Archive · Thu Oct 29 · Plain text · Event page
Mastercard Q3 revenue up 14% as services timing helps; company says some benefit will reverse in Q4
Finance chief Linh Hai said deals and services projects moved from the fourth quarter into the third, and the company still guides Q4 net revenue growth at the high end of a low-double-digit range.
Mastercard Inc. reported third-quarter net revenue growth of 14% on a currency-neutral basis, above its own expectations, and said part of the upside came from the timing of services projects and payment network deals pulled forward from the fourth quarter. On the earnings call, Linh Hai, the company's finance chief, told analysts "you will see a similar offset in q4," even as she said the underlying business remains strong. Mastercard guided fourth-quarter net revenue growth to the high end of a low-double-digit range, excluding inorganic activity.
Quarter results and timing effects
Adjusted operating expenses rose 12% and operating income rose 15%, the company said. Net income increased 18% and earnings per share rose 21% to $5.31, including a $0.16 contribution from share repurchases. Mastercard repurchased $3 billion of stock in the quarter and another $648 million through Oct. 26.
Payment network net revenue grew 11%, while value-added services and solutions net revenue grew 19%, a figure that now includes contributions from stablecoin firm BVNK. Asked whether the acquisition lifted that growth, Hai said the impact was "really minimum" because BVNK is generating revenue "off a small base."
Worldwide gross dollar volume rose 7% in local currency terms. Cross-border volume rose 11% and switched transactions grew 9%.
Fourth-quarter and full-year outlook
For the full year, Mastercard expects net revenue growth at the high end of the low-double-digit range on a currency-neutral basis, excluding inorganic activity, with a tailwind of about 1 percentage point from foreign exchange. For the fourth quarter, it expects a foreign-exchange headwind of about 1 point, driven by a stronger U.S. dollar. Hai said fourth-quarter operating expense growth should be at the high end of the low-double-digit range, and the non-GAAP tax rate should be 20% to 21%.
Hai said rebates and incentives as a percent of gross assessments are expected to be higher in the fourth quarter than in the third. She also said pricing contributions will begin to lap as the company heads into the fourth quarter.
Asked about 2027, Hai said the company will provide formal guidance with its next quarterly release, citing "so many puts and takes" in the business, including macroeconomic conditions, deal wins and losses, services demand and currency volatility.
Cross-border trends and Europe
Hai said intra-Europe volumes fell sequentially from the second to the third quarter, citing a new customs fee in the European Union, the timing of large retail promotions and lower crypto purchases than a year earlier. Cross-border card-not-present spending excluding travel grew 15%, down from 20% in the second quarter, she said in response to an analyst. She said a slight deceleration in cross-border travel in October was due to the timing of holidays. She also said the Middle East conflict continues to weigh on travel but that the company expects a level similar to the end of the second quarter.
In the U.S., Hai said switched volume improved sequentially in the first three weeks of October as the company began lapping the Capital One debit migration, which started toward the end of the third quarter last year and ran through the first quarter of 2026.
Agentic commerce and stablecoins
CEO Michael Miebach said Mastercard is not supporting one-time virtual card numbers as a long-term way to front agentic transactions, calling them a processor-driven "bridge" and saying a fully tokenized path through Agent Pay or an equivalent is "the way to go." He said consumer comfort and merchant discoverability must improve before agentic commerce takes off.
Miebach said the BVNK deal closed in August and that a joint product, Global Money, is in the market. Hai said cybersecurity and other services are being driven in part by AI-related fraud risks. The call was Hai's first as chief financial officer.
Bulletins
MASTERCARD: Q3 NET REVENUE UP 14%, NET INCOME UP 18% YOY NON-GAAP CURRENCY-NEUTRAL
MASTERCARD: ACCEPTANCE AT 200 MILLION+ LOCATIONS, 300 MILLION MORE DIGITAL ACCESS POINTS
MASTERCARD: SIGNED 15 ESSENTIAL DEBIT PROGRAMS THIS YEAR ACROSS 7 MARKETS
MASTERCARD: MERCHANT ACCEPTANCE UP 20% IN 1H 2026, YEAR OVER YEAR
MASTERCARD: WON 100 NEW AFFLUENT CREDIT AND DEBIT PROGRAMS THIS YEAR, 25+ WORLD LEGEND LAUNCHES
MASTERCARD: AFFLUENT SPEND GROWING 2X FASTER THAN OVERALL CREDIT
MASTERCARD: RENEWED HANDELSBANKEN, SWEDBANK; GERMANY RENEWALS WITH DSK, FAU AND ZET BANK
MASTERCARD: LANDS PINNACLE FINANCIAL'S ENTIRE ISSUING PORTFOLIO, MOVING TO NETWORK IN 2027
MASTERCARD: HDFC BANK SMALL BUSINESS DEAL EXPECTED TO ADD 3 MILLION CARDS TO NETWORK
MASTERCARD: TRAVEL WINS EXPECTED TO GENERATE $20 BLN+ INCREMENTAL SPEND OVER AGREEMENT LIVES
MASTERCARD: MARKETING SERVICES CLIENTS SEE AVG INCREMENTAL SPEND GROWTH OF 8 PCT POINTS
MASTERCARD: DIGITAL RISK PROTECTION NOW SERVES NEARLY 800 ENTERPRISE CUSTOMERS AFTER FEW MONTHS
MASTERCARD: SIGNS BROAD STRATEGIC PARTNERSHIP WITH OPENAI, INCLUDES USE OF AGENT PAY
MASTERCARD: LAUNCHES GLOBAL MONEY PLATFORM WITH BBNK; MOVE ADDS 17 BLN ENDPOINTS
MASTERCARD CFO: Q3 NET REVENUE UP 14% ON CURRENCY-NEUTRAL BASIS, EXCLUDING SPECIAL ITEMS
MASTERCARD CFO: Q3 OPERATING EXPENSES UP 12%, OPERATING INCOME UP 15%
MASTERCARD CFO: Q3 NET INCOME UP 18%, EPS UP 21% TO $5.31; BOUGHT BACK $3 BLN STOCK
MASTERCARD CFO: Q3 WORLDWIDE GDV UP 7%; CROSS-BORDER VOLUME UP 11%; SWITCHED TRANSACTIONS UP 9%
MASTERCARD CFO: Q3 PAYMENT NETWORK NET REVENUE UP 11%; US GDV UP 6%, CONTACTLESS 81%
MASTERCARD CFO: Q3 VALUE ADDED SERVICES NET REVENUE UP 19%; DOMESTIC ASSESSMENTS UP 13%
MASTERCARD CFO: Q3 CROSS-BORDER ASSESSMENTS UP 16%; TRANSACTION PROCESSING ASSESSMENTS UP 14%
MASTERCARD CFO: Q3 OTHER NETWORK ASSESSMENTS WERE $285 MLN
