Mastercard (MA) 1 May 242024 Q1 Earnings call transcript

Good morning. My name is Lara, and I will be your conference operator today. At this time, I would like to welcome everyone to the Mastercard Inc. Q1 2024 Earnings Conference Call. [Operator Instructions] Thank you. Mr. Investor may of your Head Corr, Relations, begin you conference. Devin

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

then Sachin, for operator queue session. Q&A for announce for that queue opportunity open your only will the comments Following the to Michael questions. the There 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

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

Good Devin. morning, you, Thank everyone.

versus ago driving on currency secure by a Our growth people a and net by seamless new cross-border pay. were adjusted growth choose why way to of We we're Mastercard, These scaling in revenues healthy every this basis. up net and XX% volume momentum had strong as region, X innovative and powered That's a our Quarter a were on and local technologies. revenue earnings up year-over-year deal growth. wins continued year quarter simple, consumer basis. spending and currency-neutral strong XX% again once non-GAAP results we XX% delivered income

outlook With these currency-neutral net strong items. results, revenue and we are basis, XXXX expense and a reiterating operating excluding acquisitions special full for both year our on

macroeconomic mixed. the picture front, On the remains

First, of This spending. solid consumer and remain the supportive is markets strong in wage globe. healthy across countries labor growth

inflation with normalization countries. third, And uncertainty in United Persistent a moderating in has here. Second, monetary cuts States remains been policy towards in delay of path several inflation rate most countries. could the geopolitical

In to networks. customers. the health. consumer are the value on our remain addition are our balance, we and teams balance growth backdrop, partners of focused growth about prices we areas, economic With sheet dollar more flows to to recent priorities and services organizational positive on faster we closely to our With these of these to outlook. strategic monitoring are consumer strength the tailwinds and commodity and headwinds deliver structure new will The new on priorities: help payments, execute and realignment our this

to our the payments, algorithm our person growth our I component of across payments, customer will In has payments, for new the to flows, optimizing volume portfolios. share market further of capture to the growth algorithm growing few accelerating penetrating with address shift both in a important of secular the growth a to been natural shift Starting and those. of flow very merchant secular opportunity this transactions. digital electronic and being economies, consists

long the term. over continue will this confident are We

we for while globally our competitive experience to continue Our user our enhancing technologies. reach is expand a advantage, acceptance transactions the through and footprint digital key

payments. We're the phone in to way a X instrumental of cap prior Contactless XXX card been from displacing in merchants cost-effective and live simply And contactless cash. capabilities of up sizes purchase represents our transactions, than markets. now technology has more in pandemic. all now X on in-person secure X for to every Our fast accept switch over are digital X

become consumers a the In payment volume and on more accelerate credentials experience fintechs, X.X differentiator while out payments higher simpler and from through of like Brazil are expand key in million. over Apple to the there our Walk. the a a digital, for pay. is And and fraud, and elevated the new secure revenue data. SumUp an an services or Brazil, supporting active ways associated effect. rates which more portfolio performance markets of shared client's more Tokens continues improves and is our merchant. more Lower Stone, approval brings of experience. tap-to-pay increasing more a This NewBank, creates between and MasterCard to bank better This to to payments the flywheel and in create wallet rolled online deliver network, alone, the way -- solution tokens, monetization iPhone streamlined consumer to demand transactions a security Whether and by customers. provider, was bring payment merchants number turn drives level also Cloud devices where a now of recently the

checkout, only are go tokenized Merchants Further engagement. X In transactions embracing room in the lies by opportunity approximately tokenized missed with XX% drive traditionally year-over-year today. quarter and X, are transactions the underpenetrated grew on verticals in as X to more reduce Card. over solutions to MasterCard payments simplify network

our health and providers aggregators with of vertical and one focused where enable to payments. needs that are solutions are such address payments as have segments the and working housing Rent care digital sizable can where consumers. on is we spend We

with global to puns care, markets providers commerce onto partners health community improve grow partnering in Mastercard we up game key the now worldwide, total XXXX. several more approximately Germany. the opportunity In acceptance remains. in like XX% to And with video or We approximately playing switch transactions transactions The are like gaming in we're of intended, X/X bring our experience. payment network the from to Xola company,

to focus where it's and you secular we in lasting, on continue is switching will after like have positioned this. low for to penetration, it. the Mexico, opportunity are actions was My and and historically and Chile takeaway Our markets large penetration we well Japan, go this increased is Colombia

new momentum in co-brand issuers and Our are key with every we deals retaining winning region. as continues business also and partners

