Mastercard (MA) 27 Jul 232023 Q2 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. Q2 2023 Earnings Conference Call. [Operator Instructions].

Mr. Investor may of your Head Corr, Relations, begin you conference. Devin

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

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

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

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

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

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

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

everyone. Good morning, Thank you, Devin.

picture. big the with starting So

focus. operating income remained demonstrating on our currency-neutral both of continued second non-GAAP with the spending revenue XX%, Our XX% quarter remaining up and the Consumer travel has fundamentals into and a net business. strong momentum again a experiences on spend year with versus once basis, a resilient ago up

factors. to number of we monitor On the front, continue macroeconomic a

wage key remains of to consumer First, strong, consumers are credit by spending. growth, overall continue the factors and savings. These market and labor supported be including

sector policy across efforts period signs Economic and many elevated, progress. monetary the in of vary continue this, by we and to a are sector. to showing curb are country growth of will central inflation inflation tight of banks country Second, Despite remains countries. by

Looking at Domestic volume growth volume healthy. switched trends. our remains

capitalize see We strength, recent inflation remain We and in strength of show with select and travel like to reaching to continue T&E this well in trend quarter. card-not-present second and with positioned levels international XXX% moderation markets. ex spend our continues the well. to travel XXXX both hold travel-oriented to marketing. in Cross-border on in in portfolios continues our Cross-border loyalty areas up initiatives some

while key the environment We're and appropriate strategic to on focus ready as closely monitoring priorities. our investment maintaining are levels adjust

reminder, in embracing our As are: priorities expanding a these one, payments; three, networks. extending services; two, new and

to win by ways First, blockchain a and with open in payment payments new set growth payment to of acceptance, flows, capturing including new rails, leveraging by and banking. customers, expanding exploring a we're alternatives, multiple prioritized deals powering of set continuing diverse choice card and ensure ACH,

to Back list. this the top of

I'll from are globe products, across examples We services innovative our combination of a and a deals few region. through approach. our solution-selling each winning the share differentiated

UniCredit across with card in we all win announced a start where products. Let's significant Europe,

needs. sustainability We put our to banks, Mastercard strategy digital first-of-its-kind, place our markets client shared expanded XX innovative their multi-market a capabilities, XX selected due cards. partnership to in focus single-card, and UniCredit proven million spanning and on ability support XX and

the to X market. with Debit live to NatWest U.K. of debit portfolios million in Mastercard the there these the now have of prior debit Mastercards In First cards credit has the on our previously Santander started. These million Germany, Deutsche conversion in U.K., Mastercard are million wins cards in Bank's announced now When migrations, approximately XX and success shifted Direct where and build approximately XX combined XX now across

U.S. commitment state Canada's Services. shared to government consumer highlights issuance largest Collabria will all Mastercard will converting local small America. debit benefit Up through North Coast wage and disbursement and to union, Turning and portfolios with partnership be credit programs. communities business Capital, our The Financial network with federal for Federal Mastercard. partner their money north, Fiserv's to

In addition, Tim and services Hortons brand a largest we digital, of with will launch Tim have new Hortons, new credit will the a broad Canada. card set and technologies. and in Mastercard's agreement fraud restaurant quick-service a using Mastercard analytics be

deal Santander with bank. Our to grow. new we digital long-term a In America Latin continues relationship Openbank, in with Mexico, established their exclusive

We Fiesta offering Santander's within Rewards their portfolio. card, the also key co-brand renewed consumer credit

partnership In of Brazil, Sicredi, our portfolio. largest we've commercial we will unions. And expanded Santander's their credit one across Brazil's fast-growing partner with exclusive be

powered across In and system. Standard We've with Rewards One by Asia through with region. will grow which consumer Bank, us Pacific, launch we've key our also presence markets of Malaysia Vietnam. credit partnership the relationship HSBC Mastercard rewards Travel our Chartered Singapore, in-app expanded redemption Card extended in provide One the the enable instant the will in to our Travel

cards, these do need of all use place With them. a to people

We by continue partnerships and and technologies. new establishing power to new growth acceptance scaling

of Pay Alipay to travelers This WeChat Pay merchants to of and visitors with debit The and quarter, Alipay make partnerships announced QR to China. to credit easily code partnership card international we allows or link enable across payments with WeChat millions both any digital Mastercard tens wallets.

simple approximately valuable a firsthand pay I in be more how China international shop cross-border travelers to this quarter. will from from improves the like And It's in of where levels XXXX as local. and saw inbound China, is paying travel this just returned way. XX% second a places in I helping like

the quarter, the over capability And grew year-over-year to In to technology we for guest In NatWest cardholders. Chile, and the transactions in Pay online Group the XX% is bank the Click added provisioning now in environment, markets. Slovakia. XX checkout and became Click we first experience. Click Pay in the second push go quarter, Bahrain are enhance scaling our live with to Pay U.K. to live to the

to Shifting New Flows. Payment

business international In commercial their expanded of to drive portfolios. acceptance area. continuing point to with their portfolio Grow commercial And partnership in business to their markets small to sale, than expansion small year. established also customers more Finance, lender, we've Mastercard. this while cards support exclusive of debit partnership across Australian this our later We with progress tangible introduce an with myPOS credit our making are XX merchant migrating extended We relationship to new European we've the Brex

