Mastercard (MA) 27 Oct 222022 Q3 Earnings call transcript

Good morning. My name is Audra and I will be your conference Operator today.

At this time, I’d like to welcome everyone to the Mastercard Incorporated Q3 2022 earnings conference call. Today’s conference is being recorded. All lines have been placed on mute to prevent any background noise. there a remarks, session. and speakers’ the will question be answer After

number telephone you a star press the ask like key on during by If to simply question would keypad. this time, followed one your the

If up one star, Please star, question, position again. may question a the like as you to one only in queue affect multiple to times would once your press withdraw one for press pressing queue. star, your

Kneeshaw, the this Investor Head I’d Warren to over At of turn Please conference ahead. time, go Relations. to like

you and Mehra, Thank Sachin quarter thank for joining our me Audra. call. today Miebach, and earnings Officer, our third our Chief you Chief Good morning Executive Michael are Financial everyone us Officer. XXXX With for

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

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

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

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

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

the will Michael. to I now call over that, With turn

morning Thank everyone. you Warren. Good

it. get Let’s into right

strategy. resilient headline revenue our delivered The With focused that backdrop, earnings this consumer to we recover. execution and growth strong of remains the and cross-border through continues spending travel is

currency-neutral versus a year Third up income ago up quarter both operating non-GAAP XX% basis, items. were adjusted excluding XX%, a net revenues special on and

unemployment The to geopolitical the remains Ukraine supply Inflationary of environment the is are remain savings a elevated, inflation accessible. low, In concern. what we pressures are elevated rates are shift war uncertain. credit aggressive rising, setting, continuing have to take remain resilient, Tensions spending in and bring gas remained buying. consumer Europe banks to this, is with consumers and levels and has wages although line. of macroeconomic steps high in and all central natural this remain overall in some consumer seeing Despite are remained readily

growth volumes trends, other notable saw to XXXX. volume XXXX at relative on from and experiences consistent similar retail the restaurant spend levels, broadly of in strength and like to shift furnishings showing pre-pandemic towards to steady, switch Looking The our We mix relatively home remain a categories continues. quarter domestic categories lodging with trend spending T&E now current between The appliances. airlines, is spend levels. and away second

including a ex-travel not Cross-border XXX% sequentially, in Cross-border to Cross-border hold third to most recover notable progressively are reached up the restrictions continues improvement levels. quarter has XXXX as regions are card levels, Relative travel relaxed. to of well. present continues in XXXX border up Asia.

the taken Notwithstanding as it to quickly closely, prepared we actions, and has. are our the market to to continue to environment including in inform weaken, will expenses. in consumer will fiscal, policy the we act outlook This continued watch our other strength monetary events. modulate actions always spending, Should response

banking and in by adjacent expansion positions line like starts solidifying activities and and number opportunities pandemic, our new into of so our differentiated have create by our levers will As areas The It flexibility will quickly these focus open growth. services payments we three our the on strategic respond demonstrated across during priorities. the on while a maintaining we do complemented key digital for to focus identity.

Moving enabling payment programs supported these, of capturing our payments billion Mastercards transformation Digital first onto in in are we now are customers, against such part with how circulation expanding flows. by of First There X in and each expanding as initiative. progressing digital new acceptance, over some are [indiscernible] examples we our volume growth, by

It’s the First on points, with best-in-class and a increase solution by rates approval create average spend card four starts average Chase partner per active Digital with by Spain, around XXX journey. Brazil account date, for in the basis to and Digital the acquire real a Nubank then new to latest digitally leading increased use Mastercard Mexico, globe. experience Digital and average Citibanamex, two digital on by First in reduce percentage Our the to over fraud in deliver ability in U.K., customer to are and consumer First XX%. a in end-to-end customers points, on we customers customers launched time. helping Santander amongst have To ING

broad a our the driving partners. credit, well services. our deal in we’re In Keybanc on with as Also, extended and relationship recently we and set renewed with for new debit, growth deepened U.S., as commercial wins exclusive business, of across small volume

in DoorDash. This new we further program digital quarter our co-run partnership with deal delivery with expands This the Chase, will a space. food presence launch in

Overall, agreement notable America, the a includes have as quarter portfolio. securing with Korea enhanced our and and have in Latin share Mastercard payments Europe, well exclusivity help other and great prepaid We secured will loyalty on went we Italy live the drivers securing renewed we Scotiabank expanded incremental with fees In credit Pro also Mercado in wins. experience with and credit momentum Uber Libre save current deal with gas, that [indiscernible] In as an an seen with flip, expenses. Card, that Colpatria. another Banco

area we their businesses is sometimes are underappreciated, is Mastercard. enabling by in use giving one how to growth payments shift more that that Let’s to and places people

We have last previous are merchant than more acceptance more million the and in we at added now years XX the XX, five locations accepted than locations.

tap are last the the grew such now and this two up on over pre-pandemic, of by that as than will trend tapped, adoption the years one-third phone. payments from approximately transactions contactless continues. switch for half be new bolstered of purchase More preference The technologies in-person

reach enabled Further, growth our their our digital and drive strategies. technology acceptance while partners helping in global

For gateway example, capabilities with markets, beginning easily more Middle and to to new offer our have in them Africa. enabling signed East we to use solutions McDonald’s

we’re growth in into Finally, capture payment a prioritized driving payments by new leaning of innovation set to flows.

