Mastercard (MA) 31 Jan 242023 Q4 Earnings call transcript

Good morning. My name is Briana, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mastercard Inc. Q4 and Full Year 2023 Earnings Conference Call. [Operator Instructions] Mr. Investor may of your Head Corr, Relations, begin you conference. Devin

me and Brianna. quarter for With our Miebach, Chief Good Sachin you, Officer; thank Chief XXXX are Executive our morning, call. Financial fourth 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 could detail regarding set to like include everyone I as future for in of the Finally, future on forward-looking forth Mastercard's filings. will website summarized posted replay in our performance. and days. materially forward-looking earnings of are affect recent A release, our call would in performance be performance could statements. earnings release Information end this our that differ our the call will statements from today's these remind at XX that more factors Actual SEC

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

morning, Good Devin. everyone. you, Thank

consumer and the revenue special versus These a of income X strategy. and on headline. out operating as a basis, quarter Quarter closed strong XXXX by growth. were We currency-neutral driven excluding ago the execution earnings revenues another non-GAAP year Here's both healthy results XX% always. were spending with net XX%, our ongoing up and items, up of

designed a solve continued momentum powered Our both customers' diversified unique, deal quarter, products our needs. and services, broad range to by of this

headwinds. tailwinds Let's where see the and start macroeconomic front, both we on

key of the strong rising consumer wages. labor remain and with remains unemployment These drivers First, market spending. low

availability credit monitoring and delinquency rates. are we include risks Some

Second, central We're and moderate, of of outlook, we geopolitical markets. inflation. environment interest closely, prices fairly a we'll several goods while to are who finally, the in concern many remain actively banks normalize services managing growth balance, about remain inflation manage positive efforts but we And to remains and uncertainty elevated. the monitoring are business continues the tracking the On accordingly. rates

spend of X key secular flow areas: in market addressable transactions; penetrating that's both our and Economies one, our at fuel consists Two, of optimizing the natural remains healthy. cross-border we electronic spending growing, Looking the that and the Domestic backdrop, payments economies. to across share; and globally our the to flows further and control. growth our capture portfolios strong, which local the With on new a basis. this remains algorithm a up In trends priorities, our switch across three, and growth quarter performance. not in for growth fourth are as market volume strategic being quarter. growing new in in on payments, payments, four, algorithm growth our XX% currency customer shift accelerating focused remain And networks. and services five,

we are However, the rest. executing on

Building on the rate secular that, shift is the substantial. run for

worldwide. by millions new been user by This scaling In accelerating on sectors digital the and aided it tap are enhancing adoption new driving new commerce our cloud of experience acceptance added we for acceptance, phone XXXX, has and transactions We scaling growth cases. in capabilities. use and locations

store. experiences downloading payments now by merchants can in And and simply start are over technology the markets. promote accepting anywhere We are XX quick leveraging larger checkout app. an merchants Smaller to in live seamless

Contactless both accelerating pay capabilities. XXXX, from the expanded cash markets. France, U.K., Brazil away closed the other like who on supporting Apple, iPhone also and transactions contactless from our such several Australia, as through in transit partners and tap We're With provides consumers to across consumer secular to loop into use capture transit, an shift in they often contactless experience other that tap for spend fast, incremental opportunity when transit, transactions extend single creates like areas for low secure seamless behavior categories. And every and dollar ride. a with a

We've many as progress with great such and major New operating systems. broad-based made cities York, London open-loop

simplicity that's These only card. merchants security, like benefit of issuers transaction Pay, scale. the from us, customer for embedded, is secure runway and there of also and and for And biometrics. tokenization value consumers, systems advanced at as their and They operating to checkout we're that, create elevated significant only increase large And in technologies cities bring device, percentage in level However, less are every speed they true a solutions leaning abandon and stickiness. still not with or regardless open-loop likely customers Click transaction. that an benefit also given to a to of browser are but globally into offer password-free solutions small payment

X will Tokenization now payments over over approximately rates live across countries, channels, expanding which are biometric regions. across XX where supported driving merchants commerce pay we file across growth including [indiscernible] X reduces over platforms, capabilities, tokenization click-to-pay, channel we by by our to click in all European points fraud a markets year wave. in with this XXXX, enable We're all card their in implement approval and activate And transactions. partners. For devices, XX% smile XX they and to drove checkout. operate. payment we're percentage and on And a guest increases or

the Brazil, to us Financial This Mastercard and count accounter its winning that Pacific making After its we in also portfolio and the selected commitment signed the by across Corporation We're flip partner year, to last shared partnered solutions differentiated Citizens debit new and banks largest to now our They Webster now portfolios. both and started launching due on migrate our to which building growth driving deals open Italy debit our banking one consumer financial This well. with U.S. recent will will biometric debit third portfolios. and to and the inclusion. checkout Banca, payments, in virtual Asia in retaining have across as Bank, their U.S. we flows. with flip NEC card of And week, card BOK shared our successes region. converting have we to marks us Mastercard of the commercial exclusive fraud their bring BPER debit regulated assets,

including across We leadership We Card, renewed in Commonwealth exclusivity a portfolios. the our Bank we retain debit Shinhan partnership issuer consumer and Australia, credit of partnership in solidify with long-term with signed And our in consumer largest exclusive offerings will analytics. to Korea renewal their Canada, card spans and Financial, relationship commercial new executed of an and credit we This country. portfolios. the and services, President's long-term prepaid Choice expand the into data consumer

co-brands fintechs, partners. fintechs, is sector comes a We're and public MasterCard also When of choice. partner to winning it in

neobank In payment largest list. with CNBC of fact, Mastercard the Bank, Global in on fintechs the [indiscernible] top This serves in Fintech partnership the fintechs their over the renewed digital MasterCard. XX% of one U.K.

