Mastercard is a technology company in the global payments industry, facilitating electronic payments by connecting consumers, financial institutions, merchants, governments, and other organizations worldwide **[0001141391-24-000022_ma-20231231.htm:82]** **[0001141391-24-000022_ma-20231231.htm:4]**. The company operates a multi-rail payments network that includes capabilities for automated clearing house (ACH) transactions, both batch and real-time account-based payments **[0001141391-24-000022_ma-20231231.htm:82]** **[0001141391-24-000022_ma-20231231.htm:4]**. Mastercard offers a wide range of payment solutions and services under brands such as Mastercard, Maestro, and Cirrus **[0001141391-24-000022_ma-20231231.htm:82]** **[0001141391-24-000022_ma-20231231.htm:4]**.

1. **Payment Network** - Charges fees based on the gross dollar volume of activity on cards carrying Mastercard's brands and provides switching and other network-related services.
2. **Value-Added Services and Solutions** - Offers cyber and intelligence solutions, data and services, processing and gateway services, ACH payments, open banking, and digital identity solutions, which can be integrated with the payment network or sold separately.

a7357d6081781462966ba19de3f5d5b22e2b636bc3dedce60847a2f4b52bb9bd

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

458d9cc15ebdc319f18cf5d71bed022d09a5c1cfb46306de056961e0a817902d

| Metric [USD Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **Americas**         | N/A     | N/A     | **2,109**  **[0001141391-23-000157_ma-20230930.htm:11]**  | N/A     | **2,773**  **[0001141391-24-000087_ma-20240331.htm:7]**  | **3,164**  **[0001141391-24-000161_ma-20240630.htm:9]**  | **3,156**  **[0001141391-24-000202_ma-20240930.htm:9]**  |
| **Asia Pacific, Europe, Middle East, and Africa** | N/A     | N/A     | **4,424**  **[0001141391-23-000157_ma-20230930.htm:11]**  | N/A     | **3,575**  **[0001141391-24-000087_ma-20240331.htm:7]**  | **3,797**  **[0001141391-24-000161_ma-20240630.htm:9]**  | **4,213**  **[0001141391-24-000202_ma-20240930.htm:9]**  |
| **North American Markets** | **1,896**  **[0001141391-23-000059_ma-20230331.htm:9]**  | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     |
| **International Markets** | **3,852**  **[0001141391-23-000059_ma-20230331.htm:9]**  | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     |

f1d08bcf32a28acac36fe1603208e2b7f7c174e36c47fc1f21f00ccb7f7989f7

| Metric / Quarter                                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| GDV Growth [%] (U.S. dollar-converted)                | N/A     | **10**  **[0001141391-23-000059_ma-20230331.htm:36]**  | **10**  **[0001141391-23-000131_ma-20230630.htm:44]**  | **11**  **[0001141391-23-000155_ma09302023-exx991xearnings.htm:1]**  | **10**  **[0001141391-24-000011_ma12312023-exx991xearnings.htm:1]**  | **9**  **[0001141391-24-000087_ma-20240331.htm:34]**  | **6**  **[0001141391-24-000161_ma-20240630.htm:38]**  | **9**  **[0001141391-24-000202_ma-20240930.htm:42]**  |
| GDV Growth [%] (Local currency)                       | **8**  **[MA_3178200_4]**  | **15**  **[MA_3247659_4]**  | **12**  **[MA_3383337_5]**  | **11**  **[MA_3362157_5]**  | **10**  **[MA_3371350_6]**  | **10**  **[0001141391-24-000087_ma-20240331.htm:32]**  | **9**  **[0001141391-24-000161_ma-20240630.htm:38]**  | **10**  **[0001141391-24-000202_ma-20240930.htm:42]**  |
| Cross-border Volume Growth [%] (U.S. dollar)          | **31**  **[0001141391-23-000008_ma12312022-exx991xearnings.htm:1]**  | **29**  **[0001141391-23-000059_ma-20230331.htm:35]**  | **23**  **[0001141391-23-000131_ma-20230630.htm:43]**  | **26**  **[0001141391-23-000157_ma-20230930.htm:44]**  | N/A     | **19**  **[0001141391-24-000087_ma-20240331.htm:32]**  | **15**  **[0001141391-24-000161_ma-20240630.htm:38]**  | **17**  **[0001141391-24-000202_ma-20240930.htm:42]**  |
| Cross-border Volume Growth [%] (Local currency)       | **31**  **[0001141391-23-000008_ma12312022-exx991xearnings.htm:1]**  | **35**  **[0001141391-23-000057_ma03312023-exx991xearnings.htm:1]**  | **24**  **[MA_3383337_5]**  | **21**  **[MA_3362157_5]**  | **18**  **[MA_3371350_6]**  | **18**  **[0001141391-24-000087_ma-20240331.htm:32]**  | **17**  **[0001141391-24-000161_ma-20240630.htm:38]**  | **17**  **[0001141391-24-000202_ma-20240930.htm:42]**  |
| Switched Transactions Growth [%]                      | **8**  **[0001141391-23-000008_ma12312022-exx991xearnings.htm:1]**  | **12**  **[0001141391-23-000057_ma03312023-exx991xearnings.htm:1]**  | **17**  **[MA_3383337_5]**  | **15**  **[MA_3362157_6]**  | **12**  **[MA_3371350_6]**  | **13**  **[MA_3381805_5]**  | **11**  **[MA_3395252_6]**  | **11**  **[MA_3405026_5]**  |

a0f6a2e84646ef8ba8e85ee422168ac2e519ecf4f4037a9e6118aeb066b2e05d

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

db8ad5387f5d1bdf7505a4bec4cedadb4ab2cda8bb8f993b8986a1077c9e354f

| Metric [Unit: $ Million] | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------|---------|---------|---------|---------|---------|---------|---------|
| Payment Network          | **3,650**  **[0001141391-23-000059_ma-20230331.htm:37]**  | N/A     | **4,210**  **[0001141391-23-000157_ma-20230930.htm:11]**  | N/A     | **3,920**  **[0001141391-24-000087_ma-20240331.htm:7]**  | **4,375**  **[0001141391-24-000161_ma-20240630.htm:9]**  | **4,629**  **[0001141391-24-000202_ma-20240930.htm:9]**  |
| Value-Added Services and Solutions | **2,098**  **[0001141391-23-000059_ma-20230331.htm:37]**  | N/A     | **2,323**  **[0001141391-23-000157_ma-20230930.htm:11]**  | N/A     | **2,428**  **[0001141391-24-000087_ma-20240331.htm:7]**  | **2,586**  **[0001141391-24-000161_ma-20240630.htm:9]**  | **2,740**  **[0001141391-24-000202_ma-20240930.htm:9]**  |
| Total Net Revenue        | **5,748**  **[0001141391-23-000059_ma-20230331.htm:37]**  | **6,300**  **[0001141391-23-000129_ma06302023-exx991xearnings.htm:0]**  | **6,533**  **[0001141391-23-000157_ma-20230930.htm:11]**  | **6,500**  **[0001141391-24-000011_ma12312023-exx991xearnings.htm:0]**  | **6,348**  **[0001141391-24-000087_ma-20240331.htm:7]**  | **6,961**  **[0001141391-24-000161_ma-20240630.htm:9]**  | **7,369**  **[0001141391-24-000202_ma-20240930.htm:9]**  |

e841881b071c279cbecac781afc119b51bee4aecdf4073e987c8e2836c920d22

- Total Revenue: $7.489 billion (+**14%** YoY)  **[0001141391-25-000003_ma12312024-exx991xearnings.htm:9]** **[0001141391-24-000022_ma-20231231.htm:105]**   
- Operating Income: $3.938 billion (+**17%** YoY)  **[0001141391-25-000003_ma12312024-exx991xearnings.htm:9]** **[0001141391-24-000022_ma-20231231.htm:105]**   
- Net Income: $3.342 billion (+**20%** YoY)  **[0001141391-25-000003_ma12312024-exx991xearnings.htm:9]** **[0001141391-24-000022_ma-20231231.htm:105]**   
- Diluted EPS: $3.64 (+**22%** YoY)  **[0001141391-25-000003_ma12312024-exx991xearnings.htm:9]** **[0001141391-24-000022_ma-20231231.htm:105]** 