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exclusive city strengthening issued Citizens in be co-brands with position Dillard's for On of and the our Webster, the are network conversions the leadership co-brand. well Mastercard retail will further the underway. We're we U.S.,

our with extended the also have Target We TJX long-standing partnerships and companies.

the bank new In and First The in Africa, we UAE. Asia signed Egypt. consumer XX-year Oman the largest Pacific, spans agreement and Middle and a with Arabia, issuance Dhabi East Bank, across commercial Saudi Abu partnership UAE, exclusive consumer We Alliance, signed region with India, of agreement the across issuance credit brands. Axis Global entered EMEA And world's exclusive a Bank. the a in alliance largest into with co-brand we deal XX-year Hotel independent hotel

in solutions. Europe, embed true of with are with. others, extended one finally, relationship comprehensive region banks deal These continuing our the largest partnerships. renews and marketing, payments to The And partnership loyalty the consulting long-standing like while in examples, we many our

results invested customers product solution offerings capabilities selling for win-win our positive and making will and them innovative Mastercard. are Our our teams our a we differentiated us approach for continue experience, use service and and in to

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across wrap we revenue optimistic the networks grow So In summary, there's base. new delivered They will continue ahead. and than growth. diverse to strong a of for and core, opportunity customer With up. overall, earnings quarter strong demand about services that, I another remain we it our faster the and a

Sachin, significant We strategy over of realizing to -- and opportunity are to our algorithm growth our diversified front us. focused in successfully strategy on differentiated the in our executing against capitalize business capabilities, you. poses our well our model

Well, thank you, Michael.

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

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

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

Page Moving X. on to

can expenses You The includes special X%, was This to non-GAAP on indirect currency-neutral operating growth as primarily continued our spend. expenses spending basis, in discussed on strategic excluding impact QX marketing a items, from increased the timing our initiatives operating was see earnings and acquisitions. as by which due total an partially execution a increase increased of to advertising minimal taxes call. that adjusted of support well as the offset in

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include over volumes, ppt our X across switched growth XXXX, in of of volumes. QX transactions cross-border which the leap each impact just the switch As and of added year metrics switch a reminder,

of of in switched In XXXX. addition, removing and at QX QX April commencement items, the the continue in the of to for our benefited of items Pacific, X growth was recovery trends strength quarter NatWest at as as to was negatively Citizens travel, in of U.S., which first as to comps switch weeks as well growth the April of of X generally Norand X conversion the in lap Outside After portfolio our of year we the growth from show were tougher the metrics COVID Mastercard. by travel of timing restrictions continues ex by impact primarily were this note. conversion to in impacted of and the weeks transaction than the few and the first of the occurred particularly debit world. cross-border of opened from April. the U.S. to the Mastercard looking the operating debit Asia by portfolio volume those impacted card Cross-border which to lapping up end rest when later compared metric the Easter, A travel the stable impacted

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

remain Our the all ahead. strong well diversified spending, and healthy customers underpinned momentum strong the with our of and value-added secular and for business business and is solutions demand forms payment offerings. across digital us by fundamentals position This opportunities to model our shift services consumer

As the to and of are as we that number stand our execution appropriate, and growth strategy. we of a are maintaining headwinds the focus manage outlook. while monitoring, investment remain said, on Michael ready we positive levels about tailwinds Overall, there

special for As remain it currency-neutral excluding and items. to expenses year XXXX, a and operating net the relates basis, revenue unchanged on full our thoughts acquisitions

of revenue excluding reflects continued on of solutions are the of year the year, primarily minimal exchange spending expect now consumer is a the in services higher high value-added for low basis, foreign This grow driven to for X QX. balance a quarters to to ppt And and and headwind impact the to growth healthy the of end We dollar. double-digit a forecasted by for have We be a recent the appreciation acquisitions. expected range net year. X at the all as to U.S. Acquisitions currency-neutral compared

