Mastercard (MA) 26 Oct 232023 Q3 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 Incorporated Q3 2023 Earnings Conference Call. [Operator Instructions] Mr. Devin Corr, Head of Investor Relations, you may begin your conference.

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

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

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

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

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

to regarding remind forward-looking that will set include future call Mastercard's everyone in Finally, in as our like forth today's statements detail more performance. earnings I'd release,

differ Actual from be A summarized earnings our the I for SEC our statements. Executive factors performance Information over website posted the recent could Chief forward-looking will release Miebach. end that, about days. these Officer, are call to affect XX the will of of our call this turn future in our at performance Michael that now With on could and replay materially filings.

morning New Good Devin. you, Thank York, everyone. from

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of the were resilience XX%, both demonstrate spending. X non-GAAP in continued model our on revenues versus excluding operating results diversified a business, items. currency-neutral X up our quarter net ago special was year a the basis, and consumer Quarter strong XX%, income up fundamentals Our and

front, focus are few we a on. On the factors there macroeconomic

driver is of consumer market a spending. strong, labor key remains the First, which

However, and aspects as such availability we monitor credit behaviors. savings continue to

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actively vary sectors. monetary further we remains the to As recent to a central policy, countries the and continue the by East. impacts in expect banks events underscored manage Middle Also, geopolitical concern, uncertainty across

stand business monitoring manage these moving accordingly. to ready the pieces We and are

switch Looking volume moderation international in with our trends this at remains markets. healthy domestic in growth quarter, spend some select

Cross-border travel this levels quarter. ex XXXX XXXX third travel in well And to up remains at quarter card-not-present strong third hold XXX% of is the cross-border travel. card-present the XXX% continues -- at ex cross-border levels of in

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new to explore of Let's forms winning a we in see to shift investing sizable payment payments, technology long-term and set in diverse partners capture the We're pay. more these detail. of opportunity. ways with where a Starting deals further electronic person-to-merchant and to growth drive with

launch builds exclusive globe tools transition the the in X U.S. In the with us debit portfolio safety commercial like small up the the and has recent Citizens happy commitment bank and the in Equity In security private that track markets debit increases to Citi's Africa, Bank for their across partnered Mastercard their the U.S., share reasons we the business Kong. because of through to clients that wealth third in Northeast announce deliver group where have we momentum banks across marketing our are This of chosen deal wins to with long-term are are and move leading their bank Bank, examples significantly clear worth quarter, selected Further, XXXX. our wins targeting with the business on to the assets, and our in as X willing to our a network. Singapore Hong signed we Mastercard. ultra-high Webster proposition, And value deal net continued. their they They on business. a we These payment East partnerships credit presence. flip have

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to On BMO In We're growth. for In the million to A our In into process contactless solution market payment capabilities and full over of a bringing also our sunsetting card the in strong transition, and to capabilities shop second immediate cardholder U.S. in conversion live [indiscernible] cases. our the issuance virtual XXX Flows, are issuers sure. Debit we to now Extend the commercial, card solutions better expanding New is see for mobile across virtual leading to will to over Europe, payments vector untapped fintech we're many Digital the business the happening prior spend. offer online of lot and borders, ability This companion incremental payments. the remittance to which Cards partner they key commercial Payments are a substantial growth, migrating and including Mastercard. we disbursements to Maestro experience, cases, And in a continue with leads space. drives use. card work to for time. and to cards flows new migration Canada, new and we well current virtual our across Maestro, of on use with Maestro online continue card

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ever America, Bank a investment the India, our biggest in in commercial with and also BTG commercial Axis Pactual. Latin first contract with We bank deal signed

world's Now the our let's XXX countries XX% currencies, focus disbursements and spans strong on than more than bank and remittances. of population, access we seeing to growth. With than more more XXX are reach and

the basis. geographies. of A In XX% a the easier To great faster, continue payments cases leverage X Remitly, use solutions our our up Paysend more also the international collaboration active partnership fastest-growing to remittance over with payments We're on and SMEs. into and make million example we're with will to enhance this disbursement U.K. more year-over-year new is cross-border growing Remitly with in platforms in expanding expanding our space, help one remittance transactions third and secure. quarter, digital were than users. for