MASTERCARD CFO: Q3 ADJ. OPERATING EXPENSES UP 12%, INCLUDING 1 PPT FROM ACQUISITIONS
MASTERCARD CFO: OCTOBER SPEND REMAINS STRONG, METRICS GENERALLY IN LINE WITH Q3
MASTERCARD CFO: FY26 NET REVENUE GROWTH SEEN AT HIGH END OF LOW DOUBLE DIGITS, CURRENCY-NEUTRAL
MASTERCARD CFO: Q4 OPEX GROWTH SEEN AT HIGH END OF LOW DOUBLE DIGITS; OTHER EXPENSE ~$115 MLN
MASTERCARD CFO: Q4 FX SEEN ~1 PPT HEADWIND TO NET REVENUE, ~0.5 PPT TAILWIND TO OPEX
MASTERCARD: NOT SUPPORTING SOLUTIONS USING ONE-TIME VIRTUAL CARDS TO FRONT AGENTIC TRANSACTIONS
MASTERCARD CFO: Q3 CROSS-BORDER VOLUME UP 11%; CARD-NOT-PRESENT EX-TRAVEL 15% VS 20% IN Q2
MASTERCARD CFO: EXPECTS CROSS-BORDER TRAVEL FOR REST OF YEAR SIMILAR TO END OF Q2 LEVEL
MASTERCARD CEO: WON HDFC DEAL, LARGEST PRIVATE SECTOR BANK IN INDIA; WELCOMES POSSIBLE UPI FEES
MASTERCARD CFO: 60% OF VALUE-ADDED SERVICES ARE NETWORK-LINKED
MASTERCARD: SERVICES PROJECTS ACCELERATED INTO Q3, SEEN OFFSETTING IN Q4 REVENUE
MASTERCARD EXEC: EUROPEAN CONSUMERS 'VERY RESILIENT'; INTRA-EUROPE SOFTNESS NOT STRUCTURAL
MASTERCARD EXEC: WINS DSKFAU AND ZBANK IN GERMANY; EUROPE VAS 'A STANDOUT'
MASTERCARD: BVNK DEAL CLOSED BETWEEN LAST CALL AND THIS CALL; JOINT 'GLOBAL MONEY' PRODUCT LIVE
MASTERCARD: Q3 PRICING INCLUDED PREVIOUS AND NEW PRICING; EXPECTS SOME LAPPING OF PRICING IN Q4
MASTERCARD: BVNK ACQUISITION IMPACT ON Q3 VAS GROWTH 'REALLY MINIMUM'; OFF A SMALL BASE
MASTERCARD CFO: NO 2026 GUIDANCE GIVEN; REBATES AND INCENTIVES REFLECT 'SOLID DEAL MOMENTUM'
MASTERCARD: EXPECTS Q4 REBATES AND INCENTIVES AS PERCENT OF GROSS ASSESSMENTS HIGHER THAN Q3
MASTERCARD CFO: WILL GIVE FORMAL 2027 GUIDANCE IN NEXT QUARTER'S RELEASE
Posts (38)
Transcript
Welcome
to
Q3
2026
MasterCard
Inc.
Earnings
Conference
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call. Thank
the call thank you
you
Welcome
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Q3
2026
MasterCard
Inc.
Earnings
Conference
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Welcome
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Q3
2026
MasterCard
Incorporated
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Conference
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Welcome
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Q3
2026
MasterCard
Inc.
Earnings
Conference
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Welcome
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2026
MasterCard in
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Please
stay
on
the
line. You will be able to do
connected
to
the
event
please stay on the line you will be connected to the event shortly
shortly.
Net revenue
growth will be
was
up
14% and
net
income
up
18% in
the third
net revenue growth was up fourteen percent and net income up eighteen percent in the third
quarter
quarter on
a
year-over-year
non-GAP
currency
neutral
on a year over year non gaap currency neutral basis
basis.
While there continues to be a very important case, the
to
be
economic
and
geopolitical unsuccessfully, the economy
uncertainty,
consumers
can be a very
to
while there continues to be economic and geopolitical uncertainty consumers continue
spending the
spend,
businesses continue spending spend
to invest
and
commerce continue to
continues
invest in
to
spend businesses continue to invest and commerce continues to expand
expand.
The economy is a very important thing to
are
our
overall business, and the economy is a
our
and network
have
a
resilient
the economy our overall business and our network have a resilient backdrop
backdrop.
At its core, our network
helps
people
in
and
businesses try to get to the
transact
and protect the
in
at its core our network helps
the
economy.
and our advantage
here is the
people and businesses transact and participate in the economy and our advantage here is clear
clear.
A
diversified
business,
attracts a
global
network
and
the ability to be able to use the
help
our
a diversified business a trusted global network and the ability to help our
customers
customers grow
grow.
We're building on
that at the end of the
advantage
by extending the
reach of the
and
utility of
our
we're building on that advantage by expanding the reach
and utility of our network
network.
We now have
more than
200
million
acceptance
locations
and 300
three
hundred
million
we now have more than two hundred million acceptance
more
digital
access
points around the
world.
That is
locations and three hundred million more digital access points around world
unmatched.
On a year-over-year basis, the best of the world is
basis, problem that
in the first half of the
2020, first year
that is unmatched on a year over year
2026, much of the year-you
acceptance
is up to
20%.
and
in the first half of twenty twenty six merchant acceptance is up twenty percent and growing
growing.
This includes
initiatives like
our
pay
Local
program,
which extends the
expands
acceptance by the
this includes initiatives like our pay local program
embedding
cards
into local
wallets.
And tap on
phone a small
expands acceptance by embedding cards into local wallets
smart
acceptance
and tap on phone a smart acceptance solution
solution.
However,
when not a phone is a
only doing
lot of the same
accepting
to
how do
much we're going to be able to
merchants
except the
payments,
we're
also
finding
however we're not only expanding how merchants accept payments we
valuable
ways
to
get
more
master
credentials
to more
we're also finding valuable ways to get more mastercard credentials to more people
more
people.
That spans
the
full
consumer
spectrum
from
premium
offerings
for
affluent
consumers
and
business
that spans the full consumer spectrum from premium offerings
owners
to
products that
give
people
their
first
access to the
for affluent consumers and business owners to products that give people their first access
the financial
to the financial system
system.
There are a huge number of
people who are in the
financial
of
financially
under the banks of the United
people around the
the
there are huge numbers of financially underserved people around the world
world.
