Mastercard (MA) 26 Jan 232022 Q4 Earnings call transcript

Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mastercard Inc. Q4 and Full Year 2022 Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers’ the will question-and-answer be After [Operator Instructions]

Head Mr. you of may Kneeshaw, begin Relations, Investor Warren your conference.

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

Following Q&A session. the comments call the for Michael from and up Sachin, we’ll open

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

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

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

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

Executive turn over the that, With now I’ll Miebach. to Officer, our call Chief Michael

Thank Good you, Warren. morning, everyone.

it. Let’s into get right

financial basis, items. XX% adjusted both a on always, strong So, versus starting with opportunities and spending capitalize picture. non-GAAP the on as several four XX%, excluding closed very up to the notable big has Consumer operating year income were special Quarter year growth revenues remained currency-neutral and wins. net with ago, are up a ahead. the positioned resilient, and well we out results We

market a consumer on of low environment unemployment consumer rising macroeconomic labor are coupled are spending. we variety positive close wages, and resilient key savings The and of the uncertain, remains negative factors. and levels, with drivers While with elevated eye broadly a geopolitical keeping

along by China. with curb the the central moderating energy banks tracking and inflation, reopening of to prices also efforts We’re

So, of moving still lots pieces.

to overall normalized the be consumer the an consumer largely Spending expect effects resilient. the notable pandemic exception to relatively From of the with patterns spending have standpoint, China. of we relative

switched In steady domestic U.S. with gas the moderation prices levels to slight some related remained fourth relative the XXXX quarter in to of terms in volumes, lower volumes recently.

continued travel relative travel sequentially to four in to flat up recover Cross-border in quarter levels. either region with XXXX or every inbound

As above first now the inbound travel weeks XXXX all of three January, regions of cross-border levels. to is

levels progressing things these. quickly to we’re economic the with and on our adjust the we will spending the each monitor have done control. meantime, how change, in past. the to the closely, environment as priorities: extending should to are our prepared expanding services; outlook some and continue We here three we examples in move can continue of we’re to we embracing This new starts payments; And networks. focus strategic of our against In

Starting with payments. substantial this business quarter. won We new

I world. the Citizens us product banks, the and Our differentiated very their States. portfolio and approach programs expanded innovative with partnership relationships exclusive United about portfolios to major services in partnership extend all flips, excited across our partners systems am transit enabled to launch become payments with co-brand products, secure provider and new around

capabilities we shift our on will on commercial. portfolio tools. security assets, safety based We Mastercard, digital their to will and and Citizens Mastercard and debit banking selected maintain credit and exclusivity open

innovative business Citi. payment extended look debit to cards. exclusive with and together. and long-term technologies enhanced Citi’s small to forward Citi-branded for solutions also Mastercard our It have consumer partnership continuing new We as to partner initiatives, partner deliver We global credit, digital solidifies and

and America business. across and They’re great with lines credit longstanding small our relationship partners. Bank of business extended of their We’ve consumer debit

brand for to proud as especially business lead cards. the newly small We’re continue all issued

quarter Chase this excited continued Flex renewed Chase commercial the with on momentum announce have portfolio. we and to announcements, Building as are we recent positive up Freedom Pay-by-Bank that well. our co-brand, partnership our And

Turning to we the deal with for commercial. UK, and recently credit NatWest consumer Group extended our

Istanbul closed-loop Mastercard new acceptance marketplace [ph] to QNB cards, convert Belbim, a with city. add large and partnered product. partnering to XX,XXX and million XX credit a over customers launch Mastercards the We’ve XX over Finansbank Trendyol, transportation locations We’re Turkey, in with e-commerce across new million co-brand

ability important Now, is payments deliver our leadership. success an of and to in core driver thought innovation our

Pay. result, to solutions Tokenization the customers. Installments, innovation Click our partner a clear and are choice recent work at scale, We Three examples designing for in of are deploying our and as include

Starting off with installments.

the in launched Mastercard Installments U.S. the program. in first to the bank SoFi X, becoming Pay launch within

make valued strong several strong year. banking a open Mastercard and broad Installments for additional got across plan capabilities add protections acceptance, the all that We’ve unique. pipeline commission-based multiple to Mastercard consumer SoFi regions Installments the and throughout programs

Tokenization. billion We per X are Turning we surpassed year, and to tokenized for transactions month XX%. up the

across countries. secure and wide of Tokenization the cases. keep XXX over in ecosystem transactions digital use enabling helps currently a range We’re safe

One cool example payments. work is we with doing is I that in-car the think particularly are

to Things, partners of drive experiences. the our for manufacturers simplicity Think demand right working of tokenization brings from paying Mastercard and to This great charging it is Internet We’re consumer example with the your and or car. a biometric XG using the car of fintechs integrate addressing about gas, digital for entertainment and payments capabilities. platform to cool working convergence with tolls, authentication

how our to the through beginning. It support value of also space. more cases. reach to acceptance for just is This Watch in the new we’re highlights and channels come the network use new expanding the

online XX bringing to to Pay the and value we Pay, of millions merchants other Adyen joins And platform, more that global brings the recognizing to to shoppers. guest on Click globally. thousands it than launch providers Pay service Click checkouts Adyen Click their around on to of payment to payment with partnered world,

at also our Day. part outlined of focus we XXXX prioritized this partnership new our is and flows penetrate innovation strategy the critical Investor Now that on a of set to

progress. make continue We to solid

each some area. are growth Here how driving of examples in we’re

Send for cross-border are across solving our First, cases capabilities services Mastercard expanding disbursements and remittances. of set an use multiple geographies. and