partnership disbursement for and space, with launch retailer's the federal exclusive Money public Synchrony government and card. co-brand U.S. wage debit an first the all we in partnering the co-branded and the to J.Crew sector, U.S. have [indiscernible] In we're state first Network with And programs. benefit digital in

States. California Development launch are with As in unemployment to the February, part Department our of thrilled Economic partnership, the largest program the we United in

keeping our helps growth. products differentiated continue of focus can see, discipline. and positive we turn, in always on by momentum This tailwind to further capture the deal powered you a drive are more our secular us services As financial also and services

to China. Looking

uniquely approval domestic received joint thrilled Believe experience exceptional in that our spend. formal car to has positioned consumers We venture payment to both will Chinese China single card cross-border be with using clearing. we a and for provide optimized are domestic bank commence that's an that

about long-term done medium- issuing fully footprint. work to opportunity, acceptance While build the out excited to we're still and as we the there's be

our grow we debit to international market. in we product do fintech first in Mastercard launched Bank bank selected and and partners that, their of ICBC the As Communications card. MasterCard launch presence with first continue World the November, to

account-to-account we make progress also cards, the to Beyond in continue space. meaningful

with the House, States. This operator Clearing position the strategic continues payments our a of United secure the the quarter, announced to in real-time network, RTP in we partnership which long-term

Now shifting gears.

in the including opportunity strategy remittances. disbursements commercial payments and execute capture and new We secular to continue against flows, to our large targeted

and solution. win spans This point commercial. in to card which commercial payable, sale accounts we virtual continue BXB of We our market-leading through target

Belgium. our renewed in Agoda. we United And States. X portfolio Mastercard alone, and the credit Booking.com FLEETCOR the we card the on agency space with largest will partnerships relationships front, to quarter with business of exciting X virtual in in issuers commercial Fortis flip their This and announced travel online JPMorgan BNP the commercial Paribas

grew Turning by disbursements remittances. XXXX, XX%. now to we transactions and In over

cases. use our scale to continue We

cross-border instant services UBS example, This customers cross-border has For their use them employees execute pay from helping cases, capability. enable our will abroad. to multiple integrated including payments

Alipay drive Payments, growth with a to partnered Underlying our We the them data. mentioned. cross-border China. wins rich payments payments too. growth new said networks reinforce each services also in and other. I services provide new we services networks establish differentiation, receiving times, it as countless noted and as many addition, brings of institution In in And payments helps incremental

insights customers, are and and deploy services Our need our fraud more by driving our built cycle customers, and algorithms data, penetration generates turn, continuing In more increased customers when and new customer incremental valuable across digitization into implemented more existing that The new of can for our extending services this and services continues. services. types, powerful data payments. transaction those components of tools and build insights the to turn networks even and new of on, growth drive

alerts how with we supplier This and Bank our past and management of of services program to year, detailed us. our use they Here support to each are with app. consulting, They top already cycle information Worldpay learn to relationship process. include Axis test life And their management. analytics receipts has with consumer have. is of these. are utilizing against their expanded resolution in end-to-end has expanded also fraud through relationship to executing eligible services examples provide the few clarity, will services bank solutions. India Citi directly digital America portfolio enablement their dispute a on U.S. purchase Bank and our has many us of deployed The streamline marketing cardholders

merchant about consumers with easily details, visibility number they and the disputes of reduce file. transactions purchase Now and increased can the validate

small technology digital orders. types, to on. open Meta to Mastercard to improve partner the our and [indiscernible] solution. Mastercard's utilizes And for services consumer new We're integrating out including payments e-commerce streamline help chose large also customer U.S. fraud. the will onboarding experience Furthermore, on reduce list as extending is businesses for online Europe roll identity and strategic a marketplace for Open solutions across across clarity marketplaces. and Banking Alibaba the use authentication banking technology our Square goes

and services AI. leverage the new develop doing are to we solutions, many with continue generative of also We which work

AI help more It to increase brings our for it drive experiences insights can easier Generative opportunity us makes internal also productivity. data. to better extract from customers, our

on Gen today that. working AI We use are many just to cases do

news, the in-store to conversational example, shopping recently tailored users For shopping into human experience collegially translate we generative recreates shopping consumers offer language announced a that recommendations. can AI tool news online,

tone. example content is assistance conversational draw the platform, will with Another scheduled real-time newly of delivered existing later on personalized leverage tool is pilot media which along global in year our will this The small provide The AI launch Small range Business challenges. owners to navigate formed Mastercard from help AI. a business to a coalition for business business a resources,

the customers to an ability adopt digital and This And including to finally, across using easily our capabilities. networks, expanded network. a is streamlines connectivity deploy outside our services customers access, MasterCard for AI, source single our can exciting services. development, or enhances the customers to we multiple provides which services and rails ability across identity which networks scale our and access, our point those Mastercard quickly these with of

to differentiated on growth. Sachin, So us. I strong growth delivered of our and it summary, over our In significant business on wrap with successfully capitalize strategy up. of will quarter revenue focused diversified capabilities, strategy in you. front algorithm, well that, our and us opportunity the and and year another position model We're we earnings to against executing

