Brian Keane

Brian Keane from Citi asked for clarification on the mid-single-digit organic growth expectation for the merchant segment in 2026, specifically whether there would be a lift from SMB processing, given Clover's low double-digit growth.

Answer

Mike Lyons, CEO of Fiserv, confirmed Clover's low double-digit revenue growth guidance. He explained that the Q3 and Q4 adjusted run rates for the merchant segment, after accounting for headwinds, provide confidence in the mid-single-digit growth expectation for 2026. He noted that while comparative dynamics exist in the first half for Merchant Solutions, they are less dramatic than those in Financial Solutions.

Brian Keane asked about the potential impact of geopolitical risks on Mastercard and the specific levers or mitigation efforts the company employs to address downside risks to its top and bottom lines.

Answer

Michael Miebach (CEO) emphasized Mastercard's global business model, alignment with diverse partners (banks, merchants, NGOs), and localized approach, citing investments in technology (e.g., European data centers) and public policy engagement as mitigation strategies. Sachin Mehra (CFO) added that while long-term growth is prioritized, Mastercard has levers across all expense lines (personnel, A&M, T&E, professional fees) and cost of goods sold to manage in uncertain environments, without impairing long-term growth.

Brian Keane from Citi asked about the potential impact of geopolitical risks on Mastercard and the specific levers and mitigation efforts the company employs to address downside risks to its top and bottom lines in uncertain political environments.

Answer

Michael Miebach, CEO of Mastercard, emphasized continuous monitoring of geopolitics and engagement with diverse partners globally, adapting solutions to local needs. He cited investments in technology and data centers (e.g., $250 million in Europe) and a strong public policy process as key to navigation. Sachin Mehra, CFO, stated that while long-term growth is paramount, levers include scrutinizing dollar expenditure for near-term returns across all expense lines (personnel, A&M, T&E, pro fees) and the natural reduction of cost of goods sold with declining revenues.