And seller to and cross-border international broaden send to payouts. the we Poshmark, example, across teamed social For expand ability reach Paysend we’ve enable for card with partnered global our payments with brands. to payments, platform, up marketplace

Second, commercial point and for Korea, card payments displace at we’re cash opportunity. corporate deploying KakaoBank digital partnered South sale, check-based Samsung to agreement with Card France, Générale debit Société the capabilities launch in an co-brand and with huge of develop small we credit to signed their new businesses. In book. offerings and And we to

payments. The third accounts is flow payable BXB

digital the in data are BXB. card address that effective prevalent virtual capabilities efficiency working and an provide solution to Our capital, challenges process

in leader global a card. virtual are We

space. We’re this seeing growth in rapid

We’re bolstering new capabilities. our partnerships position through and

example, for pay we confirm with For travel use the announced virtual cards Sabre partner our plans payments. of BXB accelerate to and to

We agreement to Extenet, with an mobile fintech also virtual corporate cards offer Canada. signed and in U.S. partner, the

to bill focused of market-specific on on unique solutions payment meet finally, and front, consumer the consumers businesses. deploying we are And needs

For example, digital eFaktura. by are service, XXXX, using of used the bills. we we majority to invoices Norway, in their over hit powering pay In which were a vast the citizens XXX million eFaktura sent as is milestone

progress see, opportunity in we expanding can the excited As of making and you front us. in about payments, we’re significant are

for our of diversification three to the and turning provide second strategic services. Mastercard. Now differentiation Services priorities,

services leverage cases. use to drive is and the our at strategy segments to and core growth expand new to Our into

future growth. steady significant opportunity have progress for both on making We’re and

evidenced our NatWest payments partnered to and earlier. UK. receipts to digital Citizens, in details with offer core in continue merchant the U.S. the and with TSYS drive the over with I improve million the services Consumer of and costs growth reduce The to mentioned One others, Our by We cardholders wins recently provides experience. the Clarity and Consumer extensions Clarity. service XX example low as that will is of service charge-back in who disputes, enhances as cardholders Citi, a consumer value

Brazil. merchant large Consumer signed XX In financial issuers Itaú and for including institutions XXXX, we in like over partners up Clarity,

We’re to use retailers, segments new and digital cases, partners also expanding institutions. services including governments, and financial our new

including with core we Ministry into their Test detailed the retail as quarter, International Germany, capabilities who We with business. well trends. are and on to Lowe’s in insights like and Transport Tourism conduct & leveraging research Learn to tourism consulting with [ph] and This SEMA firms, retailers EFO governments provide engage analytics as partnered Barbados of spending and our

in We advise Argentina, Height, to Yield, a and Dynamic with financial product are we large of across efforts. deploying And including their like strategies. the UK. acquired our and development through retail on Carrefour, partner fintechs which we [indiscernible] Monzo enhance range scale personalization solutions, personalization to institutions,

the in services our encouraged strategy capabilities and and these continued growth I’m bring. diversification by that differentiation momentum very the

identity. third to and is I’ll our priority, banking namely strategic now networks, embracing open new move digital which on

new a come have This like solution. open our to other strategic an our capabilities I’d to how example priorities offer quarter, of together with highlight banking

As announced in solution. innovative four, I an mentioned Pay-by-Bank Payments earlier, JPMorgan Mastercard quarter and

platform from banking Solution modernize utilizes open and bills allow account a frictionless their to bank manner. payments in existing customers the ACH to MasterCard pay

choice and by JPMorgan banking offers our our of our a merchants strategy, and transactions. our as of capabilities, existing Pay-by-Bank billers and it addressable market provides consumers and a with enhancing manifestation experience well deal secure by This multi-rail as is relationship Chase. simple ACH deepens expands open

them this with to working year. the solution market to take actively We’re

efforts. We across open than power Mastercard also connected Europe. continue XX banks institutions is to in make banking markets and banking more open our financial to with to X,XXX progress their

safe will bank open repay This ways to convenient their from the banking quarter, account. for customers directly retail leverage and who to we partnered with in Secure capabilities provide Trust Bank UK, our their loans

in of substantial delivered Citizens. resilient won another continued recovery consumer revenue payments, and by cross-border and business this summary, aided growth, quarter travel. In quarter, the we including a we strong new In earnings

We’re services open opportunities solutions, capabilities Pay-by-Bank. for we’re including power With positioned banking JPMorgan’s and the well leveraging that, networks, all expanding embracing our our ahead. to like differentiated new

the change. will business macroeconomic the We manage agility, outlook should with

to over you. Sachin,

Thanks, Michael.

