MA - Earnings call transcript Q2 2021 | Mastercard Incorporated

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Mastercard Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Warren Kneeshaw, Head of Investor Relations. you. Thank

begin. may You

Warren Kneeshaw

today and Officer. for everyone Earnings our all Mehra, With hope Crystal, Executive our for and Officer Call. thank joining you're Sachin me sound. and us second Chief safe Michael good you, Miebach, and Chief Financial morning our you We are Thank quarter 'XX

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

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

otherwise was Additionally, results release Our be comments SEC regarding furnished the unless earlier will this currency morning noted. with the non-GAAP on financial our a today basis neutral

and reconciliations to include release the of deck slide reported GAAP the measures amounts. non-GAAP With

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

Michael Miebach

everyone. Thank morning you, and Warren, good

revenue is levels early a Domestic XXXX stage healthy volumes now diversified that quarter international non-GAAP well regions rate. all though quarter. highlights of which in XX% a XX% are switched The our up growing accelerated with started the strength and XX% net momentum recovery, currency-neutral on are even levels showing the up is all ago, above basis. basis, the quarter that a year are revenue X at revenues this of year versus here streams. pre-pandemic the net So of with stages strong same the with On we over travel EPS

cross-border travel are and our progress Within JP We against and partners context. this have seeing we're Stripe, objectives strategic improvements potential. Barclays, key with Chase, upside significant Citi, both like relationships with and Morgan Verizon. domestic making expanded in our

in. dive Let's

broader effects on indicated The XXXX. that and stimulus. reflecting XX% with in sales versus year checks, other US, spending a European spending XX% in is Spending cash XX% levels it continue vaccine populations auto over e-commerce. Germany course gas all Looking retail ago countries up up versus pulse of were in year quarter UK, countries the and also ago According will types, now a mobility the up sales the vaccinated, improved several rollout our report, including US improved [indiscernible] X ex XX% retail X at first are and their and take X% economy, payment in-store on at that over critical, overall scale which reporting show domestic XXXX, sales ex of XX time. to least of based is and partially to quarter versus pulse fiscal some residual consumer were and strengthening versus

restrictions the starting Turning to managing -border for environment, most the established are COVID four-phased we to and our relaxed. our the out markets is now believe framework specifically being spend business through the of that phase we normalize, growth border domestically,

as part driven strength volumes Debit spending recovery are quarter-over-quarter we continued reached all to commercial by with credit and across credit pre-pandemic remains and is spend in increased Mastercard's seeing at it's in the now switched trends, improve return Looking further products. spending. elevated note of travel consumer and improving has This recovery important well. to levels led but discretionary by credit, also that

seeing are they are spending, as strong. e-commerce the we of present be particularly travel, to are retail, spending, terms how while restaurant card In continues and getting more categories improvement people in definitely in out

spending, cross excluding spend, border, border to continues cross to online Turning be travel card-not-present very strong.

they On to. clear domestically front do across where We've so and the want itself, are people borders restrictions. seen and travel to when able travel and it limited where is there

For further example, travel we're quarantine starting bookings increase so an relaxed requirements travel entry seeing One, been and the including in rolling this the rates, on US that's our and into course more the as and reports, opportunity. between Canada to supported Europe. are increase as on products priorities. be second out we our America strength improving on recent the well Latin in strategic Overall, vaccination a dependent to a Against borders open expect the between recent backdrop, core the are services. within has industry year variants progress by Per the Europe US we infection and in the half and front. for there of for focusing

Second, and driving both digital enablement online. in-store

choice Third, and through multi-rail safe ensuring our the capabilities. providing ecosystem secure. Fourth, is

eye this growth by an bottom driving we towards carefully. will long-term manage always, with line to and the expenses As do our over continuing top

them one. Let's at by look one

growth do area return travel, new remain core with this customers focused our existing to and to and in working relationships comprehensive on the solve their expanding partners. so, beyond. We're on in building of driving position products capitalize in strength on our off, and travel points our with First in we're payments pain leveraging our by the services both to

co-brand our US. example, For exclusive we the with have Airlines JetBlue in renewed

America, for and in Miles, portfolio long-term into partnership with British entered co-brand We Mastercard. Cathay in including [ph] and co-brand role are existing analytics, data our note their Middle a to also will our Asia a migrate East expanded the played our all making is services Pacific and, who Latin to global cybersecurity loyalty, Airways we It brand critical preferred consulting, that LATAM important these deal, solutions. now Airlines.

of to growth outside drive continue also we the in course, Of core travel.

are of few them. a Here

agreement we've eligible the the commercial category. with in have renewed excited are space with Cash we partnership card the our Master in Citi and Chase Morgan to our Citi top We US. the spend Chase; Custom our about members launch deepened brand relationship and offering Mastercard in JP cashback new extended

the banks of their secular the how including debit have front, network partner acceleration of store, throughout digital southern we drive We with the both. consumers our with to learned or exclusive become also flip the banks US, continue want to to capabilities in position matter brand, to portfolio shop shift On national community a no closely digital first online,

