Mastercard (MA) 26 Apr 232023 Q1 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. Q1 2023 Earnings 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 our of my you our Chief first morning, Incoming Chief Executive everyone, Head us Miebach, Officer, Sachin are Good call. successor. our Mehra, and today earnings quarter you, for and XXXX and our Investor me Michael Financial Relations Officer; for Audra. joining With and Devin Corr,

to operator comments end the get Michael for opportunity Sachin, announce Following session, of only open into the for is will Q&A from we’ll the questions. queue your and it queue

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

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

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

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

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

everybody. morning, Thank Good you, Warren.

strong XX%, in. The as versus kicked continued operating remained revenues We excluding jump a were revenue currency always a items. neutral income adjusted is economic year right one was XX% has despite up Quarter with and remarkably net one, the and quarter, growth. special Another that non-GAAP basis spending year on and ago, off adjusted both in in let's up headline that quarter resilient consumer uncertainty. earnings

a the on moment. macro for Focusing

positive the factors of we and been monitoring. stock negative take Let's have

consumers savings levels continue all which strong consumer above are market to First, of remain key remains and credit, the in aggregate drivers historical by labor access spending.

interest levels inflation Second, central combat higher banks continue elevated with rates. to

inflation, the stresses on Although are sector seeing emerged. signs of we have putting additional banking

banks We evolving respond to monitor will continue to conditions. how these

growth And and the China to positive of The a is country vary sector. reopening by catalyst. economic finally, continues around globe

of However, in with us likely impact monetary and the countries will tightening some many fiscal for be time.

pieces while many spending the resilience so has overall, experiences. So to towards levels remained moving rebalance but have mix spending of even continued consumer

tax XXXX has some Looking card XXXX continues at the all well. our notable U.S., Asia growth switched quarter moderation to Cross-border reached includes XXX% not-present ex one refunds. of with lower improvement in in recent trends, volume remained stable This in regions hold up cross-border in volume domestic travel to levels. above due relatively with travel part levels

in prepared networks. have closely. key priorities. to We services demonstrated will environment we to as maintaining and watch And continue levels past, reminder, investment and And a we are extending our expanding three on payments, priorities appropriately our strategic these are as while embracing adjust new the the focus

energy government reinforced strategic leaders, are for much been in much on of priorities. examples our plays quarter mind economic driving And many that approach, and with meeting against conversations and it's I'll progressing road of These on our we how today's of payments of activity. importance customers, digital partners, the Now I've show some that share we the that three collaborative course, for and the the teams. with our have

growing customers to new in payments a expanding we're payment acceptance, in set address solutions First, and diverse and across flows. innovating deals expanding winning by of

fast see world. fintechs growing financial of partnership with partners, We the set our deepening co-brand a and diverse around institutions

acceptance ensures with win of exclusive The Mastercard, competitive portfolio Taiwan, deal and cards is largest the market. in we a Wholesale that a stores exclusive year. effectives the had in this in August significant co-brand quarter flip This Costco co-brand and co-brand issuance

in front, we of NXX, processing new Mastercard announced partnership And Hotels, program fintech with renewed for in country. their issuing credit in for Wells to the one launch the on National to the Egypt, issuer card exclusive United a we new the Bank We and our Middle our largest the with be provider the of Choice Fargo renewal East, exclusive Europe, banks largest deal with inked also services. the States. and In

fintechs in we've debit and the network And one to relationship our be the fastest expanded America, in Ualá, credit. exclusive of the Latin of prepaid with region, growing

important and we So of new our on algorithm. wins, our solid an element of quarter renewed are continuing growth another trajectory delivering

innovative are some through scaling with of including in we wins, offerings. the market, instalment our new the driving solutions, payments and In growth Australia in Bank banks our of largest Westpac. Bank National solutions of Beyond like we're the Australia, development Commonwealth Australia,

want. to Providing so do, pay tools payments. expanding the they way central and in to making what card Along businesses growth to continuing we lines, all is trust payment those is we are whenever can drive connectivity acceptance, across and people of use those to forms sure

million over has just Our the surpassed five years. doubling start. now XXX locations the acceptance effectively that's past footprint And

that's cloud and give more physical to transactions payments an digital opportunity onto click contactless, pay electronic commerce accept network. more with simple connectivity. solutions to technology ability To and to innovative merchants Our the our us bring

quarter In double transactions. significant giving and size accelerate higher contactless the the have historically drives lower contactless been ticket and services tokenization opportunity to payments for Contactless purchases penetration least thereby have private as years of on shift those our mobile was and cards South cash label a us a by accessing engagement Korea, secular deliver number payments XXX the digital markets capability one, consumer in to ago. number based. helps part three now selected Over of that XX% even reached launches at to

in than on more globally. phone, markets tap We continue see programs with to momentum XX across

including enabled scale, to tap-to-pay quarter in X on they markets. continue announced multiple that in Stripe We Android the have

to cloud tap-on-phone our Europe. live market, partners commerce acceptance bring now is helping our In addition technology to in

of easier accept businesses on for it any to payments commerce and all tricker capabilities device. virtually sizes Our cloud make