In the acquisitions low expectations full terms while of from to we minimal have a double-digit growth foreign impact are Acquisitions for X currency-neutral to of to operating forecasted the X exchange. for a items. rate basis, expect range excluding a low a at benefit to and the end our expenses, year ppt grow this special on are year,

tailwind of and operating currency-neutral a low end double-digit Acquisitions double-digit an from growth a growth expected special OpEx a at this Now forecasted acquisitions the turning expected expense are net X to we foreign this be an XX is impact are to ppt for approximately minimal forecasted to operating add to the on have versus Acquisitions to range basis, ago, rate, be X QX currency-neutral again, to Year-over-year a while headwind to quarter. growth XXXX. on excluding we revenue low excluding a quarter. for the QX range acquisitions. growth of expect exchange the at low a be ppt expense ppt year standpoint, approximately basis, to is From foreign expect and items. exchange

Other the gains our are excluded working and higher and balances and income excludes other capital we assumes expenses forecasted an investments, of metrics. as in from cash expect primarily in expense well mix due the by equity prevailing expense losses interest than geographic $XX on what levels in is rates our on This driven continue QX, had we non-GAAP QX, average items million. in to which higher to net QX, debt mind, keep lower This approximately of and requirements cash. as

that, year back of we all a XX% basis, the business. for geographic QX current tax the to over mix of Finally, with both and on Devin. will call a And on based I turn full our expect approximately rate non-GAAP

the for you. you Thank now. open up line may Q&A Audrey,

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

yield make just to doing the the of mean, when Yes. a trends at beginning, just well, seems question be on those is like ahead, conversion if guide looking fairly expectations. at Sachin, look trying the I'm just I you're sure lower it we like I seem those want we to constructive. mentioned not slightly trends, revenues the FX, seem guide. that's volume you the through seems as think better it. but on a than And it way lot and just to confirming just look

said you think I right. exactly it Sanjay,

generally what full of acquisitions, be I on the relative year we last all, clear, First at we're in for much like consumer healthy very earnings just call. trends shared excluding a first expected our spending. guide the seeing, what is said, out is what place. to in we These basis, currency-neutral very unchanged put to we are line when guide speaking, with the the

the U.S. the what report dollar what to which you're best unusual numbers, has with be update. appreciated seeing reported the strengthening That's trend impact only we we from real shared overall our nothing as of is standpoint. spending an really going the U.S. quarter-over-quarter. our Obviously, of think And is So what reflection is you. to on dollar

it we your Our on question our guide which very which original much as to is are otherwise are very much unchanged. things relates And the place had taking contemplated conversions conversions, guide. in

what very we parcel of much and that's part had contemplated. So

So usual, want there's changed has acquisitions. clear, standpoint, you it currency-neutral nothing guide business excluding to from basis, when I which at a really look very on a be as

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

questions. Two

intra-Europe that if that's like material First, Could if and if confirm most suggested. the case you cross-border. trends you it looks was just as the April predominantly slowdown Easter in the was really

been on of processed? up work code X-month able be in should EMV Secondly, have we we approval. domestic after workaround expect or you the to to domestic should the you'll first to the Chinese your to And the cards announcement be existing have market of will market out on you coming whether reissue? be use When a anniversary able transaction issued

take question. I'll first Craig, the

now. to it out Michael why impact just there. in question, Easter right seeing as What exaggerated of timing a you're right. actually second to is Easter. said. has more related that's It's that to exactly exactly X in intra-Europe number first relates more and entry weeks you're And going Your April observation you then on what is a seeing take your of the announced Europe China, is the on

and So we license November, got about our in the on excitement shared China, that. we

out So building in acceptance cross-border teams had We been our relationships the X and China excitement continues. The with busy building strong the obviously from We're issuance a not business. out starting have footprint. banking partners here.