after new We to going into progress continue geographies. in by make expanding and remittances cases disbursements in space flows use and the

U.S. gig we’ve using For facilitate a new with global select AirBnB example, payouts signed the markets. in Send in host to agreement economy, Mastercard

world’s payouts, deal corporate leading with exported signed that expanded some account network provides global we and a Pagero, our launching payments, largest solutions also have payable have To payout BXB Fast with a of Gaming [indiscernible] program. account gaming to brands. We domestic provider automation the address

We’re point-of-sale business, small of owners our National with to with business exclusive equitable co-brand small tools, transactions issue announced important. benefits credit services to product and commercial partnership [indiscernible] purchasing access by also T&E, and fleet Bank Omaha corporate we industry-leading growing access U.S., flows. First the small on offers the - business targeting very a to This In card. focus

card Pay. flows suppliers. Marqueta intelligently payments generation Instant card and capabilities. deal target to also continue reach to accounts signed with We payable This virtual leveraging We automatically to a solution and solution, virtual by access our sends our expanding enable BXB next instant

virtual solutions, signed have agreement and to integrate with payments. SAP Taulia their card into their card virtual customers our SAP Taulia enabling to solutions an also We facilitate

and We’re positioned management fintech, Infinios a also Latin we In deal company with our with capitalize on return deal program. after and in a the with travel well while a wholesale travel agency travel travel Bahrain, to signed and travel of Europe, volumes, going in BXB flows Swile, Mastercard America. Europe we signed

prioritized of in steady new payment continue to As our see, you set flows. addressing can we make progress

Now accomplished continues this another quarter our turning strong delivered service services revenue as beyond delivered by well this to tremendous extending service payments. new capabilities to in for and services, be diversified There a customers. revenue growth adding where of as They offerings into space. opportunity growth, existing stream Mastercard new existing a we

fashion a have example about personalization how complementing is acquisition have off, we’re adding German year, unique which added than Since service of we’re share new Europe. offers new the great I They this more great of earlier if customers. yield’s always can. dozens German a commerce in examples stores excited example retail A X,XXX we and capabilities. First I platform store. dynamic [indiscernible],

We our capabilities markets. deployed additional have personalization content to

are addition, In institutions. we expanding our to capabilities financial

with there’s an deals. program agreement new deal media Now, technology to their portfolios. our Caxiabank of an existing card quarter, services, our and for Sky all provider small commercialize beyond new adding Switzerland, with have we companies of Group, Generali new in enrich in more card with flow and of Italia, for customers. leading The a them savings entertainment signed implementing one into we offerings Spain service businesses. companies, Sky and the a support link part existing grown to a largest our micro In to and Insurance services provide Europe’s their efficient European with mBurse, charge-back opportunity for [indiscernible] to relationship third one over-extending is enables insurance

and payments in key third priority area expanding embracing new is Beyond our networks. extending services, our

focus and on open areas: digital two current banking our is reminder, a As identity.

quarter, banking. touch I’ll This on open

in While opportunity. is game, open is the it tremendous early banking a

needed robust all partner unique here that space, fintechs use with and increasingly engaged what is compliance, are interesting that extensive are is broad of confidence the data and applications. the deep interested we range to top broad scale practices, of things and on technical capabilities, in institutions like financial of who We wide brings consumer set in and connectivity What’s are a a cases. instill protections, responsible our and

you solutions, Mastercard its of U.S. of provider give management permission has Simplify Quicken, a platform. budgeting flavor, for consumer to provider data leading as the selected Just popular their a in financial

to in of primary help and businesses This in repayment and working also that financial banking. will their help do their enable make support They innovation enable and their to outside just holders’ informed institutions accounts is will financial improve center loan be securely a Then consumers account a view. single their much more the student financial to the open Jack with which institution their all beginning will want financial wellness. see financial to come This regional in employees within Henry, organizations for decisions. at to more lives. of community this stability Fidelity to We’re there’s and providing financial

we I’d all up, like an share across our example to three strategic how of pillars. incorporating wrapping are Before capabilities

truly across services, and to networks, combination strategy leverages engage in economy the payments, a Our a that crypto assets proposition. yields differentiated value new

our Here, via payment and Mastercard consumers spend out their deploying Send. we’re capabilities card their on cash to crypto holdings enable crypto to wallets

in our we with Australia quarter, to issue Evonax, will partnered This become first who crypto-funded cards. partner

instances, all added Send handle solutions finance In including players recently off-ramp rather fiat Mastercard we North delivery supported crypto not in of five and do and with take by but enabling checkout.com Europe, and new America currency. We’re Nubay.

Our capabilities is and services card trust Crypto and and networks risks. consulting an market issuers additional by bring solution new identity, to cyber innovative Secure services security are helping regulatory this designed ecosystem digital address to participants. for providing

holding and select cyber leverage its upcoming with people crypto and to services. the a our crypto we give custody with We is their these Company Trust identity, financial Source, places Mastercard so advisory buying be institution to also comprehensive security asset suite designed Crypto our crypto assets. is This trading services in recognize interest services. of through sell expanding announced augmented pilot trusted buy, and access to to To continue for week programs, the have Paxos proven partnership support last will and like which hold banks, partners

crypto As on providing at principles strong capabilities consumer see, can our core and strategy protections, you is best-in-class of security. safety together built bringing our all scale

growth continued another of earnings delivered and and cross-border quarter consumer a strong In in a we travel. aided revenue resilient summary, by recovery

our against three executing priorities. continue We strategic

have We set of offering with solutions. a customers, our momentum diverse innovative strong

environment, carefully macroeconomic future. expenses us continue flexible diversified and our well well and will model our manage for the business We to positions within this

over to you. Sachin,

Michael. Thanks

which shows of our excluding items losses gains to quarter investments. impact special financial on performance currency-neutral a Turning and Page our the on equity basis, and X, for the

spending consumer PPT X cross-border and to to was Acquisitions revenue contributed continued travel recovery up of growth. XXXX levels. XX% the supported resilient Net this by relative