payable, accounts leaders BXB in we the card. market In remain virtual

tapping We continue into use by growth to drive cases. new

in China. leverages For card established international example, competitive with flip virtual an to cross-border partnership capabilities tuition exclusive support payments EasyTransfer students. Greater for we our This

it announcements into easy integrate for with making their platform. use. payables and platforms we've cards they to virtual technology integrate recently technology partnered SAP to also virtual the We're card Coupa, Building already and buyers our GEP our prior with suppliers into on

the solution have systems. a The suppliers solution. the And and Mastercard on And supplier acceptance. accounts Mastercard This we partnerships Solutions, transactions for like great been it expand Receivables Boost commercial processing reconciliation Manager working with card to with automates virtual closely of launched with is builds companies and optimize into the on receivable integration side, Billtrust. streamlines who data of Payment

new Mastercard the gaming payouts. partner continue for and ways operators And finally, and processor, we across we top Send In deploy in capabilities Interchecks, will remittances in sports new U.S., flows, make our who disbursement to new geographies. available with gaming to

with Mastercard. largest in facilitate will wallets front, and wallets one And we to the to partnered Fardan travel. in support of remittance Qatar cross-border Al up digital Careem the on Send cross-border UAE, use Pay, Exchange using services top their

in work continues Our support these ACH flows. new real-time to

Our expand circular approach to new been has markets. reach into infrastructure our

overall while in serving markets applications building forward, we in and we and strategic services already delivering are locations, with scaling objectives. Going our will the on these financial key be line focusing and in

in blockchain scalable foundational we're in interoperable. designed blockchain ecosystems, Network, more digital secure, MTN. And and MasterCard We set to a believe and introducing capabilities transactions potential is make blockchain, asset within Multi-Token the the of MTN technologies. of

solution, need money, bank regulated traditional and and CBDCs, deposits part as be they interoperate systems. However, to with the should such of

with can the help is the kick in in initial that. sandbox natural done already summer. We will we evolution this off the U.K. of work space. The have this MTN

services. to turning Now

services greater loyalty. our They each impact Payments and value stronger multiplying services other, of Our them create help and customers. all inform to deliver connections our decision-making reinforce we partners. and the our

I drive services the Our help earlier. of wins many many -- mentioned

few a additional are here So examples.

recently of business TSB Scotland, our leverages network our prevent mentioned the across victim's banks, payment such NatWest, before and AI scams. X payments has which a Risk I Bank view and identify fraud used Lloyds funds in Consumer been helping patterns. our a predict a latest solution, with unique of just AI Fraud changer is Monzo game scam capabilities technology and Halifax, real-time including We leave account. foundational Bank, to payments stop and to launched help Barclays, banks partnered We've U.K.

dramatically already to TSB, adopt one indicated detection capability. solution, increased deploying fraud that has of the since first the its banks it the

in analytics our capitalize different our ways to services combining and recovery. We're consulting, loyalty, the help customers travel identity on

broad-based extended Group. our solution Expedia quarter, points. using This loyalty partnership Mastercard combine book loyalty will extensive cardholders enable supply with travel we to to Expedia's Mastercard's Together, with travel we

includes travel in XXX for to cross-border cards Travel to issue access with India partnered also The Thomas travel. prepaid Cook cardholder We international Mastercard proposition Rewards. offers over through

in partnership see partners Frankfurt. loyalty capabilities Deutsche a and our user as the In & and partnerships More using our new help you partner. its Bank the And welcomed our for the peak. with personalization met digital relationship, Lufthansa Lufthansa loyalty Group off I take Bank this month, to issuing We will Deutsche program at resigned experiences level this and earlier next airlines enhanced with Miles long-standing combination solutions, of

to the & and and experience help enhance leveraging We're the improve conversion personalization customer partners capabilities also our Test across rates. Learn ecosystem in our acquisition

to For capabilities services example, with acquisition personalization in Dynamic customer combined marketing for digital Nigeria. the Ecobank our Yields drive

content are & us and Australia capabilities on of its across offerings. rollout food beverage concepts HP side, using the our with new consumers and store personalized merchant Learn Europe. to to working support And partnered for evolve Test deploy has addition, their Inc. we bank In their Canada X-Eleven and with in

identity. Our third is and with focus strategic a priority banking open new digital area networks on embracing

including in of Mac, and and and inclusion out our increased will digital of this Algon established a interaction leverage and We and France continued financial safer. and based make with to make open These in to Freddie drive banking entities new collaborations the Dapi expanded permission series progress UAE. data quarter, consumer simpler ones smart

retail ticketing, verticals, help to FlightHub, travelers travel, is driving their and adoption Turning using to identity next financial identity. digital new several solutions new our provider, across book Travel institutions. including adventure. We're

fans including our the enable across U.S., All-Star reducing the ticketing platforms. New Major used were authentic while use these solutions this All-Star technology game. Baseball that Devils, NuDetect teams Jersey to ensure to to for buy votes year's League tickets Sports on fraud

are communities help is digital to to Latinx In banking financial friction we in financial using and people. Greenwood, time, for authenticate capabilities like using making retail, fraud. a our a reduce partner real consumers more IKEA, reality And Ekata Black platform with who empowerment institutions and for

growth, experiences. we summary, particularly another spending, consumer resilient revenue travel quarter and in delivered earnings supported strong So in by and of

Our many more. across momentum with deal including expanded wins strong a Brex UniCredit, powered Hortons, Fiserv, and continues services by Tim partners, range of our new relationships and

model Our differentiated well opportunity capabilities, ahead. the diversified on capitalize to strategy significant business positions and focused us

Sachin, over to you.