relationships license, expecting associated in us with a So play to we're first the month specific live was we a in and have question go with heads line of up. give the that time There transactions to very here a May. the

that here, As existing China, in you can our digital far into partnership of through merchants China using as -- so with the here behind question digital in the China. is whole cards the key used start they think and wallets to how at And to I wallet use existing be cards acceptance in wide volume. the range put approaches have can the generate

we I are start At processing, to to continue short that need build this more In out time, clear is feel the about remember that. same a to encouraged and we very get So going it's the but more work to to card excited. there's do out, say to more transactions do domestically, term, we long-term want we're acceptance medium- opportunity. programs

busy activity. that are teams Our very with

as expanding we're international hard add Craig, pushing to inbound have to travel a press relates seen footprint just Chinese on out. there, Michael way their sure the One, expanding government tourism said. expanding one, just in inbound of of on as the number And acceptance the I that that how to of into relates might seeing what by That's the we're think country. point it China. I'll couple encouraging cards. you That's making actively our points it China play play cross-border increase is they're And working

in across by going our accepted accepted fact in the cards that in across and those the about you now be China when probably kind make to interesting widely The going it's -- networks second the globe X of China competitors that I'll will forward, which few are point most is from be they're of issued MasterCard ways. accepted a the card virtue many of think on different globe, just China is already

So we strategy well. doing pursuing as I to brought X terms just like in out our of I what down we're sure points of there. make kind those wanted

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

rate the you characterize existing Michael, mature do think your services. into how services is comes to do comes you value-added to the customers about important long-term opportunity the -- it you algorithm, part how more how would think cross-selling penetration of growth do when when about you value-added base? It's or it of how measure how

are a really point. pretty a clear, payment solutions. Ramsey, on key whole volume, for important is data, value-added you call. hitting about the growth The link on I solutions the differentiator services, more earlier algorithm our talked payment and more

about just what Xx that I cross-sell us. to top stat naturally in earlier a To Now can we point this talked to offer with X to we customers any more doesn't you really have XX our and requires value to. are what It give ratios time, focused clear who execution. customers. have at it offered all we haven't point, your offered to that and who we our very you are, services haven't our

are customers. also more specific have force a potential we out hunter-oriented manager tremendous very in we world, company, across the whole selling these is Across that forces products there drive existing sales the separate very drive but having of we're on teams So very our into that there. into value that. our specific relationship And centers there sales set with new focused

that approach. broad and opportunity should in is any pretty we data, a drive time, said, will. we near-term we a and see growth leverage it's At that point as that this because you So we

Harshita at to Bernstein. next go We'll Rawat

about brands? you the changes by surcharging think how proposed but you we know class from stay talk the you U.S. can do action merchant how on should think codes, And I this about Michael, settlement. be the approved the still to down? needs for implications specific

Right. Thanks, Harshita.

relief. an the has was long word, community as would Visa behind This standing, we with agreement as I merchant there So well are first found this and happy been the that with say, is and us.

So what the rules is U.S. this class. about was merchant

provide focus Mastercard was up the to opportunities can make the what And was manage to discriminated acceptance conversation rules brand we promise. that here X was pay around the will on the keep So of how do the your not cost Mastercard major to business in merchants we the against payment. the and hand, you is you anywhere be consumers promise time, same can of that at how and

and over the happens a And the to rules one. is discounting around simplification was and of basically, what more X we're going toggle that on number surcharging reduction mild years agreement interchange and hand. providing So have reached. rules and an was we're clarity rates, the

promise the retain we of honor out time, there. same the At the rule card all

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a on So expect business. broadly impact major don't our speaking, I

terms that. financial no we on with Otherwise, accounted In impact there impact, of associated the for Mastercard. legal fees have is directly

in is proves again forward step and merchants of everybody. of is and agreed point X very that It in the a yet another moving lot in all So good item momentum outcome, and competition the it this, a market good and there this proves for lot a point. to a payments

take Dolev We'll from Dan question at Mizuho. next our

off a it year? of were we should we and higher expected what little do the cool about rebates expect the How a to the incentives in So than had And quarter. bit? little first think remainder bit we

the So call, ended incentives, of very I of in on line in with thoughts what as shared our quarter. up our at kind very the much we in expectations earnings how terms with first last much line in rebates and

are that. that. relates and reality is, I to repeat pipeline takes as it As this of We'll of out market We've incentive, we to so a continue business. you to drives usual the be and But it what puts continue relates deals. on the execute won't to -- in kind got what strong the win know working