98b8d7af7324b4d6bd6b66496dd647d064dfc0425a5a96a768dc2caa51ac9f7d

1. With the significant investments and time required to build acceptance in China, how do you plan to manage potential risks and ensure profitability in this market, especially given the challenges in achieving widespread acceptance?  **[MA_3405026_17]** 

2. Given the competitive environment and the increasing use of incentives to win volume, how do you intend to manage the impact on net revenue yield and margins, and is there a risk of eroding profitability due to a "race to the bottom" in pricing?  **[MA_3405026_11]** **[MA_3405026_18]** 

3. As you continue to invest heavily in value-added services like cybersecurity through acquisitions such as Recorded Future, how do you balance these investments with return expectations, and what challenges do you foresee in scaling these services beyond transaction-based revenues?  **[MA_3405026_9]** **[MA_3405026_3]** **[MA_3405026_4]** 

4. With over 60% of transactions in Latin America still conducted in cash, what are the key challenges you face in driving electronic payment adoption in this region, and how do you plan to address potential regulatory and economic risks associated with these markets?  **[MA_3405026_3]** 

5. As you expand your multi-rail strategy and offer value-added services to non-Mastercard transactions, how do you manage potential conflicts of interest and ensure that this doesn't undermine your core payments business in an increasingly competitive landscape?  **[MA_3405026_20]** 

246d06bfc2b16e59392dfe6a91125d218f8242e0dc662e14bea03662918677e9

fd898dbbe1c3bc2415f2807b7154d43e9bd8bcdec7d347b0ef0e86e439b6ad0d

40056e668b71c083acaaadc2a916641a10ee8e201682400da62e90c3bd55d69d

- Visa, American Express, JCB, China UnionPay, Discover - Compete worldwide with Mastercard in general purpose payments networks, offering a range of card-based payment products  **[0001141391-24-000022_ma-20231231.htm:24]** .
- Local debit brands - Serve as the main domestic brands in various countries, competing with Mastercard for cross-border transactions  **[0001141391-24-000022_ma-20231231.htm:24]** .
- Providers of infrastructure, applications, and services in ACH and real-time account-based payments - Compete with Mastercard in the real-time account-based payments space  **[0001141391-24-000022_ma-20231231.htm:24]** .

c86022b37dfc4346e449d7707ca100b989349ee38d22d4a8e33586f19d3d65ee

2eb832b100ffd98d0552e1d63618442aa6c36b3c4e853443422ac72d68979227

a597da37aff3cb1b2023edbfede40851cac4dcc7149388e218d1b68be4a095ec

91f0ecb4481358ed859ec4bde1f34f28b607520fa2408e97b3ccddcbf5a7ca80

Americas

- North America

Asia Pacific, Europe, Middle East, and Africa

- International Markets

Other

- United States

Total Revenue

46cacd12dfc3f17cef41edbd69b111537584bb178b536ec601e1a962537c0077

**Quarterly guidance for Q4 2024:**
- **Net Revenue Growth**: Expected to be in the low teens range  **[MA_3405026_6]**  (raised from the high end of a low double-digit range  **[MA_3395252_7]** )  
- **Operating Expense Growth**: Expected at the high end of a low double-digit range  **[MA_3405026_6]**  (raised from the low double-digit range  **[MA_3395252_7]** )  
- **Other Income and Expenses**: An expense of approximately $85 million  **[MA_3405026_6]**  (lowered from $100 million  **[MA_3395252_8]** )  
- **Non-GAAP Tax Rate**: Approximately 17%  **[MA_3405026_6]**  (lowered from 17%–18%  **[MA_3395252_8]** )  
- **Impact of Pillar 2 Global Minimum Tax Rules**: Expected to offset the benefit of an incentive grant in Singapore starting in 2025  **[MA_3405026_6]**  (no prior guidance)  

9d90f2591e6732f431ce54009f6ffe8d82b76a84172d4e376e7d2a50d3bca379

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024
- **Guidance**:
  1. **Net Revenue Growth**: Expected to be in the low teens range year-over-year on a currency-neutral basis, excluding acquisitions. Minimal impact from acquisitions and a 0 to 1 percentage point headwind from foreign exchange  **[MA_3405026_6]** .
  2. **Operating Expense Growth**: Expected at the high end of a low double-digit range on a currency-neutral basis, excluding acquisitions and special items. Higher spending in advertising and marketing is anticipated  **[MA_3405026_6]** .
  3. **Other Income and Expenses**: An expense of approximately $85 million is expected, assuming prevailing interest rates and debt levels continue, excluding gains and losses on equity investments  **[MA_3405026_6]** .
  4. **Non-GAAP Tax Rate**: Approximately 17% based on the current geographic mix of the business  **[MA_3405026_6]** .
  5. **Impact of Pillar 2 Global Minimum Tax Rules**: Expected to offset the benefit of an incentive grant in Singapore starting in 2025  **[MA_3405026_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024 and FY 2024
- **Guidance**:
  1. **Operating Expenses**: Expected to grow at the low end of a low double-digit range on a currency-neutral basis for the full year, excluding acquisitions and special items  **[MA_3395252_8]** .
  2. **Other Income and Expenses**: An expected expense of approximately $100 million in Q3  **[MA_3395252_8]** .
  3. **Non-GAAP Tax Rate**: Expected to be between 17% and 18% for Q3 and 17% to 17.5% on a full-year basis  **[MA_3395252_8]** .
  4. **Net Revenue Growth**: For Q3, expected to be at the high end of a low double-digit range on a currency-neutral basis, excluding acquisitions  **[MA_3395252_7]** .
  5. **Operating Expense Growth for Q3**: Expected to be in the low double-digit range  **[MA_3395252_7]** .
  6. **Restructuring Charge**: A one-time restructuring charge of approximately $190 million in Q3  **[MA_3395252_7]** .
  7. **Full Year Net Revenue Growth**: Expected to grow at the high end of a low double-digit range  **[MA_3395252_7]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Net Revenue Growth**: Expected to grow at the high end of a low double-digit range for the full year  **[MA_3381805_6]** .
  2. **Operating Expenses**: Expected to grow at the low end of a low double-digit range for the full year  **[MA_3381805_6]** .
  3. **Foreign Exchange Impact**: Expected to be a headwind of approximately 1 to 2 percentage points for the year  **[MA_3381805_6]** .
  4. **Q2 2024 Specific Guidance**:
     - Net Revenue Growth: Expected to be at the low double-digit range  **[MA_3381805_6]** .
     - Operating Expense Growth: Expected to be at the low end of a low double-digit range  **[MA_3381805_6]** .
  5. **Non-GAAP Tax Rate**: Approximately 17% for both Q2 and on a full-year basis  **[MA_3381805_7]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024 and FY 2024
- **Guidance**:
  1. **Net Revenue Growth**: Expected to grow at the high end of a low double-digit rate for the full year  **[MA_3371350_7]** .
  2. **Operating Expenses**: Expected at the low end of a low double-digit rate for the full year  **[MA_3371350_7]** .
  3. **Q1 2024 Guidance**:
     - Net Revenue Growth: Expected to be at the low end of a low double-digit rate  **[MA_3371350_8]** .
     - Operating Expense Growth: Expected to be at the high end of a high single-digit rate  **[MA_3371350_8]** .
     - Other Income and Expense: Expected to have an expense of approximately $60 million to $65 million  **[MA_3371350_8]** .
     - Non-GAAP Tax Rate: Expected to be 16% to 17% for Q1 and approximately 17% on a full-year basis  **[MA_3371350_8]** .
  4. **Contra Revenue**: Expected to be roughly similar to Q4 2023  **[MA_3371350_20]** .