Operating PPT expenses from increase XX%, increased income a related was acquisitions. X Operating to up including acquisitions. XX%, includes a PPT decrease X which

to was a repurchases. XX% share up includes EPS year-over-year which from contribution $X.XX $X.XX,

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

gross dollar Let’s turn see third for basis. GDV to increased on where a you can the the metrics local Worldwide or operational currency XX% year-over-year X, quarter. Page volume, by

reflecting XX%, by on increased you growth GDV On increased travel. the same Russia prior XX% the part XX%. of the U.S., increased In if basis of period, exclude spending in from credit X%. with Debit recovery GDV by the

roll-off agreement, of discussed impact previously the customer of increased debit the X%. Excluding approximately the

credit XX% volume X%. the spending. Cross-border for and XX% the debit up quarter, globally continued growth XX% with U.S., travel-related of cross-border volume improvement of increased Outside in growth of was reflecting

Turning transactions switch in to Page year-over-year grew QX. X, X%

Excluding the increases represents Card growth strong. present regions excluding QX. Russia. in year, in growth XX% all year-over-year purchase card by switch person part in was from when grew Contactless contactless Card Russia not all prior switch present transactions aided in now present rates penetration and in transactions. XX% of remained

In cards card Russian Globally, and Mastercard year we billion banks if prior XX% the cards was by growth X addition, card X% or from there Maestro-branded count. issued exclude issued. are

was noted. XX% in The the primarily again offset to revenue by turn by as in line partially in on rebates growth and let’s domestic X volume growth. currency-neutral items, revenue cross-border otherwise basis and driven net a PPT as X growth, Now services, highlights of well incentives. this growth unless increase transaction and Acquisitions to described for contributed Page on

Looking cross-border worldwide quickly XX%. grew to mix. fees GDV while XX%. domestic Cross-border XX% XX increased revenue due higher is grew volumes driven as volumes cross items, faster at The intra-Europe border while X% difference this than volumes primarily ex PPT the difference volume assessments is by The intra-Europe were individual up increased quarter. mix favorable cross-border yielding primarily line

favorable XX% revenues, fees The transaction difference FX-related processing X%. due primarily is XX grew while PPT Transaction pricing. were switch up and to mix,

solutions. from XX%, X including intelligence our acquisitions. PPT services driven cyber were remaining The was growth contribution a data by up primarily revenues and Other

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

basis, that operating on Moving PPT see expenses onto non-GAAP total a impact can currency-neutral Page X, XX%, acquisitions. you from increased X including adjusted a

higher the initiatives. primarily personnel the strategic to execution to of support continued Excluding remaining acquisitions, due increase was our costs

operating to discuss Page let’s the three first X, Turning now for the October. of metrics weeks

stack help all the where XXXX, to periods. March from from reference you you the understand the schedule prior points an operations we later shows in excluded which we Russia-issued the trends appendix your activity in cards data For from suspended have if included business in ex-Russia, the

are up well comment, October. As our holding a general metrics in

comps As expected, rebound. when lapping spending the began year-over-year we tougher growth metrics XXXX periods and levels faced restrictions COVID-related as eased in to started

hold to important to up all relative that levels. continue XXXX note However, metrics it well to is

starting weeks the X% XX% consistent in three first with grew October, of year-over-year, QX. Going with October QX. turn, through PPT for down the versus we three transactions metrics weeks switch the X volumes, first Switch grew of year-over-year through

has As a metric. to which a low reminder, relatively average ticket Russia this size larger relative a impact results in

weeks XXX% continued another due Cross-border now to PPT Overall, XXXX at of was first of grew just up from is quarter versus as October, year-ago QX. I up through QX X X strong year-over-year, as PPT the comps, QX PPT noted. of travel In cross-border down cross-border volumes lifted. three more be levels. had XX% versus travel restrictions year-over-year, XX difficult of border down October XX% Cross-border to travel weeks growth first three the levels,

was Cross-border of October, ecommerce in XXXX in card not activities up excluding present XX% QX. impact PPT significant which is This metric to and from promotional travel to levels. includes continues X hold down up relation well year-over-year the

thoughts I share Turning our X, to wanted Page on QX. to

cross-border and back translating is deeper our into Consumer relationships of and to services. shift their restrictions that strategic in and macroeconomic border towards face Let the solutions recover the resilient travel. customer as continues broader adoption and spending of expanded consumers spending our me of travel priorities remains ease the saying by differentiated execution begin and headwinds material