Michael. Thanks,

as expenses strong Turning income impact applicable, a was Net fourth as $X.XX, minimal nonrecurring now gains in for XX%, repurchases. was EPS to operating a including our an financial services performance and respectively, fourth X, operating our impact minimal And items acquisitions. which Net revenue Operating quarter growth growth contribution our of our where in equity the share and well by income $X.XX from losses and XX% on EPS reflecting Page the recognized includes on impact the up a value-added X%, basis, and excluding reflecting up from including XX%, acquisitions. both the income network which special investments. from continued tax payment and a shows solutions. currency-neutral XX%, increased was quarter. and benefit increased

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

basis, where Page a U.S., of increased let's for the in of with the related X, for continued the by with Sequentially, travel Worldwide metrics and on volume XX%. debit both the of the GDP impacted to and growth or local increased XX% a reflecting in you growth can NatWest Overall, volume turn local volume gross rate primarily the basis. In quarter currency of the portfolio increased of So X% debit U.K. of cross-border and credit growth fourth was see globally growth increased dollar year-over-year migration X%. by by XX% growth X% currency spending. XX% non-travel GDV debit cross-border credit on growth quarter. XX% U.S., Outside the strong operational lapping the

While sequentially versus recovery this year. due from QX, continue is cross-border tougher comps we this as last to to is travel the lap lower primarily

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

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

our increased also incentives. discussed X%, the Solutions, Value-added look strong basis. by Services and Turning scaling on in net Intelligence and domestic and to fraud primarily our growth and growth the and & security driven revenue and XX%, Network Cyber underlying transaction by growth growth solutions. authentication Solutions a volume rebates fourth our net revenue increased our driven and Payment the Slide drivers net includes for cross-border driven solutions revenues X primarily currency-neutral a into by quarter and & in of in our identity for continued

strong analytics slower was saw relative by growth This as addition, in services In other consulting marketing, well as we solutions. and tempered solutions. data in our loyalty growth our partially our

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

each ppt switched to GDV XX%. difference million assessments primarily at driven year. Domestic Looking volatility assessments up metric. is processing Transaction worldwide is difference were XX%, The is mix. favorable volumes while increased quickly Other network The XX%. to lower assessments primarily XX% X due quarter. cross-border grew while and were grew revenues ppt mix. $XXX were by Cross-border the up difference to [ ] increased X%, X due primarily XX%, transactions related FX this prior versus assessments the while

relate period franchise these to and reminder, other licensing, a period. and assessments from fees implementation As primarily may fluctuate to

on to Moving X. Page

currency-neutral minimal and of advertising increase primarily adjusted continued You increased Champions increased items, League to the the and like the and on basis, World total see campaigns, This X%, includes Rugby spending non-GAAP strategic execution sponsorships was Cup. UEFA our increased on can marketing due that on spending a excluding personnel which a from operating acquisitions. to initiatives special support expenses impact

as longer operating Turning that past will to of pandemic. are you given percentage the Page we X, no a see that providing are we XXXX well metrics

the and primarily MasterCard the from QX from the to tougher sequential Japan the to migration from Now to the let in QX the metric volume growth me routing The QX branded effects Starting X January. lapping the is primarily Mastercard. Mastercard was sequential Specific of weeks due with decline comps. the on QX portfolio and in NatWest to through decline all year-over-year. to comment the to quarter volume the fourth of of switch due switch U.S., first trends operating to

was weather Moving switched first of X volume by primarily the weeks January, across growth U.S. in to impacted country. the severe events the

in have Switch look fourth to volumes. to to U.S. follow we week severe to in portfolio. As migration lap the not the January, the of the year-over-year, saw Outside NatWest December. similar weather, specifically continue what we the same X% from switched similar of at switched U.S., did of which patterns we returned volume approximately impact the growth transactions

both recovery X Cross-border we of of primarily show present not card continues the and growth for by continues cross-border be at comps strength. Looking to travel travel. tougher ex cross-border January, first impacted as to QX the weeks travel lap

Turning to I now XXXX. our year to fiscal on wanted Page share XX. thoughts

start saying me our by Let remain business fundamentals strong.

are short, strong continue We new executing a grow growth supported strong wage In positive shift growth service our labor agreements, offerings. continues fairly be spending and spending and said, as cash continued through to Michael Consumer by Overall, remain and algorithm. the combination growth. card on healthy our our of and benefits realizing renewed market we consumer to from about we to strategy outlook. customer growth secular a from across the

dynamics. Our base being environment XXXX negatives events maintaining both consumer as case investment healthy said, we and ready our focus levels recent as well scenario spending are macro stand as while on strategic and monitoring to reflects spending and for manage we closely That geopolitical key appropriate, the our positives in priorities.