Now we merchants, of we Canadian billion on pay online, the the online, continue On Mastercard contactless As in our switch for store want second online surpassed accepted are improves ago. which Buy we in out same in-person to a new quarter. contactless shopping, its At to Commonwealth consumers partnering XX% choice example, Australia is according the instalments are over and Australia, to month consumers how they a In year transactions, providing continues to click to Group. the to from continues store, e-commerce of of tokenization is in-person throughout as through guest such quarter, the return purchase time, transactions XX% Tire represented transactions strong wherever second the the to globally XX are grow. or across whether up penetration that's streamlining with Tokenized Later to per in-app experience, securing consumer to and growth launch and services. rolled X and we and Bank offer in markets now consumers Pay space pay, significant checkout and adoption Citi experience

We continue the capabilities. of digital partner major reach players with expand to digital our to

cards money enabling For credit, small over a and small and for example, by how we spend distribute they partnership physical control debit, across just Stripe to with their create, a and to Stripe prepaid. strategic entered manage, commercial give consumer and business, business virtual users

businesses even payments are in and of checkout reduced insights another lines with capacity Leveraging our us the The step device. every Verizon's and will from commerce to making Verizon run. with allow connectivity and to built, device XG XG We also innovation experiences latency a being create pairing Mastercard entered take increased services to the XG to partnership will how enable towards to bring better us industry. global solution

a and to demand consumer the our shift Now, on the safe importance digital, as creating of more cyber-solutions. and is ecosystem, the keeping is strong to securing ecosystem and secure paramount for merchants

of continue perform organic acquisitions to well. growth, In number space our to addition in the the

deal multi-rail to on the set payment provide fraud deal There solution the across is capabilities, strong which globally to The end let's start acquired the digital right is needs. them Major with now real-time range assets monitors League addressing these to accesses and able providing a our management not to choice. just of fraud front. multi-rail third-party job. with we XXXX. digital to on making e-banks, Ekata certainly work up support advance focused we and for right operating are happy least, a Last is we the countries of closed companies and scanning turn capabilities a with dispute including and example, provider tools solutions our our approach, currencies, off in expertise prevention key Essentially, customers' and to initiatives now Baseball is capabilities. the broader to that this acquisition very payment agreement and the at here of capabilities seamlessly. combination we're customers America. risk identity when for biometric our but cards, are tool of deploy from RiskRecon strong For of NuData cybersecurity than momentum, our Latin having a XX of payments, including And meet together more thousands millions in tools

global you agents banks, a with buyer Mastercard and our ERP out BXB, working vendors. companies, give open-loop me supplier Track, agents, progress making building network by such In Let as with we're software and few examples.

signed very bank the excited we're side, have payments. Barclaycard to On

the track supplier global the we'll customers to on both their across business ecosystem So buyer connect use side multiple rails. and

Citi traditional of in real-time with also world. can Mastercard of the countries. to Pay connecting Bill continue premier programs software leverages use accounting provide to new Trade capabilities we first variety customers dozens now a into the the bill to with mobile Bill continued find of across Exchange, every which In penetrate scale payment platform region card this payments, space, Pay beyond The payment XXX and and a over transformative a of payments experience enabled to Treasury platform. hundreds cases our Send FreshBooks, the You solutions Mastercard's flows

efforts transfers of Europe. And directly WhatsApp with economy partnering we support For front, largest across with empowering to transfer with people Checkout example, border near and Brazil enable PXP platform and digital to our innovative enhance is ahead we open app Mastercard and US, in and Today offer Finicity payouts, gain the cross In Gig BXC the We're some to access to themselves. Gig businesses we enable Send. as are expectations for money instant continue also consumers. opportunities the use their in easily fast-growing of continue partnering and running messaging leveraging connectivity across with banking, globe direct MoneyGram earnings to fintechs. Payfare in new for create the services to Through API real-time data on are US. the Mastercard's to PXP then to financial of the platforms securely and partnering banks

our Paxos, and And easier partnering For & Finicity. their terms of to community own than currency; Federal verification also with to Finicity data. financial new example, to mortgage service. which Navy into for crypto the bank products as Union verticals, cryptocurrency agreements digital more crypto new its launch institutions and use platform it at to we're connect financial signed enable conversion access pilot to Evolve with Credit from of its Jack access network Bank direct such XXX data use fiat. simplifies data Trust, wallets to and making in seamlessly Circle leveraging to recently is we're Henry consumers through benefit finally, connections

with the our partnering for firm accelerate we're applications and the of development software Secondly, ConsenSys, Ethereum services to customers. crypto engineering all

revenue all benefiting up, Now, on in cross-border drive term. focus our to the growth most growth is deals strong over this to that on believe phase and We're long winning continue we domestically there over earnings delivered you. a quarter, our revenue upside travel. diversification efforts. this priorities and summing growth Sachin, to and strategic markets potential significant new We are of we from

Sachin Mehra

Michael. Thanks,

of increase and which dilution to a XX% by ppt reflecting page income spending. continued year-over-year Acquisitions was Operating for X the performance gains income $X.XX expenses increased Now includes was Operating was net Net repurchases. our including up X acquisitions, of in XX%, acquisitions. XX%, was an ppt X, shows on recovery and on share this related $X.XX up neutral recent growth. items of strategy, from investment. execution which losses our $X.XX, up turning X decrease of the to basis both revenue up quarter XX%, equity contributed offset strong excluding related to which acquisitions. contribution to ppt the on to the XX% a to financial EPS include company's our special currency and impact