XX% of which is approximately represented in pre-pandemic XX% approximately XXXX, metrics to you some at in travel QX, we Just cross-border from levels QX. inbound in XX% are XXXX tracking, on of Asia, update up about

offerings, well capitalize to as We to provide our believe is a to in merchants grow restricted Rewards and We our several services access which Travel corridors, continue benefits and network there to and to program, up. airline an issuers particularly with positioned growth connect capacity to global simple and airport remain more portfolios travel remain build to including with Asia, concierge experience. unique digital services consumers travel extensive this still back Mastercard industry on through allows arrangement room continues and lounge

laid number include particular. have future These rates we and growth. economic unemployment, are factors of in elevated that low there out, balanced and As levels influence a high interest rising tensions geopolitical savings wages, could inflation and against rising

are change and, monitoring line said, growth. reflect any to Michael just are we act these to as quickly We top meaningful each adjust of expenses to our prepared to

improvement Europe; revenues finally continued some the mid-teens consistent as some strong revenue one, deal and With reflects, cross-border levels; activity XXXX moderation basis, quarter with high were relative quarter, as net gross sequentially growth the with end and a due and slightly border to at levels consumer stable This two, elevated of restrictions expect resilient the lifted prior three, respect and seasonal XXXX excluding rebates is a during to currency-neutral percent to Asia incentives year-over-year with a the spending to grow relative acquisitions. consistent higher QX Canada fourth into the of improved in within and on to expectations we year-ago range XXXX. U.K. generally of U.S., lapping norms; travel to

this are the of for X headwind forecasted to growth is approximately expected while be Acquisitions add foreign PPT to to X X about quarter. PPT to a exchange

euro dollar million. standpoint, annual current $XX this approximately significantly the revenue to relative the net headwind. year-over-year of of $X.XX and U.S. the As a of reminder, primary From the is the a business, a change sensitivity is to the based value has impact mix the euro driver depreciated of the in on

rate at year expect to ago to acquisitions forecast operating basis, currency-neutral expenses QX this X grow excluding and versus PPT special digit on low are add double an a From a Acquisitions items. we a expense to about operating standpoint, growth.

be exchange PPT X to of expected a for X the approximately Foreign quarter. to tailwind is

Other interest items $XXX rates. This to and losses expense we QX income approximately approximately of on line, finally per current our of investments we expense prevailing rate XX% excludes keep the mix quarter the and business. million in mind, at geographic are in on expect our from run equity gains the of an other a on metrics, non-GAAP rate excluded our tax which based are given and

over back to the turn I’ll that, call Warren. With

for now Thanks Sachin. ready Audra, we’re Q&A the session.

[Operator instructions]

take Sakhrani at from our Sanjay question KBW. We’ll first

Sachin, just parse of if the Thanks, was is spiking out wondering bit number? net fourth lower you I there little - color the it the kind in be up were revenue incentives gross expectations a just quarter little just we it was could good just bit than helpful, of or curious, thanks. thinking. would I’m fourth Any morning. quarter, a it is

Sure.

just are we I’m that you kick consistent what Firstly, the last quarter our I to call, consistent off earnings in shared the you just fourth quarter. quarter implied gave with in we’re with very shared it going you at of so sharing in guidance saying full-year by when numbers our with thoughts very fourth terms what had of we fourth terms

few quarter levels. to to resilient; resilient XXXX expecting slightly one number levels will and that will our into we a XXXX to growth are emphasize improved there going consumer from key cross-border the what to to are, travel be generally two, fourth But we is just to relative relative want be continue a as consumer spending things the stable I assumptions believe

fourth of there, rebates fourth had it as of so our with your and to previously. as to unusual back incentives, consistent then This is I terms you basis, so there look the norms, I very actually summary a on at shared to lapping be seasonal are sequential very to which if think them I concerned effect is with I’m also to consistent quarter, comparing third quarter. and fourth nothing thoughts revenues I’m expect percentage in higher our we you far question, as sharing talked guess what In is a what really again with we gross the about, a quarter of you quarter

you. thank Okay,

We’ll move MoffettNathanson at to Lisa next Ellis SVB.

taking for Terrific, good my morning Thanks question. guys.

looking resilience BXB, face the downturn, business debit, fact A and the in how with years, more now if a see ACH, at last you question several in Mastercard more more services, I consumer more do terms the some business, thinking increased business potential you point where forward diversification the etc., in of about fast the spending? about over slowdown economic Thank the just resilience, we do guess think of that about so you. the in side of of are significantly

Good questions. morning Lisa, you your for thank

Let off one. that kick on me

- continued our question, answer You is the actually implied it nature diversification. the your in of

differentiated to services. revenue that we diversifying, better Just remind us stream on to and give all everybody with diversified it’s also why to a is of are but payments, plays it our hand-in-hand

out We’re solutions is see that, to more flows is there starting space, security us. safety easier for fraud in our of are some volumes after - issues All new going to I payment place. the think get payment for a PXP the into better with good where all point services, come over the example, well sought

gave look I had we for flows. of services building carried push examples macroeconomic last the there. the two certainly earlier flows, out slowdown day Then where on going just us, range back to side new harder you in I just on continue new a very the whole the and so very years overall significantly we a are we’re payments If the over to how

opportunities after, matter we but so in. we and significantly diversification in is spend services they end It on put a existing Earlier on just in on don’t on, the past, to which have, can we to it. more we we’re diversification need the actually is some in space game. POS, even is It’s if the will Mastercard, opportunity that that the are just our name people that a more going spend, going the spend ready of in To This a are we tools light we do a people so, for onto payments on, where a $XX they penetrated give commercial is to them acceptance, stats doesn’t trillion diversification. going lot spend addition this places and build us for downturn. what haven’t

Thank you.