50f422a6a434c1174ec45e21e1a848f3a39562a2cfc4062607e231a77b47bd3a

GDV Growth [%] (U.S. dollar-converted)

GDV Growth [%] (Local currency)

Cross-border Volume Growth [%] (U.S. dollar)

Cross-border Volume Growth [%] (Local currency)

Switched Transactions Growth [%]

627d8e0562d8573acf4fa9c12463833f17edcaa0e763b7fb95249853281d72df

| Name                | Position                                                                 | Start Date         | Short Bio                                                                                                                                                                                                 |
|---------------------|--------------------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Michael Miebach     | President and Chief Executive Officer                                    | January 2021       | Michael Miebach has been serving as the President and CEO of Mastercard since January 2021. He joined Mastercard in 2010 and has held various roles, including Chief Product Officer  **[0001141391-24-000022_ma-20231231.htm:79]** **[0001141391-24-000078_ma-20240426.htm:21]** .               |
| Tim Murphy          | Chief Administrative Officer                                             | April 2021         | Tim Murphy has been serving as the Chief Administrative Officer at Mastercard since April 2021. He previously served as General Counsel from 2014 to 2021  **[0001141391-24-000022_ma-20231231.htm:79]** **[0001141391-23-000020_ma-20221231.htm:74]** .                                         |
| Raja Rajamannar     | Chief Marketing and Communications Officer and President, Healthcare     | January 2016       | Raja Rajamannar has been serving in his current roles at Mastercard since January 2016. He was previously the Chief Marketing Officer from 2013 to 2015  **[0001141391-24-000022_ma-20231231.htm:79]** **[0001141391-23-000020_ma-20221231.htm:74]** .                                           |
| Raj Seshadri        | President, Data and Services                                             | January 2020       | Raj Seshadri became President of Data and Services in January 2020. She was previously President of U.S. Issuers from 2016 to 2019  **[0001141391-23-000020_ma-20221231.htm:74]** **[MA_3389340_0]** .                                                               |
| Craig Vosburg       | Chief Product Officer                                                    | January 2021       | Craig Vosburg has been serving as the Chief Product Officer at Mastercard since January 2021. He was previously President of North America from 2016 to 2020  **[0001141391-24-000022_ma-20231231.htm:79]** **[0001141391-23-000020_ma-20221231.htm:74]** .                                      |
| Ajay Bhalla         | President, Cyber and Intelligence Solutions                              | November 2018      | Ajay Bhalla has been serving as the President of Cyber and Intelligence Solutions at Mastercard since November 2018. He was previously President of Enterprise Security Solutions from 2014 to 2018  **[0001141391-24-000022_ma-20231231.htm:78]** **[0001141391-23-000020_ma-20221231.htm:73]** .|
| Linda Kirkpatrick   | President, Americas                                                      | January 2024       | Linda Kirkpatrick became the President of Americas in January 2024. She has been with Mastercard for 27 years, holding various roles across finance and strategy  **[0001141391-24-000022_ma-20231231.htm:78]** **[MA_3383334_1]** .                                  |
| Hai Ling            | President, Asia Pacific, Europe, Middle East & Africa                    | January 2024       | Hai Ling has been serving as President of Asia Pacific, Europe, Middle East & Africa since January 2024. He was previously Co-President of International Markets  **[0001141391-24-000022_ma-20231231.htm:78]** **[0001141391-24-000078_ma-20240426.htm:42]** .                                  |
| Edward McLaughlin   | President and Chief Technology Officer, Mastercard Technology             | May 2017           | Edward McLaughlin has been serving in his current role since May 2017. He joined Mastercard in 2005 and has held various senior leadership roles  **[0001141391-24-000022_ma-20231231.htm:78]** **[0001141391-23-000020_ma-20221231.htm:73]** .                                                  |
| Sachin Mehra        | Chief Financial Officer                                                  | April 2019         | Sachin Mehra has been serving as the Chief Financial Officer of Mastercard since April 2019. He was previously the Chief Financial Operations Officer  **[0001141391-24-000022_ma-20231231.htm:78]** .                                                |
| Karen Griffin       | Chief Risk Officer                                                       | February 2023      | Karen Griffin was appointed as the Chief Risk Officer in February 2023  **[0001141391-24-000078_ma-20240426.htm:28]** **[0001141391-23-000070_ma-20230428.htm:30]** .                                                                                                                          |
| Jon Huntsman Jr.    | Vice Chair and President, Strategic Growth                               | April 15, 2024     | Jon Huntsman Jr. began his role as Vice Chair and President, Strategic Growth on April 15, 2024  **[0001628280-24-016423_xslF345X02/wk-form3_1713299929.xml:0]** .                                                                                                     |
| Jorn Lambert        | Chief Product Officer                                                    | N/A                | Jorn Lambert has been with Mastercard since 2002 and oversees consumer, digital acceptance, crypto, and open banking capabilities  **[0001141391-24-000078_ma-20240426.htm:42]** **[MA_3375294_0]** .                                                               |
| Rob Beard           | Chief Legal and Global Affairs Officer                                   | May 1, 2024        | Rob Beard serves as the Chief Legal and Global Affairs Officer, effective May 1, 2024  **[0001141391-24-000078_ma-20240426.htm:42]** .                                                                                                               |
| Raghu Malhotra      | President, Global Enterprise Growth                                      | N/A                | Raghu Malhotra has held various leadership roles within Mastercard, including Co-President of International Markets and President of Middle East and Africa  **[0001141391-24-000078_ma-20240426.htm:42]** **[0001141391-23-000020_ma-20221231.htm:73]** .                                       |
| Greg Ulrich         | Chief AI and Data Officer                                                | May 1, 2024        | Greg Ulrich serves as the Chief AI and Data Officer, effective May 1, 2024  **[0001141391-24-000078_ma-20240426.htm:42]** .                                                                                                                          |

cd9cab553a1c44042ec382bb46da7d7749902aaa9d27b127e788d8dc64c9b152

| Program Details         | Program 1       | Program 2       |
|-------------------------|-----------------|-----------------|
| Approval Date           | December 2022  **[0001141391-24-000202_ma-20240930.htm:17]**  | December 2023  **[0001141391-24-000202_ma-20240930.htm:17]**  |
| End Date/Duration       | Completed by May 2024  **[0001141391-24-000202_ma-20240930.htm:52]**  | Effective May 2024  **[0001141391-24-000202_ma-20240930.htm:52]**  |
| Total additional amount | $9.0 billion  **[0001141391-24-000202_ma-20240930.htm:17]**  | $11.0 billion  **[0001141391-24-000202_ma-20240930.htm:17]**  |
| Remaining authorization | $0  **[0001141391-24-000202_ma-20240930.htm:52]**           | $6.6 billion  **[0001141391-24-000202_ma-20240930.htm:17]**  |
| Details                 | Completed  **[0001141391-24-000202_ma-20240930.htm:52]**    | Ongoing  **[0001141391-24-000202_ma-20240930.htm:52]**      |

77401d7d12800a781fc49afff8cdbfd2af8ce87f0b1a05e81b3739547abe11c1

Domestic Assessments

Cross-border Volume Fees

Transaction Processing

Other Revenues

Gross Revenue

Rebates and Incentives (contra-revenue)

Payment Network

Value-added Services and Solutions

21476c6fed159849f1075bf563fcbfa3c5f47a14a5e66ec2e3e1075c16198ab9

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1989  **[0001141391-24-000022_ma-20231231.htm:104]**    | Present  | Current auditor   |