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

contributed year-over-year XX%, ppt share a ppt up to from which a the Operating ppt was $X.XX by relative income a a up Acquisitions and contribution includes X up related which XX%, of decrease from XX% to growth. this to resilient Operating increase a travel ppt was income expenses increased was revenue to decrease XX%, consumer spending X acquisitions. XXXX levels. which $X.XX, continued to supported X XX%, includes Net including recovery X acquisitions. Net EPS cross-border repurchases. acquisitions. up was related includes

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

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

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

increased Debit X%.

customer in discussed the with and Outside debit previously reflecting the a up XX% U.S., credit volume of volume increased growth approximately the agreement, X%. increased X%. Cross-border travel-related quarter, Excluding of continued for the improvement growth globally X% spending. of impact cross-border roll-off of of was X% debit

Turning transactions now in QX. Switched to grew X% page year-over-year X.

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

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

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

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

by is difference Transaction up were grew processing ppt remaining & & acquisitions. up Other mix, revenues intelligence The transactions a were cyber and favorable data while switched including due pricing. from solutions. primarily X%. FX-related to ppt The primarily contribution and revenues driven X fees XX%, X growth services our XX%, was

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

Moving on to X. page

expenses acquisitions. increased see can excluding from a a that on X ppt operating items, currency-neutral basis, non-GAAP special including You adjusted total impact XX%,

and support offset marketing acquisitions, primarily execution costs. our costs higher advertising remaining Excluding increase the due was to personnel strategic the to lower continued by initiatives, of partially

page to X. Turning

three X first card-not-present these of the favorably the cross-border the excluding of XXXX. Let’s metrics with were the travel, operating discuss of lapping QX weeks Each January in January for QX. ppt growth the versus volumes impacted slower QX. XX% by related compared exception Switched Switched to grew metrics, grew variant. that to up the of X XX% occurred XXXX up year-over-year, ppt versus year-over-year, Omicron transactions

XX volumes up Cross-border XX% QX. cross-border travel growth cross-border ppt year-over-year, X ppt grew year-over-year, versus ppt travel versus up driven XX% grew Overall, card-not-present from up excluding of QX, QX. XX XX% by year-over-year,

periods. if administrative help you your A in an we to in ex schedule, the show we you excluded couple later included XXXX, prior activity the to Russian-issued of data notes, appendix for points Russia, March cards deck all -- from suspended we business, have reference trends suspended the operations from have this understand in where from this

longer recede, a metric of as the provide no of Additionally, impacts percentage operating XXXX. will going forward, as we levels the pandemic

to upcoming year. on our X, now to Turning want the I thoughts page share

Let the opportunities positioned I hand. believe me well to growth that are significant that by we saying start at address

and a Michael have and this priorities and the the established wins set each against This of time. products has across services many We are clear on evidenced discussed steady by strategic over is of call them. making progress

Michael rates as the consumer we and a in strong out, expect remember by the moderate to hold environment, our front, market. are effects strong monitoring accordingly. macroeconomic factors. do positive expect this It number We coming well of important part pandemic, growth labor we go-forward to both, and relatively growth the year up we laid On a to in driven spending of lap off the we is of as that are negative

Asia, still regions room there levels travel China well standpoint, have improve is most where reopening. above in are to cross-border a From and recovered The is with XXXX QX. exception

XX% in XXXX volume China about QX XX% cross-border volume levels. pre-pandemic Similarly, inbound this XXXX XXXX. Just QX was X% of In travel QX, volumes pre-pandemic volumes of context cross-border outbound approximately this about China represented In QX, represented further a little travel of here. at X% levels. in XXXX. at was of about

basis, items. mind, With of revenues a exclude is from this the would grow the revenues low-double-digit growth higher our XXXX. at on to approximately by XXXX if rate currency-neutral in excluding high rate X.X a full base be net scenario Russia-related acquisitions case special for This year end ppt for you and

is have to exchange rate, the a to dollar. a for to approximately primarily Acquisitions to impact X this the be of strengthening are forecasted the growth due U.S. year, ppt foreign minimal tailwind while of expected to recent relative euro

carefully In services terms to in of manage operating network will and payments, we our expenses expenses, short to drive our long-term we as priorities growth. new invest continue and

year. add Acquisitions operating for a this expected year, on to currency-neutral while a the is end ppt of of foreign excluding headwind at grow basis, X are forecast a we exchange and high to For the to to expect high-single-digit ppt rate special items. the about be acquisitions a X.X expenses growth,

quarter. on of be the the Year-over-year volume generally QX in of at currency-neutral first of A and QX to spending. in as in of we be end revenue special the a experience XXXX. XXXX. and a resilient elevated decision QX XXXX again, the last effects low note. excluding to expect we a lapping low-double-digit to items result And be suspend to net expected acquisitions in our Omicron Turning cross-border rate, Russia consumer which the quarter to points will in reflects of now effect basis growth is growth QX of operations couple

this versus on of a a a X acquisitions QX the expense forecast an of exchange low exchange add to the to standpoint, about about excluding this growth, X.X forecast a X quarter. while to high-single-digit be special headwind rate currency-neutral a to operating Acquisitions while to expected to a the ppt foreign expense operating quarter. year-ago is From is of for Acquisitions are be approximately foreign basis, and at we growth expected end to for growth, tailwind ppt items. be add expect ppt ppt X are