Our new essential debit is a new
production very important thing to
product built in the
on
our
long
long-standing
work to
help
open
the
door
to
our new essential debit product builds on our long standing work
broader
financial
opportunities
and
economic
to help open the door to broader financial opportunities and economic resilience
resilience.
We have signed 15
essential
debit
programs this
year across the
70
seven
we've signed fifteen essential debit programs this year across seven markets
markets.
These
programs
give
our
partners
tools
to
address
up
to seven million
70
million
unbanked
these programs give our partners tools to address up to seventy million unbanked adults
adults
in
those
in those markets
markets.
This
means
more than
people
have a new
payment
option
or a
cards
that
offer
this means more people have a new payment option our cards
protections
and
broad access to the
not
offered
by
local
payment
that offer protections and broad acceptance not offered by local payment options
options.
We're
seeing
early
traction around
a range
of
we're seeing early traction across a range of partners
partners.
These credentials
are
now
issued by the
within
Airtel's
scaled
mobile
wallet
ecosystem
these credentials are now issued within airtel's scaled mobile wallet
launching
next
quarter in the
Nigeria.
And by Finnish, I think it's a very good
Uncle, I'm going to go to
and
launching next quarter in nigeria and by finan cope
Corp
which supports
the
a lot
large
network
of
cooperative
institutions
and
in
which supports a large network of cooperative institutions in ecuador
Ecuador.
This year, the United States is a very
US important part of
we have
already won the United
100
new
this year we have already won one hundred new
affluent
credit
and
debit
programs
and
launched
more
than
25
world
legend
affluent credit and debit programs and launched more than twenty five world legend programs
programs.
MonsterCard
Affluent programs are a lot more
portfolios have
higher
engagement
and higher
cross-border
mastercard affluent portfolios have higher engagement and higher cross border spend
spend.
In
fact,
our affluent spending is a very important
spend growing
two
times
as fast as
than the
overall
in fact our affluent spend is growing two times faster than overall credit
credit.
This quarter, you
UBS, and the
a
super
premium in the
invitation-only,
MasterCard
this quarter ubs launched a super premium invitation only
credit
product
in
Switzerland's
highly
competitive
affluent
I think it's a very important
It
includes
mastercard credit product in switzerland's highly competitive affluent market
our
concierge
it includes our concierge service
service
and
frequent
traveler
and frequent traveler benefits
benefits.
Core to our
programs
is making a lot of
real
connection to the
with
people
and
offering a lot of
core to our programs is making a real connection with people and offering a
product
that
appeals to the
their
needs.
That focuses on
meeting
new
people
where they
product that appeals to their needs that focus on meeting new people where they are
are lets me
to
our
new
partnership
and
co-brand
program
with
Beast
led to our new partnership and co brand program with beast industries
Industries.
This program spans
considerable
and
small
business
creator
this program spans consumer and small business creator cards
cards.
With more than
one business, the business is a good
billion
followers across the
world, city of world is a great
the the United
social
media,
Mr.
Beast
is watching the
of most
one
with more than one billion followers across social media mrbeast
influential
creators in the
the
world.
But that was the first thing
is not a good
just great
about
clicking on the
is one of the most influential creators in the world
It's
capturing
the
culture of the
power
of
digital
but that work is not just about clicks it's capturing the culture
communities
and
driving
economic
and
social
cultural power of digital communities and driving economic and social opportunity
opportunity.
Together we
will
connect creative
creators
and
their
communities
and
in
new
together we will connect creators
ways
bringing
MasterCard
scale
and
capabilities
to
the
next
and their communities in new ways bringing mastercard's scale and capabilities to the next
generation
as
they
are
financial
lives
generation as their financial lives evolve
evolve.
What does all of that
this
tell
us,
MasterCard products are in
demand.
and that demand
continues
to be a good
what does all of this tell us mastercard products are in demand and that demand continues
to grow
grow.
More cards and more
acceptance
points
drive more than a
transactions
and
data,
strengthening
the
power of
more cards and more acceptance points drive more transactions
our
network and
the value of the
our
we
and data strengthening the power of our network and the value we deliver
deliver.
Across over two years, we have a lot of people who
countries, we
in
and
territories,
every market is not a good
very
across over two hundred countries and territories every market
and regional area important
is a part of the
used to be very
and region is unique
is
unique.
And we're
winning, leveraging
our
global
capabilities, and we're going to be able to
and we're winning leveraging our global capabilities
and
that level of
local
and that local expertise
expertise.
Let's look at a few
wins from the next
this
let's look at few wins from this quarter
quarter.
In the
Nordics, we've got a lot of the
been able to get
our
partnership with the United
National
hundreds of
Bank
Banking
and
in the nordics we renewed our partnerships with handelsbanken and swedbank
Sweatbank.
following
a
previously
signed
exclusive
agreement with
following a previously signed exclusive agreement with seb
SEB.
These
wins
a
include
services
like
fraud
detection, and the products are not
and
these wins include services like fraud detection and loyalty
loyalty.
Strengthening our
position is one of the most
advanced
digital
payment
strengthening our position in one of the most advanced digital payment markets
markets.
At the same time, the payment is a big
renewed DSG is a very important thing to
fault
and
the
its
did
setbank
two of
Germany's
at the same time we renewed dskfau and zetbank
largest banks.
banking
two of germany's largest banking organizations
organizations.
Let's put that
in
context.
These renewals deepen
our
relationship with the
two of
the
leading
let's put that in context these renewals deepen our relationship
credit
issuers in the
Europe's last
largest
economy.
They
position us to be able to do
capture the best of the
with two of the leading credit issuers in europe's largest economy
substantial
secular
opportunity
in
they position us to capture the substantial secular opportunity in germany
Germany.
In
China, the US is a very important part of the
our team is a very important part of the
on ground are same as
a lot of the
are very
busy
building
and
solidifying
our
position in the
in china our teams on the grounds are very busy building and solidifying our position in the
local
market.
This
strong foundation is a very important
of the market
long
a
long-term
growth
is rooted in the
growth of the
acceptance of the
local market this strong foundation for long term growth is rooted in the growing acceptance
and
signing
issue
a
deals
to make sure that the market is a good
make
MasterCard
the
preferred
and signing issuer deals to make mastercard the preferred brand
brand.
This
includes
new
programs
with new
China's top
50
15
issuers.
This
this includes new programs with china's top fifteen issuers
quarter
we
added
to
that with
the
new
World
History of the United
Hilton
co-brand
with Bank of the United
this quarter we added to that with the new world hilton co brand
Communications.
and a
consumer
debit
deal
Bank of
China
who
alone
serves hundreds of
with bank of communications and a consumer debit deal with bank
millions
of
retail
customers.