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services help and and card drive consulting, execute and portfolio analytics acquisition targeting spend. clients design incremental migrations, marketing stimulate Our

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headline network for and of the is revenue power Mastercard. me So payment the drive to service strategy for our

portfolio, client's which virtuous lead services circle. use incremental to and our of a our leading it's so Service payment on performance opportunities improved to the so to and more flows, on,

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XX% with over assets across a U.S. in the deposit accounts Europe. of have X,XXX of set and We powerful banks connectivity to

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enable pay account. we're consumers Worldpay directly In their with bills to now bank this, addition to from to collaborating

continues. here progress Our

in suite and consumer of summary, put in diverse reflect transactions years diversified the services, the future business across substantial for strong all to areas the over together, runway to extend results third dollar and positioned you digitize with business strong flows to So is of to growth invest and person-to-merchant all both of our new it payment while opportunities flows resilience Their fundamentals payments our Sachin, address well our growth. continue to the by number in opportunities volume for we our continued come. quarter you. When of spending. the and supported for

Thanks, Michael.

the Now our revenue spending and excluding well X%, basis, a domestic both Net from and operating Net equity increase turning resilient for expenses minimal the ppt gains as value-added up financial growth as EPS the strong and impact consumer operating XX% income to including volume XX%, items applicable reflecting growth increased and respectively, a on reflecting U.S. impact which where income up net Operating performance $X.XX the acquisitions services acquisitions. and Page special tax XX%, our quarter current EPS which repurchases. was a X shows from was in currency-neutral includes income our released strong was X, XX%, and continued as share guidance increased solutions. the was which due benefit, contribution losses primarily a on cross-border tax in and discrete $X.XX, to including a as growth of period. from well investments.

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give me you of a let bit color. So little

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

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to network were other this licensing, Our assessments $XXX related quarter. implementation million and franchise fees

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

Page Moving on X. to

This can strategic due on increased impact execution personnel from that our expenses to the primarily currency-neutral adjusted excluding ppt increased initiatives. You of basis, was special non-GAAP see support X total spending a a acquisitions. on items, continued including X%, operating increase to

Page Now to turning X.

patterns. third through on growth migration the first late trends the NatWest comment and drivers versus quarter sequential transactions early metric and switched point lapped Starting weeks the similar the last. factors X social follow are the commencement switching of drop year-over-year. One of October. relates These the October. into volume in me the and payments quarter. to of We on QX in the U.S., of declines Japan timing primary the in in year the sequential quarter October this with operating primarily in Let security both certain Switched the in

we by at continue travel the to impacted tougher travel. as recovery is Looking being comps cross-border cross-border, growth lap of

compared travel strength. travel metrics remained continues cross-border index, to ex to XXXX card-not-present the strong. When Cross-border show

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

wanted QX. Turning on to Page I to thoughts XX. share our

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excluding labor to acquisitions. case approximately X to tailwind revenue fourth the expected. of exchange QX, respect strengthening to be to are low expected this of net X said a assume rate dollar we currency-neutral reflects With expect Having resilient, double-digit recent basis, a scenario Due continues benefit X a the to and is foreign the year-over-year ppt at of strong consumer Acquisitions compared dynamics. grow our X end spending spending markets remains U.S. minimal base to in this, to to expected previously on low the by recent impact the as quarter buoyed we to for growth. now ppt the had to have a quarter,

other forecast to dollar third from X ppt initial a impact saw of in standpoint, currency-neutral a down From ppt is expenses the the expected and a stronger benefit between X on versus X to to grow follows income led gains approximately rate growth, headwind excludes X a in foreign of about acquisitions metrics. operating single-digit we which $XX a the the high our are equity QX ppt for items. we Acquisitions to for an of special operating ago we a where expectations be to This and expense to revenue, to and our year the this on This Other exchange quarter from an at exchange ppt million line, add foreign losses expense keep our mind, of are on and excluding forecast QX. non-GAAP expense investments, X benefit. to excluded basis, items quarter. expect

Finally, a to rate call Devin. we in our back mix of the geographic the tax to business. XX% that, current QX And over expect based turn will I XX% of with on approximately

Sachin. Thank Michael. Audra, you, up open call for you, Thank you now the can questions.