You call. about every them on hear earnings

be the see rebates second saw As as we it it similar payment of assessments incentives the down right expect we quarter. in to as our relates percentage to from and what quarter, network a roughly slightly to first we now,

kind and them put revenue volume of opportunity volume which We in helps bring our our the into us to more these incentives to sure When onto more a just drive network. standpoint. want us a I is reality the more deliver this make perspective, accretion So right? we bring grow rebates do at to portfolios to from yield network, us those to faster gives pace net help services, optimize we it

so thoughts it's that's and quarter. strategy, our what second nature in much got with for line in And the of the I've very

competitive marketplace. a It's Yes.

between payments But services, be to Sachin clearly more So what want volume more we the competitive our very see it's sell talked very, we the that side. that flywheel also win. to have to and about on on financial services. we deals ability on, focused effect just We clear are

don't whatever our our want So very targeted we here strategic meets every financial to in win very, and and criteria verticals. we're certain markets and deal focus certain

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

just trends. on travel some we broadly, trends. consumer really Maybe I and specific hit mean, more

a decel from a it factor, seeing on a little little into a more If you're more bit April. just than give know you what did could was standpoint. I like be travel It Easter seems it but dynamics a timing And could us that.

for payment in in growth then patterns changes to electronic in payments dynamic is consumer just, impacting that's where rate there if broadly. particular seeing Michael, and then in U.S. we're anything rebound to that side. you are of of you're So us the view give a your Any the sense of the and more seeing we maybe expect the on Do can you terms behavior-wise of conversion that?

Sure. your I'll part take the question. of first

relates nothing exactly primarily be as of timing travel, the to which cross-border unusual should said, rate lower only of of of weeks seen restrictions particularly driven analyzed the April, by it is to come growth is are Corvid. will cross-border thing that was also call as just in Asia about think you the The it we've out to think of X you're seeing about it in we say when what what context out. tougher There's the is as the late you comps, first being As seeing relates because Asia really, to travel, we I Easter.

portfolios, recovery the But So is fundamentally, prop comps cut cross-border we terms then and and travel last creates saw cross-border on tougher just to year, you this we're leaning, portfolio. portfolios take Asia travel great in win very travel place got year. leaning, value it are for We've executing sound. in a of strong this which

So to adjusted The we very travel her I growth are the would precorporate say, running pre actually, comment? which the when is running used is a are of rates that timing days to clip, when nothing cover is in they're and last the see unusual I'm seeing for and back healthy, pretty the compact. which actually at a it clip, what at I days, go to comparable

practice we There's how business do we in public governments around with general. series the of a it vis-a-vis last yet that to comes with the on so approaches to out inbound to driving create holistic back I promote actually more it travel tourism now all of data to to that Just really inbound from them, use In our is in you and see in on aid a that approach tourism. X Spain build order travel have another hand-in-hand and much we're Chinese We focused in We just destinations. trips sector And and their mentioned earlier comment order government whole Sachin is competitors forth. this that the came portfolios driving and see government around that. to Indonesia, see seeing have out, work there. respective a to a governments tourism. that India.

add. So that I wanted thing was X to

to starting piece a broader perspective. bit there conversion shift opportunity geographic digital little the to from off and you secular with asked United about up a a hang tremendous it I is States. -- On the payments want specifically the

other is in and there some opportunity the but like United you around States, XX% here countries look have you see So if the you cash. world left GX Italy, economies

even you developed over that. XX% to develop mentioned opportunities Indonesia. I cash. have So to tremendous go Indonesia, just In after in companies opportunity

XXXX. a economy going largest the President by be has fourth this put million to where people. country They're out the So is in the XXX world,

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things card transactions. takeout You ordering talk post generally place and heard generally doing online, about are is that preferential COVID. more for changing us are foods People behaviors a more

takeout into going is verticals so pay restaurants, but these in food. restaurant important. the you a multiple as forth. transport on the We example about of another and your public But That's So transactions pays is example. you gave the think occasions platform, X of transaction number the platform

real the we're Here, globe. scale around talking

they of systems a times station, and consumers And that is loop out the buy as into get behavior they use transactions day. so when multiple that forth. tapping So they multiple coffee get open as same a

new and remarks, there's tremendous So forth. And of there's transaction rent health the I change consumers. behaviors whole mentioned sectors, prepared about in opportunity so by as driven in care,