Two
of china who alone serves hundreds of millions of retail customers
fantastic
deals
to
capture
the majority of
and
cross-border
spend in
the
deliver
value
two fantastic deals to capture domestic and
services
and
solutions in the
cross border spend and deliver value add services and solutions in the market
market.
In the United States, the US is the same as the United
States a very
is important
we have a lot of
secured
majority of the
win
in
this
with
pinnacle
of
Financial
Partners, the
newly
in the united states we secured a major win with pinnacle financial partners
combined bank
banks
entire
issuing
portfolio
will
move on to the
our
network
starting
in
the newly combined bank's entire issuing portfolio will move on to our network starting in
2027.
This
includes
consumer
credit, and the customer is a good
debt, and
and credit
business, the banks, the
and consumer
commercial
twenty twenty seven this includes consumer credit debit small business
and commercial cards we
cards.
And
finally moving
to
India with
a lot of
large number
domestic
scheme.
this is one of
the
world's
most
competitive
and finally moving to india with a large domestic scheme that
markets.
This quarter
we
signed
an
important
small
business
is one of the world's most competitive markets this quarter
deal
with
HDFC
Bank.
It's
India's
largest
private
we signed an important small business deal with hdfc bank
sector bank.
with
nearly 20% of the
10,000
branches over the
100% of the
it's india's largest private sector bank with nearly ten thousand branches
million
over one hundred million customers
customers.
This
deal
includes very
value-adsering the
services
and
solutions in the
a
its
expected to be
add
$3
three
million
this deal includes value add services and solutions and is expected
to add three million cards
cards
to
the
Master
to the mastercard network
network.
Beyond the same thing, we will be able to do that.
the small small smaller colours, beyond
small
beyond small business
business,
we
see
a
sizable
opportunity across the
commercial
payments,
including
invoice
we see a sizable opportunity across commercial payments including invoice payments
payments.
I'll work in invoice
payments
helps
transform the
work of
dated
cumbersome, and
accounts pay.
payable
our work in invoice payments helps transform dated cumbersome
processes
into
automated
digital
workflows
with
virtual
accounts payable processes into automated digital workflows with virtual cards
cards.
We can do that.
We focus on bringing the
more virtual
cards to the
market in the
bet
them
directly
into
tools,
we focus on bringing more virtual cards to market and embed them directly
business, and
businesses
already
tools businesses already use
use.
Tungsten
Automation
is
adding
MasterCard's
virtual
card
technology
into
its
tungsten automation is adding mastercard's virtual card technology into
automated
account
payable
its automated accounts payable offerings
offerings.
A leader in intelligent
document
processing, Tonga, and the process of the
service,
serves more than a few
20
25,000
a leader in intelligent document processing tungsten serves more than twenty five
customers.
This will
enable
their entry to the
customers customize the
to
create a new
generate a new
virtual
thousand customers this will enable their enterprise
cards
seamlessly and
with
the
DAD
accelerates
supply
customers to generate virtual cards seamlessly with that
payments,
reducing
accelerates supplier payments reducing cost
cost,
friction, and
friction and risk
risk.
That is
tangible
value.
And we've seen those
results
play
that is tangible value
and we've seen those results play out
out.
For example, a
lot of the
USB
U.S.
retailer
consolidated
more
than
$100
hundred million
in support of the
for example a large u s retailer consolidated more than one hundred million dollars
supplier payments
using
MasterCard
Virtual
cards
through
our
partner
Cooper.
in supplier payments using mastercard virtual cards through our partner coupa
This one
decision is a very important
we
used
to
not be able do
of
number
suppliers
that
needed
to
be
on
this one decision reduced the number of suppliers that needed to be onboarded
onboarded,
saving
an
estimate of the
30%
of the
million in the
onboarding
saving an estimated thirty five million dollars in onboarding costs
costs.
That's valuable
savings for
just one of the most
their
many
clients and
Coupa is one
of
many
as valuable savings for just one of their many clients
partners working with the
us
on improving the
B2B
supplier
pay.
and coupa is one of many partners working with us on improving b2b supplier payments
payments.
So, I'm going to go ahead and do a little bit of a little bit of a little bit of a little bit of a little bit of a little bit of a little bit of a little bit of a little bit of a little bit of a powerful thing.
similar
value in the
travel
vertical,
where
today
we
partner with the
eight
a similar value in the travel vertical
out of
the
ten
largest
players
to
capture
the
secular
where today we partner with eight out of the ten largest players
to capture the secular opportunities
opportunities.
After that, I'm going to be able to do
our experience is a very important thing
to
resources are a very
is important
with the community
China is a very important
and
the
UAE.
and you
have
after that our expanded relationship with checkout dot com in the uae
another
channel to
bring
MasterCard
virtual
cards
to
travel
businesses
at
and you have another channel to bring mastercard virtual cards to travel businesses at scale
scale.
The aggregate of our
travel relationships are
ways of
from the
just
this
quarter
is
expected to be a very good
long
the aggregate of our travel related wins from just this quarter
generate a lot of the
more than
20% of the
billion
in
incremental
spend
on
our
is expected to generate more than twenty billion dollars in incremental spend on our network
network
over the next
last
lives
of
the
over the lives of the agreements
agreements.
These
wins reflect the
our
differentiated
capabilities
that address the capacity of the
these wins reflect our differentiated capabilities that address
specific
customer
needs, but
also
create
opportunities for the
to
live on the
a
more
value
through
specific customer needs but also create opportunities to deliver more value
value
value-added
services
and so
through value added services and solutions
solutions.
Now many of our services are a lot of the
same as
directly support the
growth
and
our
payment
now many of our services directly support growth in our payment network
network.
Our
analytics, marketing, and
law, and marketing, and the
consulting
services have been
us to do
helps
clients
our analytics marketing loyalty and consulting services helps clients
acquire
and
engage,
and reduce
retain
customers
while building a lot of the
healthier
portfolios
acquire engage and retain customers while building healthier portfolios
and
driving
more pay.
payment
and driving more payment activity
activity.
For
example,
through our students, we have a lot
strategic
partnership, we have a lot of power to
with
Qatar
National Bank
Group,
we deployed a lot of
the
for example through our strategic partnership with qatar national bank group
these
capabilities across the
Q
and
B S
presence in the
more than 20
28
we're deploying these capabilities across qnb's presence in more than twenty eight countries
countries
to strengthen the QR
customer
relationships and
drive
to strengthen customer relationships and drive growth
growth.
An American
Airlines is one
of
the
industry's
largest
airline
credit
card
and american airlines is one of the industry's largest airline credit
programs.
We are
supporting
customer
acquisition
for its
refresh
premium
card programs we are supporting customer acquisition for its
offering the
City
A
Advantage
Executive
World
Legend
refreshed premium offering the city a advantage executive world legend mastercard
MasterCard.