We’ll to Peller at Wolfe next move Darrin Research

guys, thanks. Hey

model clearly the whether showing inflation points-driven inflation, see areas sensitivity still you if again you just that, remind in not is the and also and or Your but basis us could there’s any on changes it’s you you’ve whether in non-basis pricing given interested importantly, what already. if seen, guys so are the or probably we’ve services, transactions it’s of employing in benefits or done the just more side, point

on on Then are for on the side a side the guys. would and maybe willing just how note management there necessary. that, expense example, the flex be on, to other willingness--just if you Thanks, marketing

that charge inflation putting is aside, inflation, question. I’ll reality correct very reflects business around there. Darrin, I per which Hey look causes basis it into inflation wallet our as the we persistent that basis issue categories point that away to to impact of spend, carded but share would model, one for from the in would as non-carded categories headwind our points the the transaction, flag be cents long of you’re of guess our time actually I fact [indiscernible] a that are shift in - potential and periods a about take relates in your area points

and it’s inflation part it carded, are model inflation business that in in The the Michael of reality you are is in and and the doesn’t said, carded our - kind generally--you or in on whether because is, we know, we through. happening categories, said carded it’s if food it’s accounts those matter, benefit depending clothing happening coming categories, past, as of for like that travel get

a on expenses, As our want Michael one, disciplined in in keep to the we three growth investing sure the A which strategic we’re make we priorities always is business talked few which along it term on about. always relates to remained things: your thing that we’ve question mind expenses. long of

We line around function said, we around from we the on bottom of and our do fees, all is demonstrated making are delivering whether professional actually it we eye the continue around to will the do an it’s that whether environment, COVID that. as we a marketing, whether it’s expenses, what standpoint, an have forward. to line eye opportunity an during expenses to top continue on it’s sure do flex T&E, we’re keeping That to going while do the need and we’ll keeping being

to demand that pulsing eye The reality close it be, is sense for the our the remember travel when make be customers, COVID, in that. related in you we on back just things and onto from our what favor, consumer doing are is point of An is - it that wants, to as we in didn’t are keep expenses to out started on remain example what are we that A&M a travel in we’ll pull so flexible us would at which regard. time,

terms we have a pulse opportunity over years in the little of Then, where we’re expenses there many, a the of we longer are initiatives off pay actually at see those, on start to in which bit we’ve got which are the to which future, line. event term incurring initiatives top in pace will which the many slowdown

the on asked pricing. You question

to the at standpoint. all minimum consistent and of end merchant customers of end that’s price and net as pricing Our assume very a net We or to so incentives points been: from tightly pricing very assumption day. deliver, always delivering from we standpoint, is of in for pricing the our rebates pricing we our a the and it’s the per consumers whether consistent philosophy correlated pricing and value partners, cents around our basis transaction, very we’re to the to is it’s value

The of our pulled out fees, driving modulate comes last impacted of on through any priorities. and back Darrin, of a and make when Yes have just appetite we to pulled just there to was services back expansion so one quarter we’re so levers add shows power to that - is - all that how wide that. want two model forward, flexible of to We to a levers a going we and the to at second look forth. two, us I on half there, not professional that in severely and did that as T&E, to when looking and revenue is helps years the point here, our and through compromises it by now, have that the we we unprecedented expenses lot, it optimism that, event A&M, navigate the range I hiring, truly flows, market have and strategic the XXXX is

Thanks guys.

next from Rawat Bernstein. take We’ll at our question Harshita

correctly, ended morning. when time you with out impact Good routing Fed it talk put The up routing? online debit share about question, how clarification gaining first you U.S.? market the My you. does online implemented, Durbin recently debit Mastercard very last I of If Thank recall can was so in rules.

Implementation clarified some stores, and for whether pretty so we we of thanks that XXXX, when that’s the debit to the ready this basically It time, here simple, something takes Fed so debit online it’s rule via we Harshita, always on question. every here clarification Hi routing or Fed. there way made what straightforward. is and two is but have ago, we back in all networks have on, by in be decade have implementing. transaction a to requirement the will pretty be card, middle the applying debit so to There’s the a will the was going this

is the certainly be what we will in but debit does all what debit. to have more I not technology win I’m continue do that United with the the to think leveraging that in this there really really will our States. just sure will we market, to we compete assets

the some what Michael we’ve I’ll intelligence, said, our just one additional capabilities, been investing relate add which to which in And just you and comment in is, as Harshita, pretty of know, heavily to cyber services merchants or manage the partners, our core services more the capabilities do in well. online whether stand environment, issuers, of to our where environment it’s to their need better that an we as ready

very Thanks much.