it to minimal XXXX, the excluding currency-neutral a year. for impact is exchange year a grow the at net have double-digit are Acquisitions forecasted of to for full As our to acquisitions. relates case and base on foreign high a basis, low revenues rate end the

by forecasted to a taxes to a and Brazil acquisitions legislation and Acquisitions of expenses, In growth we ppt an includes more rate XXXX. of this growth exchange have which note, basis, operating an to Of reduction minimal a new a This into in which operating expect year indirect tax terms impact this rate due items. currency-neutral of the of year. low are increase in to expense on at for in due foreign operating a results X offset special as full low the went approximately increase legislation, double-digit in end expense. X, income higher our expenses January than effect is taxes, excluding

net to growth excluding exchange have expected and foreign double-digit this Acquisitions be a at a the low for rate acquisitions. a to on the rate of QX to Now impact forecasted low turning basis, is currency-neutral quarter. are XXXX. revenue Year-over-year to growth end minimal

quarters our is QX growth first, highest Once earlier. talk to of operating ppt and expense volatility X other a to Brazil be of net this a in lower a continue higher end while From at special year is factors: to mind. other healthy acquisitions QX FX compared is cadence legislation X are at be quarters, operating excluding approximately QX to This of to X the to services items. increase quarter expect expense our to Acquisitions for to currency-neutral tax this the growth single-digit again, high that add grow headwind basis, versus growth And year. quarter. foreign to ppt first to we a ppt related year includes Let OpEx pace. X X I in and XXXX. mentioned we by to in standpoint, expected ago, a high to briefly forecasted items again, growth a due Other the related the be than expected value-added solutions to revenue through exchange keep and X second, the me currency-neutral primarily the revenues XXXX perspective, approximately of an on rate driven why be relative were expect primarily full tougher From comps. an the to to

we and debt which This from our on the income QX, $XX gains an expense million investments, and and excluded equity levels. approximately million losses $XX other our are expect excludes interest of given rates line, metrics. expense the On prevailing for non-GAAP to

all and related mentioned a expect XX% full reflects the I geographic the to to a XX% effective current year QX Brazil the This to that mix on business. of non-GAAP XX% basis, based tax tax our we on rate our approximately of Finally, benefit rate for earlier. tax legislation

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

may call open for the Thank now. you. questions you Briana,

just We'll for moment Q&A pause the a to Instructions] [Operator compile roster.

line the Harshita comes question of from first with Rawat Your Bernstein.

want volumes. about ask U.S. to card I

XX versus compare we've that So bit a the years, to has what weather you levels seen aside, in especially last if to the mid-single-digit X growth to decelerated PC.

a kind So about should in growth of simply normalized we transactions. a how think is card more there of U.S. volume number the runway, Or

metric as U.S. comment So should we can And the that's also also, on on a follow-up, watching? Reg you bonds. just impact II be

Sure, Harshita.

Let me questions. take those

On just II actually seen to Reg we kind the come seen of that any we growth end First, opportunity, Obviously the as haven't We there report but and amount any impact. what on question around of we think on continue U.S., a share Reg from on of here's II, through card the sort impact from from everybody from year it, progresses, as we've in a about the believe close remains with keep day, of growth, let standpoint. volume material standpoint, eye volume secular material far way will as a the at it your U.S. the both to look a standpoint transaction far data. that decent nothing a right? me so

impact are that, place numbers specifically, taking is going evolving, and place got greater carded think But noncarded what of is place, PCE inflation opportunity the in business with kind it know, the it to models creates you the PCE what's relative transaction In volume in following, the of the more taking U.S. We've taking Or addition of as behaviors which is a i.e., and to where from in tell of are volumes? is spend. standpoint. it's and in on is release changing, what in that spending about to I'd categories a you

inflation non-carded were of do the which a secular a standpoint. you the a think amount as analysis, about across the at least we we is the and if a to way gives in comfort this about it PCE, evenly remains high carded from still of us normalized degree look U.S. at take there's both growth on we we as opportunity, basis, that fairly PCE, do place think So decent analysis,

on we're continues what opportunity quarter-over-quarter the health We've debit winning to active. secular overall heard about U.S. volumes by we're had perform We're a from U.S. actually good of mean consumer an to the from addition share. and very our fact win standpoint, volumes this wins the kind of the as well which, is that doing terms in you I know, in in environment you've to space, new customers. growing challenged Now the

tell So a business. shift standpoint, U.S. to from a as to payment is growth I'm the our share. the driven one going about well talking is secular of by to you important it continues overall, the I volume market, card be component, decent contributor be the the as very growth side which PCE on And again, what

from Next FT with Partners. question comes Craig Maurer

that One, when was whether could regulations with I questions. need characterize whatever in you've approval. And are considering a X strong So changed, 'XX ago. was wondering you launch to secondly, X China to of X degree year warm you're contributing very able knowing wins position of within been what it your there there conversations business fiscal to with months over if regarding in conversions China, to guidance? and new the issuers X, relationships keep those issuers years, you years

Right.