These
capabilities power the
and
by code of
our
data,
can
deliver
meaningful
results across the
many different
mastercard
these capabilities powered by our data can deliver meaningful results
marketing
services
campaigns on the
a
global
basis, our
clients
see
an
across mastercard marketing services campaigns on a global basis our clients see an
average
increase
spend
growth
of
8 percentage
points
over
the
measurement
average incremental spend growth of eight percentage points over the measurement period
period.
As commerce becomes a very important thing, the
more
digital
and
AI
as commerce becomes more digital and ai changes
changes
elements
of
payments,
our
security
solutions
are becoming a very important
more
elements of payments our security solutions are becoming more relevant
relevant.
As a
reminder, security is a very important
solutions are not
include
as a reminder security solutions include fraud
fraud,
identity, and
identity
and
cybersecurity.
and cyber security
A portfolio is
carefully designed to be a very important
help
our
partners protect the current
their own
ecosystem
and
we
see
our portfolio is carefully designed to help our partners protect the ecosystem
the
demand across the
and we see demand across the board
board.
This quarter we
added
our
extended
fraud
in
identifying
identity
wins
with
standard
Bank
this quarter we added our extended fraud and identity wins with standard bank
Monzo,
and
Staling
Bank.
Staling for
example extended
its
use
of
fraud
rule
monzo and starling bank starling for example extended its use of fraud rule manager
Manager,
helping
it respond to the rule of the United
faster than the
to
emerging
attacks,
reduce
false
declines,
and
helping it respond faster to emerging attacks reduce false declines
protect
the
customer
experience at the
and protect the customer experience at scale
scale.
Within cybersecurity,
we continue to do
see the security of the
maintenance
one-to-one
platform
sales,
but
even
within cybersecurity we continue to scale one to one platform sales
more
so
new
network
products
like
our
newly
launched
digital
risk
but even more so new network products like our newly launched digital risk protection
Protection.
This capability is a lot of the
helps
organizations identify the
vulnerabilities
in
their
own
digital
this capability helps organizations identify vulnerabilities in their own
digital environments
environments.
After only a
few months, we have lot of
the data is a very important thing to
and
in Marketing, the
it
now serves as a
nearly
80% of the
800
enterprise
after only a few months in market it now serves nearly eight hundred enterprise customers
customers.
Additionally,
our
enhanced third-party customer is
risk is a lot of the rest of the
options
offering
brings together
risk is a lot of
additionally our enhanced third party risk offering
recon or
the
recorded
future
capabilities
in
one
brings together risk recon or recorded future capabilities in one solution
solution.
It helps
identify
prioritize, and solve the idea of the
respond to the
risks before we can
they begin to
become
business
to help identify prioritize respond to risks
before they become business disruptions
disruptions.
But AI is not a good
only lot of the
not
changing
the
demand for the
our
security
solutions,
it's also a
changing the demand for the
but ai is not only changing the demand for our security solutions
how commerce is the most important
it's also changing how commerce happens
happens.
The foundation I described
earlier brought the foundation of the foundation
participation in
the
global
acceptance
and
the foundation i described earlier broad participation global acceptance and trust
trusted
capabilities
positions
us
to
help
shape
the
next
evolution
of
capabilities positions us to help shape the next evolution of commerce
commerce.
That
includes a
Gentic
commerce
where
a
buyer uses a
AI
agents
to
discover, select the US, and the
that includes agent pay commerce where a buyer uses ai agents to discover select
and personalize the
a
product
or
and purchase a product or service
service.
There are two
forms, machine to
and machine
to to
traditional
e
there are two forms machine to machine and traditional e commerce
Combined, they
create significant
opportunities for the
for
MasterCards
from
more
combined they create significant opportunity for mastercard's
transactions
to
new
B2B
carded
payments.
as
businesses
from more transactions to new b2b carded payments
as businesses utilize
utilize
agents.
And
eventually an entirely new address is a very important thing to
market good
is a very
of marketing
agents and eventually an entirely new addressable market of micro transactions
microtransactions.
all the while creating
more
opportunity for the
our
services
from
fraud
to
all the while creating more opportunity for our services from fraud
longer
term
potential
in
insights
and
to longer term potential in insights and loyalty
loyalty.
Consumers are
beginning to be able to do
use
agents
to
discuss the
and
purchase
consumers are already beginning to use agents to discover and purchase products
products.
We expect that trend is a very important thing to
be able do
use the
build a lot of
as hard as we
holiday
shopping
ramps
up and
to continue
well
beyond
we expect that trend to build as holiday shopping ramps up
the
and to continue well beyond the season
season.
It is still
early
days and
number of the
are
not
yet
significant
in
the
grand
scheme,
but
is
it is still early days and the numbers are not yet significant in the grand scheme but
the
AI is
as the ai
agenda is a very important
assistant is a very important
good
have
emerged,
Gentic transactions are
ramping
up
at
agentic assistance have emerged agentic transactions are ramping up at impressive
impressive
weekly
growth
weekly growth rates
rates.
We're now seeing the rows of the
early stage of the rate of the rate of
stages consumer
now seeing the early stages of consumer adoption
adoption.
For this time, we're going to be able to do
of age,
the game is a very good
company
to the company, the company
at same
scale,
we
need
four
for this type of agent e commerce to function at scale we need four things
things.
Trust in the
trust in the payment
payment, the aid of
agent, the
the agent
ecosystem,
and
your
ubiquitous
reach.
MasterGuard is
has built
capabilities are a very important thing to
for the
each of
the ecosystem and ubiquitous reach
these
mastercard has built capabilities for each of these four
four.
For trust in the
for trust in the payment
payment,
tokenized.
is
embedded in the
agent
pay.
and
backed
by
the
franchise
rules
everyone
expects to
tokenization is embedded in agent pay and backed by the franchise rules everyone expects
today.
for trust in
the
agent,
agent pay
ensures agent
are
very
verified
and
today for trust in the agent agent pay ensures agents are verified and
authorized to be able to do
by the
buyer and that
the
merchant
and
issuer
are aware
authorized by the buyer and that the merchant and issuer are aware
For trust in the
ecosystem,
we
bring
transparency
and
continuity
through
the
payment
for trust in the ecosystem we bring transparency and continuity through the
payment flow
flow.
Verifiable
intent
captures
the
buyer
intent.
and
our
recently
launched
Agentic
Trust
verifiable intent captures the buyer intent and our recently launched agentic
Intelligence solution is a very important
has been lot of the
helps
banks
and
merchants
evaluate
transactions and
by the production of the production
intelligence solution helps banks and merchants evaluate transactions
any
AI
initiated by any ai agent
agent.