And U.S. nearly and key Australia, including live Brazil, XX in U.K. is click-to-pay markets markets now as globally, such

like with Mexico partnering our by where and is our are all are. payment providers This complemented payment to further their integrating by acceptance customers grow presence. the We to expand experience workers' partners Italy service

social that directly commerce with in consumers businesses in see purchases right You what's happened small the from chat. make space Brazil, within enabling a to

highlight XX% in space on set we of focused remain prioritized set commercial. capabilities currency basis. we We and in are on substantial year couple local flows. our versus payment commercial, our growth a across areas targeting, volumes products solutions. a to opportunity and We debit a starting with Further, a the prior commercial card expanding with credit new of small new our of I'll the grow see strong payment with capture had virtual business in X, to quarter up particularly

initiatives With of leading our virtual cards market platforms. solutions to technology leader, BXB where our with is we integrate one are the

This Coupa accounts quarter, agreement flows. partnership we embeds signed to a cards Coupa to their enhance address with which Pay payable virtual solution,

business front, a captured only payments today, a small are of fraction on On small card.

million through the in commercial growing States, countries. from United which to the We are nearly by brand programs. propositions XX be XX we partners cardholders like merchant-funded Mastercard the automatic establishing business issuance offers enhancing and are the over value deals Easy new will Savings, Galileo preferred rebates enrolled like for And in programs small

opportunity an expansion, distribution flows beyond remittances disbursement represent for and significant partners commercial, cases. of set growth through geographic new a Now expanding and use

across Africa, terms MFS use UAE now Africa. Peru, a By in and with we is have Uzbekistan. XX connecting leading cross-border our origination live new the markets, payment in In have we of gaming markets and Canada digital company, payouts case mobile added and enabled to

We cross-border customers small in are offer institutions cross-border securely. midsized and this services send digital-first money or to solutions solution, we're to can to the partners to and participating with banks more the even through vendors our checkout.com Asia States. express financial globe working ability United increase enabling And distribution the pay across services their like quickly with and reach simple-to-use customers

In nonbank the to can location, drive underbanked in U.S., into and spend. enabled U.K., card help which cash their Europe load we also accounts have in cash use terms of a from facilitating expanding customers safely follow-on cases,

addressing So as new flows. we to our progress set can see, make in broad-based prioritized payment you of continue

where and through capabilities. adding our services. are resiliency scaling existing and We to services, new growth we now Turning focused on solutions love

As merchants cybersecurity comprehensive digital, of solutions consumers our set shift as critical. becomes to even more

own instance, an their enterprise for For well partners. cybersecurity identify as vulnerabilities ecosystem recon risk their as helps

our on With acquisition customers this a we now have Baffin quarter, Bay these solution Networks this information. help to act

related protection our to our helps enabled Baffin attacks attacks. cyber DDoS cybersecurity malware, offerings, stop also and Bay's well assessment practice. complements The Specifically, tools, ransomware, simulation to including as our acquisition other and based cyber cloud as consulting threat AI

are These to outcomes. our about familiar loyalty of are data make set all and with smarter You drive marketing, assets. analytics, comprehensive partners our better decisions helping

world's insights the For growing example, of retailer among the of optimization in economic assessment Asia, business their such, utilizing planning. To to fastest capabilities inform meet and our is platforms in strategic online test is electronics the Agoda, largest learn Europe, and to travel support leveraging one our new initiatives.

progress make personalization deals Dynamic with retailers recently Puma, to commerce Hyundai like continue acquired partners, our Yield. Motors, and signing also We platforms utilize to and Europe,

to which enrich ways personalization Mastercards to announced analytics end elements to combine brings for end suite assets for of look We to insights continue yields deliver solutions. applications these valuable We a experience. just all data to dynamic

the in embracing of new banks with we where banking broad areas interested identity. is open of set and area priority fintechs wide a key use across a In open continue third its range who are banking, in cases. making progress potential of networks digital are to work we Our and

account embed solution we Exchange and the GIACT, risk working we that payment Pay-by-Bank JP to secure to last of addition are solution. London company a member the In with quarter, for Morgan identification verification announced

will lending for like to banking banking Europe. technology open for we're we with our top Bank and Equity Fintech, in Further, have capabilities decisions. Saxo better on account partner with top [indiscernible] expand opening data enigma Also, and access Nath, ups advanced our capital, platform, analytics Gen making innovators of use to developing open

how business. great our technology another example supports is small This of

digital Moving next to identity.

identity We by of machine continue our to learning. adoption see intelligent powered strong solutions

to quarter, friction key partnership with Southwest identity fraud and secured in our solutions interactions. embed intelligent to This content reduce we from digital a