Instructions] Sakhrani at from Sanjay first take [Operator our question We'll KBW.

moderating revenue implies, about think Sachin, we of think are sort at that is driving and that? fourth how there's that we timing of still what factors how going trends forward? or it of look the macro like something that I'm incentives outlook what deceleration, like if versus when much just curious outlook should I quarter

Sure, Sanjay.

of a So the fourth in thoughts. One, quarter. couple

FX to And a levels levels certainly of volatility last remember by fourth the elevated are meaningful in moderated year, You experience we FX quarter those last of year. extent. volatility continued

current in There's would of we QX. some levels saw expect You QX. at more in volatility that come through that

incentives, of to rebates And to that's baked and So point a continue around our deals. thinking. then pipeline into in your compete look, certainly market, we have this we and strong

for to purposes, announcements planning would win, the execute as And to planning pipeline. in continue you've our on continuing I various seen out. we're nature We say put the strong -- the of we've

other would than our look up that quarter, see not contra levels revenue. percentage be our fourth You too assessment we of typically would would in of different them what higher fourth year, sequentially contra you the a revenue a have as in the as assessment quarter expect any in you when percentage at

see we're what's macro, and base we So And much as there. assuming on well. puts consumer. I specific But that's a forward really, our in point are case and going consumer it's like takes your assumes markets broadly speaking, said, There that's around resilient a always strong to to depending very what question. continue

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

Europe? bit, in if year-on-year. Just out? else on points, Europe front, out? did by just slow little change call noted you Is NatWest anything the Is interesting comp it that that I'm performance any think, I X the the saw sequentially a I curious there to country country or in

Sure, Tien-Tsin.

of couple a So thoughts.

First, the effect primarily it's lapping NatWest. of

about, there. start bit be going that, some international select let's say, the you're country. which by Michael There that's lapping NatWest would the level by takes year. to win talking in last of seeing I in about, that the say Europe, little are and driven our would So in moderation, see talked seeing you U.K. puts largely always of largely, I a you're we're But decel if markets,

at next Bernstein. Rawat go to We'll Harshita

been competition for card-not-present proposing interchange recently like credit card Fed implementation I II the want about activity to new bill. caps, regulation. and ask unrelated debit some There's with

So the and the thinking environment about Michael, taking regulatory are a step you U.S. in back, abroad? how

for But trends. directing you to questions me few a that there on. thank after lot certainly is Harshita, straight on going a

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activity, Reg been of have the can debit. they and there's lot You CCCA, Fed a -- II, on overlapping

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banks across this We and united a merchants are more address across point. voice seeing to

a since the last And last legislation time not we the use particularly merchants, been and good They who productively particular for have It those it's small to -- a the not to reward last launch were good business not Senators, for vote. bring successful. attach driving think use that this active walked for and proposals programs. quarter across over I the not other are very actively Durbin get we proposal since and is this and time is good consumers. to Marshall,

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So on this closely is engaged CCCA. We're that.

II. Reg on Now

So we're tell seen opportunity can last an in that. this Have you will is risk? this I you compliance question we outcome? a call. on with see a neither. as or think Do point, I particular we At was What any as compete. it

merchant over years take case. proposition, this secure decisions route have Can cost the well, the point and the billions away the is whole of security security that, least the out debate. from center shouldn't our want in what here network We of least this to the the think consumer invested be that at and possibly we a network, less to and is that we

leaning on We're that. in

it this seen point. at haven't yet We

out monitor that pricing, about to into The we'll again just So piece a debit is and put see was period. it surely for going next consulting happens, what us quarter. talk yesterday Fed

on X this caps night, I Electronic Association, same if with price the a Council out Here the distortions. American Payments of are -- the is other trades, Fed to along correctly, the letter the driving recall again, market industry, put arguing kind Friday across that Bankers generally momentum across

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goes. to it does P&L. have not though, interchange see affect out directly point It our where the a that is important, for is It industry. we'll mechanism So to balancing

are those things keep in mind. to important So

For custodian choice make stakeholders. all that see those, an security all and by understood and to safety sure ourselves are of as the around arguments we fully industry consumer