And that
allows
these
transactions to the
occur
wherever
markets
is
and that allows these transactions to occur wherever mastercard is accepted
accepted.
That is the
unparalleled and
growing
reach
I talked
about
that is the unparalleled and growing reach i talked about earlier
earlier.
At the same
time, we have a lot of people who are going to be
helping
merchants ready to be able to get the
themselves reach
be do
and
more the
discoverable
to
agents
at the same time we are helping merchants ready themselves and be more discoverable
with
our
new
agent
Connect
to agents with our new agent connect solution
solution.
Many
partners
are
putting off
all of
this
into
practice.
For
example,
many partners are putting all of this into practice
Shopify, through
ShopPay is
using
an
agent
pay
in
our
network
tokens to make sure that we're going
a
gentic
for example shopify through shop pay is using agent pay and our network tokens to make a
payments
more
secure
and
seems to be a
good
while presenting the
preserving
integrity
of the
consumer's
payments more secure and seamless by preserving the integrity
credential
end-to-end,
ShopPay is
already
available on the
multiple
Agentic
of the consumer's credential end to end shop pay is already available on multiple
platforms
with
more
to
agentic platforms with more to follow
follow.
And I think that's a good question.
And with open
OpenAI,
this is a very important
quarter we
signed
a
broad
strategic
partnership
that
and with openai this quarter we signed a broad
includes
the
use
of
agent
pay.
and
goes
well
strategic partnership that includes the use of agent pay and goes well beyond
beyond.
Our agreement
establishes
collaboration across the
payments, joint payments, and
services,
growth,
and
AI
our agreement establishes collaboration across payments
joint services growth and ai transformation
transformation.
And we
cannot
forget
the
other
technology
that
and we cannot forget the other technology that is
is
part
of
virtually
every
conversation.
Digital
assets
and
stable
stablecoins.
part of virtually every conversation digital assets and stablecoins
our customers I'm
and
partners are continuing to do
selling the cost of the cost of the
about
current
how to do
they
might use
the
technology in
their
our customers and partners are continually thinking about how they might use the technology in their offerings
offerings.
To be
useful, this is a very important
little assets that are
to be
work with the
exactly same
financial
and
commercial
to be useful digital assets need to work with existing financial and commercial services
services.
That
means
enable the
customers to be able to do
connect to the
with
digital
asset
capabilities
with
the
that means enabling customers to connect digital asset capabilities
accounts,
payments, and
systems, the
money
movement,
experiences
already in the middle of the
with the accounts payment systems and money movement experiences already in use
use.
That is why
we
acquired
that is why we acquired bb and k
BBNK.
For BBNK, we are excited about the
expanding
infrastructure that we
can be used to be able to do the same
connects
stablecoin
coins
with
traditional
through bb and k we are expanding the infrastructure that connects stablecoins with
payment
and
money
movement
traditional payment and money movement experiences
experiences.
Financial
institutions and
fintechs
today
struggle
to
offer
both fee and
and
stable
coin
financial institutions and fintechs today struggle to offer both fiat
accounts creating
the
risk of
customer
deposits
moving to the current
competing
stable
coin
and stablecoin accounts creating the risk of customer deposits moving to competing
stablecoin accounts
accounts.
A first
combined
MasterCard
BVM is a very
cap
production is a very
product
the
MasterCard
Global
Money
our first combined mastercard bbnk product
is the mastercard global money platform
platform.
enables financial institutions to be able to do
and
fintechs
to
offer
accounts
where customers are able to access the
can
enables financial institutions and fintechs to offer accounts where customers can hold
hold
convert, save, and
send
receive
across
fiat
currencies
and
stablecoin.
convert send and receive across fiat currencies and stablecoins
coins.
MasterCard move is also in the case of the
integrated,
bringing
its
17
billion
end
to the
mastercard move is also integrated bringing its seventeen billion endpoints to the platform
platform.
This
enables
businesses to the
pay for
out
stablecoin back to the
balances
directly to the
into
recipients
this enables businesses to pay out stablecoin balances directly into recipients
local banks.
bank
accounts.
NUVE and MAKETA will be able to do
among
the
first
customers
to introduce the
local bank accounts nouve and marketa will be among the first
platform
with
more
partners
to
be
announced
soon.
And all of
customers to integrate the platform with more partners to be announced soon
this is a very important
complementary
to
our
existing
stablecoin
offerings such
as
crypto co-brands
and
and all of this is complementary to our existing stablecoin offerings such as crypto co brands and
Stablecoin.
stablecoin settlement
Settlement.
So, I'm going to go ahead and do a little bit of a little bit of a little bit of a good idea.
So stepping
back
the quality of
is a good
the market very important
is
demonstrates
the breadth of the
and
consistency of the breadth of the
our
so stepping back the quarter
strategy
We're expanding
the
reach
and
utility
of
our
demonstrates the breadth and consistency of our strategy we're
network
solidifying
differentiation.
expanding the reach and utility of our network solidifying differentiation
We continue to
win
important
relationships with the United
and deal
deepen
those
relationships
with
differentiated
we continue to win important relationships and deepen those
relationships with differentiated services
services.
growing
payments
and
protecting
the
ecosystem.
And we're
extending
our
trusted
growing payments and protecting the ecosystem
capabilities
into
a
Gentic
commerce
and
digital
and we're extending our trusted capabilities into agentic commerce and digital assets
assets.
We're executing and
delivering
today while
in the
investing
in
solidifying
our
position for the
we're executing and delivering today while investing in solidifying our position for the future
future.
and
with
that, I'll be able to do
will
turn it into the
over to
for
the
very
first
time
to
Ling
and with that i will turn it over for the very first time to linhai
Hai. Thank
you,
thank you michael
Michael.
Turning to
page
turning to page three
3,
which shows you the
our
financial
performance
for
the third
quarter
on
a
current
in
neutral
which shows our financial performance for the third quarter on a currency neutral basis
basis.
excluding
where
applicants
special items
excluding where applicable special items
and
the
impact
of
gains
and
losses
on
our
equity
and the impact of gains and losses on our equity investments
investments.
Net revenue was
up
14%.
net revenue was up fourteen percent
reflecting
continued
growth in the
our pay.
payment
reflecting continued growth in our payment network
network and
our
value
value-added
services and
and our value added services and solutions
solutions.
with minimum
impact
from
acquisitions
and
with minimum impact from acquisitions and dispositions
dispositions.
These
revenues
were
above the
our
these revenues were above our expectations
expectations.
primarily due to the
conditions of
strength
of
our
business.
and the
timing of our
primarily due to the continued strength of our business
both
services
and the timing of both services projects
projects
and
payment
network
and payment network deals
deals.