Other mind. items to in keep

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

And over with that, will Warren. turn I back the call to

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

Rawat at go Thank first We’ll Harshita to you. Instructions] Bernstein. [Operator

Sachin, ask or wanted Mike So I about to Pay-by-Bank.

different Over the for you’ve years, acquired capabilities developed in Pay-by-Bank and countries.

risk and argue with in Pay-by-Bank new talked JPMorgan. a to a also But that skeptic some countries. term, partnership cards this You is precedence about longer there’s could

can transactions? for and participate Pay-by-Bank talk used touch able severe? And Thank how’s and is you those pull upon to in about you. So, the where Mastercard cards maybe push versus also being

me let that. Harshita, Right. start off on

we to it end, tremendous that way and has relevant true over delivering the in think years ecosystem value. But to the to therefore driven banks, also all ways So, consumers, are we of in merchants, about card this choice choice pay. is is about the the it’s choice

is a way it pay many cases. So, prevalent use to many, for

the after as payment we and this we success payment alternative to of doing time particular payments the not really consumer is very tells that though, for. that’s focused our JPMorgan. emerging. so partnership look to factor here, account, that context our or with what these here have they willing providing are in at what debit you methods banking value in true the some on a happened brought biller/the a existing And value account. new exactly we’re somebody biller are This bringing what Frankly, those this to use looking the payments, pay know are on is the merchant. is balance here for, But the specifically, go is that options cases, ACH case, the which the And on open never is biller of the issue account-to-account good really with capabilities to side, this

tools from where created So, payment and merchants. are good doesn’t the be consumers to value this take an away can the example alternative a of there while cards power bringing

know, in this see strategy don’t we going over coexistence. to but time, we Where well multi-rail as play quite our positions this either field. us So, is

Wolfe to We’ll next Research. Peller Darrin at move

showing Omicron, at looking built the and you Nice line we job on despite the the conservative like low easier look does top it look double quarter on even and have you’re pretty When for growth comps year. the for we’re trend the January, ahead, guide digits. into us of year assumptions for

Just given the we’re and growth March, after rates. materially that Russia, beyond anniversary ex the go January, trends but numbers seeing even you higher

So, can forward activity assuming some maybe -- macro you around a macro rebates from and just today’s is if like here? again, factor tell blocks guys. building on there’s Thanks going us what you’re incentives, that

morning. Good Darrin. Sure,

you mentioned prepared a provide Look, today, me a in let we’ve resilient I of assumptions see and forward we’re resilient case. bit that consumer assumed going resilient our in consumer mean, generally little consumer XXXX. when remarks So, spending is was here. pattern mean, I I base delivering we my base through a color generally what I our spending seeing

standpoint, but of growing we at regions growing and pace, they’re not cross-border standpoint, state reached which pace. a The kind of contemplated, the and growing from majority we’ve a other healthy that at travel where an thing cross-border accelerating now mentioned, as have the are they vast particularly

of level stability. they’ve So, that reached

a bit give of here. little me let you color So,

a first Latin inter remember came saw as back coming we standpoint. from After several back all of COVID, U.S., of You’ll come that, Canada, we cross-border right, America, UK, are markets standpoint, out those. intra-Europe cross-border

to at at a not assuming an are healthy continue at pace All healthy growing and we’re grow a of pace, but pace. accelerating those they’ll

terms a are I And area where an of Pacific. in expecting Asia growth of lagger recovery assuming is will markets in there when with been in Asia will The some Pacific terms in through back recently be to there AP mean, travel. borders will level one increase come we that around that cross-border of XXXX. we’re you be there -- opening of which several recovery, index has the

case kind of we’ve of that’s kind So, base assumed. been generally the

be we’ve continuing reality strong We’ve that you, guide are Look, honest with I got consumer perfectly think the healthy forward. our which spending, a into that mean, services as share a to to win capabilities of I got standpoint. our pace, grow things we from helping at is all go is built us

XXXX, that of but in there predict, in that’s we were our to about we looks elevated going-forward an levels volatility It’s supported that business. standpoint. the volatility on our from have FX remember to had how blocks which gone hard building in kind actually as Also do rate that of FX growth a like which best the the we did market, on which But basis, XXXX. assumptions we’ve building

asked incentives, question. I’ll around point last The and make you is rebates the

As talk you delivering are can how see, we wins. about we quarter-over-quarter, [ph]

We are with new customers. winning

customers. are business our We expanding existing with

and standpoint which So, be will to we winning record you’re us. in rebates standpoint, are track assumptions seeing building from from a incentive a with our as in it what consistent relates

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

follow to related wanted I flows. remarks Michael, to your new in prepared up

that that have capture different more talk a co-brand you. it? the big area What to opportunity payments do then BXB highlighted do Can as how about just there. side? highlighted a, a bit Mastercard new notable about you is; consumer few Remind You to you this this as b, and and wins us, opportunity? relative little holistically to differently a it SMB what’s Thank opportunity POS

Right, Lisa.