8ea8ab67a946166fbeb554cfbb3d1823d778b23ad3e8f2f6a6b363b0b3807752

912273ee1ff60561f81e8788f00c6fe106ae43f01a82acecea90874f7af00a32

- **Strong financial performance** with fourth quarter **net revenues up 16%** and **adjusted net income up 19%** year-over-year on a non-GAAP currency-neutral basis, indicating robust business momentum.  **[MA_3413732_1]** **[MA_3413732_6]**
- **Significant growth opportunities in Value-Added Services & Solutions**, representing a **$165 billion** addressable market, with Mastercard delivering **almost $11 billion** in revenue in 2024 and being **less than 7% penetrated**, showing a substantial runway for growth.  **[MA_3413732_4]**
- **Strong cross-border volume growth**, with cross-border volumes increasing **20%** in Q4, reflecting continued strong growth in both travel and non-travel related cross-border spending, indicating healthy consumer and commercial spending.  **[MA_3413732_6]** **[MA_3413732_9]**

c40fcea15275d59202d3a42efd17a2849369862dc70d7781575f704302ba5469

61abbafa52a28099411595fdef21201b598cfea592427687fc748939f2f34375

- **Capital One is migrating its debit volumes from Mastercard to Discover, which could lead to a loss of debit volume and impact Mastercard's revenue.**  **[MA_3413732_9]**
- **The recent acceleration in volume growth includes temporary boosts from cryptocurrency purchases and a pull-forward of travel spending, which may not be sustainable, potentially leading to slower future growth.**  **[MA_3413732_20]**
- **Increased competition from local European payment schemes, such as the European Payments Initiative, could challenge Mastercard's market share and growth in Europe.**  **[MA_3413732_19]**

c1b1300f65c9bb01d1d9f061fcba4452939aff7ef0ddf0f9964e6658a0fa8375

1. **Cross-border Volume Outlook**  
   **Q:** What drives cross-border growth, and expectations for '25?  
   **A:** Cross-border volumes grew **20% in Q4** and **18% in January**.  **[MA_3413732_9]**  The slight deceleration is due to a **pull forward of travel spend into December** and calendar effects.  **[MA_3413732_9]**  The underlying health remains strong, with no expected changes in value proposition.  **[MA_3413732_9]**  Consumer spending is robust, and commercial activity is performing well.  **[MA_3413732_9]** 

2. **Capital One Debit Migration**  
   **Q:** Impact of Capital One moving debit to Discover?  
   **A:** Capital One plans to migrate its debit volumes to Discover.  **[MA_3413732_9]**  This debit volume was primarily on the Mastercard network.  **[MA_3413732_9]**  Mastercard has incorporated the expected timing and pace of this migration into its 2025 outlook.  **[MA_3413732_9]**  While the deal is still pending approval, they've built their best estimates into their full-year plans.  **[MA_3413732_9]** 

3. **Growth Deceleration Factors**  
   **Q:** Why decelerate from 16% to 12%-13% growth in '25?  
   **A:** Exiting the year with **16% constant currency growth**  **[MA_3413732_10]** , deceleration factors include lapsing **prior pricing actions** from Q2-Q4 2024 and significant wins like Citizens, Wells Fargo, and UniCredit.  **[MA_3413732_10]**  Assumptions also account for **FX volatility** and consumer spending trends.  **[MA_3413732_10]**  Overall, the 2025 outlook is for high end of low double digits to low teens growth.  **[MA_3413732_10]** 

4. **Value-Added Services Outlook**  
   **Q:** Expectations for value-added services in '25?  
   **A:** Mastercard continues to invest in value-added services, targeting a sizable and fast-growing market.  **[MA_3413732_10]**  While not providing specific forecasts, the underlying fundamentals are strong, with broad-based growth across regions.  **[MA_3413732_10]**  Services include payments network drivers, safety and security, and consumer engagement.  **[MA_3413732_10]** 

5. **European Market Share Gains**  
   **Q:** Update on gaining market share in Europe?  
   **A:** Europe has been a success, with **16% volume growth**.  **[MA_3413732_12]**  Mastercard is market share leader in the UK for credit, prepaid, and has **about one-third of debit cards**.  **[MA_3413732_12]**  Strategic partnerships include extending with Santander and a new partnership with UniCredit across **13 markets**.  **[MA_3413732_12]**  In Italy, they've won with Banco [ Popular ].  **[MA_3413732_12]** 

6. **Rebates and Incentives Outlook**  
   **Q:** How will rebates and incentives progress in '25?  
   **A:** No unusual renewal activity is expected in 2025.  **[MA_3413732_16]**  Mastercard aims to win the right portfolios, focusing on driving accretion in net revenue yield.  **[MA_3413732_16]**  Rebates and incentives as a percentage of payment network assessments are expected to be roughly similar to Q4.  **[MA_3413732_16]** 

7. **Stablecoins and Crypto Position**  
   **Q:** How is Mastercard positioned for crypto growth?  
   **A:** Mastercard is active in the crypto space, moving beyond proof-of-concept.  **[MA_3413732_11]**  They've conducted real transactions, with the first in Hong Kong last year.  **[MA_3413732_11]**  They are involved in stablecoin transactions but note that scaling hasn't occurred yet.  **[MA_3413732_11]**  With increasing momentum and partnerships like JPMorgan, they feel well-prepared for growth in the crypto ecosystem.  **[MA_3413732_11]** 

8. **Impact of FX Volatility**  
   **Q:** How does FX volatility affect transaction yields?  
   **A:** Higher FX volatility positively impacts the transaction processing assessments line, improving yields.  **[MA_3413732_15]**  If volatility remains high, it could accelerate transaction yield in the next quarters.  **[MA_3413732_15]**  However, volatility is unpredictable.  **[MA_3413732_15]** 

9. **Hedging Strategy Overview**  
   **Q:** Recap your FX hedging mechanics?  
   **A:** Mastercard hedges transaction exposures and monetary assets/liabilities on a net basis.  **[MA_3413732_17]**  They do not hedge translation exposures, focusing on economic cash flow exposures.  **[MA_3413732_17]**  Exposure arises from differences in transaction currency and functional currency across approximately **30 currencies**.  **[MA_3413732_17]** 

10. **Political Environment Impact**  
    **Q:** Potential impacts of new political environment?  
    **A:** With political changes globally, payments continue regardless due to underlying secular trends.  **[MA_3413732_14]**  The new U.S. administration is business-friendly.  **[MA_3413732_14]**  While not in the import/export industry, indirect effects from tariffs on partners are possible.  **[MA_3413732_14]**  Focus remains on digitization and digital trade policies.  **[MA_3413732_14]** 

11. **Mastercard 2030 Initiative**  
    **Q:** Why is tokenization focus in Europe?  
    **A:** Europe is ripe for eliminating one-time passwords and manual card entry due to regulations emphasizing security and consumer experience.  **[MA_3413732_13]**  With significant market share and widespread biometric technology, Mastercard aims to prove the concept in Europe before expanding globally.  **[MA_3413732_13]** 

12. **Domestic Assessments vs GDV Growth**  
    **Q:** Explain the spread between domestic assessments and GDV growth?  
    **A:** Domestic assessments exclude cross-border revenue, while GDV includes cross-border volumes growing at **20%**.  **[MA_3413732_18]**  This difference causes a spread in growth rates.  **[MA_3413732_18]**  Rounding impacts also affect the perceived difference.  **[MA_3413732_18]** 

13. **European Competitive Dynamics**  
    **Q:** Thoughts on local European payment initiatives?  
    **A:** Local initiatives like [ Vero ] are in pilot stages and not seen as material threats.  **[MA_3413732_19]**  Consumers decide based on user experience and availability.  **[MA_3413732_19]**  Mastercard focuses on partnerships and believes competition drives better solutions.  **[MA_3413732_19]** 

14. **Volume Acceleration Drivers**  
    **Q:** What drove volume acceleration in Q4?  
    **A:** Strong consumer and commercial spending are key drivers.  **[MA_3413732_20]**  Minimal impact from share gains quarter-over-quarter.  **[MA_3413732_20]**  Some lift from crypto and travel spend pull-forward.  **[MA_3413732_20]**  Healthy consumer behavior and winning the right portfolios contribute to positive metrics.  **[MA_3413732_20]** 

ac696b05b701ac27a2b2b4eb0e2f608be8ad15d7a039cd10f59e186e871f3ac9

MA Q4 net revenues rose 16% (currency-neutral), adjusted net income jumped 19%, and cross-border volume climbed 20%. With under 7% penetration in a $165B Value-Added Services market, there’s ample runway for growth. Watch Capital One’s debit migration risk.