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

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

was strength with growth the credit with by growth growth debit Gross about quarter growth with debit last in volume volume Cross-Border year. reflecting XX%. XX% the GDV XX% up credit volume XXXX continued for of at the XX% the improvement at levels. of XXXX back US, up levels dollar increased to XX% are debts and quarter, globally seeing intra-Europe XX% We pandemic of with Outside and of credit. second and the and of of and volumes even XX% volume debit of XX%. volumes Cross-Border XX% of other increased of the In XX% intra-Europe US almost other lapping and XX%, XX% Cross-border

Turning to in improve transactions region. Card-not-present levels. XXXX growth XX% year-over-year rates in present across part increase switched XXX% continued and we're to and at every strong aided X, in card by of growth grew QX remain an contactless penetration page

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

of highlights Let's and cross-border otherwise and line services, was rebates strong described partially for net turn a unless domestic growth, offset the items volume in page basis of driven and X The primarily neutral the currency increase as as by revenue in higher well by transaction on revenue noted. again on growth QR XX% incentives.

mentioned, previously to approximately contributed net acquisitions As ppt X revenue growth.

assessments items, GDV Cyber XX%, while quickly volumes increased to up X offset difference mix. X was is driven mainly primarily fees partially volume lapping than difference The of while grew the Looking by return up is is XX%. XX%, return activity ppt XX% and up The were at was XX%. Intelligence domestic elevated and cross-border solutions. by ago this mix worldwide intra-Europe Cross-border were pricing revenue Transaction Other ago. line by year individual XX% lapping driven X switched remaining volumes revenues ppt the of were including faster by driven the ppt ppt levels adverse transactions up a Data X activity fees contribution were primarily up and The mostly cross-border intra-Europe ex a a difference while increased as due the processing year XX%, growth Services mix. favorable our volumes from acquisitions. growth and and elevated quarter, of

up rebates incentives volumes and activity. and strong Finally, in renewed and new and deal were transactions XX%, the growth reflecting

specific and page discuss marketing, for of on the remaining metrics personnel costs be X on as July. now increased primarily we let's you spending from currency expenses operating initiatives, XX%, page Turning data processing neutral total costs expenses a invest operating can to Moving on in see The the in acquisitions. advertising that to X, growth first increased impact higher to including weeks and basis, X, due our strategic was increased the

we seeing significant part operating to when growth current into are across XXXX percentage present lapping rates and We our spending be volumes the began in pandemic a it the impact due metrics of the related to last year. the pandemic. experiencing provide effects that as the were amounts, useful in versus thought To the you XXXX the to would transactions of again levels, once better visibility improvements we XXXX not

switched recovery quarter look second of into if spending the through continued volumes, the XXXX you percentage broad-based July. and and the So, for at levels the

weeks an which spend improvement is ppt XXX% at QX. July, of of the levels over levels, are first switched X XXXX in three volume Specifically,

further in generally switched seen we improve transactions steady the card-present are note back restaurants. volumes are trend spent with with travel-related spending seeing in QX we including the categories, remain US, have in the lodging volumes. seeing and switched improvements are levels. Present recovery We significantly pre-pandemic Of part now of early and in airline the to tracking since consumer

which as driven border from In and levels a both of XXXX travel XXXX terms volumes from an XX% spending related of US card-not-present travel card-present July, XX% between Cross the and strength in by travel, cross-border, improving levels to America. to show primarily includes Europe trend. Latin increased of percentage April and

travel Asia a the from Pacific reduced grow has the border cryptocurrencies XXXX. activity slower ex and to in a relative above has to Cross levels e-com been of card-not-present purchase rate promotional healthy this due XXXX levels, in continues to part recover. at moderated of significant recently lapping contribution pre-pandemic to

forward. wanted X, now to our looking share current I page Turning to thoughts

against continue travel-oriented our at and our are of grow with we [indiscernible] strong deals lines sign. objectives growth to healthy portfolios. to First positioned solution a to rate. with levels renewed new progress return we travel for Further, Domestic grow are continue strategic continue and well the off, showing make we healthy and spending service to

quarter. third mid-XXs grow net the we levels of If high the at improve excluding expect along currency to growth would to to basis, to acquisitions. a neutral on trajectory, the Turning current revenues QX year-over-year continue spending rate end

As QX some XXXX spending marked the a with the quarter. a of recovery standpoint pandemic low reminder, point from in following the

of the recovery progress this not facing variants X to out linear. be of It more will point level the third in may important potential and therefore, approximately is we is COVID vaccinations. And, also uncertainty and difficult one related just the quarter. ppt remains of scenario the as to So, bump be a new pace

product and advancing approach data such related strategic and key will cybersecurity, expenses, our BXB, operating to while including investments. material we disciplined objectives of in solutions, marketing areas, brand continue analytics, digital, our terms as In expense our management,

acquisitions. of the year on ago expenses to the currency we excluding at For high mid-teens expect versus end neutral basis, a grow QX, rate operating

lapping as With As than acquisitions year we last pandemic a closed we are acquisitions, earlier we the the took revenue as to in to on new banking, the actions spending operating about X and Similarly, to will expense respect contribute QX QX with we are several and to real-time open ppt expected pleased expect both transaction Ekata reminder, in to developed. have and growth payments. acquisitions areas, identity, and digital QX as X contribute approximately XX ppt QX. growth such acquisitions promising to will in X integrate