We’ll take next from JP at our Tien-Tsin Morgan. question Huang

Hey, thank morning. you. Good

things issuer timing nothing rebates any always disciplined just nature? growth ago, I activity XX unusual of incentives, ask, more to that on program as drive growth versus deal to deals implementation, versus mentioned their do, with but in changes maybe You change Are of Thanks. side? sometimes I there days in on appetite and wanted and there

We’ve been Sure that of think on Tien-Tsin, in a start more take and profitable is and want the win grow what basis you can to part our I share to nature that’s and do, on of know globally, disciplined, of of in we optimize just active that marketplace. share overall as network. want winning I’ll share we’ve strategy Tien-Tsin, that that. deliver been - which services to the headline. the we with I the kind

on your But QX rebates pipeline. incentives, unusual. It’s question specific a and rich nothing on on

marketplace. We continue in to be active the

as it not issuing changed are that’s seeing behavior We’re we active to how patterns remain of seeing partners marketplace, the relates and we’re what or the our and in just any there. essence really

for update. Great, thanks the

Citi. Shirvaikar Ashwin Next to move we’ll at

Hi Michael, Sachin. you. hi Thank

travel as you ask about I if If yet improvement in view, could we normalization mix about now some the talk versus is and happened there to how normalization travel, that of can cross-border, in look your has much some now have travel seen non-travel. we to more that come cross-border

question. Ashwin, take that Sure I can

in travel of that come saw through in last kind from we recovery in in QX particular a grow markets cross-border some XXXX remain goes that at more metric just about we there’s shared show are earnings further to to recovery Asia-Pacific which approximately a our XX% standpoint, so cross-border travel. opportunity some said in still of that is be how We numbers. Asia-Pacific QX There in of in still inbound call, to opened. I saw Firstly, mentioned Asia-Pacific. We potential travel several off terms room there as I there. believe in levels, the

capacity more bringing on. are airlines back Also,

As potential in of of all should be personal getting and for terms cross-border is hard recovery. that on is it’s seats helpful know our experiences, expensive, reality from travel so planes the and the you

COVID, pattern pre-pandemic in which point take said is a know lower place always seeing so reality we Ashwin, not point stronger intra-Europe The reverted mix to back and saw mix you We’ve other recently is is of cross-border as time. relates think you is so in to mixes; if I the because cross-border, important and alluded to, levels back is a were to the this yielding. first at in generally the intra-Europe, we recovery growth that ex intra-Europe has so the historical not remember mix going through differently, you the mix, and it as been

during to been and exactly us one whole Just space pre-pandemic, a question, thing for your focus add, pandemic, isn’t this had now. the but that

as were it space. about, the side, from were talked benefit in on and well really so trends we struggling and well stand side in portfolios the Sachin travel-oriented payments taking partner While that airlines as services off, how the positioned showed the just with airlines and flights no a strong engagement so co-brand with work to now, exciting we

think I bets are off. paying our

Thank you.

UBS. We’ll Rayna Kumar go at next to

taking Good my for morning, thanks question.

growth continue strong it drivers - think into Thank XXXX? GDV of in growth in you and going XX% some into and be America very sustainable growth of XQ that You the quarter. discuss key the could how you Can see you. to Latin

for Mexico you the so markets to Mexico, digital example, the there travel compare off them, highly and it markets of of upside penetration that. let peel of you Rayna, to and in at fascinating region you of the there from and when Brazil other markets super Caribbean, spectrum, onion with to more the start It’s at me these look us, the have Brazil largest you end in that - developed so mix. Brazil, compared markets is on America, so some Latin in high well the at of is you diverse go, really interesting Mexico, all if for the potential much look two digitization.

demand are trends continues, for has some while digitization and for some require all those put growth fairly region is issues, generally fraud security payments, driver that you and other attractive. The in experienced There great so of our us the solutions. are a great our issues underlying the in together, solutions in it’s region safety so

engagement lot world. Then be people crypto the might space, a really in inflation world new shown this innovation to flows pain part is an focus, you crypto that answer. there Historic is of services about were forth, that and and innovation, I this A our for and talked in payment where has so in in momentum thinking us. it’s in so payments region high across crypto all one place of If through is the economy. the

Yes of digitization. towards about one which increased Michael the light Rayna, talked points I’ll just trends in terms bring to of

America As we’ve QX a doing in it been company been as relates part Maestro very on forward, this going of for reality been conversion we to our and very in of to is the focused long the a has what have Latin time. performance debit and Mastercard,

down of the know, which you transactions, you fruits card, seeing as path online it’s from migration debit to for converting and talking cards, because seeing that Michael Maestro actual digital digital of debit come Mastercard, Mastercard that go there state as through, are been debit us enable an a to of becomes conversion the it’s now we’ve You whether Maestro companion the about. It’s trying trend Mastercard. enabler it an those about to all good is or

We’ll America. Kupferberg go Jason to at Bank next of

Europe, headwind guys, if wanted on FX just good to spending revenue are a little potential a quick if see you of you XXXX, make you terms in and around parts the Thanks then in guys what I envisioning, see of to Sachin, Thanks. morning. rates. consumer current comment across what you’re just unpack based want seeing to can could bit different

first and about. Jason, which question the talking so then you’re one, I’ll your give Sure, FX you--on I’ll get into

which to of not share of seeing all metrics, are underlying growth In It’s through. in seeing our coming you performance see but Europe. taking we terms of kind has of economies Europe, only place Mastercard impact amalgamation been are in doing in Europe. which good that what the continue also Remember our of what terms is of in the the you’re

the of taking continent, terms spending to are The strength certainly our of consumer the any resilient how terms and would of comment in patterns, patterns necessarily you tell being regional around place. meaningful generally, In earlier consumer, back that the in change I not terms we’re in seeing that’s trends consumer across case.

so think Now, by recent about markets, for growth. share then were still point markets of the share seeing about like A the to to are the mix a kind this effect, our time. wins as in U.K., to still effect. is which we’ve part and example being taking this win talked is of different of in large we spoken come about at which the wins end stronger in you there come Germany, we’ve that fact past of that had in all Europe in is that’s Anyway, place that we’re Deutsche with driven U.K., continental Bank to

of U.S. shared annual be could could part with sensitivity and as on the relates what of what I’d with hard how be around basis. the We about remarks you given headwind the it put mix dollar, of that’s in think on FX, with about question on share is so change FX impact $XX the what’s in be, a a predicting sense to you you an what potential tailwind happens there out impact value to have euro which on rates. your the depending On or which would net the FX annual $X.XX relative prepared should that so revenue you to is million for I wanted my rates, The our business, current the XXXX.