Thanks, Michael.

turning to and items X, consumer well in special excluding the impact up financial solutions. cross-border which the as the recovery and spending on continued performance as gains our So value-added travel quarter resilient shows our services of was for on reflecting investments. Net and of basis, growth and our Page revenue equity the losses continued currency-neutral XX%, a

in income minimal impact related acquisitions. was reflecting impact to XX%, expense this a quarter XX%, acquisitions. and XX% from tax discrete Operating operating EPS foreign up and XX%, increased Brazil. income including tax minimal from a including both And respectively, sizable expenses Net enacted a legislation increased

$X.XX due I EPS of a to $X.XX share contribution expense and mentioned reduction discrete $X.XX just from includes tax an repurchases. the

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

with of GDV Page credit turn debit growth XX%. volume, of U.S., increased In and X% of by metrics the see where growth volume quarter. of XX% XX% local operational increased basis. Worldwide credit the X, can X%. GDV, second So or dollar of growth growth year-over-year by XX% gross you debit X% to a the increased the currency let's for U.S., with and Outside on

U.K. basis, continued in the the we note, increased in XX% globally cross-border currency on cross-border for have the migration local travel-related volume spending. Of now completed improvement debit reflecting NatWest quarter a Overall,

at this due While QX, strength. we post-Omicron you comps this you versus continued is as look year. sequentially is up versus to XXXX, opened lower last trend tougher see When the

which For at example, prior of travel XXXX cross-border ppt in X from is XXX% quarter. levels is QX, the up

up X up hold basis, relation to XXXX On to to from the continues cross-border excluding quarter ppt travel the XXX%. well same card-not-present levels, in prior

increases remained Page aided and card-not-present penetration year-over-year in-person represents in switched of rates Switched QX. over strong. all contactless growth Turning XX% card-present contactless now Both part growth X. by to transactions. transactions Card-present grew XX% was in in as purchase

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

second Turning expectations. X a look to the into came quarter, for our for which Slide net in revenues above our

a we services X our are new As and disclosure. revised and earlier reminder, solutions. down this revenues network now into broken value-added revenue disaggregated year, categories: payment Net

on Now into getting a numbers the basis. described currency-neutral

Payment related network includes of planned timing higher incentives. net growth domestic FX increased revenue than by activity. growth was volume deal and and revenues transaction XX% driven Payment due net to cross-border revenue network anticipated and also the and higher in volatility primarily primarily rebates to and

growth Intelligence continued our security solutions, by by for driver to consulting due & Value-added marketing other demand services, and and services the partially net offset strong demand and solutions healthy our solutions growth driven and primarily of underlying XX% Cyber was and our for which solutions. fraud increased revenue the

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

XX%. Domestic grew than key to is quarter. cross-border ex GDV metric. were The X XX%, worldwide volumes mix mix. by Cross-border is due grew cross-border primarily quickly faster assessments increased difference driven ppt up difference assessments while XX%. higher-yielding favorable volumes The intra-Europe at Looking XX%, each increased as intra-Europe cross-border this primarily volumes while

related transactions were licensing, volatility FX due X this fees difference Transaction other XX%, revenues versus processing year. lower grew to assessments and The network franchise were to million while the implementation primarily related to up is Other prior XX%. switched assessments ppt quarter. $XXX

to reminder, other period. period a these As may network from assessments fluctuate

X. Page to on Moving

initiatives. to a You due can of currency-neutral primarily see special personnel to basis, execution continued our excluding support spending total on increased non-GAAP the increased on strategic items, expenses XX% adjusted that operating

Page Now X. turning to

overall operating viewed international comment me metrics has seeing a spending spend in first comps. well resilient. and we Let basis, as on difficult select XXXX, in remained both in second the more moderation When trends as on are the sequential some quarter. Versus year-over-year inflation markets

to first well, QX holding relates with are indexed of generally it our in weeks the X up line metrics July, XXXX. As when to

included have appendix. from points this we information, activity cards your and Russian-issued in the for all excluding periods data the Just schedule current from from prior

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

that as healthy across and to by strong remains overall to saying continue consumer our Let continue me our spending start business with deepen we fundamentals remain relationships partners the globe.

healthy broadly Domestic a Cross-border grow travel normalized spending patterns postpandemic. XXX% have continues to of now above pace, levels. XXXX at

positioned recovery While capitalize growth up continued China. opportunity, portfolios pockets card-not-present the travel remain into notably well and service in ex has related regions, out travel of there Cross-border of our remain most progressed to this with We hold and to offerings. travel-oriented on continues well well.