subsequent impact and to we ppt QX. be reminder, exchange year we time a them X foreign which they out. a to X which items the split of year and disclosed Other discretely the in expected the revenues X after net keep in operating mind, acquisitions ppt As is in headwind all do not expenses to a close tailwind X to to to

the on year we know line, for within to rate losses at the business, in I interest current rate gains the due tax an non-GAAP And some discrete our million fall that This our On to to mix Community point, and XX% finally, we rates. quarter per Investment benefits QX. $XXX income wanted and the based geographic realized New let are expect on improvement metrics. expense are our we the XX% investments, last you One planning approximately expectation excludes from over the in for equity previous York. run other an expense an of of prevailing Meeting are of approximately excluded which tax

to that We And plans Warren. I with will are with to back we November turn future at hybrid our forward event planning that, time. the over XXth a call look you discussing on and

Warren Kneeshaw

for now Crystal, ready Sachin. questions. we're Thanks,

Operator

first JP Instructions] [Operator Tien-tsin Morgan. the line from question Huang comes of Your with

Tien-tsin Huang

and usual. all everyone details morning for good the as Hey, thanks

acquisitions how gave be the done good things there the have just makes including I'm spending there's in thinking aggressive the integrations your a going with that sense? just an some deals, will that on is year, like half of some to through get leverage the services, and curious on wanted of in of going, the just on second on given to there the that you updated lot the going of but wanted focus here digestion some, of Just of lot looks some you numbers Sachin operating

Sachin Mehra

said it's my I Tien-tsin, Yes, in comments. like

which sight in of given we're long and in line it revenue term have I've is of long we which from all prepared the I announced acquisitions, went trying at going is Look, we on have to disciplined guidance time to why drive my of through expense level the same we will what they're which business think I contribution growth have reality that's running manner. standpoint standpoint, have we're and line growth remarks. revenue as and term, this the the what to and some just a long-term an the you done, on bottom I a do for relates

period expense seeing our our keep how We the the pandemic base we continue strategic time, come we make we have topline execute the to same and an actually demonstrated sufficient around. over have are that sure in of that to the objectives, flexibility eye at on on

So, continue to strategic to what's the I numbers. key will terms where by business on we guess, inorganic point with shared that's is the we just growth is to of the you kind what I investing in in my of you. areas, which both following and are and It's long-term for organic drive specifics the right

growth to contribute points in fourth quarter XX expense expect points and between acquisitions the the X of fourth quarter. that the X and and third We revenue in between X third and and will

Michael Miebach

Yes.

in Just the payments over come that last the largest around if big add real-time year so. something to giving have X us the look Sachin a Nets, at here real have acquisitions or we advantage one world. you the done, in is,

is have good open very identity, banking, Ekata to hot. one about a that we online. We Finicity, everything You really that then the foundational and trend that's that's now do feel digital

to very Sachin's So critical acquisitions point.

these. is, changing on all we non-diluted our on of months our XX not do that that's to that clearly have right, one stick thing execution discipline but what We very to is is measure

want So, well. with out you put to there as I just that

Tien-tsin Huang

you and point fair are all areas. All Thank important those

Operator

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

Harshita Rawat

some Can which builds crypto and the is CBDC, the the simplifies central different to talk card fiat company other for question. you back. in last crypto. step here. week are the to Thank to the take and my Hi, for of about the companies, either value made crypto on you this proposition engaging providers they good bringing table offerings announced stablecoins taking announcements morning. you Mastercard conversion ways banks Michael, with

Michael Miebach

obviously digital Alright, vibrant around currencies. thanks, space is Great topic Harshita. a question, very important

discussed back here, and go broadly what to me a that in is then bank floating we currencies in previous is stablecoins and central X is that the Let call has categories private which is play sector there are digital different there cryptos.

So, them. we told you that we role of want to across be playing all a

We criteria, that network also provided our all ready our far said enables in we compliance, the stability. these first of as stablecoins settlement stablecoins concerned, they are carry and X to regulatory protection, consumer getting as quarter our call technologically which meet as is to currency,

So, changed. that none has of

on a has that conversation. we give just me you since what view happened Let had

is everybody different else has industry period Central is value period the a the payments bank have is clear existing my motivations ranging the as sought for, a these solving after from they of to digital all that my ECB banks What England perspective engagement right all this continuing because of to at infrastructure cross-border and market all recently governments of in our and in financial are is central currency on there definitely has hence consultation. just digital so we euro system see front, to central on this central currency to and The So, experience that. the now, Bank unique to digital we with financial will to progress. the we're point because multi-rail proposition trade-off Bank banks this delivering are announced partly make space inclusion of topic. financial after We forward first provider players things actually industry of what in countries existing is the lot move this of engaged bring forward. moving is have what a

have testing platform live We our make because infrastructure on. particularly and say all think to that's proposition governments them have consult we with the existing critical choices in for got I virtual here and financial to does the platform virtual what wild test the design our of these work to then that and is so to them.

for So proposition central that's banks. this at the stage

the nothing on still as here, private policy players private not sector we're stablecoins, stable sector regulators what On because part like of question as does cryptos unresolved than good engaging stablecoins is well this the up different, about sector weigh-in look a around regulatory much currency private with and On solved. that point is falling of do need regulators dialog. stability compliance and other

network, their investments So, enabling be sell going won't these to we people partnerships clearly want currency to as settlement that out that and invest on to we're as our all we this want in easy so but possible, have and there. make as

where point selling digital itself. an settles announcement the wallets It our thing reach week when wallet here's Paxos us stablecoins coin our of as stay enabling we and Paxos the and settle example, might digital for Now, That's made partnerships, and Paxos in. in and are here's allows to that is to crypto investments they as they with oftentimes last that and come that with our network currency buying partner prefer stay is our in a as transactions us be to settle interim with for with as Paxos we step in crypto fiat. these

So we board. across that's playing a technology. kind is relevant the role are, of where This

this As because we to are a going number space, in one people be multi-rail player, [ph].