Still early making technology banking new to scaling but our with use identity, stages cases are digital and open progress with notable partners. we markets and

strong reflecting summary, quarter wrap I'll in the with cross border earnings revenue resilient and delivered another growth, So that, consumer a of of continued recovery up and we and travel. it

to as environment dictate. circumstances are act and closely prepared continue will to the We watch

ahead locations our resilient cycles. model strong well as significant and and million We economic having relationships through position see now diversified acceptance opportunity globe focus surpassed around the strategy, business a XXX worldwide. And

over Sachin you. to

Michael. Thanks,

revenue the was acquisitions. items, gains travel. XX%, neutral basis, impact increase recovery including which currency our three, a and on of increased and XX%, special expenses Page a to border Net of resilient up Turning equity X excluding losses on shows cross continued the quarter performance the ppt on financial reflecting investments. for spending consumer and Operating

includes in of was income XXXX to as the growth decrease which share negatively of a EPS income which a $X.XX up X% X to ppt benefits was from related were note, X two XX% low tax Of impacted year year by acquisitions. over a up the EPS result rates includes discrete respective Net in rate ppt up decrease which repurchases. includes and income sizeable a last X%, contribution acquisitions, year. Operating was net $X.XX, tax

X.X quarter XX XXXX. During billion additional we stock, repurchase through XXX April an worth million of and the

Worldwide metrics turn increased on XX% over So quarter. or currency to Page for year can now the operational a where the dollar GDV first basis. by let's you see year local gross four, volume

the On in X%, growth the U.S., by debit of XX% the credit In of excluding increased and increased debit increased period, with exclude growth increased spending growth by GDV with you reflecting on Russia part customer the the of GDV X%. prior U.S. the if roll the basis, Outside of recovery discussed increased of of impact XX%. XX%. same XX% a previously credit XX% off from X%, of approximately volume Debit agreement, travel.

border cross for globally a basis, on volume local border XX% the improvement currency continued in travel was reflecting spending. up related Cross quarter

transactions XX% year grew to five, Page year Turning in QX. Switched over

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

issued. card and globally billion addition, X%, was there are X.X branded growth cards MasterCard In Maestro

first Slide into net so Turning which our the expectations. six, a look quarter, were for for above our revenues

solutions. network revised services categories, As payment disclosure. reminder, disaggregated Net and a down and two new now into recently we revenues that revenue added value are broken

described increased higher The the by XX%, X and benefitted transaction which includes if numbers we network domestic volume ppt in item have the growth into related Russia cross QX on a would and net rebates revenue getting currency payment growth Now network special excluded Payment also was driven neutral been basis. and in which and border incentives. growth primarily XXXX.

marketing increased services higher revenue demand strong and driver added from acquisitions. benefit data fraud as by was the authentication driven identity we by for our demand well healthy and net the as analytics, for well our XX%, our including primarily X as solutions solutions. services, cyber Value as growth underlying solutions of solutions. growth, The our scaling a continued driven consulting growth ppt solutions, And our and of intelligence and loyalty saw

on currency-neutral described seven, to turn key with Page otherwise again, let's metrics Now to network, unless basis noted. related starting a payment

key GDV the each volumes at primarily ppt by the in X accounted mix difference underreporting The quickly customers XX%. which is were assessments for while Domestic from up of approximately Russia grew last X%, of year, and worldwide metric. driven sanctioned Looking variance.

Cross-border cross-border difference due intra-Europe increased grew is intra-Europe quarter. cross-border than this while primarily increased volumes higher-yielding XX%. PPT both favourable as volumes cross-border to mix ex assessments The XX%, faster volumes

to assessments difference other related assessments revenues. fees were while important FX-related XX%, up network licensing, and switch franchise grew primarily other assessments $XXX to It's from implementation to network ppt XX%. due X these transactions that fluctuate processing million Transaction may The were quarter. note this Other to period. period is

Moving now eight. Page to

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

was on personnel execution increase continued due remaining the support to our strategic acquisitions, increased primarily Excluding to spending the of initiatives.

and to part revenue due Operating related in as expenses assets personnel support to due liabilities. of expected costs monetary remeasurement were higher as the than to well exchange unfavourable higher-than-expected foreign

to nine. Page Turning

of metrics April. the weeks the for Let's discuss operating first three

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

expected, created difficult by X last of factors: suspension began opposing Omicron; by year-over-year drag March Russia lapping year. As the being our more in of the impacted of effects growth operations lapping the we rates as one, two, are and the the in comps of

induced have To noise slide. underlying eliminate the some of aid understanding the your by and spending we XXXX lapping on included the the trends in metric also the levels of Index effects,

Let's of discuss each the turn. metrics in

due a year-over-year, QX. first some and three volumes. is ago, more weeks grew in offset down versus U.S. difficult This X started March ppt reflects April. slowing to switched from benefit with refunds. Russia. ppt the we and XX% modest the lower Starting lapping Through by This This in X tax comps the continued into partially of