Chiodo to We’ll Credit at Tim Suisse. go next

taking Visa dig a if to pricing you for the wondering maybe to would seem little Mastercard if and Direct. bit Send on the focus mechanical where question. I different, you any are or maybe in was call you strategic thank investors us differences differences, relative for Visa there if relative of out Great, wanted getting could extremely use areas, helpful. any be any be traction there to That are cases Direct. I to

how but I’m All about so can tell me Visa-related I comparison you it. not All are we do that. going obviously, you to should right, take thinking ask them, stuff, here, a direct let

of First about talked space. crypto lot one I a just I’d on give all, just earlier the example. you

balances way turn ecosystem, all Mastercard We wallet into Here the partnerships new you use what’s exactly and on we right your that. were technology this of crypto to and is growing the Send. first a is from that do have you out an day the and and interesting it get fiat

at you this. dimensions Then are so looking is is flows, cases, new are around the how on and we there go there basically is those there use geographies,

ubiquity. have to has This it. about systematic very are We

We’re coverage looking from a regions all at perspective.

cases. key the at looking We’re use

of the out here, where to going gave is firms you with because the which The large very lost to bloom. people is in covers get and you matter I there. that to that on We’re regions use partnering global thousand the all with you use approach, say you’re AirBnB, selective a cases partner flowers like cases in examples could somebody

angle That’s across essentially it. to said. has the it we’re at angle It happy has significant grows these all it approach Mastercard to Send. a with and very cross-border I of domestic that rates, just a on It aspects it

to from. but from was success on fact in earlier bit, a that the about We a Russia year, of huge one. so this That’s in lot thing of ex-Russia, as add talking day is going you where learnings the so are exited Send not we our a came the were skewing learnings One little - numbers Russia, away. know numbers March

parts learnings in We’re other to Eastern Europe Europe see translate of putting so and the we markets, around that into a of whole other set those particularly countries question Europe, earlier forth. of in some and

cross-border to and we’re take Just remittances seeing in traction very Michael there. terms what we’ve building good there capabilities the capabilities got remittances side, we’re the place to said, of particularly and the on add

generate out piece a bright more stead down the to partners Our us we broad so as is really remittances more relates well. that’s to and good in holding a--it’s able as that path, terms it spot in global of there our volume to reach how are tap

for context all you Send. thank Excellent, that on Mastercard

next Andrew to go Truist Securities. We’ll Jeffrey at

you good morning. Thank question. taking the Hi, for

give whether Michael, business, both the an and globally, the net emphasis can the I time revenue in of Europe, business maybe too. yield could if in winning processing and and on affect your you over efforts taking profitability think wonder you an processing update maybe us that you’re with how share

Right, thanks that so question. Andrew, for

have Asia, assets with in then at the starting at we extend we parts conversation those but Europe processing or this know, looking world. East the so You of Middle could

for XX% out This is to whole illustrate partnerships, on d’être explanation to capabilities, processing modern, isn’t what extent a really state fintech hand, a like whose complete have neo-bank new relatively one prime rate which they are Those side. to where those here, the that’s that of provide. payment to that to downstream raison financial obviously and a matters, space app, process, Just on entering they of is there looking of this I’d some what the the win set make solutions really whole progress a our great down art, want so side, is do, players have the easy are to the large they’re how really processing coming it of for set we we add capabilities. guys, our fintech-oriented of

joy so with it’s a processing sometimes good partners. in that In are and of Africa Network it’s us for services It’s own partnerships, example Overall, in is assets a of doing in parts to one portfolio. for there scale been we watch. have International we some parts world, play where of our combination our we and feel so and a forth, the the of through differentiation, it’s here there is and

switching I’ll which more some reality Mastercard is switching working relates nicely. hard as our our get been share. around on the of pushing transactions, we’ve it The very branded that just processing and actually total to--beyond know, add is fees, the color to as efforts you proportion

a so come both in past, in through. America is share worldwide, of of We effort we’re markets in improvements growth standpoint the there of which seeing progress transactions, on Asia-Pacific, in lots good we and good are and index total switch low than at where are have transactions been seeing our and that’s XX% super progress proportion transaction now stands of seeing greater important. going and switch Particularly from Latin generally which

Thank very much. you

comes Bryan next question Keane from Our Deutsche at Bank.