from the So, ecosystem, very card the existing opportunity of here lies out into our namely acquisition set we’ve many card the -- specifically ago capability, now that an ourselves years came tools, in through built leader taking virtual which many, here. the really

and them an efficient, from looking addressed So huge terms trillion flows we’re at to this make more $XX opportunity perspective. set tools existing of a opportunity in of and be

of There’s with we one this really the bring with laid of say, the deals that ecosystem. this right, but the new really flows, have already we a is And is space ones is institutions, lot back coming for to deals are travel the in quoted. about right and the If most a the our travel what X here we now. of financial lot also who you been that the promising is out that different large to BCNs and one recall in there’s flows, all way us, players out that’s space, in partners -- We too. across the go

a So and checks and after opportunity. partners. tools, to Cash for go in. near-term is dominated existing this is right existing we’re leaning it, This us

what a Lisa, maybe as Mike just which differentiation, out standpoint. by add there’s And the card which a you but go-to-market the about I virtue bit capabilities, particularly talked about our our virtual in of virtual can is think with terms had is which little provided opportunity, here, differentiation just technology approach acquisition, talked which from Michael about. The we by card also of

when a a you vertical-by-vertical specifically, standpoint, on you go target go-to-market And flows basis. from

know, level your at So, travel exercise to it travel they of reason a will the takes the having what so we’ve payment be understanding you have as which Part choice, is those travel very embed when of are in the vertical. been we’ve people to make you technology integrator successful the to payments. been deep the in there vertical able successful that

we several similar kinds the other going verticals that in. as there are at Similarly, advances we’re making forward, opportunity of look

displace that point-of-sale very And to of business part small did reality we of that and market it large and small innovation, you in the also that’s like is sale, about kind opportunity commercial candidly, utilizing we’ve BCN in advances a and just in digital deals is that’s we’re in is we we a also of commercial the reality So, point sizable point is, there. and the the cash technologies making where opportunity. commercial And of specific the sale. as in been relates BXM see, winning significant check. And which business But still cash asked new opportunity, check piece.

we So, across frame that’s both these areas. kind and opportunity the see of how of set

have can Products. CFO that helps You of our head hear the you a It used be to it. Commercial

JPMorgan. to We’ll go at Huang next Tien-Tsin

for visibility if ask you can I us you revenue on I pandemic here picture, go wanted big or just to versus, would guess, back characterize pre-pandemic. to

remarks the to here if operating can lots the visibility in and on moving If prepared weakens if adjust prepared the the base then, investments, of And the leverage, to revenue you’re same to case is some Sorry leverage thing for operating expenses, assume on expectations? Just show curious given we mentioned you outlook long you that same said relative pieces. question. here necessary.

Tien-Tsin. Sure,

question at So, way we don’t the pretty revenue, strength base the around for together. it as standpoint from of of out. is nature relates what indicators, laid in laid We’ve the end mean, base the the case that well everything the to feel things labor I are our out, are a seeing it’s the we day, the based overall base the our a play of And about good I kind we’re to standpoint. that case outlook on trends like what on of actually your going But relates market, assumptions day, seeing of current as right? we’re it the as to revenues. leading particularly as at end from put suggest case we to crystal have out ball

relates on is foreign think as-reported one strengthening to a is from that’s in an on you basis, what about of place, exchange what predict standpoint. go. where terms our markets currency-neutral we of it recent again, which But -- oftentimes take around versus with euro to of the shared kind it FX of seen an we’ve we’ve and revenues, very As hard component basis assumptions

the line. Look, the operating look against always look is of delivering with is we’ve We And at operating I We leverage. term. line. also mean, top up how about then, positive leverage philosophy the operated reality you long asked expense our at over that the top

versa. We vice we to place expenses our impact don’t modulate start the the do our in capability and want on top adverse what we the long-term the our line to have, is see And past, is impacts take of to reality to demonstrated extent business. potential the growth

will we on eye our with business the long continue to in So, invest term. our

demand. in about spaces prudent into not I’m the OpEx not standpoint, is remains reality be an are But stating philosophy the Obviously, will here. obvious unchanged. from We going kind of the which

And -- positive ability we will to tools is and over the top We leverage impacted line if company. if term. to as deliver the operating top expenses look feel growth the line actually the going modulate long to a get we have like

We’ll Sakhrani at go Sanjay to KBW. next

glad good of metric, getting reason. I’m relative for we’re off, XXXX First to the rid

behaves amount worse of think Just assumption a sort that there’s of of you know from give guess, Thanks. on a guys this I where talked a macro Maybe might year. here? some I there’s But thinking number how different the us backdrop decent a Maybe precedent here. question of still how you’re in you use historical sort you about. cross-border pent-up it. and just cross-border trends do about operating could travel get demand.

Sure.