Harshita Rawat

very you much. thank Perfect,

Operator

the Your comes of Ellis Lisa next line with MoffettNathanson. from question

Lisa Ellis

BXB, a out on give in of Mastercard morning, Track Exchange. your rates, growth us Michael, of sense trajectory now the called in anything gotten question. digitization the pandemic, you scale some bit dimensionalize where that you payments, remarks, like holistically to Thank digitization etc. seems step you Taking question right has you. and in progress are my terms stuff, jump-start a a volumes of of on and around BXB you as especially thanks for can Good prepared Pay My it good just Bill taking back, a of can

Michael Miebach

would we're bite All coming it, so I I say, BXB time, is comments. as obviously. so trillion, thing TAM my is is how space, commercial back, is I huge, there, huge in XXX about It back travel one business. our commercial at earlier going Lisa. say, of it's should first right. noted coming Thanks, the a

focus the here example, space, is travel card business, small virtual on So, online the on for specifically cards virtual solutions, in agencies. BXB

continuing, it's XX% give sometime is that about was you of that. number that all we're back and a but this happy our We and what worth XXXX, noting. then is GDV So

comes the talk it Bill multifaceted has and across when I whole approach, earlier BXB, through Now, Track to specifically, list talked Pay, about. I very you that

if the Pay that third of Bill real fact and us if you paid look that scale. of so I a today we bills being the biller, see quarter all have take gives addressable I that a Here, at

So, right have scalability the of as of to come Verizon a we the with I think players. added to mix. Last a biller kinds quarter, point we here to

So, is encouraging. that

we really see We haven't haven't in quarter and done that in. Nets given with coming I right going is specific numbers but the direction this and yet,

have significant footprint over run a a business there. We in They Bill Europe. scale Pay

So right, around some when time that. share is we'll the numbers

software specifically is a excitement joining like the ERP fine-tuned We great. our the with ecosystem large Barclays bank at providers. around Track, BXB and Now, Track go-to-market

but we starting build corridors. start both yet, with on you both be So to you agents. supplier We're players when X-sided connect progressing we rollout would haven't supplier what buy-end is it numbers well at the sides Again, would and the buy-end expect sides, have here could network. it to given

COVID times, have to a realization mind there a really optimization top starting payment the this COVID. of Track. desire in engine was chains COVID, a a and a while said data multi-rail We there the that hold. get of exactly is BXB going So, to it digitize, been by At multi-rail through couple of is you is wasn't choice to be payments value journey. and switch, affected proposition supply

see coming to starting we're So, back. this interest

So, where to you kind that's are. of Sachin, we have anything add.

Sachin Mehra

environment, dissect business sure. of it make think one corporate business growth, small the there right. amount takes I'd What which actually across you also that Yes, point and that we space. large see BXB, is you in lines, significant when small then and kind of will which think place a and we spend about that just micro you environment, from those the cash. further along is, you segment see is if business significant will is more mid-market, a takes And break down, of as there that amount a place which spend micro about

I'm and opportunity trying in that as in point consumer to to down of that prop the to still like a the only tremendous path is there the value well. card the continue BXB has for is and stands digitalization strong it rail of So make pretty cash, much kind space displace stands

of important, super significant flow spend So, a are of certainly losing talked the of I the good. but that about that's think we I the know, prop which place fact not we where stands lot sight value amount takes internally unstable and still cash

Lisa Ellis

Terrific of checks, lot awesome. Terrific, color.

Operator

Your next the Autonomous with question Research. comes from Maurer of Craig line

Craig Maurer

I And the it, One, this later questions. for the planning thanks the for are update announced any year. guide Two Durbin hi, anyway. your you taking I'd Yes, you. the And to Investor figured second, you questions Thanks. reopening Day of three ask Amendment know but thoughts at on discussion. just year

Sachin Mehra

Okay.

let one cheeky take like last bit So, response. of comes which me a a the

just Craig interchange, initiatives just you X-year guidance time. we yesterday. to is in at term we've going find and guidance and all out topic news seen administration complex get so various will new tune the at as On to to if think for know sure I regulatory the have or longer looking lawmaking we

really Now from new outset, positive the the build learned in with administration relationship. we've to a

that really intended having now years an many providing stating. really to we say, out see up enough Hill and as on the sides of benefits We good both can't to other these continuing say So there our and and have it. we're to of important as Cost the interested here's been interchange with kind data on debit industry engagement interaction topic lawmakers facts out for that obviously the House, us the on is very data Senate and same as want lawmakers very interchange seeing of the always it focused for parties. would we've topic and us was a say by it consumers I of What different play I what We're are is that's this is gone regulation playing what interchange, closely. do, on here been aisle. monitoring is to had keep benefit and have chatter there parties There that the on reduced.

comes there terms terms access here you aspect and it to to the credit. credit, the of benefits interchange impact, Now, and impact the when in cost of but is same is regulation by would in expect another that

sense be it that assume world bring things does way all as have should in carefully. thought Why good the You and in makes many in, we're is experience regulation going as for cannot to is with the markets dialog the access other the it's middle-class table we permanent interchange the to What in this needs this leaning comes around Americans to takes. thing out credit that's very to play well. something and that through puts impacted are some and not that a be and and if so and

are So, closely of that's monitoring where kind we

Craig Maurer

Thank you.