f78e1c1d6c4aee22790da840677007457ba40efb114d36ee4ed4e425383321b2

**Quarterly guidance for Q1 2025:**
- **Net Revenue Growth**: low teens range  **[MA_3413732_8]**  (no change from low teens range  **[MA_3405026_6]** )  
- **Operating Expense Growth**: low double digits range  **[MA_3413732_8]**  (no change from high end of a low double-digit range  **[MA_3405026_6]** )  
- **Other Income and Expenses**: $120 million  **[MA_3413732_8]**  (raised from $85 million  **[MA_3405026_6]** )  
- **Non-GAAP Tax Rate**: 20%  **[MA_3413732_8]**  (raised from 17%  **[MA_3405026_6]** )  

**Annual guidance for FY 2025:**
- **Net Revenue Growth**: high end of low double digits to low teens range  **[MA_3413732_7]**  (no prior guidance)  
- **Operating Expense Growth**: low end of a low double digits range  **[MA_3413732_7]**  (no prior guidance)  
- **Non-GAAP Tax Rate**: 20% to 21%  **[MA_3413732_8]**  (no prior guidance)  

5f411c12ceb6445fe747c0bbb86d7b5b208cec0631d578272be52f6610c3c534

Mastercard-branded GDV Growth (Local Currency) - Total (percentage year-over-year growth)

Mastercard-branded GDV Growth (USD) - Total (percentage year-over-year growth)

Mastercard-branded GDV Growth (Local Currency) - United States (percentage year-over-year growth)

Mastercard-branded GDV Growth (USD) - United States (percentage year-over-year growth)

Mastercard-branded GDV Growth (Local Currency) - Worldwide less United States (percentage year-over-year growth)

Mastercard-branded GDV Growth (USD) - Worldwide less United States (percentage year-over-year growth)

Cross-Border Volume Growth (Local Currency) (percentage year-over-year growth)

Cross-Border Volume Growth (USD) (percentage year-over-year growth)

Switched Transactions Growth (percentage year-over-year growth)

ac4c8c52b04487b49bfa76cc02cf9da23cddf268896daecda4bd5b29610a5633

c99481eaf71d5d4bef80220aaa0a9e77c6bc941bbb09df2e498b786f5188ba38

| Year | Amount Due (in millions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2025     | $750                         | 2019 USD Notes                    | 2.000                | 4.0% = (750 / 18,400) * 100  **[0001141391-24-000202_ma-20240930.htm:15]** **[0001141391-24-000202_ma-20240930.htm:51]**                                             |
| 2026     | $750                         | 2.950% Senior Notes (2016 USD)    | 2.950                | 4.0% = (750 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2027     | $1,000                       | 3.300% Senior Notes (2020 USD)    | 3.300                | 5.4% = (1,000 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2027     | $893                         | 2.100% Senior Notes (2015 EUR)    | 2.100                | 4.9% = (893 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2028     | $750                         | 4.100% Senior Notes (2024 USD)    | 4.100                | 4.0% = (750 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2028     | $500                         | 3.500% Senior Notes (2018 USD)    | 3.500                | 2.7% = (500 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2028     | $750                         | 4.875% Senior Notes (2023 USD)    | 4.875                | 4.0% = (750 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2029     | $837                         | 1.000% Senior Notes (2022 EUR)    | 1.000                | 4.5% = (837 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2029     | $1,000                       | 2.950% Senior Notes (2019 USD)    | 2.950                | 5.4% = (1,000 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2030     | $1,500                       | 3.350% Senior Notes (2020 USD)    | 3.350                | 8.2% = (1,500 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2030     | $168                         | 2.500% Senior Notes (2015 EUR)    | 2.500                | 0.9% = (168 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2031     | $600                         | 1.900% Senior Notes (2021 USD)    | 1.900                | 3.3% = (600 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2031     | $750                         | 2.000% Senior Notes (2021 USD)    | 2.000                | 4.0% = (750 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2032     | $1,150                       | 4.350% Senior Notes (2024 USD)    | 4.350                | 6.3% = (1,150 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2033     | $750                         | 4.850% Senior Notes (2023 USD)    | 4.850                | 4.0% = (750 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2034     | $1,000                       | 4.875% Senior Notes (2024 USD)    | 4.875                | 5.4% = (1,000 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2035     | $1,100                       | 4.550% Senior Notes (2024 USD)    | 4.550                | 6.0% = (1,100 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2046     | $600                         | 3.800% Senior Notes (2016 USD)    | 3.800                | 3.3% = (600 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2048     | $500                         | 3.950% Senior Notes (2018 USD)    | 3.950                | 2.7% = (500 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |
| 2049     | $1,000                       | 3.650% Senior Notes (2019 USD)    | 3.650                | 5.4% = (1,000 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2050     | $1,500                       | 3.850% Senior Notes (2020 USD)    | 3.850                | 8.2% = (1,500 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                            |
| 2051     | $700                         | 2.950% Senior Notes (2021 USD)    | 2.950                | 3.8% = (700 / 18,400) * 100 **[0001141391-24-000202_ma-20240930.htm:15]**                                              |

f62d1435b63defcb6ed85623418ab93c8dabde6f2432152e467ebcb500a49cdc

- **Increased competitive pressures leading to higher rebates and incentives.** Mastercard acknowledged that rebates and incentives were higher than expected in the first quarter due to a competitive marketplace, which could impact profit margins.  **[MA_3381805_12]**
- **Rising competition in Europe from local payment schemes and competitors.** Mastercard may face growth challenges in Europe as competitors gain market share and local payment schemes become more competitive.  **[MA_3381805_15]**
- **Uncertainty regarding financial impact of recent organizational restructuring.** Mastercard's recent organizational changes lack clear financial implications, which may affect the company's ability to capitalize on growth opportunities.  **[MA_3381805_18]**

1d662e80763eb5d81b78bd5cbb28fce4b130b52d40be10dda8c4c54cec6114c1

- **Mastercard's Value-Added Services (VAS) are Differentiators Driving Revenue Growth:** The company's focus on security solutions and data insights in a digitizing world has made VAS a true differentiator for at least 7 years, helping Mastercard win business and boost revenue and yield.  **[MA_3405026_15]**
- **Strong Volume Growth and Market Share Gains in Europe:** Mastercard is experiencing volume acceleration in Europe, supported by improving macroeconomic conditions and specific wins like the conversions of UniCredit and Deutsche Bank portfolios, leading to further share gains in a region with a tremendous secular opportunity.  **[MA_3405026_10]**
- **Significant Growth Opportunity in Commercial Payments:** Mastercard sees commercial payments as a significant secular opportunity, with **11% currency-neutral growth in commercial** in Q3. The company is leveraging partnerships with back-office systems like Oracle and SAP, and catering to a digitally minded generation of treasurers, expecting commercial payments to be a tremendous growth driver.  **[MA_3405026_14]**

004fe3937c0dee376eaef04a88177735b8969b45eead416d00dba7a7dadc3fc8

- **Expected increase in rebates and incentives in Q3 may pressure margins**, as Mastercard anticipates that rebates and incentives as a percentage of payment network assessments will be higher in the third quarter compared to the second quarter. This is due to a rich deal pipeline and timing of deal activity.  **[MA_3395252_17]** ,  **[MA_3395252_10]**
- **Continued investment in growth opportunities could impact short-term profitability**, as the company plans to keep investing in the business to drive growth in the near, medium, and long term, potentially affecting operating expenses and margins in the near term.  **[MA_3395252_19]**
- **Positive revenue divergence in cross-border transactions may not persist**, as the current favorable mix and pricing driving higher cross-border assessments growth over volume growth depend on factors that may change, such as mix between intra-Europe and other cross-border volumes and currency exchange rates.  **[MA_3395252_14]**

