vocal merchant? to into this it. actually ecosystem. provided should What approaching and standing convince the actually you our of have the how around that? learnings. make consumer do I do How And learning you network, that make this. actually do easy multi-rail an you that something reality. capabilities like, likes that

for we I think whether currently in really we those built it franchise a really to capabilities protection it, reality. done question. taking. That's we it, to example, economics alternative of extend build chargebacks, and And And into figure things accounting, good in can for data consumer that we've so our out card payments interesting other this interesting and store. are us settle. an are we have the What that when comes is the forth. direction world not account blog, into it's payments the disintermediation

TAM It's TAM to rails, not card that, going amount is that to banking one in remembered strategy choice much open of fair and across loss that where through This products. a Don, provide is there multi-rail by likely open well helpful IND our never sizable than up services. to just be from which out of ability very be it available right, primarily for our of And the open real card-focused. come that which what to to be various us be is just we able there's as add do reached here as we've to helps And a to opportunity payment an banking an see would the card-focused TAM, as more used use well. the

comes the Please Blair. Napoli your Bob line William Our proceed with next question from from question. of

Thank mean, you. follow-up important cross-border for the Mastercard. very on good I And business. morning. obviously, business A

for that other that were As you account-to-account. you to to continued will get mean, development look pressure we recovery, of at of similar they that full as prior technologies do to Is ads, the that that the business business of pandemic? and business? blockchain what I the be and going economics think to the the economics as

it the [Indiscernible], point-of-sale partners in they're not be [Indiscernible], are already which value reality after distinct going delivered we're is -- they generate anything gross But but any that previously, different, our separate are has participating those Cloud given Company [Indiscernible] happened from on which participate [Indiscernible] we not The with the We'll will be flows, [Indiscernible] them -- today. final called today. at to and --. goes should what if in [Indiscernible]. in

the net-net, the a phase. in So, whole view card meantime. kind cross-borders of From I standpoint and

please the of question. Next with Bank America, from line question comes your of Jason from Kupferberg proceed

was morning, revenue quarter, Europe growth volume in overall in a on quarter. I for Good the the guys. third cross-border, XX%, A guess follow-up entry proxy growth the very, very good it with ex the cross-border again

should month-to-date trends. growth XX% around since the aware seemed parts be characterization. the now look on can quarter and comment which highest and arguably would U.S. all a rest again that of before we October holds the revenue So be system? we just QX, this most be fair those are in you it of like benefits and of If that so yielding the is it your at hypothetically there of, cross-border through could quarter Are reopening moving other potential

Yeah.

cross-border So, come realized, the first talked touched your about much Every will was I category to [Indiscernible] part part standpoint which function ones the quarter and which from your think question, you've the are how back of upon quarter. inquiry extra and around. after, a yields think revenue on a which of on will answer depend I first, very will start the that second in every in even is question, revenues different back depending move cross-border numbers come

to seeing, mean, Canada, important it a As very to tell bit -pandemic has Europe the U.S. The nicely. I Canada all there's inbound pretty what to I parts pre more in I there's to important come relates boarders started various Mastercard happen. open. seen corridors. U.K. We've to come open obviously Continental Central as is but happening, we're still U.K. up. quarters back to Europe. mean, to are will included U.S. you These U.S. the for The little

our be seen well. inbound say cross-border important for has opened is bit up up little Central We've yield high one that Europe in debt clearly third muted. from Net yielding. We'll one you biased be. bucket, somewhat very think a In Canada we Asia-Pacific, of I'll to to Central area open boarders seen corridors of taking the shapes up been signs yielding, Maria, in have see As what quarter. they for still In intra-Europe question. into which business. time a Asia-Pacific. these corridors. standpoint, Drew place Europe the as And are The still Canada I yet there is the know, last recovery at very in terms how recovery use and low is

your Our question. next from Sakhrani with come will Please question KBW. Sanjay from proceed

morning. Good Thanks.

how lending think side, rebounding? of which volumes the seen is terms about thinking through growth. feel mentioned you and the of economic as sort just impact impact U.S. back. And stabilized the back, credit of guys just waning come volumes Michael I the in the comes here I'm Thanks. other stimulus we've U.S. I'm curious lending-related

oriented how credit let that discretionary. to for on me much our people back certainly spend. Those cases in-person see in are will Sanjay, just Start Okay, credit. in-person use rebound T&E very include and of are more start to the its all changing

is use of see of that of sustained is The that. driving the going an side, what stimulus debit use still debit we impact elevated So forward. on

remains down So, Such the wallet it's not back the that a comes that it's is again, size of on a that's the available you of way consumers to zero-sum really one other game balancing elevated, coming have out any in that. and -- yet other have. thoughts

you we'll as X of to interesting lodging, about top and the maintain going couple think And quarters discretionary what do to right people that picks we I quarters mean, restaurants. definitely us break it's back if I views seeing or maybe around to ago. up, a more in and talked coming out that's as credit you We how take to in as travel, same it now. ago, our X will be Credit come view wallet. economies and a think there the that different expect recover we're debit to spending we're to is back solution back look is of And of as to that's what mix discretionary are going that exactly categories, mean as like. spending continues question as over credit [Indiscernible] And the medium-term. near relates economy our the kind plays positive to to continue.

your everybody. you questions. good. Thanks, for All righty, Thank

at community investor going now. community see but to meeting. it's the call is are I also the the investor analyst’s the We not staff. only calls Generally, community on hope to close listening, our you these

a quarter the to -- you for please tune like have we do at very a of COVID. this feels through they of marathon I See like you everything bit Bye-bye. thank again, in. much and Thank to ICM as staff out want our turn it done So, everybody.

you. Thank

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