Switch ppt QX. the April, first includes lapping weeks an ppt of X up in the suspension of X benefit the of grew year-over-year versus XX% through operations This X Russia. transactions from

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

by as travel basis, In down QX. a terms as recovery year-over-year suspension cross-border more XX% continued year. well in of levels is lapping of volumes operations, travel Cross-border of a the as of on April, of the passage in than X QX. up XXXX Russian the volume Omicron tougher year positive ago the XXX% reflects offset our last but from This surged from in cross-border, grew comp ppt at indexing is after impact XXX%

the included have the all XXXX, To ex if activity periods. operations from further current suspended schedule prior points issued the assist from understanding business data trends exclude an Russia, we we where in show to and of Russian March in cards your you appendix from

the share to remainder our of wanted thoughts year. to Page Turning I the on XX.

the the in ahead. spending due travel the in At to and same tax noted, remain moderation time, levels. recovery travel as part U.S., domestic some business me remains that our healthy, position by model fundamentals spending customers well saying in in well with regions the lower this year. cross-border with start opportunities us our inbound continues to momentum overall Consumer now recent XXXX with refunds all above Let Michael albeit our for diversified and business strong, our

outbound to while travel in QX, China QX inbound the basis. XX% Asia, of on XX% same increased Within XXXX reached approximately levels, cross-border

of China service capitalize X% inbound and made X% outbound on reminder, to up our in portfolios well with and of offerings. We cross-border As this travel related positioned remain growth XXXX. travel-oriented a

While continues spending base factors, scenario consumer a geopolitical and cross-border are macro our to case recover. we monitoring travel remains and of assumes number resilient

For the our year, modestly, our outlook reflecting has in improved stronger-than-expected QX. performance

net This revenues Russia-related and at expect currency-neutral revenue be basis, you special rate the X.X XXXX low by exclude ppt We higher growth year a acquisitions full if for from teens rate would items. be growth on XXXX. to excluding approximately a

the tailwind minimal Foreign expect of for a ppt acquisitions. and X exchange is be to we from year, impact expected

for this to expected excluding of the high growth, Acquisitions the growth. year acquisitions for if to impact year. expectations meaningful are currency-neutral special we a are and line to see basis, the to high expected operating end changes adjust be prepared a forecasted single-digit expenses growth is Again, have expense ppt operating we on to with are X to Our our items. unchanged add about rate a while proactively for exchange minimal foreign top at

year With double-digit net sequentially offset of the a respect high operations continual second QX, at off items. to in basis, again anticipated Coming the the quarter, by FX this of expected is partially excluding grow of suspension strong end a ago a on to special and comp, reflects acquisitions lapping low rate a revenue lower tougher year-over-year volatility, Russia.

are for have expected the quarter. not much to Foreign impact an and acquisitions of exchange

license are This application includes PXX double-digit end ppt. to we From a a ppt at special to the high cost related acquisitions X their basis, low growth, X X X Nordics. expect their items. our on of versus decision of be approximately be expense an wind associated of is to a standpoint, to down ago tailwind to expected currency-neutral operating add with to of year X forecast the QX the this foreign rate and the in given growth Acquisitions ppt to to approximately withdraw while exchange project, efforts approximately a excluding

excluded in to mind, non-GAAP interest includes metrics. and levels, excludes million of due items from and line, Other gains we equity recent investments, prevailing to increase our are which $XXX on our expense debt QX and income sequential debt rates the our for This keep an other the given on issuance. expense which a forecast first, losses approximately

Second, we year QX XX% the based geographic full business. and between tax the XX.X% of rate on expect current for of and both a non-GAAP mix our

to I over call session, thought Before express friendship my begin deep Q&A leadership, dedication for he Warren turn at back wanted his last the Warren and I has demonstrated over to the Mastercard. years the X-plus gratitude to to

Warren the be and over capacity. head to with Core X, previously will Devon effective you, your May As for session. Q&A us and the to handing be through in over you role IR an will end announced, advisory Warren Thank of

turn ready it's you, a go. to have I to say to questions. over Thank With pleasure. Audra, been distinct Sachin. it we're that, let's

our Ellis will question Instructions] MoffettNathanson. take We Lisa [Operator at first from

question. Hey, my Warren, taking course. of will I Fed in a July. Now good missed, be And question for coming you morning. Thanks about had just

on affect has in rollout network. Mastercard's the involved in expect the pressures? Can positively Thank kind VocaLink U.S. your give perspective Now you just course, Fed clearinghouses how to of been potential you. or of business Of RTP you the

missing, I question. you your Warren. for for thanks Lisa, morning, Good thank

watching development, of been important Now, Fed we've on course, closely. So

As been involved for real-time know, payments. you in years, we've

that the for systems really over critical for grow. there is it's really these learning years position that our to been a merchants, for there's a consumers it's proposition for So