buoyed spending geopolitical are factors, scenario macro cross-border remains to we recovery and current consumer of continues resilient, market assume and reflects ongoing the number a spending of our and year strong the by travel. dynamics for case While monitoring base labor

outlook our is year, broadly the For unchanged.

for excluding XXXX to expect a currency-neutral revenue on growth acquisitions year special net the remain items. the in low teens We and full range basis

this a approximately would X.X revenues higher if growth As rate been reminder, you from ppt XXXX. exclude have Russia-related

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

ppt the the exchange a high this X expected for for X acquisitions with a add single-digit expected to and end year to expense special growth, headwind are approximately growth Our on excluding operating of be high to currency-neutral forecasted expectations items. rate at year. is be ppt X to are basis the for foreign to Acquisitions unchanged about and a also of

see line As adjust we to are our to changes if prepared proactively operating we expenses Michael meaningful mentioned, top growth.

anticipated double-digit With year-over-year FX from a to a revenue currency-neutral growth contribution volatility. to to lower special reflects low Coming respect rate, net basis the grow expected a acquisitions sequentially excluding again, third QX, to strong is quarter, and this at revenues on a related items. off

on versus Acquisitions foreign and forecast to impact operating exchange add currency-neutral quarter. are ago acquisitions high of the Foreign be growth, to a special of at approximately for of expected we excluding this tailwind have high be QX X be X an is approximately expected to growth to end X rate acquisitions items. a From the of single-digit ppt, expect much are an exchange basis to to year X to a to and standpoint, expense is ppt. not expected approximately and headwind a ppt X a

Other items to keep in mind.

million on $XX equity are non-GAAP expense losses excluded expense line, our our and investments, gains an other we First, metrics. the This approximately on from forecast QX. income for excludes of which and

expect we allows to and tax tax current related a mix QX to recent XX% between for and for business XXXX the that rate non-GAAP based U.S. guidance XXXX. Second, more of XX% be our the on and tax of QX geographic credits and claimed

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

you, now the to begin question-and-answer session. Audra, ready we Thank Sachin. are

from We'll Tien-Tsin Huang first take Instructions]. [Operator question at JPMorgan. our

win That just XX, to the want top like, in outside Just ask there. looks a nice the Europe. on UniCredit one of it was

macro Why of uncertainty, employing So in you I'm about for I this strategy whatnot. strategies mentioned and going are schemes a lot this the as curious, a about now and the multi-market a pan-European also a reason sustainability a win. banking, of after, as talk they a open there was thinking is trend? the of study, new wake case and heard just they're the lot what

this -- on timing a well. as there's pricing So if comments little to any study just I'm wanted and bit

Right. thanks for question. the Tien-Tsin,

a So We're this excited about fantastic that. win. is

across It's multi-market wide and cutting across so our banks a Therefore, capabilities. it's This cuts XX out, markets. I of laid lot it strategy. digital bank, XX card, As a a it's unique. very single is pan-European in

offering as the side the our on are this winning key a portfolio. breadth I of as digital-first our So think particular of services aspect well us

sustainability of at are many whole the be century all consumption climate the looking part, this The who as customers angles context question in a so to we across see question done, solve, There's what of to payments. the range of the it. can

Our that. Planet itself Priceless into Coalition planting tree plays on

So UniCredit. particularly to that important is

we meeting the of here had minds. So again, a

starts. as to it stand end, you serve your the in down question, we do this as comes the ready X to and to migration, from the alluded needs migration day their In of part

proven have We we've Deutsche this so Bank, proven with forth. and with it NatWest

this to is is us. that something not new So

to this over future. near excited we're the unfold see So

We'll at go next Harshita Rawat to Bernstein.

to Michael, alongside which launched. sort I is finally and of real-time experience TAM. retail a early commented owning you've rails before, days payment it's I also want ask FedNow, very this of working potential ubiquity now about on know from and But far use cases. some or payments you've lot had any

are and the thinking FedNow involved. [indiscernible] how you So risk about

Harshita. monitoring are live. going Thanks, what Yes, we're is They FedNow doing. all now

milestone, good on look a view So to opportunity changed. this a this really this topic clearly is again. our hasn't Yes, at

So what in the end, solve. you it are comes trying problem down to to

looking consumers. for? to looking reach are Merchants What for are merchants

So fashion, pay predictable to What scale are available. ubiquity in safe a for? for consumers ways Consumers looking matters. are looking

So those are all factors launch. that haven't changed with this

We built acceptance. that

X consumers and years, looking Installments, so the Tap position Click We that strengthened Mastercard over trust -- a addresses Phone, contactless, have merchants brand, later, are to and Pay forth. a for. And the what of pay proposition circles we so now, that on represent buy interlocking lot the

good. that's So

strong, we and that. proposition debit evolving is Mastercard keep The

well FedNow it's is understood So now. launching.