FT Partners. Craig to next at go We'll Maurer

some so considering down your One, the can discuss what say, could versus we're between in help X. curious spend spend U.S. in in understand X% historical certain, the on levels? you Mike so Just of Actually buckets broken and forth. seeing the should deterioration sort us regarding in is is the might how the insulated due if specific credit to over recent Asia months? and issues networks if was around strong those moving X I discussions wondering rhetoric taken seen on secondly, next out other credit changed pretty actions could away of from with and to global the with might places. And I'm how markets rest have comment how we've we seeing and quality U.S. the be times. Russia you top I

what in following. is Sachin. credit the your I'll take particularly you and about question trends first talking the on it's Craig, of the U.S. light for spending in you're the headline on deterioration of quality. The

well-diversified portfolio consumer the the a across base. of is U.S. all actually spectrums pretty in portfolio Our

company it I you portfolio. ago, our company kind of If which was weighted years argue, look at our towards a more credit would was XX

you, the the drive to mix products, we've We whether And business. the it's of tried right credit in that's around at got now markets, across pretty the a in stand whether co-brand up even of right, markets. I down issuers hopefully, so portfolios, to cater the which standpoint, actually decent quality a been if composition around geographical better of way hold of amount have a of kind tell the has always diversification the spectrum And we well have mean, affluent. they friend, of strategy debit from you consumers. credit our it's U.S., look of the kind to I and would

happens important because the what because how portfolios. these are we cycles, in we debit know, nondiscretionary in with diversified about These you is winning investing won down tends tell portfolios right, We talked debit Michael spend the of up-and-down to like favor that fact how I'd you, be cycles, towards The other we spend. been that talked portfolios about in won piece, Webster. talked just categories as the we in recently Citizens. of have -- going We've about

diversified well pretty across is you spectrum in across consumers the tell I of products the headline the So U.S. and

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something that's that going. So the is part efforts our are of where to continuing dynamics understand

global question strong of from seeing this anchored would is is on from, where around the conversation Now connectivity. Asia, the a globalization argument probably differently I value this value not rhetoric word We're seeing coming and in and that. say, the an you we're Asia, broader -- on

a On across the Asia, just weighing this, other that there all the around very of in And hand, complex mix. things a play off. world, like it's into not is sanctions conversation

for you to on, the talked are just Mastercard. start local countries systems for We're about to of concerns with with years, around we that And around we important no particular whole it's that. partnering Early have a with. world Europe Maestro, understand Debit range been for So partnering there payment take years.

the trusted world. of this economy The our same an is in is part a a is going, And that, to capabilities of a player. into important where want connected makes Where data us the we'll cybersecurity many derisking all that other globally across world keep forward, Also, level in cross-border solutions, plays at mind trusted solutions still yet parts it but flows see, understood travel. and network going gets of seat us that to matter. some People have that as table.

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things that. worried this, overly not it's are I'm where really we seeing an about good of coming some dialogue active but out So

that good that of haven't payments overall everybody's is systems local reach consumers before, that that government industry. Think reached set inclusion about some for financial advancements up in the lifts boat. the And been when

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Goldman move We'll Nance Sachs. next at to Will

bit growth Ss, in services drag solutions. tale X about to I in I was this drag maybe And then for the services. outlook, just trends -- It strong A kind the you bit of the of how commentary quarter continue? on wanted the sounds for that should ask buckets? wondering talk what's was X on long of and could sort the some drag should expect in kind little quarter, that? to the a what's from similar outlook driving of to solutions. we color you like value-added of last if little of And of relatively maybe

Sure, Will.