it's reach. proposition and an is in for the it's side, On a got be criticality to consumer the And that's got protection it. consumers, experience easy merchant

that systems aspects have card all and the over where years, PXP to that. we'll are demonstrated those go these with systems have see So

we as even It proposition makes us to Fundamentally, better. a competition. we company better try appreciate our make

would have so Now see available protections and is I've very be from and any specifically what for merchants, what goes there that to forth. will in technical FedNow the here, discussed, what that as being are a and where experience, is user on kind just of be, consumers the features and we go-live different consumers for

to systems applies here We will with BXB the seek partner the continue States. same United in to ways and

that recall made flows the flows For currently you this on in with announcement will on we've the target, account-to-account, might pay-by-account. Chase quarter the last that are which

would of some that the solutions alternative to capture be are flows. those these So in market new

see how it So opportunity plays threats, we'll out. have to

well I think we're positioned.

Thank you.

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

to And I crept as macro first forgot want you I ask this. my for well. questions Michael, more Warren asked may up quarter. to thanks I that a on because last question think

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how And are GPT generative and thinking lot you Chat so about AI of a curious, just attention. gets

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Peller We'll Research. at Wolfe go to Darrin next

business Obviously, a same guys. know give I a on quick you year. it's the rebates, could the but not Maybe Thanks, and in update just reported pickup way, incentives activity. we have

going back years so to after. an rebates and revenue be And big growth had it you 'XX and in 'XX here, volume XXXX when -- followed and the by 'XX incentive tended in acceleration

give what's us if go? driving now? sense So to increase a what of the year? seeing maybe the this follow-through activity you're can kind similar we -- just expect And of What's of years levels a

on very Darrin, that. me Right. activity. let encouraging We see start a

In fact, we -- it that was tough to make in choices here, you. what XX-minute the not gave to tell overview you I

So if you deal deals the that in announced wins. solid we XXXX And are recall seeing, Europe look some have some the XXXX, share bigger we're in numbers. the that activity particularly behind and at which you gains of of

having I'll plays R&I to defer the that activity impact a But on is little out. bit Sachin the more, So is but healthy. how overall, to say some very

every Darrin, in the Michael market. mean, right? good compete morning. Look, I we said, it's day like

in the we PC, benefit is the you get growth also shift, of important, end by flow. flow the the of being much mantra new but we're of of laid winning what terms in firmly retaining for the which get get ourselves business That's existing believe algorithm, you adopted part at a table, the being in That's in the as very growth of secular to very to a drive company. the that you out deliver very important additional successful for Because day, and the being on doing benefit business. are services We we us. picks have we've

we're And are together. payments to about what and we profitable an very base. -- so which is one new in this relies together in and, really net trying are overall do it yield other, same overall the services the revenue at really, market They an and we to on at and revenue integrated yield, composite to networks have accretion because share tightly our drive is the taking our time, look win trying net from

So going that's really what's on.

you question incentives kind Look, sharing The be incentives with and mean, when you is, up, your To what and network about even always will on come them. of rebates rebates now. shared and with for as I are we and the payment our compete we've deals specific and reality rebates incentives,

that manner. do smart will in We a

For payment QX. would rebates to QX, total percentage I can it be we assessments, roughly as and similar network tell a of what had you incentives that in

and what So with everything standpoint this a point activity that's deals so at on I sight and time. see can we so on based in can forth, share terms you from of in of and line

go next at UBS. We'll to Rayna Kumar

and Warren about Congratulations, want I Europe. Devon. ask

and your saw in to volume gain in a about Can is little talk electronic share that you're outstanding. dynamics you You XX% market seeing or strength reflective market the just some a quarter, in that's overall bit of the region gains payments? whether growth more the of shift

answered partially think now. almost question I Rayna, your just

markets, cash in stats catch historically European some ahead have European the years, really you saw So second less jumping earlier European that last includes more large here on the deal activity I a there, through to The digitized markets markets that is and strong. But number good gave penetration -- to of some up. ranking. been contactless focused the half of question your three

an shift. That's secular opportunity. So strong

You growth more providers A Europe. driving And that's coming start payment the service chunk more that also reflected of in good $XXX parts to that of some of million. some acceptance into from about is of economy. see we the the talked acceptance

we specifically shift. secular wins U.K. mix a that the the in very of share seen it's have and the So