to offer and obviously we our to issuing our continue partners. look that, services we will at compete banking as and So

countries to same them. with stayed experience, ending the various systems partnering in close in end, most other up At time, these have we question, our in to your of the

it see So here, live. to where we'll goes have

available as doesn't yet. it said. is that It live Going days, you early broadly mean is

features. as have It have a doesn't It consumer such. platform doesn't

access app. mobile can't it banking You through your

is All of today what our provides. that solution

have to partnership goes. where we us see mindset and So makes the goes. for by it sense this where when where Head-on competition of it and

for that these to systems. important we have do is solutions It say

BXB-focused. Pay that leveraging across solution systems, exactly so you flows would generally Bank the at kind into that's the these that Chase by of look we If these market, put run

verticals across particular penetration noncard run these systems. Some

Chase and forth. So kind We've that Pay the to Bank after see by we going in Europe of one be those U.K., of And so app will an as opportunity. similar solutions ways done that. in

a stay So more We'll in come. point think better solution I time, in At we have market. very to the close. this

Sanjay to next go at We'll Sakhrani KBW.

routing debit. through would July. I just in went of question how position curious good opportunity guess there. card-not-present I'm transactions you're rules I you on had see It a share. Fed on take the in sort the to like a some the seem

Right.

So came to as available July. networks of the Xst of clarification

we're put still that said and to place do that. days. and It's we ready early would, we in we So

sure stand We goes. will that the have certainly ready said, we to you rightly see opportunity, Sanjay, will compete. find that And look to is as and where we But we it. for I'm

Ellis Next, MoffettNathason. we'll go to Lisa at

transitioning Michael, of highlighted in out on infrastructure you're the ACH and the real-time Mastercard's applications building you remarks, building strategy, services. in with that sort from more of prepared phase focusing to

taking the new helped or movie account-to-account ACH Mastercard et network back, always the own kind last Corporate you to comment years? of -- able has payments, fast terms in of flows, X cetera? differentiate just a that kind the Services. that it's a step for Mastercard on in in Can and of Nets' over how being been bit Like big X capture Vocalink Just infrastructure a with you differentiator

Lisa. Thanks,

payments in So 'XX the logic. so the be of real-time we infrastructure forth was when invested wanted and time services. a started real-time at it bit into clear -- that rise was of we Vocalink, XXXX, payments to That application and the the

say, to street your in At the cred so needed season trend the this day the participate from time, stick to we and can was movie, analogy. That X. with of we the so the we first talent needed

today, and where XX infrastructure. top of and a XX payment an real-time run enviable we in having out payments, are unique operate in built real-time countries GDP position the we we've partially Where footprint

don't don't we Our the matter. strategy matter was markets will be we be win in and that to markets in that the

now infrastructure it's markets really use to up these business these itself of systems that and And in point. The scale in is we position. enough. we've that running attractive So feel reached drive

that. pointed focus services a out set As on top we we're of to going of on building out, applications and

If you banks, non-U.K. of has prepared to the us where rally banks anti-scam the U.K. X -- a solution these from I come up it's recall about markets fantastic our market-wide a positioned expertise around the the with the in these table solution. talked how example remarks with scam to in

more not Now that this do space. solutions. be go There everything have All we will in a be solutions, will real-time And these individual will there, we'll demand. we have but table. out muscle we payment in away. and payment we market-wide seat a feel done solutions customer will will think It's it not at going I more to we've the government long come up, time, systems and be because for

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

touch for services it's for some we value-added a moment? mean good Could on time. I tailwind been a

I categories, by think you some and below And offsetting it mentioned grew just were other that in others. about transactions offset strength X -- time point cyber around. this

then more to much So meaningful detail that little I'd and have of be business? now, services into the those importantly, different well weaknesses to you curious were just get categories And growth to the across think other. value-added and what do as how room alive including keep more you cross-sell payments a strengths your

Right.

a add and so and around growth then So bit rates dynamics various forth. the can let around Sachin start, me

strategy the of and networks. that is new The I as we combination each and said complement both other. So remarks, into in prepared extend payments services

is convinced a just that key reason the that about wins We I our all so earlier remain point. that's starting happening, are strategy. that, central to those talked So

in grow aggregate than services continue Our to the faster core.

We We could revenue services We a that. from. range lots of do There's do to to So we that. choose base. our like continue to continue diversify things. want to of whole

when our cybersecurity going was have which our that differentiator. that felt just demand, C&I when a numbers coming drive into to pruned we're to business, and healthy didn't rapidly seeing biggest look such at in the feel we a comes in But it strategy is the through We because digitizing clip. world that we a very grow I processing is that

value where business, a D&S personalization and here, we -- and Test that we integrated on have the before, helping have better you value If vertically a Learn, into you go run way business. have all think It's chain. about transaction, analytics the is keep out our data our we building we loyalty after, the during customers chain &

the I demand. end don't to see an

fact, is strategy. key that our to diversification segment In

at is a healthy -- don't and aspects continue services continue see build to data to This in any clip. here. should see insight. grow. across So analytics I running cybersecurity moderation will you out key of us And the

continue So and nourish we'll we to this love business, it.

couple Darrin, of it's thoughts. Sachin. A additional

growth kind the continue area. and Michael that But So that's to of got off move rates case. And indeed services covered in our solutions. around strength quarter-to-quarter value-added we to remember you see the on this

And so we should all focus on the here. longer-term trends out

and the on I sequential acquisitions. QX, solutions looking growth for a rates of XX%, assume was in at drop QX mind is to out of account One X there. at point when it ppt trend in QX specifically look keep relates value-added there services that As you to you're in

of lapped that QX acquisition had QX impact it doesn't because of kind period. it the have So acquisitions.