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payments have at a we real-time we tempering we relative To payment which about effect pace, which the a things on the bill have of going -- candidly, something should that which what actually And are what's growing from nature, having certainly a expect. standpoint. your other tempering is rates that from solutions I point when slower from of mean, is It's in growth other effect. solutions, is

The about reality in the past. services we've talked is always

and about We solutions. haven't talked value-added services

about you're through. come which is where effect seeing Now that we're value-added talking services tempering solutions, and

other quarter just that growth, the our comps to tempering reference And value-added a on Russia. have one year-to-date by a when solutions rate share transaction it's things point, if sorry, timing. -- which basis, think the grown excluding be I year-over-year which want impacted services growth have by excluding also I overall can effect, at and where XX% actually when helpful, this with -- you by as quarter including to of is

So this I tempering effect think what to I'm there is, of share trying is other on with solutions. kind you

You expect continue. that effect tempering to should

in is D&S of. that All of which good demand overall the positive see our and actually that very in being strength we said, space. We're side, there C&I seeing we're

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

thinking the would of like X the of discretion? are fair you've And be amount areas, over in XX are R&D, Given about which growth flexing some you that some what do next expenses have of particularly highlighted, tempering how VAS, you sacrosanct? to months? the especially a Where

Right.

He that in of what talking was VAS. said, really get want So solutions. Sachin in just tempering about to wasn't straight talking I out. kind tempering about he other the

little here. I you our slightly talked disaggregation as about definition, think revenue for you. definition bit know, with services the we with there shared of We've is a have potentially way a here confusion particular and a different now in years, which we and

first. to just that So put there out I want

question. your To

in expect said. as C&I So solutions, we growth services continue value-added we to D&S strong and and

we this I As have that's far everything of capital-heavy business Russia, at particularly demonstrated whole to the us, demonstrate demonstrated range in a it we macro, looking through and we as looking COVID, and go, around at have have not expenses adjust on will our levers continue to as at going beginning, said expenses. through we

a always for We're You've line that quarter -- something but bottom this positive not over top line keep year-over-year seen us in managing on basis. by is managing mind. and growth we quarter, that

here. financial our continue So will discipline

It's have reason no do change that. disciplined and to is to this. way working We well, that the

just David, our think long operating just said, an right, to the continue Michael to add, operations positive term. And deliver from I leverage is I'll as standpoint philosophy over

as on to disciplined an done drive that we'll appropriate, eye growth, to going a and we've long-term short, medium what's on and obviously And line prudently. of kind will We top manner keep on on, will do continue expenses as historically. the in invest moderate we and

want reiterate what just I Michael So said exactly there. to

to Bryan Deutsche next move Keane at We'll Bank.

more just the about it's but to that. some of comps, portfolios NatWest an surprised Sachin, people anniversary that it. have and ask chunkier the of might on just wanted timing anniversary Obviously,

on So and come just timing others, or or when out thinking any Citizens they others about the on there? Webster

Bryan. Sure,

on portfolio So for on XXXX. Citizens, transition the is track

of that, transition announced, just take Santander period already place You about, will XXXX time are also of about. environment. a over excited over period we should will will place time. I we and And expect which a a the right? in that super as take kind portfolio of begin spoke flip-to-switch to Webster, opposed has NatWest, done

started. And one, will kind debit XX of an extended of out cards. I'd it's over of It's it conversion kind a there, of about is other talked has combination Bank, time. happen point Again, which credit, period The scenario. flip-to-switch and conversion we Deutsche of had That not million actually, a right?

happen is one UniCredit, And multiple something I'd which mention around which over will last years. the is

So this and is XXXX, not in -- I mean work I a years. way say mean its start will this over multiple through years, I few literally you'll

least in Obviously, are the a portfolios, there we all but bunch ones. win So at of can other with time, are which ones. chunky you share that's the what I bigger the of terms these

Our comes UBS. at next question from Tim Chiodo

around the to just I incentives. wanted as rebates an this some mechanics take and revisit opportunity to of

that could a just some more cumulative on that that the of you portions more incentives recap are maybe and then based, If performance are fixed are the and the rebates of of a provide portions the and over course contract. portions volume

I would all. think be that appreciated by

Sure.

us net the is the our as first, we just deliver we're kind drive incentives rebates preference, I payment -- yield. to revenue drives which be to volume. do, to clear. drive win allows to as and services revenue which So is well what trying what to reason do to That's of want to stream from generate

of kind that's the So headline.

variable. incentives, deal-by-deal and a of rebates on basis. around question a right? It's combination typically and specific fixed depends It Your

vary coming they a how volume, fixed which life of through, the rolls deal. are are over amortized incentives If typically it's variable in the fixed on. and volume the the Variable incentive, incentive is are with the with timed nature. They

that's level. kind So the highest at of

with indexed more other are share domestic is less volumes, you and I towards The towards indexed incentives typically rebates cross-border. can piece