Operating
expenses
increased
12%.
operating expenses increased twelve percent
including
a
1
PPT
increase
from
acquisitions
and
including a one ppt increase from acquisitions and dispositions
dispositions.
And operating income
was
up
and operating income was up fifteen percent
15%.
Net income
and
EPS
increased
18%.
net income and eps increased eighteen percent
and
21%
and twenty one percent respectively
respectively.
driven
primarily
by
the shortcomings of
operation the 19th
income
growth
in
the
driven primarily by the strong operating income growth in the quarter
quarter.
EPS
was
$5.31.
eps was five point three one dollars
which
increased
a
16
cent
contribution
from
share
which includes a zero one six dollars contribution from share repurchases
repurchases.
During
the course of the year, the review of
during the quarter
quarter,
we
repurchased the quality of the
three
$3
billion worth of
we repurchased three billion dollars worth of stock
of
stock.
and $6
$600
million worth of
additional
stock
through
October
and six forty eight million dollars of additional stock
26th of
the
this
through october twenty six of this year
year.
Now to the next
turning
to page
4,
where
I'll
speak to
now turning to page four
the
growth
where i'll speak to the growth rates
rates
of
our
key
volume
of our key volume drivers
drivers
for
the
third
quarter on the third
low
local
currency
for the third quarter on a local currency basis
basis.
Worldwide
growth
all
dollar
volume
or
worldwide gross dollar volume or gdv
GDV.
increased
by
7%
year
over
increased by seven percent year over year
year.
In the
U.S.,
GPS is a very important
thing to
the
increased six
in the us gdv increased six percent
6%.
with credit
growth
of
10%.
with credit growth of ten percent
and
debit
growth of
and debit growth of one percent
1%.
which increases the growth of the
importance of the
the
capital
1
debit
which includes the impact of the capital one debit migration
migration.
Outside of
the U.S., the USA, the
is a very important
US
outside of the u s
GDP, the US, the US, the
is a very important thing to
includes the
increased
gdv increased eight percent
8%.
with
credit
growth of
with credit growth of six percent
6%,
and
debit
growth of
and debit growth
of ten percent
10%.
Cross-border
volume equals
increased in
11%
globally for
the
cross border volume increased eleven percent globally for the quarter
quarter.
reflecting the volume of the
continued
reflecting continued growth
growth
in
both
in both travel
travel
and
non-travel
and non travel related
related
cross-border
cross border spending
spending.
Turning to page
pay.
turning to page five
five.
switch
to
transactions
grew
9%
year
over
year
in
switched transactions grew nine percent year over year in q three
Q3.
We can continue to continue.
We continue
to
drive
contact
penetration,
which
in
we continue to drive contactless penetration
Q3
stood
at
80% of the 20th
of the 19th
all
in-person
which in q3 stood at eighty one percent of all in person
switched
purchase
switched purchase transactions
transactions.
This is
up for the first
PPT
since
the
same
period last
this is up five ppt since the same period last year
last
year.
In
in addition
addition,
cutting the current
growth is a very important
was five
card growth was five percent
5%.
Globally, there
are
they're
now
3.8
billion
globally there are now three point eight billion mastercard
MasterCard
and
Maestro
branded
cards
and maestro branded cards issued
issued.
Turning
to
slide
6 for the
a look at
the middle of the
into our
net
revenue
growth
turning to slide six for a look
rates
for
the third
into our net revenue growth rates for the third quarter
quarter.
discussed
on
a
currency
neutral
discussed on a currency neutral basis
basis.
Payment
network
net
revenue
increased a
payment network net revenue increased eleven percent
11%.
percent.
primarily driven
by the
network of
domestic
and
cross-border
transaction
volume
primarily driven by domestic and cross border transaction volume growth
growth.
as
well
as well as pricing
pricing.
It also
includes
growth
in
rebates
and
it also includes growth in rebates and incentives
incentives.
Value-added
services
and
solutions are
net
revenue
increased
value added services and
net revenue increased nineteen percent
19%.
This
includes
a
minimum
impact
from actual
acquisitions
and
this includes a minimum impact from acquisitions and dispositions
dispositions.
And now
reflects the concept of
the
from
BVN
and now reflects the contributions from bb and k
Excluding
these in the
excluding these impacts
the increase in the impact of the impact of the
in
will be
driven by the increase in the
primarily by the increase in the increase
the increase was driven primarily by
primarily by
growth
in
our
underlying
growth in our underlying drivers
drivers.
strong
demand across the
consumer
acquisition
and
strong demand across consumer acquisition and engagement
engagement.
business
and
marketing
business and marketing sites
sites, security, and
security solutions
solutions.
as well
as
as well as digital
digital
and
and authentication
authentication.
And
finally,
and finally pricing
pricing.
Now, I think that's a good
let's
go ahead and use the same
it into
to next
page
now let's turn to page seven
7 to discuss the
key
to discuss key metrics
metrics related to the
payment
related to the payment network
network.
Again,
all growth is a lot
rates
are
described by the payment of the
on
a
currency
neutral
again all growth rates are described on a currency neutral basis
basis
unless
otherwise known as
unless otherwise noted
noted.
Looking
quickly at
each
key
looking quickly at each key metric
metric.
Domestic
assessments
will update the
up
domestic assessments were up thirteen percent
13%.
while
World War II was
GPS
grew
while worldwide gdv grew seven percent
7%.
The 66% of the 2008-100% of the 20% of the GDPR is the same as the
difference
primarily the
driven by the
pricing
the six ppt difference is primarily driven by pricing
and
and mix
mix.
Cross-border
assessments
increased
16%.
cross border assessments increased sixteen percent
while
cross-border assessment
volumes
increased
while cross border volumes increased eleven percent
11%.
The five
PPT differences are the
the five ppt difference
difference
is driven by the
10% of
primarily by the
by pricing
in
international
is driven primarily by pricing in international markets
markets
and
and mix
mix.
Transaction
processing
assessments
will
up
transaction processing assessments were up fourteen percent
14%.
while Switch was
to the
transactions grew
while switched transactions grew nine percent
9%.
The
5 PPT difference was the 20% of the
is
primarily the difference between the
related to the
2000
the five ppt difference is primarily related to pricing
pricing and
the face of the price of the price of the
and a favorable mix
mix,
partially
partially offset
offset
by
lower
revenue
from
FX
by lower revenue from fx volatility
volatility.
Other network
assessments
were
285
other network assessments were two eighty five million dollars
million.
this
this quarter
quarter.
Mm-hmm.