think into Sachin, How again. comps these of into Hi, mix little yields? it’s the some into the some just yield get forward about year wanted year? improvements sounds yield and for go as there. next to Thanks. pricing like through Do a get It good we a we and going in tougher next fourth morning. quarter lot do the

just revenue nature GDV, mix. can what net to you’re the Sure. seeing that improvement part is of attribute Bryan, yield this large you quarter-over-quarter, of in yield a by divided

as that the you has deal nicely, gives pretty yielding back As high that us that you know, come has and the a seeing benefit come and and wins nicely, inter our on basis. back sequential are cross-border is

tend point relates is is the that the the QX quarter to decline that you large that will see will see QX, nature through, of every it and should down. works, you what expect out cross-border to because you as of come see with start slow that a benefit business I and consistent yield some, very That which some the to to just happens just QX be year. of you how

how are very about of we revenue question would around going we proportion do, focused about, are we’re focus tell multiple gets, to debit I about of as yield shift from talked mix certainly, we the talked is that’s a lots to Mastercard what more to very switching How but continue our asked the yield, things greater cross-border which factors you our driving influence that. a of that, Maestro and also domestic some driving focused on and of like just we’re so there’s remain on. net increasing the switch Now you, transactions. that, again, maximizing and we XXXX. around around and focused which The business - the just we

our don’t like generally XXXX feel focus trajectory to I yield is necessarily the speaking see as so as services of the get change dramatically yield from business anything to of standpoint. going standpoint I driving been a from you you as going market, into continues, coming a which a when that and which, the forward, well, look of all through kind overlay we’ve All bringing benefit I

we’re just and and kind Yes, what again, Sachin of that’s the strategy explained trying.

levels, look payments revenue We’re trying and the optimistically. that overall use future at at it’s that be our makes but combination to in us the very yield, services the continue then transaction to improve profitable to

we’re really have, them here. These the tools don’t and we using I see anything that effectively. are changing

both. you thank Great,

we’ll to Ramsey move Next El-Assal at Barclays.

incentivize you is expanding over underlying I to is, value I question my incentives How had on of of past taking the the several rebates the support kind more how for growth? merchants specifically in of - evolve chain consistent to of number and you and kind guess one future? an [indiscernible], mix do it players question. the you having that thank fintechs, Hi, of and years. how expect those are to mix rebates has changed incentives,

changed. rebates incentives, higher We’ve so levels and case of historically generate we the to in Yes, revenue and we and the continues of rebates have be are how actually and of more of that and incentivizing hasn’t delivered partners, focused are expending issuing not to really has to that terms we our incentives our mix as terms incentives to most where meaningfully. dollars, been actually changed actually in rebates incremental

relates versus it the between say changed. domestic mix also I’d As and mix volumes for rebates incentives cross-border, that to really hasn’t

As and lower know, continues a rebates incentives indexed be right generally that standpoint, has cross-border much now you very pattern been from well, the and to as Ramsey.

what it stable like. pretty Okay, so environment is sounds

yes. Yes,

For sure.

appreciate you. Thank right, it. All

we’re your on line mute, have you next you. hearing move not may at We’ll David to ISI. Togut Sir, Evercore

we to get we’ll maybe please, Audra, David then can go on. the and can we see back next, if

move at William next Bob Yes, we’ll Napoli to Blair.

Hi, thank morning. and good you

of there. you. in? an of like I would that out $XX payments opportunities the market, the changes a BXB Just trillion. to POS BXB--your are that update around commercial What and know you market called your the we thoughts thoughts, on Any inning Thank market? growth any

investor into BXB, half huge We perspective. down at specifically, but BXB accounts in. other end so is very into not at of our flows year, volume about question analogies, earlier very that’s we’re of hand, I focus one to on really it it from cut BXB we why the was Right, talking opportunity there the and I’m very so But on baseball out the yes. your flows distinct payable active a of which first called types last game. day

BXB is through you lot kind a space card but with answer POS example, piece business, that’s an and gave most is go is in BXB and between immediate virtual in-between which all after illustrations current somewhere, use small of For cash flows. card of virtual checks. the and to earlier huge a space the commercial the There I on cases,

build grow, takes continues the piece, vision say long You have that two-sided into the over where service a Mastercard to time piece, accounts network here. you building and accounts it that payable payable Track time. range up those we’re the business on over we but payment really That is we know

forth, we - But initiative a around and cards to so have the are that’s table players we now, active buyers HSBC, but issues for JP space. virtual so good suppliers very us, the large and the in solve of for on

a away huge we’re go We opportunity have any from moved imagination. by this after is it. the going to and stretch not of This

Thank you.

Audra, I think last have we time one question. for

that take We’ll from question Jamie Susquehanna Financial Group. at Friedman

but if Sachin, XX%, out Thank elaborate Hi. remarks fees increased that. switched mix prepared I changes. can you you processing you. know transactions increased transaction in called was just wondering I X%. on your

sits Really, transaction at transaction, point related between is the of than of per yielding as on cents per in in that things process, is are underlying because in of transactions and going fees, a terms sits to because seeing are which when delta mix the and that’s we’ve Sure, cents pace, line which revenues there, component effect faster driver, is cross-border come we basis we change. of cross-border some points is so revenue inter that through cross-border there as component contributing on grow in domestic. fees driver, higher which where are transaction cross-border a basis are seeing we revenues, which one a is on than a which make few growing the the remember number the our what cross-border as where rapid the processing and seen then what fees, we mix transaction make sits we cross-border volume in well on basis

that as Jamie. two caused couple which talked pricing - revenues some about are well. level are which contributors other of differential other There those a into I go factors that, the and FX-related

you. Thank

for me all to close. support. of you to the a you your your let right, thank for All investors, bring questions, and call Thank our

all colleagues because note Mastercard to thanking always. a This a strong a the quarter, as make here sent so our are morning them at I this of to ones shout-out happen, they them for who

that, the we’ll in Thank to much. talk very With quarter. next you you

conference concludes This today’s call.

may now You disconnect.