So I've mentioned those pieces on you are the to rebates incentives. and salient

Dan at Mizuho. to next go We'll Dolev

you on want I a my appreciate and mentioning first because is just you attack compliment I this Israel. Michael, give to to heart, close the terror

on it like Germany. And down. trend politically merchant whole European your you negative a comment question, of acquirer made as trended I more know, a competitor it. correct And really market call, big so my like their called out appreciate key the to think then a I in

much Can are specific stuff the like it was trends pretty you seems some resilient. that how comments actually make of pretty solid you're seeing? and Because that

would of comments quite there's bit in a the appreciate trend. confusion on We So the macro European market. some

Thanks, Dan.

German and of Consumer spending moderation close a Germany appreciate, -- here the pretty we're to keep I and remains might specifically, Sachin going have you're eye market in on Europe. the little talked a not little there. a very seeing bit couple U.K., not generally, in about, bit But steady As that. one, overall, that. and we're of seeing

you growth as all us strong our migrations, hand, debit other on is so Europe the the on and migrations know, see we in for on Maestro forth. what So

continues star, Europe bright to us. been So for has be a

reporting. relate quite others are don't we So what to

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

XXX, that in seeing you're if rebates whether XXX incentives growth mean, than it's or want parts you you're more or of revenues number keep it. first, and competitive Michael, anything just bit little because the changed, the just the that and are about, has talking into I I kind bit to Citizens incentives about that a guys talk follow little gross really. now the UniCredit winning a of the on dovetails But about -- up world, others rebates. But and you basis the of different points portfolios just on landscape faster

exciting we're just that And offsets is in gross part Maybe seeing now. a on of kind some growth more of for quarters it a row opportunities in few Sachin. revenue the

And so Or of it and a to business terms winning better get I some usual? rebates want more structural different and maybe sense that's to anything you're And bit business? maybe just on comments of just tied what incentives just that. seeing on in is as a

off start me Let here.

reiterate want I Sachin before. what So to said

through portfolios circle remarks. services and relevance about us earlier access that on gain trying our virtuous that important talked We market perspective in for from model win that to to I are to follow to transactions a my are drive

model is So That as of whole that's keep pursue. do we we services payments yield that all the idea. this. the revenue We in and net mind integrated

unique look you on out landscape, competitive we have like of between feel our lot and There's other competition, on digital one services our payments, We at hand. when Now solutions players a a on hand the the proposition the competitive. landscape. we payments truly and is

UniCredit. think you when So about

our relationships in track their with agenda. Well, before record at were looking proven They expanded to So and our they they our UniCredit engagement sustainability like the supporting us? why did come customers.

of of clearly and example, something services that always There's open mattered similar agenda of kind for I it again, Citizens, on and mix recall sticks portfolio was it conversation banking, similar On yet out. the a sustainability is one Webster, was that the yet a a Citizens, kind that across mix. on again.

equation that it's for see particularly can So give do range work to deals not that really And with is weigh We want to nothing make of growth mix. disciplined always this us we portfolios there's very a the and a we new manner. whole volume win. off here. incentives that There the a we in

disciplined on over But So anything And I don't the here. we're Sachin see a out about of to that. ordinary more I little color give want very to that. to hand us

Sure.

I So kind Michael landscape. Darrin, think competitive covered the of

revenue is impacting around the reality side. -- the right? clip I divergence, the fact rebates think on in incentives divergence actually question business, portfolios are gross growth specific and but that at your revenues upfront, growth in to the not a right, investing the faster growing The you're net and

of see conversion you right, fixed was talk standpoint. That we fixed volume doing to and moment multiple the from goes -- we incentives, a years. Because to variable the question incentives right at you're get start speed asked, volumes about live, like start Going about and mean the talk, which happens right the We come doesn't the you live. deal earlier when to away a the happening goes on combination conversions when back talk if amortize the impact right? revenue over away, associated full a deal

deals. should win recognizing So we're we full the the fixed on that when and technicality when between come works. impact that's exists more the and around line there would a volume that is those we this as how ramp, of of incentives expect which math But incentives lag on the