Operator

KBW. from next Your Sanjay Sakhrani line the of question with comes

Sanjay Sakhrani

think morning. Good constructive this but progress see our forward. to Sachin, variant adds well? travel think spending travel understanding the points continued your some Is continued expect view of mentioned complexity cross-border And you view, to there Thanks. you on data there lot trends. as quarter. third that spending a eyes cross-border in on view, on I interrelated Obviously, do and questions were two going spending quarter you Maybe a Delta we

Sachin Mehra

why Yes. and that sure Hey, go I I am ahead take Sanjay. don't question.

want which these the and the clearly the all the in up, environment domestic shown and So demonstrated the people that's that's to that it following, when but in environment. been variants, is been to been showing showing is prevails the and the again purposefully cross-border they so in given has really I which now they're able will is, think been following, travel travel environment which reality do uncertainty have

things, So, kind closely levels track earlier UK of looking corridors from booking something from which being data we spend kind on, coming are was of week, which of of for are that people or example, very what's other a based one this up then which are up is there the trajectory the trajectory like opening the like US and is which vaccinated dialog countries. the of around and opened place, the looking taking is how it on

So, the July. the through is is been with seen, data which the it in has reality the you what weeks we is following, first shared three

higher exercising in variance from is Asia look going is important opening progress are still are really would borders as in be will intent open have through. what's has now now Latin are showing on the this up as Similarly, kind what If, open, it on because being terms of the which being as the just level travel through actually ability Asia. they to of second up, across More ability to will something, of US, up, the which their other hand, encouraging travel travel We levels year globe, how we the reality again sentiment as getting you will America, in more I is we're because people with that really, because will I pretty certain of country open the of subdued they that of people situation that people exercise positive terms the the to half to come the the at about out. see in say in and our get vaccinated. that perspective borders is [indiscernible] can that and corridors we the with and which hearing our play more Canada

on I vibrancy is look will positioned term, all and we importantly, and when but does as what come of very feel back travel to that back. we hard kind the are which longer it So, is about something, most capitalize of guess, this, well through come to predict. of that But encouraged I

Warren Kneeshaw

here the XX% back like as what to countries I about listen have to Sachin to I XX over add level. noteworthy comment of just want vaccinations one now I point is find very

this So, to UK. we've full who in which now we travel corridors and and and vaccinated finding at to you are of for for over us else but but are willing stock on are Canada it points proof are what this seen a and governments vaccinated. and last as is There of want have kind seen There very and as as people these ways vaccinated is are to are until looking point, come we've said predict a the this both of to the to runway travel, those you who that sequence table facts weeks. the you to seen that point out, long the then three we of at play not Sachin is difficult enable

Sanjay Sakhrani

Thank you.

Operator

Research. Darrin Wolfe question line of Your with Peller next comes the from

Darrin Peller

we about Hey, your sense elements next the could that seeing years year-and-quarter thanks of a been the other pandemic, sustainable just volume we when we're growing sustainably into expected that revenue, over Can think a and few you and what than that beyond now better well the what you think even if pent-up better have of probably some like the guys. now and Michael, basically you've really persist give structural I of We're the pre-pandemic. value aspects would you service in demand? stimulus of added now some revisited us elevated, structurally as see

Michael Miebach

Yes.

going out. demand at pent-up level to the point in time Darrin, So some

what there's everybody go, particularly time to met right, back come I the play think more would demand to of that, some still see We'll how Once you're up we're traffic. and you've again commercial and pent-up but caught on to out. that going

we last see You know it's the continued quarters, elevated but e-commerce when interesting you see look coming of X digital store levels back. we in spend, over

zero is not game So there a going on. net

is I a actually against to think is cash secular really run that time. trend this for continue long very generally going to

So, stand from model. it's our legs business to on good to two have these

will continue but to of will with before see go who and levels will pandemic don't you some they that think would like the had experiences we would better I over people the the that back we e-commerce have going time, think remain, to reduce to that. learned because I

kept for towards something With to be do you of cyber-security safe, elevated before we driver data shopping, see very analytics. very will that more data just board more the and it generally digital for and world, want banking and, understand it online for and to that XX% every that could just the same to ask the that about people between Sachin analytics, of there more everything I one for say solutions a ask see I digital that we our clear tells business have so month think push driving and again, consumer XX% and of this so for path I because is small of is more contactless. we eversion us is way, the what data them a good is Data across and needs that talking the business. and not research for to it's there every exactly out people back bit a not by digital this we that. and

in the through we used whole and managing Here's will, players brick how whatever traditionally their space our might would insights not that. and real you in run that but been you before. is of of so bunch that and maybe tools analytics, segment new Understanding from is to have there a that serve they business like and now like online partners a terms through opening the data doing up have business mortar can,