So of out be share we pandemic, the things thoughts at in which the the Mastercard through that want to about Sanjay, outset, is right? the think But to as days. how We sound the and and it’s in say actually the just proposition on end played I cross-border like stand a they numerous pre-pandemic So the people around very there this travel cross-border impact in delivered by cross-border, environment. fundamentals let the that how manner. few were said me day, spend are what at

calls get you on standpoint. elevated the you’re that capacity know get is. we standpoint by a come what resultant constrained impact do a kind we around pent-up from is more of as multiplied to constrained airlines quantity, is me and spend what all that question prices, P demand. seeing with hear reality And Now, demand from pent-up which an price let times specific The Q, through earnings impact little when of you airline the your that bit -- from capacity is relates it

Fast expect forward, there some will would will capacity be equilibrium. bit back prices demand-supply gets a one online, little more as people because of in level equation comes the that -- in adjustment

there’s adjustment assuming because overall, a a to comes so online, that an results from necessarily right, back price capacity in tailwind going because standpoint. takes which that And we’re not be place

to capacity, spend, of wrong, prices but we hope and spending elevated hope and we’ve goes view -- point taking. a kind we’re to on continue got that, we that’s we’re take with again, Our remain what and people view cross-border of more

as it the I’ll rates move, cross-border on The the is reality when of is example, other inbound The with and would you dollar impact the travel. tend the FX point what effect, strengthening, cross-border for lag seen that is make relates see we’ve to parts expensive with what exchange is, rates come U.S. historically what to get of coming to people seen But spend also that redirect don’t more the only come the from through. then U.S. globe extend of we’ve It globe gets to parts for where into impact is impacted. of That’s the to the that feel they other cross-border into individual different natural.

we about foreign an movements how going cross-border rates, forward. have in impact on So, think exchange does

And been the two last just to over Sanjay, come back. is space. years, add winning one really the we’ve the point portfolios expecting here, focused on in that We’ve space, to

trains, in like other market recall, just forms of across access that everybody bolstered Cathay terms British let travel, transports we forth, portfolios. with airlines, additional across have we’ve Atlantic, so remind products. JetBlue, Airways If won Amtrak, of agencies, through here, online And lodging, Pacific, travel you and these me Myriad, Virgin partners across across our

So XX there’s Mastercard out there, countries. which now in is Travel Rewards

environment that into believe have just macroeconomic we the we the out, laid proposition. better Sachin So,

grow, that just we remains that. is an said, Sachin which have a by it what pace certainly but space. characterized exciting differentiated So, in have in to The we’ll we’ll proposition see

metrics. I payable, I metrics opportunity which question in Sanjay, POS, trillion. one accounts $XX And the comment makes From space, how want metrics back commercial also there’s trillion you’re and a last combined about total perspective, the to want trillion on but $XX on this complete I mentioned I’m $XX make, excited changing earlier. the -- Lisa’s happy we’re to to

was earlier very priorities. So, one that conversation our big important an on a of part

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

the I gave China inbound appreciate data really for and both outbound. there you cross-border

the progresses? pillars you’re that of make high-level you separately, on I of fourth much three your about running Thank of us can XXXX for as levels each in the sense in how reopening in you. you Can at just strategic metrics And improvement inbound ‘XX? fourth expecting those in think you the any XX% is growth give in then about at levels a comments XX% quarter. of said and XXXX XXXX outbound quarter

Sure.

being pretty the specifics borders in it we share and share to outbound the expect the suffice just travel the built by QX you I to there’s built So on virtue I’m it China, and both and opportunity gone to is year. we first, that we outbound standpoint and with and inbound have the both just say China. But for as a recovery to The for What fact as of levels that XX% best from recovery you that the year what’s happen is relates were going regions right quantity around an standpoint, the how inbound significant what of will about progresses. and in of fact as not bounced inbound opportunity Jason, full well requirements some XXXX model suggestive level lifted. to cross-border travel up how on at back it opening think levels, they’ve XXXX as to of if to it sizable. the recovered relates is our relates It’s of and estimate we our as gone above

second your sorry, of And Jason? question, part the

for ‘XX? pillars, revenue you’re Just growth in on strategic the what modeling three those

we’ve been deliver how that standpoint, revenue many this, we’ve mean, Look, and of networks, as Again, from the payment I been when new services you the about. mean, for substantive sense. -- payment we’ve strategic I’ll talked doing a I you general priorities, know mean, a we about has give is you part Michael doing this got in -- decades, and our I growth.

decade, Over pace. grown services a shown we’ve still healthy have how and you growing the last at

capability our still In services my the remains very view, strong. for demand

at business. pace that to And basis. a been overall going-forward seen You’ve the services anything growth we’ve our a assume growing think of in relative on different should we faster don’t I

is And nascent relatively new really. networks

It’s would a the on I meaningful But space the Mastercard, growing that a is overall small it’s it’s a clip. the very into healthy reality again, growing. of off at So have impact. base put still to

you kind the can I with that’s share on So, of best that.