2e6e1374624dd985e99f620bb84f8943fde7beea54cf2b68d828475a7adb7273

1. **Revenue Guidance and FX Impact**  
   **Q:** Is revenue guidance lower due to FX? Are trends as expected?  
   **A:** The revenue guidance is lower due to the strengthening U.S. dollar, but on a currency-neutral basis, excluding acquisitions, the guidance remains **unchanged**.  **[MA_3381805_8]**  Volume and yield trends are performing well, with healthy consumer spending in line with expectations.  **[MA_3381805_8]** 

2. **China Market Entry**  
   **Q:** When will transactions start in China? Using existing cards?  
   **A:** Mastercard expects to go live with the first transactions in China in **May**.  **[MA_3381805_9]**  They are building issuance relationships and expanding acceptance through partnerships with digital wallets, allowing existing cards to be used widely.  **[MA_3381805_9]**  The entry into China's domestic market is seen as a **medium- to long-term opportunity**.  **[MA_3381805_9]** 

3. **Cross-border Yields and Sustainability**  
   **Q:** How sustainable are positive cross-border yields?  
   **A:** Positive cross-border yields are driven by winning the right portfolios and a favorable mix, with **inter** cross-border transactions growing faster than **intra-Europe** cross-border.  **[MA_3381805_19]**  Inter cross-border has **higher yields**.  **[MA_3381805_19]**  Additionally, pricing for value delivered contributed to a lift in cross-border assessments, expected to continue.  **[MA_3381805_19]** 

4. **Value-added Services Growth Outlook**  
   **Q:** Visibility for faster growth beyond Q1?  
   **A:** Demand for value-added services is strong, with growth rates expected to be **higher in each of the remaining quarters** compared to Q1.  **[MA_3381805_14]**  The pipeline looks good, and they are driving into new customer segments and verticals.  **[MA_3381805_14]**  Safety and security, consulting, marketing, and loyalty solutions are major contributors.  **[MA_3381805_14]** 

5. **Rebates and Incentives Outlook**  
   **Q:** Will rebates and incentives cool off?  
   **A:** Rebates and incentives were in line with expectations in Q1.  **[MA_3381805_12]**  For Q2, they expect rebates and incentives as a percentage of payment network assessments to be **roughly similar to slightly down** from Q1.  **[MA_3381805_12]**  These are used strategically to bring more volume onto the network and drive net revenue accretion.  **[MA_3381805_12]** 

6. **Competitive Intensity in Europe**  
   **Q:** Any change in competitive intensity in Europe?  
   **A:** Europe remains a strong growth story for Mastercard, with significant wins and renewals like UniCredit across **13 markets**.  **[MA_3381805_15]**  They continue to partner with local payment schemes and feel confident despite competition.  **[MA_3381805_15]**  Conversion from Maestro to Debit Mastercard provides a natural tailwind, with **7 million** consumers converted this quarter.  **[MA_3381805_15]** 

7. **Travel Trends and Consumer Spending**  
   **Q:** Any consumer spending shifts impacting Mastercard?  
   **A:** Travel growth remains healthy, with lower growth in April primarily due to Easter timing and tougher comps, especially in Asia.  **[MA_3381805_13]** **[MA_3381805_16]**  The secular trend of seeking experiences keeps travel strong.  **[MA_3381805_16]**  Cross-border travel to and from China is at approximately **80%** of pre-COVID levels, indicating room for recovery.  **[MA_3381805_16]** 

8. **U.S. Debit Trends and Reg II Impact**  
   **Q:** Opportunity to gain debit share from Visa?  
   **A:** Debit growth is strong at **6%**.  **[MA_3381805_17]**  Impact from Reg II is not material.  **[MA_3381805_17]**  Mastercard sees an opportunity to gain back-of-card positioning by offering a better net economic proposition to merchants, including advantages from investments in safety and security solutions.  **[MA_3381805_17]** 

9. **Organizational Structure Change**  
   **Q:** Financial implications of organizational changes?  
   **A:** Mastercard is realigning its activities to focus on core payments, new payment flows, integrated services, and AI opportunities.  **[MA_3381805_18]**  No specific financial impact mentioned; the goal is to move faster and drive growth potential.  **[MA_3381805_18]** 

10. **Advertising and Marketing Spend**  
    **Q:** Why was advertising spend low?  
    **A:** Advertising and marketing spend was lower in Q1 due to timing of promotions and sponsorships.  **[MA_3381805_20]**  Spending is expected to increase as the year progresses.  **[MA_3381805_20]**  Marketing spend is also optimized through rebates and incentives given to partners.  **[MA_3381805_20]** 

11. **U.S. Merchant Class Action Settlement**  
    **Q:** Implications of the surcharging changes?  
    **A:** The settlement leads to a mild reduction of interchange rates and more clarity on surcharging and discounting rules.  **[MA_3381805_11]**  No dramatic impact on the business is expected, and legal fees have been accounted for.  **[MA_3381805_11]**  The agreement is viewed as a positive step forward.  **[MA_3381805_11]** 

2116772cc1fcb93451087e2ef258384cad400cb4e4b13d6b1585d0cca3d10651

- **Mastercard's value-added services segment is experiencing accelerated growth**, particularly in cyber and intelligence solutions and data analytics, driven by strong demand and unique capabilities, which is expected to sustain and drive future growth.  **[MA_3371350_14]**
- **Europe is a strong driver of differentiated growth for Mastercard**, with significant opportunities in payment volume and value-added services, especially in countries like Germany and Italy, supported by share gains and increased usage of contactless payments.  **[MA_3371350_17]**
- **Mastercard has received formal approval to operate in China** and is uniquely positioned to capitalize on the significant medium- to long-term opportunity in this massive market, leveraging strong relationships with key Chinese banks.  **[MA_3371350_10]**

dcae87621eb818f57e0101fe29bebe98f6621cad0549da7dcb071825cd141482

- **Strong Cross-Border Volume Growth with Further Potential**: Mastercard reported **cross-border volume growth of 18% year-over-year**, driven by strong performance in both travel and non-travel spending.  **[MA_3381805_16]**  Recovery in Asia Pacific, particularly China, where **cross-border travel is at approximately 80% of pre-COVID levels**, suggests room for additional growth.  **[MA_3381805_16]**
- **Significant Opportunity in Value-Added Services**: The company is experiencing **strong demand for its value-added services**, with expectations of higher growth rates in upcoming quarters compared to Q1.  **[MA_3381805_14]**  **Top 50 customers use 2-3 times more services** than the rest, indicating substantial potential for increased penetration among existing customers.  **[MA_3381805_10]**
- **Strategic Focus and Positive Outlook**: Mastercard is reorganizing to focus on core payments, new payment flows, and integrated services, aiming to **move faster and deliver more value to customers**.  **[MA_3381805_18]**  The company maintains its positive outlook, with **unchanged full-year guidance** on a currency-neutral basis, reflecting strong business fundamentals and healthy consumer spending trends.  **[MA_3381805_8]**

62e5a06fd465d90fdaaf95e8604c39f70e5dc15d28f66ed55cd0cc716407b59a

1. **China Market Entry**  
   **Q:** How will China contribute to growth; any issuer updates?  
   **A:** Mastercard is thrilled about entering China, a massive economy, and feels well-positioned to serve it.  **[MA_3371350_10]**  They are working with Chinese banks, acquirers, and issuers to roll out both issuing and acceptance within **6 months**.  **[MA_3371350_10]**  Their strong relationships with banks like **ICBC** and **Bank of Communications** give them an edge in moving forward quickly.  **[MA_3371350_10]**  While going live in 6 months doesn't mean they're live everywhere, they expect to build out over time to capture full opportunity in the medium to long term.  **[MA_3371350_10]** 

2. **U.S. Card Volume Growth**  
   **Q:** Why has U.S. card volume growth decelerated?  
   **A:** Despite a deceleration to mid-single-digit growth, Mastercard believes there's still a decent amount of secular opportunity in the U.S. from both a volume and transaction growth standpoint.  **[MA_3371350_9]**  Business models are evolving, and spending behaviors are changing, creating greater opportunity.  **[MA_3371350_9]**  They are active in growing volumes by winning share, including good wins in the debit space.  **[MA_3371350_9]**  The U.S. remains an important market contributing to growth, driven by **PCE growth**, secular shift, and share gains.  **[MA_3371350_9]** 