would to still -- the the of a of remains, you're the which to you're bottom trends, not the benefit be the cash we not flow PC, our certain line forms not higher not rather because of in in getting electronic the yield than you're you're be which out services the secular the to flow, to shift deliver got able there. ability certainly which we payment company and is getting I getting flow of benefit payment revenue levels not on the from be moving are for drive disciplined basis in think net

kind from here. that's of chosen the to So a competitive that we've broad take philosophy standpoint

move we'll at Ashwin Next, Citi. to Shirvaikar

use to economic So tend I And I by speak seeing is model the not live piloting. product? could more Can want maybe you to mean, use given It's you're you to a JPMorgan. Bank. you broadly the with products talk ACH about Verizon Pay to in speak that the banking for that momentum this maybe [indiscernible]? Mastercard traditional similar rails, and

Right.

a is specifically, to banking. this us These open and is ACH like on would a to and how we place to value we a that -- are of not things or bill flow So space. an take paying of This combination are flows. might doctor what pay trying addressing in is of insufficient do account. Very new is happen funds bring because add flow onto that for this plugging sitting the by somebody value

balance call. there is API indicator. in called success the our clear, putting it it per-click the a fee That the account. to the banking is It's open on a connection payment to We're make is product. related And

pay problem wasn't there is of part to anybody it. that the to where model. So willing payments not the is That bringing to for solved and be industry value a particular a

find corners value I real starting think to bring. can whether we these it's that finding -- we're

as flows. unique real-time together, this are So combination digital said, in banking. we expansion. TAM and in services for are payments, in open This is we new of our identity, bring And we where is and we're us,

us. this piloting do a about to point of player here be make solution And is comes we'll the the to All this to momentum, And JPMorgan to work. is for us it. needed like why this now Verizon,

have market, for had then point put done be would that and on rolled is built is And come together, momentum, to into an was that about but we'll now little be talk we it a and to out important back but the it early live. solution that as So us. It that.

Cantwell to Research. at Seaport go We'll next Jeff

about ask We specifically. in in update growth can I switched the to volume business X%. want is U.S., October, your see

developing the year, that's Because see we've did a X% holiday consumer bps this versus more could talk season year? some things So last considered. pretty this about versus you all can XXX how good, lower which that you But spend seen sounds increase quarter. little estimates the X% you by

spend resilience this quarter. You in consumer highlighted

temperature might on to your [indiscernible], take the U.S. entire in So I the but how just specifically wanted quarter

Jeff.

in the specifically, social this numbers day the to last right, related payments U.S., the my on timing primarily seeing XX So in security of remarks, I year. year said between is, it's you're and prepared like what

X you're what that nature X% in in really weeks of at that's shows QX, which growth October. the in X% of first So the seeing now

from other So there's trend we're standpoint, of of shift nature a than X underlying there's first not much really, that, in seeing in the an in October. the the U.S. weeks

line very of be On which your I I using their lows. one remains what When base paychecks, they at resilient. the meeting are consumer getting hopefully levels mean record spending their needs. where question our around the with which how reality we people see are QX have up, shaping is they're hopefully it's to scenario actually towards shared, much all-time case in jobs, is unemployment continues

strength we're around our kind out going strong. about resilience this came morning You saying case generally scenario into think consumer this saw QX. it of and also GDP came and is assuming what out pretty as I base

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

Dolev's just valuation to the And question banks valuation of you this earlier. of and marketplace chain. the core thoughts the your distribution kind TAM dislocation the flow the and up of about value I on your and between basically, overall updated Can to transactions of that ask wanted acquirers in Dan your follow you. penetration sort on sort health give us channels, of

the is wrong point? of changes channels In the this distribution at heritage out? there kind on seeing seeing are Or both are stability? words, look other sides, are getting seeing market you calling at Or worth you you that you When industry upheaval? the are out

Ramsey. Right.