Europe. So we very feel positioned well in

And Bryan we'll Bank. next Deutsche at Keane move to

good morning. Hi,

the I through April of XX% know up for was or at cross-border Just -- volume. want about ask it XX. April month to

just there. talked left our Obviously, how business about about as models? throughout what’s about we might the year. Is China year. And and we thinking that the for thinking that Just through the number about grow thinking that Asia just think the progress to right recovery about

recovery mind Look, an in you're say you, you're and of last of tell this would we kind were surprise the see we Bryan. the in no what we be keep together, coming just of QX, will economies model COVID. that your And Sure, out you as up Omicron, to things when I starting in to of see opening place. base I'd year is putting did take mentioned, to

so on will should metrics to are issues, lapping-related growth is year-over-year what all be there which And you rate and be expect a as going cross-border well. headwind to in

which and Now something you end Asia offsetting kind a I'm as the got extent, of to there specific Pacific, this like to are standpoint. growth There which think assumption of tail consideration rate to happen are saw keep be forecast that year. model the into our into as towards to recovery we should give not about you I is look But last year you've some going and these puts puts coming takes would what that, from think cross-border. takes. from important

important our most thing, through proposition really think, I is important. value deliver is prop is sound. This still the cross-border fundamentally The very we that

As reality to you something last X over which back. or was it remain it cross-border as was strong. has going questioned is X to over the challenged The the being long come back come years, remember, whether term. was It has

year-over-year strong up, to through cross-border to winning good performance through ourselves positioned that seeing able you're portfolios the with some the period. of to ride really have the really and be QX back be with come XX% We growth. pandemic well in way results

proposition that And is so remains cross-border the good. reality

reflects window QX rate from do well. Just in annual are you at to for matter The we look approximately prior pandemic where compound reference, the is volumes cross-border math QX. the a that over our of of can XXXX, you reality as as a at XX% XXX% to if and growth this

process, bought rates last much you time pretty you've in of that up go so as what the back work. if to cross-border And historical part

wanted see in going to of So forward. with we share you I terms how of kind cross-border that

KBW. at next Sakhrani to move Sanjay We'll

guess, know I monitoring little the on you covers. more us give the the you're rest your year, parse situation. views we Thanks, macro not a you're of color for but good the I if the Maybe underneath just could morning. changing bit

look in gives March forward are stable the then what of Just slowing trends the in sort And the and you April? on things cross-border? confidence -- April the despite spending

looks The remains record us kind negative we I best are you level go-forward consumer that standpoint. Yes. what backed is to end as from like of unemployment think of day, health we on what positive have Like that our of a consumer basis. of and factors. and see strong, Sanjay. low said, the Look, a rates, what we the estimates by Michael confidence. see mean, the And a there at gives

got On are to crisis, with higher the the more going on a interest what look all recently banking no banking crisis go-forward basis. And we rates, which like come as going of the along to the idea the have side, you've flip headwinds we're implications which through.

showing puts of region. by and in of from remains real shape. much standpoint. point the that in fact at evidence strength consumer in views are there's strength our a good So And on not the takes time, see that the There good pretty unchanged. is terms based They're the consumer to no this spend

like to rates, I year-over-year change. are mentioned The growth going earlier,

full it's on was to You're going else. right had stronger anything to year. because our year acquisitions, relatively see that, of QX. have we one that on with through to year the base health a basis, we our consumer between what overall, levels now. quarter ago it a lapping feel modestly we are got reflect what excluding that effect fact the to That's that do unchanged are like come standpoint, are towards And where from And the we the guide currency-neutral assumptions compared increased last a spend as this of of less recovery

quarter numbers. does if add the the X the to call, is GDV here, into it was here, looking just can conference thing And at consumer positively. my that, you imagine stand you -- One of out the there phone look in but I'm reporting

even number reflected. So is that the in resilience

on about. the point in we mean banks another additional Those regulation, I this earlier we're judge one And sector. did in here, means what that you -- about terms all are self-host. effects of this appetite for not near-term of in think banking of that potentially we -- terms the at credit that can the point think time. and stresses what talk on if impact That's mentioned on I does it

we'll So agility the over have taking for are year, critical. is some and of a things the develop Again, how that to near-term time. flexibility see outlook is here we outlook and

And all so that. for ready of feel we

Harshita to next Rawat move We'll Bernstein. at

And to versus new us clients? can business of value-added highlight existing opportunity get is set I also intelligence, Mastercard's services. services remind services penetration of you different of unpack the on follow-up, you and cyber if client your continue just that morning. competitor a you. kind other as for services, to of the Sachin, question Can and also business within have services, profitability these base network and good? good data increase a value-added Hi, these Thank

start this. Harshita, let on me

landscape. competitive first on the So

Sachin strategy. our tied our with saying is As strategy payment earlier, services closely in was

as other bunch with your average we're company a a in not of that So cybersecurity companies. competitor cybersecurity service competes

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it's As that. we Risk ourselves of before, slightly just with different angle were a Recon

competitive we our So us wide apart. aware are sets but position, very landscape of here, the I think,

potential Now payment space. comes there's the to other closer

well. So looking as services at

services trying for the their curve. are we're of to thing that So the companies It's again, differentiated keep our Yet a building services. and SaaS of ahead same data businesses. lot and data set and

and with we they integrated a helps understand But that we of that do customers hand, of have set transactions to an other set these to a on of have both. and companies customers captive want captive them the where these provider today, come