3. **Value-Added Services Growth**  
   **Q:** Will value-added services sustain strong growth?  
   **A:** Mastercard continues to see good growth in value-added services, expecting them to grow at a faster pace than the payment network side.  **[MA_3371350_11]**  Key drivers include fraud and security solutions, data analytics, insights, personalization solutions, and digital identity services.  **[MA_3371350_11]** **[MA_3371350_14]**  They believe these services are uniquely differentiated and in great demand, contributing significantly to their growth outlook for 2024.  **[MA_3371350_11]** **[MA_3371350_14]** 

4. **Domestic Yield Declines**  
   **Q:** Why are domestic assessment yields declining?  
   **A:** The sequential decline in payment network net revenue yield is due to stronger cross-border performance in **Q3**, which has better yields.  **[MA_3371350_18]**  Otherwise, there's nothing unusual, and Mastercard runs the business to optimize overall net revenue yield, not just payment network yield.  **[MA_3371350_18]**  They focus on winning deals that add up to overall net revenue growth and are disciplined in their approach.  **[MA_3371350_18]** 

5. **Regional Growth Outlook**  
   **Q:** How does growth outlook differ between U.S. and rest of world?  
   **A:** Mastercard believes the secular opportunity is greater outside the U.S. than within.  **[MA_3371350_12]**  While they've been successful in driving secular shift in the U.S., resulting in lower remaining opportunity on the volume side, they don't expect a meaningful shift in the trajectory between the U.S. and the rest of the world from **2023 to 2024**.  **[MA_3371350_12]** 

6. **Europe Growth Opportunities**  
   **Q:** What's the growth potential in Europe?  
   **A:** Europe is a source of differentiated growth for Mastercard, driven by a combination of share growth and accelerated secular shift.  **[MA_3371350_17]**  Countries like **Germany** are increasing contactless usage, and Mastercard is focused on converting share gains into profitable volume.  **[MA_3371350_17]**  Their services, like consulting and data analytics, are also strong contributors to growth in the region.  **[MA_3371350_17]** 

7. **Real-Time Payments Strategy**  
   **Q:** What's the strategy for real-time payments growth?  
   **A:** Mastercard has a strategic relationship with The Clearing House in the U.S. and operates or provides services to real-time payment systems in **10 of the top 50 GDP countries**.  **[MA_3371350_21]**  They are focusing on applications and scaling volumes in markets they're in, rather than expanding to more countries.  **[MA_3371350_21]**  Use cases like **Chase Pay-by-Bank** demonstrate how they leverage open banking connectivity to enable valuable payments.  **[MA_3371350_21]** **[MA_3371350_19]** 

8. **Brazil Tax Legislation Impact**  
   **Q:** How does Brazil's tax legislation affect EPS?  
   **A:** The Brazilian tax legislation increases operating expenses due to higher indirect taxes, but it's more than offset by benefits in the tax rate.  **[MA_3371350_11]**  Overall, it ends up being **slightly accretive** to EPS.  **[MA_3371350_11]** 

9. **Geopolitical Concerns**  
   **Q:** Will geopolitical events impact growth?  
   **A:** Mastercard monitors fiscal and monetary policies as well as geopolitical conflicts that affect consumer sentiment and spending.  **[MA_3371350_13]**  While elections and conflicts are ongoing, there's nothing dramatically new in **2024**.  **[MA_3371350_13]**  They stay prepared through scenario planning and adapt quickly to challenges.  **[MA_3371350_13]** 

10. **Finicity's Role**  
    **Q:** Is Finicity a VAS or volume driver?  
    **A:** Finicity's open banking capabilities are enabling Mastercard to pursue new use cases like account opening, lending, and payments.  **[MA_3371350_16]**  For payments, it's helping facilitate solutions like **Pay by Bank** in the U.S. with **Chase Bank**, expected to drive significant volume growth.  **[MA_3371350_16]**  Thus, Finicity contributes both as a value-added service and a volume driver.  **[MA_3371350_16]** 

7eb0bec21524ab708529f438c64649e75ef9a16886614fa852726269c3f56cba

1. **Value Added Services and Cybersecurity Growth**  
   **Q:** How is Mastercard's Value Added Services, specifically cybersecurity, contributing to growth?  
   **A:** Michael Miebach stated that security solutions are a significant share of their Value Added Services due to the increasing need to secure digital transactions, a **tremendous underlying secular trend** and **huge addressable market**. They are investing in solutions like **Decision Intelligence**, enhanced with GenAI, leading to up to a **20% lift**. With the recent **Recorded Future** acquisition, they are expanding into Threat Intelligence, offering subscription-based services beyond transactions, which helps drive revenue growth.  **[MA_3405026_9]** ,  **[MA_3405026_15]** 

2. **Tax Rate Impact from Global Minimum Tax**  
   **Q:** Should we expect around a 20% tax rate next year due to global minimum tax?  
   **A:** Sachin Mehra explained that with greater clarity on the implementation of the **Pillar 2 global minimum tax**, the impact of not getting the incentive grant in Singapore this year would have been about **4 percentage points** increase on their tax rate. While he couldn't specify the exact tax rate for next year, this suggests a potential rise to around 20%.  **[MA_3405026_13]** 

3. **Consumer Spending Trends and U.S. Volume Uptick**  
   **Q:** Is the U.S. volume uptick due to stronger consumer spending?  
   **A:** Sachin Mehra noted that the consumer continues to be healthy, with spending in a **very healthy manner**. The uptick also reflects certain **one-time items** like calendarization impact and timing of social security payments, but overall, there is continued confidence from consumers, supported by **strong employment** and interest rate trends.  **[MA_3405026_7]** 

4. **B2B and Commercial Volume Growth**  
   **Q:** How is Mastercard addressing B2B and commercial payment growth?  
   **A:** Michael Miebach highlighted that commercial payments are a **tremendous secular opportunity**, with **11% currency-neutral growth** in Q3. They are investing in solutions with partners like **Oracle** and **SAP** to integrate into companies' back-office systems, catering to a digitally minded new generation of treasurers. Issuing partners are increasingly interested due to benefits like **30 days of working capital** from virtual cards.  **[MA_3405026_14]** 

5. **Impact of DOJ Antitrust Suit Against Visa**  
   **Q:** Does the DOJ suit against Visa present an opportunity for Mastercard?  
   **A:** Michael Miebach acknowledged the headlines but stated they can't comment on the allegations. Mastercard continues to compete in a competitive market by investing in their products and solutions. They see a **tremendous opportunity** ahead, which is unrelated to these headlines, and will focus on helping customers with their needs.  **[MA_3405026_19]** 

6. **Progress in China Market**  
   **Q:** How is Mastercard performing in China after recent developments?  
   **A:** Sachin Mehra reported that Mastercard is now live in China as of May, offering a unique **single-use card** usable both domestically and cross-border. They're investing in acceptance across the country, supported by government interest in linking China's economy more closely to the global economy. Although it's a **huge economy** and a **secular opportunity**, it will take **investment and time** to fully realize.  **[MA_3405026_17]** 

7. **European Market Share Gains**  
   **Q:** What are the macro trends in Europe and potential for further share gains?  
   **A:** Sachin Mehra observed that Europe is performing well with positive macro trends, including momentum in **France, Spain, and even Germany**. Consumer confidence is improving, and unemployment remains low. Mastercard is winning share through conversions of portfolios like **UniCredit** and **Deutsche Bank**, and migrating from **Maestro to Debit Mastercard**, tapping into the secular opportunity.  **[MA_3405026_10]** 

8. **Incentives and Competitive Environment**  
   **Q:** Are rising incentives affecting Mastercard due to more renewals?  
   **A:** Sachin Mehra stated that the market remains competitive, with no significant changes from prior years. They continue to incentivize customers to win volume, which they can then optimize and grow, increasing their net revenue yield. Michael Miebach added that they are winning portfolios by offering differentiated propositions but are thoughtful about which deals to pursue, focusing on net revenue yield.  **[MA_3405026_11]** 