the and China Let you come back question take the to me raised. topic that we first conversion

So China. thrilled to we're needless about say,

a well positioned we're So a this it. massive we economy, and serve -- feel is to it's

travel. Chinese that at not That's solution another the of my put we're proposition. the to a that do have works beginning, well when end-to-end that I they solution has acceptance side much we the uniquely of said. to the seamless As works that kind in -- with hand so unique. a and said out you in busy domestically remarks But forth better competitor X solution to rightly as well rolling as There's a with as banks into feel the now acquirers, positioned right acceptance as issuing consumers basis, an well. On issuers network for China partners we're discuss on the our months, on provide that side as we with

with Now and mentioned been the with I China launching new strong cross-border for ICBC And -- we we're just same very on exact Bank products. side. banks. of just years, have the Communications, relationships in those too, And are we're active

gives So with forward the us fact are we today moving positioned at here edge banks on that well speed. the an

first the for said, I live to full As the is conversion opportunity to have the out over piece, for this within term. -- the this that and Citizens X the conversion medium mean starting. everywhere, live going get earlier time U.S., we mentioned long for and doesn't just Webster I we we're also to in months And know, to saw on build

Some the of talked Europe conversions for forth. in already have big NatWest and lapping about completed. Sachin so the

if Sachin, So there's else? anything

I said, XXXX thoughts about would as you our in do just it add, over a portfolios. staggered to not of of conversion terms decent globe. a Michael and and of XXXX, would come right? the I I'd wins relates had all how most period think they we've in best of imagine, across are ones is time. for which estimate at one take They're we time. mean our like we as factor What you what wins on amount tell the will We episodic the place for sizable flips, as part, the the

and Citizens course in of Webster, years. over some multiple over these 'XX UniCredit, example, So Bank, for will of the play out instances, Deutsche all

conversions kind in our thoughts our factor best we together for on the we So year. those as estimates put of

Our KBW. comes next question Sanjay from with Sakhrani

more Sachin, you you help then little I us but thank the sort with on value-added a neutral I maybe just for to of was just payments quarter. But for the for you expectations year the wondering, versus bit could the first cadence EPS? Just elaborate OpEx, to it service that, could adds that Brazil is taxes? to specific tax lower It guess, And too. legislation. revenues? with

and to your second come question. the I'll one Let back Brazil me just first, take

increase a from an expenses rate So in it's it's operating and increases Brazil there. than we've is are on tax rate a tax which the -- standpoint. the because piece, our in you our offset it given indirect in thoughts taxes, more That

it EPS relates and to the the it expectations. how value-added and we up question high On we're actually I'd services first services an say, offset, payments on revenue level, tax payment value-added because address line place of Look, ends standpoint, there. from what being around accretive overall at and slightly solutions your specific So than more the and versus value-added is guidance revenue. services taking network as here's not giving But let piece. me solutions the solutions see which

the our see solutions and everything we're solutions, in XXXX. those analytics around thoughts our a continue and year. and growth into We've in building of We data insights good security to good all year had for around fraud our

payments, of I happen a function to and the Likewise, outlook good well right? what will as XXXX. for volume value-services rebates we and impacts as continue in think be into going growth standpoint what We share rate of from carded will impacts mean payments, a for it's from see as solutions and imagine, incentives. wins a market can you the

So and factored would you that is we faster to of broadly do tell on is I network expect that than pace kind a value-added we continue solutions grow of services in. What all side. the payment to at

Tien-Tsin from with comes question Huang JPMorgan. next Our

thinking Just about the outlook.

to to X be I different there? world. and Do outlook in anything the in XXXX trends Any you Harshita think . out 'XX the U.S. the of here regions? growth the between -- observed well, ask call between it for as rest expect to just

question me on terms opportunity the outside we there's how we've is in the that, secular any mean, in ask the But year-over-year And of come I the trajectory of expect bad that again, basis, on in the greater results suddenly would there. is U.S. and volume the a continue you meaningful opportunity broadly a U.S. a story the is opportunity a the U.S., shift of shift news between you, in news, don't in is from being good secular successful bad 'XX I Yes, news tell Tien-Tsin, standpoint, means the would the quite opportunity honestly, and if remaining seeing news secular be believe, you a what side And I in the been opportunity to through. realized the the the the standpoint I good from driving U.S. world speaking, between changing U.S. 'XX. secular to There's you're is rest which tell lower right? of than

Markets. Capital RBC with Perlin Daniel from comes question next Our

you geopolitical know, elections call a around globe. out different there's of or happening XX know couple and I heard concerns, don't the I some, that XX times I

my you've you for able markets? behavior, which concerns, because to are there election trends like historically, more there be those pockets could getting you you what the is a nonelection So secular about think of in and otherwise you potential into guys Or been year. would regions of down slows years where of maybe certain as those kind to problematic would feel have question nationalistic managing enjoy it be that that adoption that seen you some are of

just trying just maybe year. those some geopolitically negatives could and So handicap of this positives to be what

fiscal Dan, the you than governments. policy But monitoring different no just touched for. and reactions is us this on some monetary things watch central out key of to by banks

sentiment, affect affect things all potentially are those So consumer consumer that spending.