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looking we're fast-moving at. that landscape It's one. competitive the that's a So

to will have we have in continue we that focus. -- So

get around out financials thoughts Harshita, on -- side. your to the I'll couple said, play question what I'll just what a add how of services for to we the Michael

of couple on come be there a fraud-related tailwinds, about. the increasingly feel adding which which digital likely more So about things. goes issues going we world to how going One, the just world structurally, you digital more is as structural and is what digital, increasing Michael said, think even to if good world. There are

is we long services. to so which as our good can us runway another piece portfolio those grow there on structural is that ride helps to And think tailwinds continue

can power and And us which others, network that is very there us and D&S. technology? piece, said, one to the do to you Michael are the makes what's of helping in capabilities? is a the this do customers seen. drive successful is All of our second have been data which seamlessly there isn't big which manner, around which of across think But efficient the data implementation C&I you was deliver The play, ingredients AI both when you which challenges? then which have Do allow that so we've of about us kind the your growth you

on the that, call, a which nature financials, the tell what I you there's your of, on mean, of incremental I question I the On would range costs, we come service deliver. will depending

such others more, as higher which they of network, I things incremental our cost. the come solutions, our to intelligence lower as consulting come our such There with some as little incremental of the capabilities, So say, are in are attached service of with to they bit payment solutions, and such tend cyber capabilities, would nature some a data our cost.

because the only services. speaking us they able to so overall consulting And It's services important and service full for to marketing provider to really of those together. order is kind provide important hang all a be be that's about to services customers. mix in And our

as to you piece which of in Now That's the the need each one kind these to it this is thought win because when helps share individually. to market you how be part of of us important and as economics composite and super other about take services the that that opposed payments. tie back

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

capacity limits a as London we the indication whether you're can airlines. Heathrow but and curious revenue I'm year? Last Good impact summer off up getting on morning. any for of Heathrow limits things summer, think Those came at advanced back, opened bit on severe you. while rest a cross-border Thank this Airport on travel cross-border put about more how some the

from the of to right What and capacity we David. plans reality the I'd kind is is trying it of Sure, relates release what more between part hear everybody hear to is, you as I'd the find proceed process. standpoint. think implications what I as what that for say, a price that bringing say are capacity balance And on the airlines

entertainment-related we convert more reality the is feel the I generally a on mean experiences. tends be And towards travel. prospects Experience good spending so to and stuff. the there's of about travel trend from

trend right speaking, in so generally going that And is the direction.

And through from we would comes third issues beyond thing standpoint. of tend the cross-border in wanted see are to capacity I potential whole will lapping Again, a there you, you As kind you the remind more travel a Asia And to happen, of picture which right, value come for expect is year-over that strong which on, our asked. capacity as year-over-year then piece will recovery benefit bring metrics. rate prop, have into the we the the Pacific. in I that question

to hard fully but predict, fact is back. So isn't capacity the

you gave important So when later aspect the we one that's outlook on.

Understood. And just follow-up as a on Europe. quick

Europe of banking appreciated. on would rollout ACH your updated be the under thoughts in payments Just open

Right, David.

take Europe at years going for have been me on in that. systems. a on let look So Conversations ACH

know the when it's know, even not, right U.K. don't part Vocalink. but now or if I was EU, you invested of we in As the Europe

in a counter Europe a we the for account systems So systems time. We're have and in having so on PXP other stakes long continent some forth.

European there recent another It's of The domestic announcement the competitive to a more late the account versatile most is coming. landscape, domestic yet which and payment systems Europe -- initiative, here most is the very account. solutions. and effort is is in the development around payment land

We partner. have found to ways

we owner are And case EPI, compete. We the of have found to banks solutions. partnering the in our to push with ways

same where their EPI on depending willingness. have goes, another the time, way one ready we'll or and engage then see to At to stand we

growth of As share and revenue you for a has can us see, Europe growth. source been

know how environment. we So to play this

at We'll go El-Assal Barclays. Ramsey to next

of as I normalizing weighing that Should recently. Warren questions. it we tighten is more between Does taking secondarily, guess, it my of refunds And about it future normalize? sort wide trending it? stay Hi, how at metrics is maybe as year, U.S. ask spread, wanted couple for question tax best flip out you of ex and volumes on see thanks this Russia? My I looking for U.S. tailwind? worldwide to luck the of tax then you wide? to QX? are which in more do endeavours. to And into called a Will think pretty refunds Sachin. -- a How Will you times pretty his just

seeing and right? Yes. a the we see refund mean, from IRS is so on that the that's data insight kind in to mostly we've And happen what website, it, that garnered. April. is tax I the we've Look, the tend look take you standpoint What window around, March into this call of going at refunds because for we're it's what tax we what for can seen worth

tax So to be the we transitory. relatively refund lower of this view impact

right around And were now. that tax the the majority there of as would the we're that lower I say year implications if vast period of just progresses, happen refunds, the be the only refunds talking because because about minimal

being So them that's why as use we transitory.