So piece. that's one

comments, growth on capabilities in all some the strength in to Data of specifically rate growth then it's & and Data about what other especially infrastructure I ACH, Cyber our for the in and like as & things trends are was Services really Intelligence relative Cyber level. rates well that And talked real-time solutions. about the as my And Intelligence offset & & Services by

it think to solutions, about talk real-time So tend ACH, in there. which pace like things of when grow other context the we lower about at a

about just was we what services. historically, spoken So had

context, value-added in the like talking services historical When and growth in about services are we XX%. think Now more services about solutions. rate QX, we was that

just So a reference that. point for beyond

move to Suisse. next at Credit Timothy Chiodo We'll

your little which both to I a revenue growth another medium in -- your to your on algorithm important and Mastercard that over term, the want is volume dig be bit business will Send.

you You it's domestic, bit could just little are many cross-border time. use traction. cases the some cross-border the of some much a really use cases. of cases Maybe were I believe on initial but evolving touched the more a use in that bit more of dig gaining to little over

Right.

So Timothy, let me start off with that.

year, business that's together, and The which it. markets adding Bahrain remittances, our rightly look we So geographies. chunk we've added new a and go I you gave Send there, big that after There's Slovakia. way in that we by domestic as said. that X at how this cross-border you cross-border is is disbursement Chile

unparalleled have in is what there -- reach cross-border world. countries around reach XXX So the tremendous in our we proposition,

go to Then there's ways the after use and new it, that cases. is

gaming important of talking some forth. was Fardan Asia go Middle in that Al that after workers' corridors, very international. corridors. We into I those The domestic, is Qatar, so is East about of South whole specifically piece, payout, these and are when earlier So remittances some

pretty So methodological. it's

there's make way accelerate business, talked how -- onboard on to that haven't which about this with us. another to how this it for is we and But I easier customers

another So express, for is which solution this way of cross-border kind cross-border us service is around payments prepackaged accelerate to business.

So methodology. new cases, new corridor-specific, geographies, use great

our Transfast card Mastercard integration, across of the think acquisition, our our have assets across proprietary kind system reach. I HomeSend we the here right and

we this pace, healthy all like in, is So lot. very a and growing that at business a

building as cross-border, that cross-remittances disbursements. in -- and here experts the and out over side, you card we're in are here know, We on

at our UBS. go Rayna Kumar question We'll to from next

progressing BXB seeing and this Both budgets? against in of slowdown have remains macro you you any capturing potentially Can in seeing you're how for TAM spending large companies corporate a discussed environment, talk about what past the in in their if as BXB you're the Mastercard. trends payments tighten how you're opportunity

the lot Rayna. of you, which And BXB. a Thank means from fantastic. isn't me that noticing about a to love questions in of is I talk there coming I'm numbers, questions lot

the Rayna, commercial take bit that's overall. a lens, here Let on broader me little

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growth sustained this we've -- side. the seeing back -- our growth So quarter-over-quarter, X strength all we in this consumer levels noise compare And year to particular COVID international the is business. elevated XXXX, year-over-year markets of There's out on it. of we're of when a quarter above

have total the with complementary and other at that one TAM likely penetrating we is solutions like is, corporate by and is so business. new now BXB area. point this T&E, This today. opportunity, way purchasing forth. isn't it's easy is tools a of this savings our this that building We The main this that and accounts sale, sale, our targeting fleet, existing our have cards tremendous and data look all is commercial of and out systems. today, about really we SMEs have the about payable in with two there, plus smart we Commercial capabilities market focuses massive penetrated point One of

we lot a and there, of opportunity a today. out of with cash cards have lot that So checks

rewarding out we So for seeing We're growth we're and separate leverage hard, that. the company. focusing that. We us built a in the vertical

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isn't perfect. solution the But

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breakthrough. that is feel the We at and forward. for healthy market, be a ahead It's it biggest XXXX in our we're opportunities. called growth And important our Strategy out This this We Day. us real the we're November business seeing of growth. one a remaining will going going hugely us. in for focus to So is be

We'll go Ashwin Citi. next Shirvaikar to at

you question. getting Michael, since I'll guys. not quarter questions, Good ask a maybe enough Sachin's numbers said

Yes, please.

terms like of you're I looks exiting of than sort in to the wanted of the levels of higher of kind XQ bit expense. versus operating figure year XQ little it looks out So sort like a XQ, cadence -- the growth. it

there well of of that to your cadence investments service term but call-outs spending I are terms -- nature, you're be the that causing making what's So in most now? types as as in product know longer or that's of pertinent tends

you numbers expectations our numbers operating full I've you around given are. think with our what is the like year third thoughts we the So look, quarter. we full what the in And -- shared what year what look or expenses for

So I the to in expected quarter. think you is can rate growth is kind expense fourth of back into what our operating to or going be be

you QX. going standpoint nothing unusual a you look rates, those back growth it nothing tell numbers, unusual you, on there's into at there. OpEx year-over-year when if in There's see I really Honestly, on you'll on from basis would going an

on here's say. what would OpEx, speaking, Broadly I

making manner And on what driving growth remain short, continue channeling in We It's to It's to the the operating we'll strategic do. both to continue medium and appropriate that's priorities. expenses our drive the term. matters. in sure we're focused our capital long what in

is standpoint large are we we extent, what a lot what development sales business, do a lot of know, tech we from around to you As around from of is people a standpoint a a do people. because people. A

So that's in. what we invest

actually to nothing really who there assets an are people ones But see we I us terms bring the when one for year. which people out of that -- operating on that exit the alone, essentially for and rates going the deliver of comes you items growth which growth are to from as reason call that unusual personnel standpoint the expenses, from line allow OpEx So as tend the is in revenue.