to have stay just we'll So that close is. what to

X last shortages to making and Certainly, date. responsibly of challenges, Our our terms is discipline scenario no in things quickly. and around responsibility up these do we planning managing to the have is financial some adapted playbook years solid sure of such had our

specifically you the happen that More elections mentioned, to regularly. points

and conflicts, on downstream they again, we'll there the on and energy in around, economy. various that. that broader been Yet XXXX keeping watch something and Institute dramatically So a new they've our is geopolitical prices Economics impact keep into going. is the is what nothing is And focus

all one specific. But level. it high look very relatively take days, just why kept That's time. has to we these the nothing a left and So right

Peller Your Wolfe from next question Darrin with comes Research.

back accelerate services solutions -- sounded the revisit of from confident to It's you business. you a XX%. in good terms XX% minute the know sustain relative value-add for should that just could Maybe I strong see growth to that to going

drivers overall, just that what items that gives confidence and so you the the the rank of you what's -- in sort just sustains really top of . and And category? what's the revisit that maybe -- if

let on that. kick off So me

that. touched value-added solutions, the and services & The If services, you historically solutions. things on like our we that you in split Sachin here, out Intelligence and earlier, our payment solutions, have other real-time example, have focused our thing analytics here Cyber fraud space is assets the this on which data and for insights

which cycle talks be on, you as about data, so secular if flywheel how which analytics of shift trend, I powerful more kind related is payments to more need closely drive payments secular inside. kept that think about the throughout pretty the that more earlier underlying talked is more safe, to about, So data That well. the

here. you baseline So then of the the of is And more specific growth that look at some here. growth drivers

For solution. also we our example, in personalization data that group, analytics, in have

the the is drive coming and time that merchant That a solution to provides It's the side. at trying on engage that the banking offer everybody So right is point. at through here side through to in on clutter. right consumers the this channel with right their

we company ago. that #X have big We is drivers one acquired of the the X growth That expect some personalization we there. years

the to have up Cyber nobody Security at making hand solutions, trade-offs to identity. and around rates. a passwords, between there's look digital end comes digital driving down the it likes An ensure we effectively, you're on when in you and solution security authentication that where and the today, find that abandonment our You other technology, same low situation go with payments ways time, At simplicity to fraud.

So earlier, them examples. biometric is I talked of those about one solutions,

continue strategic to So of in We we we we're real-time couple across that big big Other that's the to DNS, our which volumes demand. position quarters about that growth reference are, have a with and TCH where data ago, we we scale driving show said C&I the are solutions, a we we markets and where on and X insights, the these the strong in and partnership the talked cyber-analytics this there. portfolios, front. payments, see and

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Kennedy Chris comes question Blair. William next from with Our

identity you broader strategy just on . your it, and business? give talked digital And can you what your your it that about can solutions update impact ultimately how a is and for

Right.

do gave you on So I that. headlines that. let the just me

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to We're a use We banking. this are difference. makes really this combining with cases find trying open where

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next Your from Paul comes Capital. question Golding with Macquarie

this a Michael. solution since and in driver to that volume portfolio more had mentioned driver the now you've or Do evolving just service you Finicity guess touch value-added see it, I a so on it as you And a for the in the period. we some regional some location perspective, then in the get volumes a given wanted as I if to growth could follow-on, just on more acceptance from color international time? strength see

Right.

set that building in top have services. to in cases X through our banking set now, can open where see and data what Australia. corresponding is use banking. you people opening, this better out getting gave. Finicity with number big everything we the we that could use the IR is rise use the really with for So of We're Small Essentially, and vision also of access the the we're their And In Europe. end, But already focused. open data connectivity the are acquisition the capabilities footprint account OpenData, can Those here for example a footprint. a businesses I does of rising starting about then top there's regions what's do things. to at that where

open small Banking banking for in for and that payments, -- I for for moment Open come lending to a moment, a business particular. in

States interesting, we driver? X particularly point, that to volume is what of the pay we facilitate example, the in a because relevant do categories payments, connectivity [ It to as we're here, in ] Jas by for are have is payments, right partnership non-carded we with really kind could now cases the bank it's trying use feel solution bank. have those your the for in United So that are this

somewhat different banking growth whole that. on differentiators. is So approach idea. are This U.K. experience to a of volume capabilities our And out with open Pave where the That's builds see here the in we our true the the that Bank significant U.S. hope in

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me. of it little talked reminding the second growth a that about just question. I That part actually the comes is answer team comparison. was My we gave mean regionally. regional and to Sachin earlier bit payments growth the a Acceptance where

a So when opportunity. United States, beyond the you see we growth think tremendous

for Here would in significant the broader even use world. There's of more and the in and to example. new rest States, you say Take opportunities landscape generally the the United and geographic cases it's across acceptance grow. it's verticals, Japan, more payments

government stated that country Japan. is has cashless a the a put policy what it's to a drive out So

about upside there. tremendous on, we're where China So footprint. heavily earlier acceptance talked We investing in

we're busy use the little very side, but and So on going in verticals. cases say leaning international for more it's a U.S., I would the here