And is way -- one a out a the I’d is and model payments further set so pillars. Jason, of is differentiates business forth. proposition a broader of payments. oftentimes not This to separate services where integrated build an say really services

-- So, virtuous a it kind have I say. of goes circle, the to circle in

is at our Clarity, remarks -- growing issuers. which you third prepared faster it, faster. growing and gave my been the a of earlier When in historically, number an you is gave couple you of something service look on It it’s is quarter. a we Consumer example new with years I a transaction-related, that ago that has XX

payments to So, there kind of also there’s lot that is underlying are not momentum just related a the business. But, in there. the of services

For set example, that we’re business their gave I where the you what core base Lowe’s, work on to Learn, as you. customers a gave working & of Test I on the in with example example

sets different diversified dynamics, hand the in and have. business we they hand, and differentiated So, of of but is that the that power model go

UBS. We’ll move next to Rayna Kumar at

Rayna, on go are get try and next, back you Rayna let’s mute? the Operator, to line. on to

Will Nance Sachs. to We’ll Goldman at next go

like down on seem question of XXXX little some pieces versus we one squeeze -- in the of the before go of kind a it moving across metrics, the the away. seems things to bit step December, When of XXXX take last XXXX I’ll Maybe -- a stack. metrics some

you’re So, then e-commerce the what excluding regional you kind January, of more travel color maybe a piece China impacts basis how of just those continued just on -- seeing and China on into metrics appreciate of of kind any between color as of you’re that and numerical have gave on and travel. on trends I the a some outbound that inbound the question seeing? And

any if color the just on of cross-border wondering to have contribution Just volumes? overall you China

right, All Will.

out in your take questions here. order I’ll So,

up relative in You to talked about levels. some color XXXX around how QX we’re seeing things shape

switched cross-border, marginally up relates in stable in transactions each on as seeing switched pretty of levels them fact, to We’re one volumes, quarter-over-quarter. it

in XXX%; volumes shared a were in at slide which see with running at in you can example, of we XXXX, as switched running for we XXX%. QX QX, you. deck, percentage the this were So we in And

in mind from bit an kind of U.S. just lower being one The reflected QX, right a the prices, impact see the in you in have thing of in come here. numbers we to that’s gas little is and seen through keep

say You asked seeing a regions. we’re color standpoint. there’s most growth question from consistent that remarkably a I’d regional in

revenue from For the the in continues America particularly there. situation, actually standpoint. But, don’t are the side. flareup domestic in pretty volumes. Europe, in a QX, Latin EMEA of China well. because negative, And pretty domestic place -- was in Europe well from our impacted and the also In again, remember, lot it we of generate growth up its holding up hold example, was took which a negatively COVID

mind. that’s So one piece keep in to

you embargo that to the we’re from standpoint, we is an tail Another that mind piece still of effect embargo in have are the now new and keep -- we’ve the out of coming India through. started issuance,

actually by get as time issuing fact and compensated ready up So place, old that of issuance you India are not be new more resultant cards for impact to ramped a which cards takes said differently, that has the attrition to of which for a cards. than go. taking issuers of need in were And year new

I consistent all in our But across to So, continue QX see we to well. levels and you’ve growth relative through as beyond would seen pretty that here. good XXXX that, come metrics that say

year mathematics to an here. and the And XXXX, it forth. think a year and we’re view a course, But because down continue instructive effects step the of and to that’s there the spend. tells lapping so us you is, yes, I resilient before that, consumer compared And last expecting will get to

our you total volumes, inbound pre-pandemic travel outbound X%. asked similar I China our prepared And, my was outbound -- In cross-border that remarks, corresponding about shared about had standpoint China. metric with the X% an and you roughly Will, the from question was of

I that So, was know question. the of part second your

Evercore ISI. next We’ll to at David Togut go

differentiated driver of be a Europe to continues for Mastercard. growth

of think through X about outlook when prices. and the you digitization? on ago, Italy, opportunities reports economic talk For Europe some the year mixed could both We’ve assumptions in Germany, given X, Poland, your seen ahead, you about high gas biggest months more concerned Europe, cash

greatly would with it But, appreciated. a a Now, insights seems little lower gas more be mild the any winter. been better like prices outlook and has

David, start off on me let that.

Continental three Europe, Europe on one slightly Central picture UK different there’s all Europe So, of there’s the on them. there categories, emerging really then looking and and at is hand in and

the First with of continent. all, starting off

measures alleviated some and on A and cushions combination for concerns. reaching full gas measures, the the rising Here, with fiscal prices now consumers’ provide of prices a energy-saving been while to along energy gas concern has the storage really has consumers, of the ability spend. to on to around with these along capacity impact

as base So, fairly we a look we That’s assumption see our resilient consumer. European continue to forward.

for little UK, But in over gains and seeing lot there. last are tailwind somewhat different share from couple a this economic shaky of the years. that more market, fundamentally, of us a we be outlook, might

unfortunately And emerging have more that Europe continues these and to emerging not digitization any well longer. digitization like But opportunity high seen dramatic in So for works Russia, we’ve we which our us. be is seen a in rates, we’re markets. in as very markets pushing P&L that

transactions remains. reaching lot now still caught there. there where over Somewhere significant a last particularly was But is on a between, in up like half of contactless and years, which digitization Germany Germany, there’s side, peculiarities the we two opportunity, there the the

strong position with shared opportunities from in you very we the to into last of have mix and through go portfolio wins Europe couple over with come as healthy years that share So, effect. they

point around recently the won Michael’s add, to And I’ll and which David, deals announced. just we’ve

perspective, we’re you a migration progress. is had of of migration the through talked in there. historically. we That X to Santander give card And bit a bulk Just little about million

complete historically the And XXXX of Deutsche in the in of expect XXXX. we migration in issuance cards well We somewhere December that that and that underway, we be of XXXX. and the then, happen to commenced That’s to expect other was expect early by we one. spoken on Mastercard some middle commence about one one of Bank, would the had XXXX. will continue to of debit NatWest

little to as of things. sense of bit give just So, you we’re a kind thinking about how to