9. **Pricing Strategy and Potential Increases**  
   **Q:** Is there room for more pricing increases across your products?  
   **A:** Sachin Mehra explained that their philosophy remains unchanged; they invest heavily in innovation and deliver value to customers, seeking to realize value from those investments through pricing. Operating in a competitive market, they pay rebates and incentives to win portfolios and consider **net pricing**, net of the compression from rebates and incentives. They continue to see **minimal net pricing** changes.  **[MA_3405026_18]** 

10. **Outlook for 2025 and Effects of Lapping**  
    **Q:** Is Q4 growth a reasonable baseline for thinking about 2025?  
    **A:** Sachin Mehra indicated that factors like the **leap year effect** and the lapping of significant **share wins**—such as Citizens and Wells Fargo—that occurred in 2024 will impact 2025 comparisons. Additionally, **pricing actions** taken will have their lapping effect come through in 2025. More detailed guidance will be provided in the coming months.  **[MA_3405026_16]** 

c3eb459f0062f19d791f18797dd2787879d969407ab65054291e0ce4c0490195

- **Value-added services and solutions net revenue increased by 19% year-over-year**, driven by strong demand in **cybersecurity and data analytics**, and further enhanced by the integration of **AI into products**.  **[MA_3395252_16]**
- Mastercard is capitalizing on the **secular shift from cash to digital payments in Europe**, with significant growth opportunities in countries like **Germany and Italy**, positioning the company for continued market share gains and expansion.  **[MA_3395252_12]**
- The company's **organizational realignment** aims to **accelerate growth** by focusing on **emerging markets with high cash penetration** and leveraging **AI in its services**, which is expected to unlock capacity for long-term business opportunities.  **[MA_3395252_11]**

999585e696bf933d4813d616e4bacf2cd1533c947d5c93139c99b1bc8a0eff97

- **Mastercard anticipates lower growth opportunities in the U.S. due to a diminishing secular shift to electronic payments, potentially impacting future volume growth**.  **[MA_3371350_12]**
- **Geopolitical risks, including elections and potential nationalistic behavior, could negatively affect consumer sentiment and spending, posing challenges to Mastercard's international growth**.  **[MA_3371350_13]**
- **Expansion into China is expected to be gradual, as building out issuing and acceptance networks will take time, potentially delaying the realization of anticipated benefits**.  **[MA_3371350_10]**

6d7cfa6cb505b18730fb8a1f2349056fe495f90ccadfdb04e22127284065dc41

1. **Rebates and Incentives Outlook**  
   **Q:** Why were rebates and incentives lower, and what's the outlook?  
   **A:** Rebates and incentives were slightly lower than expected in Q2 due to timing of deal activity; these deals remain in the pipeline and are expected to occur later in the year.  **[MA_3395252_10]** **[MA_3395252_17]**  In Q3, rebates and incentives as a percentage of payment network assessments are expected to be higher than in Q2, driven by a rich deal pipeline.  **[MA_3395252_10]** **[MA_3395252_17]** 

2. **Margin Expansion and Investments**  
   **Q:** Will margins continue to expand despite investments?  
   **A:** Mastercard aspires to deliver positive operating leverage over the long term by growing net revenue faster than operating expenses.  **[MA_3395252_19]**  The company will continue to invest in growth opportunities in the near, medium, and long term, focusing on strategic priorities while driving both top-line and bottom-line growth.  **[MA_3395252_19]** 

3. **Share Gains and Portfolio Wins**  
   **Q:** How are share gains impacting growth, and what are upcoming conversions?  
   **A:** Mastercard completed the conversion of Citizens' debit portfolio in Q2, contributing to growth.  **[MA_3395252_15]**  Other wins like Webster, UniCredit, and Deutsche Bank are underway and will convert over multiple years.  **[MA_3395252_15]**  These portfolio wins reflect success in a highly competitive market.  **[MA_3395252_13]** **[MA_3395252_15]** 

4. **Consumer Spending Trends**  
   **Q:** Are consumer spending trends stable across demographics?  
   **A:** Consumer spending trends are stable, supported by a strong labor market across income cohorts.  **[MA_3395252_21]**  While spending patterns vary globally, in aggregate, consumers remain healthy.  **[MA_3395252_21]**  Higher-income consumers may spend more on travel and experiences, while lower-income consumers are more price-sensitive.  **[MA_3395252_21]** 

5. **Value-Added Services Growth**  
   **Q:** What drove the acceleration in value-added services growth?  
   **A:** Value-added services grew **19%**, driven by payments-related services, particularly in cybersecurity and data analytics.  **[MA_3395252_16]**  Demand is strong for fraud solutions and tools like Test and Learn.  **[MA_3395252_16]**  Mastercard is also investing in open banking services, with good momentum in areas like lending and data aggregation.  **[MA_3395252_16]** **[MA_3395252_18]** 

6. **AI in Fraud Prevention**  
   **Q:** How is AI being used to combat fraud?  
   **A:** Mastercard has used AI for over a decade to predict fraud.  **[MA_3395252_20]**  With increased digitization and sophisticated fraud techniques, it's enhancing fraud and cybersecurity products using AI, including generative AI.  **[MA_3395252_20]**  New products like Decision Intelligence Pro offer significant improvements, with up to **20%** increase in effectiveness.  **[MA_3395252_20]** 

7. **Cross-Border Revenue Growth**  
   **Q:** Why is cross-border revenue growing faster than volumes?  
   **A:** The positive divergence is driven by favorable mix and pricing.  **[MA_3395252_14]**  Higher growth in high-yielding corridors outside of intra-Europe leads to revenues growing faster than volumes.  **[MA_3395252_14]**  This mix effect may vary based on growth rates in different regions.  **[MA_3395252_14]** 

8. **European Growth Opportunities**  
   **Q:** What is Mastercard's outlook in Europe?  
   **A:** Europe is a strong growth region, driven by market share gains and increasing digitization.  **[MA_3395252_12]**  There's significant opportunity in markets with high cash usage like Germany and Italy.  **[MA_3395252_12]**  Mastercard is well-positioned with fintech partnerships and sees continued growth in cross-border travel.  **[MA_3395252_12]** 

9. **Open Banking in the U.S.**  
   **Q:** What's the outlook for open banking in the U.S.?  
   **A:** Open banking is evolving, with momentum in services like account opening, account linking, and data aggregation.  **[MA_3395252_18]**  Payment use cases are still developing, and the value provided by the card ecosystem remains significant.  **[MA_3395252_18]** 

10. **Merchant Litigation Update**  
    **Q:** What is the status of U.S. merchant litigation?  
    **A:** Mastercard is disappointed by the court's rejection of the settlement and respectfully disagrees with the ruling.  **[MA_3395252_9]**  The company aims to find a solution before trial and is engaging with all parties.  **[MA_3395252_9]** 

6c20fa2e1aac405fb1f402faa56d030e49eb3aa1046b225493e59237cdc3ddd1

- **U.S. volume growth may be driven by one-time factors**, such as the timing of Social Security payments and calendar effects, rather than sustainable consumer strength. Sachin Mehra cautioned that there were "certain onetime items such as the calendarization impact... and the timing of social security payments" that caused a bump in U.S. metrics.  **[MA_3405026_7]**
- **Minimal net pricing opportunities due to competitive pressures**, as Mastercard operates in a "very competitive market" where it must offer rebates and incentives to win portfolios, resulting in "minimal net pricing" gains. This could limit revenue growth from pricing strategies.  **[MA_3405026_18]**
- **Expansion into China requires significant investment and time**, with challenges in increasing acceptance infrastructure. Sachin Mehra stated that "without acceptance...that's going to be hard to do" and emphasized that it "will take investment... it will take time." This may delay returns and impact profitability in the Chinese market.  **[MA_3405026_17]**

ff51ec81e885e671749e656d15bd98ee63dacce6af1fc5570fbbb14c662a79e4

Mastercard Inc (MA)

Financials