Yes.

a opportunity growth line So of bottom us ahead now. top there keep tremendous we in But mind. and right is

So invest. we currently to to are using this that seeing tailwind we're continue

momentum growth services. list in momentum the wins, growth BXB, see the in the of You

do to very and the us to is see disciplined that in continue this will and that time So business and fashion. prudent nourish you a invest,

We'll go Mizuho. Dolev next Dan to at

were on a very guidance. Just question obviously, Like results quick the strong.

You exceeded your of thought second guidance what for year? quarter not boosting the revenue. the the was guidance on Like process

guidance couple that's when And So what here again, One, think in are thoughts what right? you ranges, about we of out as we've in here. shared essence. well, a shared remember, terms that's Dan, -- they and of ranges, it

call in We be to compete of in activity. we two remarks, is number markets. to timing which driven We of my prepared some as vigorously the the we deal active I in expect still what markets. Point was still had in QX, by expect these mentioned beat,

kind of we the market. only I timing as we that active because do year mentioned so expect progresses, will intentionally that the as And continue be in to

think that consideration I you well. as So take should into

of my is, right at year. to then relative the our had shared comment modestly the only And I'd in thoughts what other had we increased QX, we start make

all together, kind our bring of guidance that's you a we full when of that right, from standpoint. shared what behind So thinking year

next go Bob Napoli We'll at to William Blair.

But investing On banking aggressive strategies in fits I a then on and some how additional as into other open open finance open that's in Service. has how like Mastercard banking. on and like pretty banking, thoughts progressing maybe Banking embedded maybe just been

All right.

more coming better as services. banking, is know, that networks. PSDX data pretty specifically out There's here That's use regulation got around a Europe X as out. The financial in avail trend This footprint lot people open of So you new stay. their to that. we X opportunities whole of is to in to called clear. coming notion

on good. train this We're -- it. the That's has is So station. left

a to We is look way we start. beyond had connectivity. move at good it we have The

Finicity the in where going. we connected we're our And future on this of We U.S. here use and think the through very asset now assets. is top are through cases well and building is Aiia in busy our Europe that,

in demand cases the asset Sachin's of lending-oriented point, that do demand today. earlier event. is Initial verification That was Finicity near-term and the the is we invest, feels where use see we we use where invest To in where cases. demand very clearly

is that So optimizing. we're where

to data Bank starting is payment solution banking a good indicator by our is a indicator, the which this This on a is with success banking U.S. bill. balance open in as That Chase like already an using use going we're what account, does. see success time our is That Mastercard's there you're using powered now beyond here tell solutions is But please open biller lending to payment these when cases technology. Pay the is by

to third by quarter we're we're with we're X very So excited positioned is with building near-term Pay said our Bank we the use well And to obviously, That's in and working. Chase case busy Connectivity, clear. as out see cases. use you. assets, launch

Togut We'll from next take our David with ISI. Evercore question

Cross-border in there's volume cross-border June, on remains X, deceleration a strong, April growth very through travel. from growth Slide clearly, especially but

rate So guidance? what my in half, cross-border question growth is volume embedded second for in the your is

a hood, you under do Maybe you're in bit And then if travel in by little texture the you could seeing what see on more cross-border Europe. what go volumes? country a little

some and data on China. overall of kind gave You thoughts

Sure, David.

thoughts of couple a So first.

which level, Let's strong. travel highest is the of start prop cross-border incredibly value at remains the still

prop. got value strong we've So a

a market. strong the have We presence in

to that's through when remember, building to bolster position that we that you'll right in we our cross-border, we an had in were used is but at traveling, point as stopped actually broadly portfolios drive us speaking, in now. The were helping fact that And As going growth COVID, everybody in opportunity as paying dividends continue travel. and also strong time portfolios winning cross-border.

at about were looking Now your the travel declines are to you're look numbers is talking you talks when accelerating there, travel. month-over-month, looking specifically to year-over-year at which cross-border trend right-hand to cross-border the at rates trends, an there's what growth you XXXX. think I around question you And you the X, the Slide encourage see side trajectory in could actually about. I'd of indexed

of said QX, important reason tougher keep cross-border And that's I growth getting because impacted XXX%. see are year. rates year-over-year So that's think actually percentage The XXX%. In the from differently, first last In that by weeks to travel was you is July, in as in that comps can that's QX, our a mind. X the important XXXX XXX%. was of

a multiple across at is say are services, performing regional presence I side in well. color, and what we've this dimensions, got got model. I channels of regions diversified terms would of Look, well. the that fact regions helps products, In And Mastercard diversified of It's beauty across mean that payments cross-border the we've -- across us across the regions. presence strong various across business as sale, across