to Cross something structural That's e-commerce. border So, don't are I to dramatically changing. be the cross changes here there's last. border really think I that structural going are think those

see so heightened platforms think this the has mind border I local this payment and important but governments driven stated, I to that that out comes multi-rail with that with is I they why fair is I continue. electronic infrastructure e-commerce conversation is, do would governments is elevated that figured people like -- were to as initially, to by and see actually you things an we positioned my [indiscernible]. founded and payments an are interest have and in infrastructure that as go of digital that's that again do that matter and with thing our structurally think people, again to does that footprints know need space that will engage a some One that work. cross something is It a partner out couldn't that started it's partner and prices as I anywhere and tools opportunity, more how is stimulus year, I get payments fundamentally the to now interesting my last was well using

that mind, earlier fact, in So, come us on things the few lead to BXB. question

next I payments the think therefore will grow X BXB interest and BXB chain that time also years. over play continued X, over and supply in is digitizing out

Darrin Peller

Thanks, helpful. really That's Michael.

Operator

next question the Mizuho. Your from of line Dolev with comes Dan

Dan Dolev

differentiated. Hey, Thank other with much. of you doing very I It Okay. Thank Stripe. we in be may so you. partnerships. sounds was light you shed in the and interested very the guys. some what Stripe Can more partnership on some

Michael Miebach

Yes. Dan how joint long -- the partnership.

true me this the As you partnership. heard say, a board, across strategic really is

enabling partnerships. said network. do. the but customer basically and what entirely Verizon end their that's So, choice, XG a in this but here's about. could providing payment set We this is with what available every is is tool we a another different strategic that here's network,

SME this an a that to has the of In fact, occasions talked a compete couple Think card SME with marketplace. they're today about and now. how going in in about we terminal call

That provide what, expecting for infrastructure very moment can to is any and you at that the endpoint real and situation that that smallest a true vision can specific. We've the connectivity you is much anywhere If developed. been there. and team imagine XG is a while then a in any folks we're do a This our that need for omnichannel his difference that. you we Verizon to have you it business experience Internet and and can with deliver even the full bring have a not in on make

So, two of different types strategic partnerships.

in it's for anyone that choice out both providing payments us to matter. back there the Come that is transacting and point they think payments. I to

Dan Dolev

That done. is Yes.

Operator

comes Keane Your Bryan the next line with of Bank. from question Deutsche

Bryan Keane

July. Hi then about that know drop travel. travel touch guys, good just card-not-present thinking talked about and we in ex cross-border cross-border I month-to-date I of June morning. know the

less had activity, maybe wondering what see comps, activity. further year as further be, lower think Just e-com there in-store more the we growth should numbers the we about tougher as we promotional through outlook into might

Thanks. that on go we pulse a as get number to trying Just forward.

Sachin Mehra

Hey, Brian.

in which really took down, there is months April of things you more inverse the to So, the price and there place There of price day place. episodic are then took that of that purchases crypto. place at the call out couple the can item things going are taking and as line effect which of on that the came June the volatility which in I is point end of had

reality is when purchase is things to is only to is going crypto going What decent their the of that crypto to deceleration currencies to purchase go of Mastercard people exercise place and a we've going as us know remain forward are X don't these utilizing because which people and I weeks, to I I will will those reflected takes choice numbers. the the and kind how price volatile So, that say one of a like products on tell level over last the you seen digital in how basis.

So that's the of factors, includes kind which that. of one

second in weeks thing [indiscernible]; took July. activity The the be is promotional first e-com the XXXX of where timing place the of happened few to in

terms true know So we something keep is versus things of that in and of rate which positioned XXXX about the what it XXXX. you is growth as super digital us border going tailwind Michael say are it's parts towards index in fact a domestic, the on that economies Suffice to globe. what following, forward cross item to as start continues. looking trend well be the and the which talked evolve actually to is something the in and structural will that positive participating back angle different to just up give impacting changes, is true a line this and It's going basis for

what you that that's I'd on So one. with like to share

Bryan Keane

for Thanks the call. it. Got

Sachin Mehra

Sure.

Operator

America. comes Your with next question of from Jason of Bank the Kupferberg line

Jason Kupferberg

In Thanks, guys. revenue intra-Europe on quarter, cross-border proxy the second ask the your a volume Good overall cross-border. for growth. border really follow-up was morning. good growth ex cross a I just am

just hold this growth seem like the it volumes revenue I rest if QX, So, trends month-to-date hypothetically July could for cross-border of quarter. mean for would XX% these approach

comments you to QX on rebates; there's give us of. QX, some would characterization parts just Thank quick I or see be wanted And great. that then, be moving that's aware if if other you. So if should just a fair can any we

Sachin Mehra

Sure.