Your with next Evercore. question Togut comes David from

some terms opportunity. growth differentiated share be vast of you frame into growth for payment largest for maybe your of to Germany Could and volume of continues driver a growth your Mastercard. and insights runway your Europe Italy example, growth countries, and for that in in

off start with that me question. Let

on combination just said. is source also differentiated share had of you what We've underline to we you us. Countries run example. It driven secular accelerated the growth to like to usage, back the one want in that And it's it's do by I COVID. a end Europe. that driving great of go for contactless give a just ways but the of really all, growth, we of a after find saw First shift Germany up

Europe overall, for been firing all So us. cylinders on has

we And applies out for I in laid the come payments, back much that Europe. algorithm growth which to very

do, but also had question will be will for volume will on European So to and Conversions share gain, to we've profitable had into the driving we turn that continue take gains busy us. We a already very share do that. they that what we earlier. economies focus on but that

there one. that's number So is driver going there into And then opportunity well. Europe, as flows new in

assets in we look through you pay in at look going will lot stay clearly, [indiscernible] forth, that's into there's X in systems, If payment and we ahead Europe, of in on as and forth. that a the on Nordics so top Europe that. alternative everything bill Differentiated movement so

footprint So drivers we have Europe. a to participate broad the in in all pretty

time. been Services, strong Europe has of the long in for services terms In a

of on in look significant big contribution consulting at all a about, for been time. longest And wins, has we've have talked winner business services. us some if the you that these advisers our of a for Europe they Our

those In would win fact, reasons oftentimes, the of deals. are they that we one I say,

So different nothing dramatically there.

]. has I and up in all sinners on we're [ digitization firing trend on secular caught think Europe

have We fully we're -- invested Europe. in

European do As our in and to which partner and and Europe the journey. is deeply in on one so Europe is in with to of Brussels invested efforts, a you forth, nation -- know, for we're their important us engaging we with states the big are be topics sovereignty, very in

Europe, solutions help He we've It's us for no and services different it's the of those vice payment And we that's then right? not able services, on creates actually data, today occasions the opportunities Sachin. mentioned and right? to way that more Europe. the actually payments. payment of on just in for additional on seeing unique enables payment side. that to of payment fact For It's we're prominent the run the volume wins as growth. actually growth it But the get globally. you that which are service on increasingly true benefit deliver additional and business cycle we when for we all get in Europe flow And all the just couple you David, I'll data optimize said, value-added drives the existing were what effectively. the do Michael service work drive value-add new benefit a stripes again side, Yes. share becoming emphasize to had versa, in quite portfolios, the solutions you

Our next question with comes Autonomous from Ken Kenneth Research. Suchoski

on the now, time I declined the to domestic expecting quarter. has yields for about assessment revenue That came some some and ask this a than lighter bit just wanted were yield line. year-over-year they in little

between impacting I spread the think revenue you volume mix yields growth. the and or highlighted

changes that just specific are we more where you domestic actually yields the to year-over-year? around mix? a could could get place seeing detail in provide And terms you're So expanding some of

every look I in payment see on Europe what divided year of effectively you is when the GDB I'll what in you're XXXX, the mean, because by fourth seeing Look, of revenue best strongest yields. comment the quarter network at yields. being primarily terms decline you net sequential driven by in cross-border performance. And remember, quarter to And years, our come to that that's third our have fact of tends all we the tend cross-border in with our the

bang the And of on for for side you so $X GDV on the you've getting cross-border volume than the side. more you're domestic buck are is what got when

decline. that So that's causing for what's sequential

a years pattern, prior well. as as existed that which see in has You'll

accretion Broadly that, overall revenue unusual that, flow. goes ourselves to on the you on causes in you services you got revenue which to We've give revenue, network otherwise, be the got call payment net our for only for out day, overall right reminder asked deliver yield question tell at to have The to the net can, to network, is net additional we it net but net the back we've revenue I'll end generate overall payment optimize to one is which nothing the opportunity before yield. to Because the speaking, there's the to company. would in of David payment I not allow business run revenue those payments our again, yield. yield,

to our So you payment at growth yield overall well specific just revenue, net your network wanted that from looking sure but make payment company. know revenue question we're revenue I as standpoint, to network mindset to know as I is the net net

do algorithm, on about mind. earlier revenue our with we are I payment the it said say, discipline. great financial and with that when should I in And focus revenues putting talking services I mind we in was

net We win, don't as said. we're it up win to to about deals every Sachin and to want disciplined to it. revenue we add to telling just yes, So yield, deal. overall But needs want the pretty we want I'm the win you,

comes question Jeffrey next with from Your Truist Andrew Securities.

banking. initiatives. wanted I driver bank folded right? a like [indiscernible] I'm Or little bit on see think of I important is if this about sort to can if its your we opportunities. it a for example, distinction an as by stand-alone see open to own in there's be into overall comments Brazil, emergence go-forward sort in, more Michael, just at especially Can dig on networks this growth pay to be draw as we the of wanted growth of your

Right.