Shirvaikar We’ll next at Ashwin Citi. to move

wanted think of just spread think XXXX we’re that what How algo? that? the [indiscernible] terms of as normalized now And for looking of of should think rid smaller I getting we there’s with in the of ‘XX, years. the past a how changed between has we couple question a then, over things, of to drill And few into - should forward, that one regards to specifically growth growth visibility?

your clarity a I’m second on more to but to need of we’ll bit the get part question, that. little going

first Let as is which to the the first, me take growth it question relates algorithm.

much our Just business fundamentals have growth the that growth sound. actually The are very, suffice of to we stands strong say which the very it even very enabled actually algorithm, pre-pandemic, delivered today. has sound

opportunity So, growing on very shift the to electronic for new think about that new reality is, for, as doing new near you about how stable, think we’re business that’s the the our and the market very actually now as think that, PCE term driving think forms payment the near medium not about is it, way and term to Mastercard. networks, if about different growth sound, the with around capabilities very we’re for secular flows what long fact had. call only from about algorithm And you well we’ve think the but that share, delivering of we’re we consistent growth, as historically you payment, things you growth services and

sure I’m that, Ashwin, Could not the Now, second I question. your repeat you got please? part of

How the of should spread. Yes. think one that I this volume think was about we of cross-border asking as year?

normally little sound sound said, I like proposition cross-border the our And end would The have Asia, we phase. the regions Yes. the would and are mean, the that to very pre-pandemic our thoughts Look, of in of for contemplated and at XXXX. now a I there’s is rates I one think call, exception the back most in which we’ve opportunity stable. of in which I have day, -- bit growth is we seen stable Asia, what

to next Ken move We’ll Suchoski Research. Autonomous at

travel the Where levels ask to Thanks Good XXXX inflation taking travel the from and much and comments cross-border recovery. see get cross-border seeing volumes Sachin. above a of still XXXX volumes trying Michael that spend you how transaction, and transaction the metric? for per versus Sachin, Hi. recovery levels. to the standpoint. you. We same on for you number I’m wanted well Thank how interesting transactions the question. morning, are cross-border made are some on from price for are sense versus about just left a benefiting much is And I units.

Sure, Ken.

numerous hold cross-border even in is comment largely is only average right? ticket our There is transactions our going for size, puts of on on factors, know which but cross-border growth true my the the So and domestic, about ticket it, are for not our inflation. actually by not one -- for you or transactions by if influenced takes size. are think which only average to business, impacted the in You

a what higher The others and size, the Because average card-not-present. rate. growth is, typically, between lower happens you in transaction ticket card-not-present, which more mix are tend results card-present to see with

that deliver said, when you card-not-present, from a you opportunity Now, have being standpoint. also actually the it revenue a more more do to allows deliver you services. effect When services, more you to have compensating

I in things think important two those are to So, keep mind.

the average from The size impacts countries growth ticket regional ticket what rates say, which have and the is cross-border sizes, average what third, standpoint, which would different both is I are. mix? different influences Because an domestic,

are where on And perfectly inflation into to going-forward go those pretty assumption, things Specifically the think has and our kind year-over-year. of we transaction as kind on is I our is, assumptions a been about, factor ticket, this average variables to well it relates stable talked those knowing basis. we about cross-border growth going it as of not

We’ll take at Baird. Dave that question from Koning

bit Maybe little back guidance. just go to to QX a

just tougher non-GAAP little kind the know or of so. -- bit like you’ve accelerated or in of the to the maybe about rebates? those bit key going it X% is a of kind and Or metrics, there quarter. some Is happen every coming talk January what’s gap by I a comps basis XX%. to but talked core You rest through on this, of decelerating X% metric something in got about revenue little every on a But metric

than between our thoughts. Sure, you’re Number sequential has doing greater in in just operations Dave. the a impact QX, there. QX acquisitions the in the QX are. way question less does of suspension cadence growth your comparison it QX QX than a our QX. the QX couple because growth contribute and two, in they did of A One, to in It’s of to revenues Russia

point FX we’ve those kind best wins in play. would QX. that piece to about Michael levels activity, last I’d contemplate elevated of thoughts. is don’t I other did in the out. has is where of I’d in got FX assumptions which the And have deal of that, then, around points our And -- mention out is factors. several been the got volatility be to we then, but active all contributing play talked done We’ve know two QX volatility going our We’ve

Michael, comments? any final

Yes.

your So, for unfortunately. than offline. for still will figure your trust. Thanks I’m get Sachin. thanks call day there’s The for will couldn’t questions where to questions. more your those, a out we when We for Rayna, me come hopeful. questions there’s

we been has story But consumer, the That’s resilient the We and cross-border there will opportunity get some some Asia. base. see at still in for point.

very We’re winning. are And look deliver next to excited that That on feels have you Mastercard we we people that as opportunity. ahead much XX,XXX to into XXXX. speak quarter. that, you thank and good at With going

you. Thank

today’s concludes this And conference call.

may now You disconnect.