about Jason, mentioned the you're you aware border to So border. yielding that intra-Europe I fact cross cross that all on is that than low cross-border, other

growth of well. rate, last in and thing we place returns we year cross-border come subduing ultimately from key that's in mind second that's of like looks that year, it going some airline rate think in while level elevated those third again, elevated the last to had returns hotel of a the revenue across like. growth of as started And and one rates spend I of tapered, in as bookings, will our which The quarter reality the cancellations what their growth returns this impact second still quarter. will into terms because in making a had volume had bookings quarter second only populations their couple determine keep seen hit the it's not those people pandemic are the and kind took quarter It's an

play. and takes to the through thinking delivering puts what you're as winning continue to rebates I'd come making On creating great the are our sure which customers, Company market what to tell rebates mind here's into focus I you, keep win fantastic and incentives when comes at whether in ourselves about very you're and aware setting It of it's value market So, to about to are is rates. share. we something and up on value think then well and growth proposition incentives, them the

a QX. kind extent line the impact incentives do that one which and That's with will we of what I'll generally of and with I'm what it information of I new do of where is you to you share playing as well to out. that will we continue [indiscernible] to to rebates to piece percentage January incentives. we share to we be continue mix of So, on a an volume rebates and deals terms have saw [ph]. Obviously, see the relates in as The as in QX, of going expect growth incentives with one in

Jason Kupferberg

helpful. Very you. Thank

Operator

Andrew Your comes next the with Truist line from Securities. of Jeffrey question

Andrew Jeffrey

with taking I if sounds Hi, the of good fraud risk a pretty compete risk some some of channels, It versus wonder the ID lots etc. the and of you kind generally looking products of growth are progress on question. of fraud contrast Michael, independent how could important [ph]. and doing is those in different providers different market, risk of Appreciate driver. like services with, you and purpose Mastercard what like up sort compare capabilities, applied morning. coexist

Michael Miebach

Andrew. Thanks, Right. question. great Great,

with we our if differentiated So, portfolio the services to sweet all try capabilities spot an and start in data coming look and at our you a technological then leveraging our and and together the of point the entry to footprint have proposition. to talent payments that as seek

you're and with So, has player on other play ready a our us that nothing payments. see compete and position services to do with pure

competencies. adjacencies that's just strategy we and our that core are So leverage of looking the point starting for our

think the basically exactly in customers good AI make data, system I helps It is Now, is a our cyber-solutions them transaction what said. real-time make our decision the had the and decision, available customers. spot when and the not If everything what's sweet it of comes like at intelligence, to decisions the that to product having a decide about to using for to I decision a then I good our state-of-the-art availability in which

of are at So, transaction interested of in forth, go the largest here terms look loyalty but us all so fact rewards, see leg think versus up proposition. we we competitive mileage look-alikes a real and perspective, and in the They their in landscape have again, in the can we Similar the loyalty, preferences few how players what a data a one aggregated pure we offers, in puts are plays. that they world, and and anonymized differentiated flow are programs of from I plays,

building You and our to Cyber coming proposition out in us see back that.

whole transaction we're intelligence transaction. about is the foundational at the the What element. before now value Looking doing the chain, decision

address is customer opening this in; confidence bad of [indiscernible] if through one somebody set one allows is actually of again So that help that Cyber having in is in a us or of decide something interested solutions in where our on us to address automated that in you transaction downstream real-time here customer say else's ordering other that one, is the and name. obviously a value with real whole is somebody account we requests customers Security just the or high itself working the good is That store. data chain go fulfillment a very a is

in holistically our leveraging footprint it payments. we're thinking and So, that's about how

Warren Kneeshaw

Crystal.

have question. time we one think I final for

Operator

the from with comes Napoli line Bob question William next of Your Blair.

Bob Napoli

kind Thank lead and you stole but there, of good morning, question my question open Andrew on banking. also

that I think is performing, suggested is performing the better has Finicity been expected. it than

to maybe Mastercard? open better So get more what's expected color working and than a for banking longer-term strategy bit hoping on little the

Michael Miebach

summer live X like over the financial so We there, own XXXX is whole Bob, years like services, for power they're concept services, of eventually, in not momentum. [indiscernible] we the of to now. data hand putting into using point. went banking, good great Open now, Europe that. better trend. the get a choice this we years We've active What been two important it's in and their really individual

Lloyds for that was banking about of that and set and that. And and market. the breathe talk standard team incumbent a the in us are happy really great open November cases us for heard transaction use in a in in You in there, all last permission us they print that FDX about Finicity as real first so and the the your inventors here over player so of there live team, critical closing Good kick is year. Finicity API here U.S.; they the at are now the then UK, of for live Tesco that

looking banks a best in that now with and momentum better best-in-class disconnect had else a engaging footprint we lot banks see than sides. Finicity they progress I that going because and works and the see is because but at is what they everybody with said an have that let's on of also side ecosystem and this data is Fintech Now, connections expectations, on both

had we're starting credit out time mortgage of now today verification service, to same talent, decisioning on talent dimension deal an a really happy. at the tech are we together so and build expanding we're our about that product the set that. the front. also are our data They account the of data and on interesting solutions excited verification, by with So driving with Finicity, every And their set tech bringing with on, we quite around system

Bob Napoli

you. Great, it. Appreciate thank

Warren Kneeshaw

All right, good.

end earlier I our think am that brings again. going on, us that to repeat of not summary the of a time. quarter so you to the I I gave just

you your to speaking wanted for much, from you and to all thank throughout looking Just in all a to and you forward now. goodbye. Thank quarter support very

Michael Miebach

you. Thank

Operator

call. gentlemen, and you for today's conference Ladies this Thank participating. concludes

disconnect. may You now

Mastercard (MA) 29 Jul 212021 Q2 Earnings call transcript