banking of interest go for question after. questions, we of particular important enables -- there. us an previous both wouldn't connectivity and cases able think otherwise on at after is There to open us banking and use So point to question a hit the It be enables the intersection I go the that payments. open your point

you an is So in exactly connectivity banking with you. what profitable is what that combination a your here's when debit is, balance, additional for which data and that is the to combine customer rail a there's make then you can a available customer, RTP open that basically, Pay-by-Bank proposition Chase underlying tells

look So Fed experience. around systems. solution. Pix, of now, If of payment we in there's the where real-time bunch world. kind India, UPI good the that's are a rails broadly we And a have those

In we We operate have them some connectivity. ourselves.

propositions the for together bring will the our what exactly that one is we customers. as that looking and of So assets at we're

the our to economy speaking, other more but in basically solutions, Now look is, in tide so card-based solutions, our you kind at thing lifts more we overall economy that here's participants being pulling in public sector in digital keep a everybody's headline. when doing when the in can Pix, UPI, good inclusion at you one of digital with come mind financial to payment broadly they're a real-time look create our the solutions, boats, extending job

consider. to something that's So

provide points Somewhere grow carefully that in that customers. solutions will are best to between, and these there as we the manage compete they we very to in and when solution and our consumers provide to our systems alternatives

ease use, of all lot of On the don't on side, a these systems of functionalities. these have fraud

are So those that on. focus we things

So these competition, a we're the We just customers. type asked choice best providing actually of for focused use bit we of rails for opportunity you that on see the to about. open mind banking quite don't our but us the solution to

digitally. growth overall So interesting economic space, it the and drives

Jefferies. Trevor from comes question with Williams next Your

I you relative to volume you trends, vault, could algorithm growth currency you're and know Sachin, put on revenue transaction on would great. just help I help the finer growth assuming and was what within dynamics hoping of pricing. but some those cadence a and VAS any rebates outlook. on year the mentioned the incentives, full be the Any point for with January

reflecting of that a our remains kind spending case base base from forecast what standpoint. consumer what overall and assume I'm you kind look, the the kind And So a with healthy, driver of standpoint. is. going relates to an case current volumes We've as to of it not continues the in we're to shared From we're assuming spending and dynamics. transaction you specific give

to of I do question. on we we been do launching, based in which new that, globe. we're past. different continue customers. value will think the kind sense customers. to price we to new continue And for Contra to the on the we're On to value it price We always our no specifically it's we'll And that. than things across it's there's that delivering the as deliver have wherever your question we our pricing, makes And

to that volume volume I note think that. day, the network. Contra enabling customers that, We important Contra incentives the we is to thing at the to And is we're paying more growth, onto and bring our end of as rebates the pay our -- do on right? for

what of you, our expect first you Contra tell going how the a it's deals of a see full function payment pipeline year percentage network basis, roughly Obviously, the quarter, be of outlook what know the as play out, in we from entirely our to would pipeline assessments saw is what we we be is. to I standpoint. similar on a QX to For XXXX. a

that to will of come Some fruition.

Some of will that in and things, other move be will There'll not. out. which

And a saw network so you the my to I'm I payment what we what can to assessments kind that which year expect for give QX Contra QX, we of is thoughts, of not with as XXXX. be will going outlook are on of of roughly you in kind similar percentage full share Contra,

Brianna. X more, We just for time have

with Our last Citi. question comes from Ashwin Shirvaikar

some from Obviously, And capabilities TCH have what then My question My and so use perspective? global have of exciting question is up the comments did are cases the what's you some there TCH, the far. a the saw use the real-time countries? here. appreciate than what cases, is that a you if on conversion that runway is, cases drives on payments. you set of coming I it And are but incremental renewal. all it? Michael, comments rather it more see Is use

Right.

and the invested to took VocaLink relationship in note. we real-time the Clearinghouse So really the clearinghouse with Back off. in here time. the when of the payments with a 'XX, strategic in all, XXXX, partner This at first is was when U.S. VocaLink important is

our So out services position real-time system. in software we top speaks and renewal GDP to and more and of statement, operate a either here real-time XX a strategic the XX payments. payment it providing are countries, is the to strong big

to than that much carrying So for to the ones that, volume much mentioned that. Pay-by-Bank but data B It's to from to simple a on a something then and Chase turns these payment us coming payment. to right an than A indicates, That's where is obviously name global access that real. will way. more as of rails that business. set hand money is that's go. in the a value-add driven of various a is I cases that we're including example, we're here it's find solutions, but back to And gets a there that it's -- to interesting also applications somewhat always our play It's additional it's interest different come one lot it's in It on rather use That more out new a as specifically itself. talking top is of and players, this space. more geographic going about

that have all lands. where we'll So see to

We're that in it's keep that volumes and which most not where that in, it's into critical applications the many more markets very is close scaling focus we're where But mind, in is. we the staying driving markets why we're the now. markets and to So it's here right we're is going.

last your to comment? . Want on make

your speak thank unusual at listening all note for to and this We'll to Mastercard is today. everybody Thank you you this thank how you, Mastercard. one to for to it we in me, for I as it's time. and had work. a to also see always, Certainly, we Well, Wednesday you bye-bye. you quarter. quarter. a next for in and this Thank think Wednesday. support me, you on the Speak We'll don't ever Sachin making before. that first mix is to up

everyone. Thanks,

call. conference concludes This today's

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