So let that. me start off on

of theme segments years, our over products also how evolved at look has diversification applies and the whole you here. if across the distribution So

on areas is going Stripe. that So a of talked like That of a all merchant our groups about contactless, technologies scaling these in. acceptance. partners into I range things. been work like There's we're of our distribution, number part whole kind things new doing Tap on whole of we haven't with Phone, that,

our over traditional Then acquirers. acquirers, and you We BXB, talked the you of other into more acquirers, in SAP, have we range Oracle of world whole -- go-to-market. about talked of parts a our go are There's about which partners.

highly the So across board, it's regionally It's diversified. diversified. highly

But can't earlier on in not So we what we're talk highly we're seeing in just it people's these blips around really have and seeing numbers other a here the there, Europe, model. business. diversified question our because about I

specific flow focus somebody of partner that has whatever us. So for sector necessarily doesn't ours, a through is

the it but or ecosystem. market So make not, the know got everybody drive I to with digital we if overall the we not don't wrong Oracle, we're sure partner

Next, we'll at go to Bob Blair. Napoli William

as a the around also, Banking banking, Mastercard commentary a with done partnering a open of of lot up and follow MoneyXX/XX, were We at they I on past, I in and wanted were Service and you've lot banking to are great than fintechs. the just mean, more and regulators I and active would the say this how reviewing remember talking about I open a in partners year, relationships. there those all job

how investments thoughts So the growing regulation regulation, or Banking your you about think for on outlook then just around open a the banking banking Service. your and any open as

Right.

of and use [indiscernible] data them. the open large, to better open for notion banking So to where people their in whole services own businesses and believe at propositions we continue towards and drive

hold So idea the idea gets the stands. and And hold. I think

looking and on thoughts the look regulation with you're look If the more some United you like. PSDX forth, putting out regulation CFPB here States at in could coming in looking so Europe how at at

you What For need? put ideas that safer? us, I understood this how of do the in make context it does

parties the trusted needs in It middle.

can for safe we you idea so full world consumers. saying, in be I of that regulators bilateral a parties that and use can in of life world. exchange financial coming really services. could where those a to We're for imagine a bunch data the bring way, would people of one bad want prohibit. my That's a be data to what not relationships better If

consumer, It to So data, well has we It we safe, put from when what good put our you that. the as that responsibility I a very largely we're company idea. role CFPB your out. data aligns it, the out, is at support and benefit it look with it. very control you principles our It's keep at

So for our interlocking stand circles trust.

open you to need work, trust. banking For

is where we're that I going. think

So we're engaging.

In are being when in about. fact, talked we're the oftentimes these things room

dialogue in we Now much privacy Europe, context could the on data look this of like. very were in how part

Last question, Audra.

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

wanted X had right the be Day X looks XXXX. flash years X-year high that it back Analyst teens ago. I period. guide of first CAGR the of Just like for years there a you to forecast the through to know a time at shared basically you'll through And revenue

that temperature get double-digit low really It the how with trying about in X-year exiting So your to normalized forward and COVID rearview in wanted of the mirror. I noise take the growth sense on you're guide. a XX% essentially thinking more like just just looks to we're top line going range

Jason. Yes,

just to It's to on will what when quite with delivered anything and year, world by I'm of And November The in second alluding the we've is Ukraine of standpoint suspension you meaningfully in from and of in is the orient has had we've thing outlook at the updating year-to-date, activities turned actually Investor shared year. X-year Day, then, quite invasion of like we what out very not QX. Russia actually kind Russia. in year it first changed to is think the want was everybody too happen this one XXXX. said, be point the here which I since a in time. our we're the strongly an we Again, look, So nice then you expectation

mind in have related to part terms really updated But fact as around So outlook. coming assuming keep of right Russia Russia, of we that, the I in that through. Obviously, time, mind. certainly don't that's that now. in We beyond thoughts our we're revenues point keep to nothing at are share to included something X-year what in have which

you, for joining . everyone, Thank today.

right. All

and for not everybody, this I today. is always you they're customers. in thank for people, the and easy Mastercard. Times leaning Thanks to the leaning moment again trust in do for this. So our the yet that in they're thank questions for are our and

all asked So in who thank We'll you from in you and the call, on X of at questions. you quarter listened Mastercard, who's Speak and to to Bye-bye. now. thank Thank you everybody to you.

you. Thank

concludes call. you that And conference today's for Thank your participation.

may You now disconnect.