accelerating had through the We're well here. seeing expected in That's trends nature Pacific, both as of nontravel, you're numbers globe. And is good, we what seeing the sustained about. in seeing very in as coming across the growth Asia which much on really, what spoken travel cross-border, and we're

into and out We China going-forward still a pockets of coming on in going particular are opportunity think there of China. basis,

a point, reference That of China levels at what the to approximately stood in cross-border as Just about Michael how inbound show XXXX there is. goes XX% talked into remaining travel just QX. opportunity

cross-border approximately QX. China XX% in Conversely, was outbound travel from

we programs, you And our to opportunities do our indication of so of services well winning us a an us And enriching basis. on luring such position more continue as those in basis. that that where doing -- a helps just on loyalty as terms give going-forward will portfolios, going-forward numbers the both lie proposition, we're what

share the place of in good kind very to that's color cross-border. you So I I'd like with think Broadly it as to a this. we're on speaking, relates

that to demand one Maybe here market the supply. and in the is add between imbalance thing current

unlock. So airport there's capacity capacity, airline of still an unlock as in there will all that and

is -- Expedia over People too, good in trend of is This want very add, travel and position coming our an will space. with desire be out this there. how position combination of capacity to a be time underlying the the exciting the to just just unlock mix. So to Lufthansa, strong here, travel, that portfolios, and through our industry

We'll go Dan next to Perlin RBC. at

around during tell commentary wanted kind to this and in what Sachin, the in tickets us out. maybe on just Particularly, about downdraft I spending, of you the that average quarter? can deeper the called little dig a inflation moderation you current

signs about? more indications opposed that like corollaries any would from you seeing then discernible it maybe spending the And talk be as high specifically, sounds this of consumer continuing to are to slightly are weaker resiliency that to you trade-downs or guys consumer

Dan. Sure,

I couple it's surprise. no of a mean So thoughts.

started inflation, We're value has of at business. have right? seeing guys impact. I -- seeing nature levels, declining to think of high that at terms are spend, And of a inflation right? that nominal will day, still the while quarter-over-quarter come you you're moderate, right, in all the So through an remaining end the inflation

was to call actually out. important that So

end and moderation there's this international the also The is isn't -- on rising reality The are a markets markets -- There high interest not day, I you remains talked will of when like select inflation how resilient. markets. resilient ultimately, spend. mean necessarily to the put where on and ability at That a consumer in the a consumer then holistic At doesn't -- market people's take And is squeeze markets a U.K. about levels, more select look let's rates broad-based, right? that the basis.

at margin, of -- spend. say, other But mortgages you what of wallet, get see at to start categories squeezing discretionary the the is get which would be reset, it's right, high or for is when mortgages reset, reset share as, they're getting doing wallet rates. example, for interest What it's available

So you're come we were calling a what going trend kind through, to see of bit that which little is of out.

guidance. think in rest But of year all year the our my of into we that thinking and the as about full is factored

we So about. that's what really, thinking kind of were in essence,

select there's really, recent by this a in I'll saying broad-based. So being it summarize bit as reductions inflation. And seen we haven't international again, in moderation of markets. little There's

the been back We of about at as which us. be standpoint. end day, strong, we've causing the remind what asked. continues very I'll concerns you It's with haven't cross-border is David And seen much which for line just guidance this in from thinking the to that a to something question

good strength together, is. about feel So to all the we kind of right, bring what that the consumer of

time we think question. have I more for one

Bank. Deutsche at Keane Bryan from question that take we'll And

assessment FX a volume, volatility yield. just Sachin, had was it and how so above want cross-border about positive it the know growth to revenue model. impacts I ask

they think volatility. peers' of reports, I called it FX -- lack and was of negative, peers actually your out the in one your

trying impacts it how Mastercard's to just model. understand So

Sure, Bryan.

we -- sits is transaction It assessments, tied what FX see -- clear about assessments. the cross-border processing that assessments. volatility, you in first, it activity processing which not in and in numbers talk the So is to in settle, about when transaction our why

cross-border in right, is relative our revenues volume driven And by to I you compared yielding where -- call volatility again, had was as we was favorable on assessments volumes is called sits. comment that it intra-Europe, which growing tied pace than what high that transaction be volumes a everything I ex to is faster fact tend was And which the intra. higher at mix, made and are of inter which reason gap what volumes, where rate between the out the growth assessments intra-Europe. kind the to that's positive assessments, were. where were cross-border And processing than to Inter

closing Thank you. Michael, comments? any

All right. Thanks, Devin.

to and want sits I that thing us. say, room you first should Warren is in to know other The the all listening

now. soloed delighted time first the next to Devin, and this is by -- chapter this So with we're

about that today happen, day. I the As the people Mastercard the a a of results note who XX,XXX comment the that, at all sent always, I guys deliver want this every them earlier with this to you value make us. is make

just So to with wanted I you. share that

questions today, that, Bye-bye. Take talk with and you And support, you we'll soon. to your thank for your care.

everyone. Thanks,

And this today's thank participation. call. conference you concludes your Again, for

now disconnect. may You