where keep from to states they've tax U.S., which have a which the on in some standpoint, what thing given is mind in the in are date other the been latitude tax some federal of is. filing terms natural there The place, of have taken more account of --

be Again, very for And some potential to want a might so tax of I predict, kind the these that's pieces free out keep X thing of in funds. of other bring catch-up hard lower to terms to those the in but mind there. what on

On standpoint. At good operating these compelling what you, on question operating world second rest are feel of our pretty rate your overall highest about tell pretty I on I'd a we from growth are U.S. seeing mean metrics. the trends. versus level, metrics I

place get large credit to XX% being U.S., desire is consumers' to experiences. part by the in a growth back in just driven got You've taking

our portfolio co-branded portfolios, are very portfolios, well. Our travel our performing

the drivers itself manifest go we questions that broader the standpoint, in volumes standpoint to forward, what forward. kind again, and all spend of U.S. back comes how look of reality about And of to we a talking terms cross-border if do will about you about from were were like spend going feel the think domestic the

world impact share we've in some the obviously, of you're On our the well, got there across wins seeing the as of of metrics. rest those both metrics side, credit. some market debit and And good really

the tail As players to that start you'll progresses, just to off to lapping be reaching the start the going that. the because see market share of impact some on you're on of stage year

So the in we that to the as year. through should out progress you U.S. and to keep gap the mind. the the out help need model you That how as kind plays between of of world rest

Thanks. helpful. Super

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

talk Hi, potential up or so good cash-based world to your economies just update morning. and an X. us positioning? Can about if or inclusion specifically about have in much I'd rest I like the and to growth Appreciate inclusion just the India and products on opportunity those taking UPI. of you questions. could dimensionalize you wonder moved India the especially which the in give Michael, wallets frame account-funded of ask perhaps that you Mastercard credit

Right.

hugely So for market a us. India is important

has with large We under lead it of of they've in other a there. when gone as market markets market our the serving you from digital based number It's built the employees India's at look as in India, a deep the tremendous government, customers Indian well Asia, engagements where have economy. interesting

for us with at different tech customers that. up So gives opportunities much India scale opened more our many That citizens. the has before, stack a economy Indian than the much, engage really digital we to like you and to

we're every solution side the have opportunity. -- India. on to we around with reached pre-embargo issuing today, also our in now -- matter. though, day generally growth that back true, and customers So debit see that And we credit It's we

that in very back very, looking positive. the We're there. So is market

So innovation that that. are of we'll there. we're playing see from more a market It's us where coming of the based both folks

world. credit in a the an So and There's there inclusion opportunity. in most isn't it's financial everyday country opportunity the populous not and debit

theatre excited to the future, involved going be to there. the it's and we're So of be

And an our What to And details to active will in to seen, we with we're The is but will into in then be cards? end, all UPI stack? the be when that. partner, for mean and so conversations. does how those do linked engagement India forth? opportunity try have tech cards it Where the going we yet have the

I to look tracking forward Thanks. that.

time more have for caller. we think I one

And at we'll take of that from America. Jason Kupferberg Bank

that little a guys. Thanks, building just on question last Maybe bit.

some But extent. excited talked say, which just next emerging over, India You opportunity? in terms five just are geographies years about about most general you of cash-to-card the to the so or

Right, Jason.

particular opportunity, to the a here, point geography. I wouldn't So really

have a of a that tremendous countries digitization I rate us. think generally, opportunity lower the for set is

drive We how digitization. learned to have

seen in Brazil. like And take terms Just country like that we America, you Mexico, look a digitization tremendous part opportunity at driving of a of up. have in Latin

across make opportunity. add So a you that wood tremendous to start the up comparisons can those you is and that

business, the large-scale is opportunities, emerging that the are participate to and category do there forward and out cross-border a terms consumers market you about but country application businesses. In a stand engaged license very that in markets, not invest of know market today we in India in we to we China just of have on we and with the talked Chinese the ready domestic and certainly

goes. one So that see we'll where

Thanks, Any comments? Michael. final

I do comments. have final

is Warren. to XX,XXX this for Mastercard of I it So people quarter. good as well, reflective that and I again But what habit I've I the do they work. for to you want all thought shall thank did, at a do it their they do. what And it was thank made quarter, a

previously fun So been and with me Ajay. it's three for years

for do you thank everything Devon talk want all did. to well. So talk I we I that as about you about know you.

those here and but you I built looking the and guys room, past. give Sachin -- you thank that you call, folks want set with we're the to to thanking support, And With this forward also you now. if first speak support to of you. and say, that, do I of could for picture the to from same have in the have tremendous work on Devon, look relationships the on to very all, you So here's you folks us of Devon, I your has And one kind in much quarter with call. a Warren

Again, participation. your for you today's conclude conference. does And that thank

now may You disconnect.