Sanjay Sakrani

Sanjay Sakrani asked for more detail on the 2026 outlook, specifically which factors impacting branded volumes (merchant upgrades, macro, competition) are expected to turn around, and if Enrique Lores' involvement in setting expectations means no major strategy changes are anticipated.

Answer

Steve Winoker (Chief Investor Relations Officer, PayPal) provided a detailed P&L outlook for 2026, including slight TM decline, ~3% OpEx increase, and low single-digit branded checkout growth. Jamie Miller (Executive VP and CFO, PayPal) clarified that while investments are costed, minimal in-year benefit is assumed, with traction building throughout the year. She confirmed Enrique Lores was deeply involved in shaping the strategy and 2026 guidance, focusing on accelerating the existing plan.

Sanjay Sakrani inquired about Mastercard's perspective on the Credit Card Competition Act (CCCA), its potential implications for the industry, and the probability of its passage. He also sought clarification on whether the Capital One agreement involves any volume migration to Mastercard.

Answer

Michael Miebach (CEO) stated that little progress has been made on the CCCA since its 2023 introduction, noting united opposition due to risks to consumer choice, cybersecurity, and the lack of guaranteed savings for consumers. He emphasized that the payments ecosystem is highly competitive and the bill is not truly about competition. Sachin Mehra (CFO) clarified that the Capital One agreement focuses on new credit issuance, indicating the customer's recognition of Mastercard's value.

Sanjay Sakrani from KBW asked for Mastercard's perspective on the Credit Card Competition Act (CCCA), its potential implications for the industry, and the likelihood of its passage. He also sought clarification on whether the Capital One agreement involved any volume migration to Mastercard from new accounts.

Answer

Michael Miebach, CEO of Mastercard, stated that little progress has been made on the CCCA since its 2023 introduction, noting united opposition due to concerns about consumer choice, lack of savings pass-through, and cybersecurity risks. He emphasized the highly competitive payments ecosystem and Mastercard's engagement with regulators. Sachin Mehra, CFO, clarified that the Capital One agreement primarily relates to new credit issuance.

Sanjay Sakrani with KBW inquired about the building blocks for Synchrony Financial's mid-single-digit receivables growth guidance, including the impact of co-brand volume and early performance of the Walmart program, and whether the underwriting stance for the year is factored into the guide. He also asked about management's views and partner feedback on potential 10% APR caps.

Answer

CEO Brian Doubles highlighted consumer resilience, strengthening spending, and credit outperformance, noting strong purchase volume growth (3% overall, 16% for co-brand) and the rapid success of the Walmart program. CFO Brian Wenzel added that purchase volume accelerated into early 2026, driven by core book momentum, 2025 credit appetite changes (without assuming further broad-based changes), and new programs like Walmart and Lowe's. Regarding APR caps, CFO Brian Wenzel stated that while affordability is important, such caps would eliminate credit for many consumers and negatively impact merchants. CEO Brian Doubles emphasized the severe impact on small to medium-sized businesses that rely heavily on these credit programs.

Sanjay Sakrani inquired about the building blocks for Synchrony's mid-single-digit receivables growth guide, including the acceleration of co-brand volume and early views on Walmart, and asked if the underwriting stance was considered in the guide. He also asked for Synchrony's views on the proposed 10% APR caps and feedback from partners regarding their potential impact.

Answer

CEO Brian Doubles highlighted consumer resilience, strong spending patterns, and credit outperformance, noting Walmart's rapid growth and Health & Wellness's continued outperformance. CFO Brian Wenzel added that purchase volume trajectory improved through 2025, attributing growth to the core book, 2025 credit appetite changes, and new programs like Walmart and Lowe's. Regarding APR caps, CFO Brian Wenzel stated that price controls would eliminate credit for those who need it, disproportionately impacting lower-income consumers. CEO Brian Doubles emphasized the negative impact on merchants, especially small to medium-sized businesses, which rely heavily on credit programs for sales.