-- we opportunity not exactly just it's I and earlier secular lasting. comment X the when So and It up a goes throwaway in each on those this layers. focused it's very say big those was every layers, are of and

while. is this So around for a

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

Just faster a quarter? wanted for beyond you of Can growth services. the comps it. on here. outlook first visibility to big a on The I the is value-added the part ask just know elaborate

in comps. value-added the growth visibility about beyond within And potential there then curious category other services? Just to catalyze is the

that. take I'll Tien-Tsin, Sure.

all, as across for to seeing we I I like out driving talked which first mentioned kind we're the compelling I our mentioned, demand and be there about. mean, and the value-added of earlier, and pushing quite and continues mean So Michael we're overall outlook harder our solutions right, sectors, strong. various of services actively,

them. won't I repeat So

how things services of the the sharing really how up thoughts in and the we're higher value-added for shared nature would thinking the solutions, in growth based pipeline, the of seeing I we're As and It's it deliver rates for terms what we're solutions these we're about it quarters. nature relative each growth we're to we compared I of there, feel in remaining each on QX. to as services growth the the shape higher why to in good which year, of of relates in the that the is what rates outlook pretty relates quarters of said quarters to QX cadence the be about the of value-added to going on with seeing which you this

to out us other driving cases value-added comment solutions, I'll on for very revenue but payments here, deliver it's which The only strategy. very infrastructure payment solutions. we're our It's On other accelerate services one obviously of also which other our as growing the that's a little of was focused So that's is is solutions we to question, primarily on assets compelling generating kind kind we It's growth, remain comprised as from the right? your of of solutions other make a the real-time bit and value-added and all the part services or assets. continue independent, these growth, reminder other. around look, of and parcel bill our

to continue security marketing drive on well on slower the execute side slightly growth news expect -- what and get That we've our faster-growing Solutions is much don't got the and growth safety I so in to fees solutions. marketing, and consulting are to our opportunity lion's that. consulting, loyalty security is the that and we're comprises safety rates component larger data to in on safety side primarily going the as it. consulting TAM, consulting, and what inherently safety and of which comparable because we'll our analytics insights is a compared a and well there what as and necessarily to good there value-added solutions, we is marketing security solutions, and continuing TAM the as on and security as share and is the the services The see Loyalty

and the about back to the So Tien-Tsin, cross-sell. piece, customers earlier existing

drive We opportunity. laid into an the segments. new out that's customer So

engage clear. Saks brands is retail Fifth using that commerce our take services. to on personalization Yield on clutter, acquisitions Everybody to the pretty our that. you the to of lot high-end that's here give Avenue you and dating thing, through to an want So back example, Dynamic a I trying personalization have -- cut

that we're those So way. in get not all to in even in opportunities are a significant verticals today

quarter. into first that we're what be to demand great there's services, as going look why gives the higher than that's saying So great is us they're and confidence, we ahead

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

you Europe, your intensity payment seeing change for any competitive primarily Are in in network.

has long Mastercard. for Your primary share the called growth networks local been competitor in payment a out source gains of that quarter

schemes local competitive any and/or to principal become Europe either intensity themselves? more by competitor So changing competitive from in the payment initiatives

fantastic U.K. conversion on in shifts continent. in story Earlier, big on XX you if are think debit a I of the the continent. flight the about was the great growth starting talking UniCredit, deals wins that with across markets Europe's off still the some David, of renewal for in some Mastercard, big some about

Obviously, here. have is way but local to credit that and schemes positioned long well Europe great they in on so compete. we've is we're a found So local a a them. with partner feel we set forth, from competitors players proposition as to and in focus of debit

go to partnerships. they I Only try shown credit earlier, we these because needs. the much relationships time, traditional same their then the in too a of partnerships across overall Europe for traction feel as serving in course, win-win services At us there said competitors, we into we Europe. everybody and growth story end all to of is turn we, are have more that we're customer keep to But eyeing competing. decided better drive with

to down I offer to Back confident be that. a feel pretty Europe. across And and to have still go solutions we that, question about on So set it of Europe and lot front, secular a it whole look opportunity. that after this continues a to I to growth as comes has opportunity.

had to David, us provide Debit I case more to capability. to this continue we things continue which tailwind and we as relates continue of the that of very natural we've Mastercard, will X execute point that long-standing going execute be feel to as on on as like that's one I'll well that. that's Europe a conversion to it Just add, on -- focus much in Maestro those

just number. Europe Europe. For you number, converted global or another we're want roughly debit share X example, not I how this but in migrated consumers a executing with a we Maestro as to of to that's Mastercard. that That's in from just quarter, piece And million

Faucette Morgan We'll at to James move Stanley. next

in other U.S. of wondering strong talked anything in anything of other cetera. development it of? cross-border in We've you if and more the there's out level spending be discernible spending about et at can indications categories seen MasterCard I'm some could noteworthy. if And if or trends, aware uneven I'm should the call indications other preferences markets, wondering, parts there's or of travel impact consumer that you whether are your should generally. be that or consumer terms in in that shifting take we if economy we

All right.

Let and further. comment me start off on this Sachin then can

growth, So the is strong. XX% this so you've seen

and and it's there is So there's likes. an to be travel a continues that, travel cross-border particularly the strong, component Ex e-commerce travel ex to to component that.

to I travel think the we want angle talked I to On trends. the about the the lift if side, bit up you broader little break it -- that a question. down, of broader your

meet strong spending since trend of as travel did seeking even the a strong what hasn't particularly COVID, consumers just how has strong is and for experience away. because has ends the perspective it Covet are various think been gone ever they that make a from about fundamental been things make So that decisions, recovery and

the is is things. So top of circular just and are we seeking secular and experiences the travel list. a This it's services one of trend see. not those People that

countries, go down this as Now into different you and to of going break stages you're inflation. different see

different in different regulators And forth. ways. policy, You're going how are fiscal governments so that to and to reacting consumers see policy monetary and inflation and affects

going carded that's your If you forth. and decisions payment see verticals inflation to your decisions spending or on in so impact non-card

People uniform remain story So the the why that. want make is fundamental around trend. hence, optimistic winning. not around world. and that And go to that's out we it's come pretty trip. back I pretty Travel to a

is to travel, was what would share to just where for past, are we're still and China. it some inbound you potential the wanted of outbound with room got has which be QX to the but Asia particularly we relates on recovery, see where where while of As I topic we I'll cross-border share point kind metric we've these in shared in Pacific, metrics China, in with which terms the grow. of of you some Case in

China from QX, cross-border outbound the in and stood travel, of XX% inbound So into pre-COVID level. and approximately at

granted domestic how recover. to opportunity comes room se. is is bit term the is an to still in per to the travel a going how the recovery long remains economy slower of through through period in China of still there's of terms see even reality medium a that there the from over this So But And little performing. nature corridor,

We'll UBS. take Chiodo next our at Tim from question

debit bit little to want about U.S. I talk trends. a

past of terms specifically, on debit. through. small U.S. is So beginning the you talked could net mentioned revenue as talk online about more we've we II, also come bank risk of But your portfolio in a the And beginning overall this in of it often, a to Reg the to the side small U.S. portion. opportunity flip for back the for some But of also the in position that talk the on Mastercard threat the to to you the so gain the Visa debit about that, card or about cards portion

to great about Tim, so Right, love debit. talk point. We

You saw the growth X% rate.

this of and is well, doing good. is felt. We're the conversions So impact the

in bigger even couple at side back it to distorting card to That routing the routing Reg look have the reason for but that end, of we fighting and it's As the the of such to just comes do we're comes and not opportunity you impact, That to market. I great. the down question this of are, some we So where more I this raised, look comes comes a us at that? far it's say as material, for gives question as to it mandates, how that's not now material. calls. for seeing And up

fraud a $X Safety X that cetera, better we into And score because a Last et and fact costs, happening the will where and whole end, net merchant advantage a economic but basis economic of is cost related have what's routing this not net the is that And think costs we of here years, think, in operating on proposition. decision the package billion to us. altogether. for the it's the I some outcome. ignoring Solutions a it competitive is, well a invested I we've just Security is the outcome makes make

for us. competitive that and makes advantage -- a So for

"Here's are I that proposition talking our to see is the B. what So merchants out. saying, if you opportunity, versus They're net teams the Choice

And so far, of set that is an dialogues. encouraging

at comes Bryan Cowen. from next Bergin Our question TD

be to Just just ask the as feeling to the financial structure. business. how wanted pursue you're opportunities from the changes growth change about implications about organizational where in those across the I that? early you Any

Right.

payments. see focus that to we we created focus flows, we've part want AI on set particularly this focus is the on side, We core integrated side, on that. And and a of is want you what of the role opportunity plus makes we're an announcement, services payment So our tremendous algorithm AI what to want our generative for In on new offerings. we our are about us is portfolio and altogether, But central is priorities. we advantage heard growth services basically recognizing We're competitive we're here all here always say, doing to position. happening end, payments of realigning talking what's talk strategic about and the and it the interdependent. these activities on

So topics. these very these seasoned X tremendous around in are company leaders experience have that the

They're to value and is on to going more this to whole and drive idea take the our customers. faster move

I terms we there that the I'm kind That deliver hope terms looking the to impact, is potential. financial what In of impact that is growth we for. of think in see out is of

I'm more say et road our map product looking who's we saying drive on lead that's play. that. to really the to do So is services forward? to talking Craig, going to growth, -- what nothing going There's the How going services be even beyond else cetera.

in structure move line So bringing that's forward. the whole strategy play. and It's

Deutsche Next, move we'll Keane to Bank. Bryan at

volatility positive to yield isn't part of continued major low positive ask talk reason. about about getting Just same your the as you're and kind they in peer want seeing the the cross-border of yields currency

cross-border Sachin I in understand much sustainable So is mix closest maybe pricing of you changes and mentioned between think yield us and and those helping differences just your the peer. how for

Sure.

our our to impact up doesn't transaction first, relates processing show So you to of just It that in instance, want volatility cross-border assessments. remind that in assessment. up FX it quickly our I the in shows as

with line. the doesn't number of up what Point I point say, So this It FX our associated number the, line. about you're show would processing in drag the right impact up transaction shows cross-border assessment two, volatility the yields. one. in assessment

than right not to what to It only want but that's portfolios we the want back Our to win And Michael to the perform cross-border through and cross-border grow cross-border. portfolio, favorable winning do helped focused last said see the continue this the every where portfolios a is is rapid on are which years, the well. few at win what right we for inter portfolios. goes seeing come over pace earlier, we doing that's what intra-Europe mix more us we

you cross-border on inter know side intra yields cross-border, the intra-Europe And that the are higher cross-border. the do yields than on

issuing line. acquiring a deliver of ensuing the side, little assessments quarter, to progresses helps bit quarters yield the we through we come always you'll the certainly as that from well. it So we in the to And pricing, of as the a lift come for our standpoint. the value when done of pricing out on I this pricing price a year in that on kind called cross-border for customers, it. we've whether relates see it's that question through value deliver had your look, side we then And as

next Koning our We'll Baird. at question take from Dave

back there? I'm Nice you if there's some job. much? advertise is And correlation a just guess your time to so dollars long as to that advertising It question. in the much if quite have bit, was is how rebates a too. giving advertise between lowest wondering by you're And it to quite clients, there you Is some why have don't down my a I maybe even and much. in correlation

A&M Yes. -- of the we how the mean, cadence it's is to I Look, typically we see promotions want do. spend a

of a kind think about spend A&M. why little and back step just me let bit So on we

level, it of your when you could the the in sponsorship sponsorship sponsorships. do towards to you is depending on activation when those around assets at You do could brand are do assets. activation want And but it play

A&M. spend of that So cadence the influences on

line. we in was to A&M marketing my is What mentioned be right, advertising lower basically A&M. kind the you're the progresses, I how So it's I that the had as year remarks more on in alluding spending we quarter. of prepared will and timing the first of about

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so it's looking across optimize that a standpoint. are And from both of actually those to marketing we

comment want to Right. The I last on this. make

a are we very we're a not fintech. large but So just fintech,

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fifth the a for have the world. year think brand in Sonic in row, we the been I #X

So there's on, about. on we proud side going lot marketing a the that very are

the that And Day world us brings on. to is I question much. so the think today. most great parts you of a end the to call It Labor in What end. Thank

you a our at support. continued shareholders our XX,XXX in you to next Speak yet makes every for very sense more your again, to to Mastercard, and call, very and on call which I day, even you quarter. day you So much. thank I out when do big the thank Thank colleagues Bye-bye. it

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

may You now disconnect.