Moving on to the
paying a lot of
moving on to page eight
page
8.
you can see
that on the
a
non-GAP,
currency in
neutral
basis,
you can see that on a non gaap currency neutral basis
excluding
special
excluding special items
items.
total
adjusted
operating
expenses
increased
total adjusted operating expenses increased twelve percent
12%.
including
a
1
PPT
including a one ppt increase
increase
from
acquisitions
and
from acquisitions and dispositions
dispositions.
The growth in operating
expenses
was
primarily
driven by the
spending
to
drive
the
execution of the
the growth in operating expenses was primarily driven by
our
strategic
spending to drive the execution of our strategic priorities
priorities,
including
product
innovation
geographic
expansion,
including product innovation geographic expansion
and
continued
and continued investments
investments
in
our
in our technology
technology.
So, I think that's a good idea.
Turning to the
page
turning to page nine
9.
Let me
comment on the
operating
metric
trends
for
let me comment on the operating metric trends for q3
Q3 and
the
first
three
weeks of
and the first three weeks of october
October.
Starting
with QA, we have a few of the
starting with q3
switch
of all
volume
and try to QR
the
transaction
metrics.
are
generally
the
with
switched volume and transaction metrics are generally in line with q2
line
Q2
and
remain to
and remained strong
strong.
Of
off note
note,
the
sequence of the same is the
sequence sequence
increase of the of the
sequence sequence
is
in
the
URL is the
switched
volume
was
primarily due to the
the sequential increase in the u s switched volume
recent
commercial
was primarily due to recent commercial wins
wins.
Looking at
looking at cross border
cross-border.
first of
first
lower
yield
yielding
intra-you
volumes
were
down
sequentially
from Q
Q2
to
lower yielding intra europe volumes were down sequentially from q2 to
Q3.
driven by the QR
in-depth
of the
related to QR
the
a
new
customs
fee in the case of the
q3 driven by the impacts related to a new customs
fee in the eu
EU.
timing of the
large
retail
promotional
timing of large retail promotional events
events.
and
lower
crypto
purchases in
the
and lower crypto purchases in the quarter
quarter compared to
the crypto
last
compared to last year
to
last
year.
These
these impacts
impacts
on any of
intra-Europe
cross-border were
the
primary
reasons
for
the
decline
in
card
on intra europe cross border were the primary reasons for the decline
knot
not
present
ex-travel
in card not present ex travel sequentially
sequentially.
And growth
in
higher
yielding
other
and growth in higher yielding other cross border
cross-border
remains
stable
and slightly
remains stable and slightly higher
higher
quarter over
quarter over quarter
quarter.
As we look to
the first three
weeks
of
as we look to the first three weeks of october
October, spending a lot of
remains
strong.
with
metrics
generally
in
spend remained strong with metrics generally in line
line.
A few
points to the
a few points to note
note.
In the
U.S.,
switched to the
volume
improved
sequentially
as
we became a
in the us switched volume improved sequentially
to use the
see
lack of
as we began to see the lapping
lapping
of
the
capital
one
debit
of the capital one debit migration
migration,
the
lift
from
recent
commercial
the lift from recent commercial wings
wings,
and
higher
spend
on
and higher spend on gas
gas.
As a
as a reminder
reminder,
the capital is a good
one the
same as
days are
is a good deal of
market
migration
began in the United
towards end of
the
Q3 last
the capital one debit migration began towards the end of q3 last year
year.
and
continues to be a very important
through
Q1 to
and continued through q1 'twenty six
Looking at the
across the edge of the
looking at cross border
the body is a very good
of
the
correct
impact of the
the sequential impact
impacts
remain
predominantly in
remain predominantly intra europe
intra-Europe.
Growth
in
cross-border
cartinal
or
present.
growth in cross border card not present ex travel
ex-travel,
continued
to
see
the
impacts
from
two
of
the
areas
I
noted
continue to see the impact from two of the areas i noted earlier
earlier.
notably
the cutting
customs
notably the customs fee
fee
and
the
tougher
and a tougher comp
comp.
due to the
higher
spend
on
crypto
purchases
last
due to higher spend on crypto purchases last year
last
year.
And the slide is a very important
details are the
deceleration
in
cross-border
travel
due to the
and a slight deceleration in cross border travel
timing
of holiday.
holidays.
was due to timing of holidays
Overall,
underlying
spend
remains
overall underlying spend remains
strong
strong.
and
consumers
and
and consumers and businesses
businesses
are
are spending
spending.
Uh
Turning to the
page
turning to page ten
10.
I
wanted
to share the
our
thoughts for
the
remainder of the
i wanted to share our thoughts for the remainder of the year
the
year.
As
mentioned,
consumer is a very important part of the
and
commercial spending is a very
was
helpful to the
in
as mentioned consumer and commercial spend was
in q3
Q3 and
so
far in
into
and so far into q4
Q4.
Our business
fundamentals
are
our business fundamentals are strong
strong
and
we
continue to be able to do
deliver
solid
and we continue to deliver solid growth
growth
across the
both
our
payment
across both our payment network
network
and
value
services
and
and value added services and solutions
solutions.
These results are
reflect the
our
winning
these results reflect our winning strategy
strategy.
Strength of
our
strength of our innovations
innovations,
diversity, and our
of
our
diversification of our business
business,
and
our
relentless
and our relentless commitment
commitment
to
serving
our
to serving our customers
customers.
This is
all under the
by
a
supportive
macro
this is all underpinned by a supportive macroeconomic environment
environment
with
balanced
labor
markets,
strong
household
balance
sheets,
with balanced labor markets strong household balance sheets
and
continued
wage
and continued wage growth
growth.
To
to date
date,
consumers
employed the
are a good
have to be able to do
demonstrated
consumers and businesses have demonstrated resilience
resilience.
But there
is
heightened
geopolitical
but there is heightened geopolitical uncertainty
uncertainty,
which has a lot of different
persisted in the
for some
time,
driving
energy
prices
which has persisted for some time driving energy prices higher
higher
and
putting
more
focus
on
monetary
policy around the
and putting more focus on monetary policy around the world
around the
world.
We will continue to do
monitor
the
situation
just
as
we
we will continue to monitor the situation
ought to
always
just as we always do
do.
Our outlook on
growth for
the remainder of the world is the most
groups
of
the
year continues to be a great
remain
our outlook on growth for the remainder of the year
continues to remain positive
positive.
So turning to
our
expectations, we have to be able to do
we
so turning to our expectations
For the full year
for the full year twenty twenty six
2026,
we are going to be able to do
that we have a lot of the
that very long
net
revenue
growth
to
remain
at the highest
end of the
low
double
digits
we expect net revenue growth to remain at the high end of low double digits range
range on
a
currency
neutral
on a currency neutral basis
basis
excluding in
inorganic
excluding inorganic activity
activity.
As a
reminder, in
Q2R, we are going to be able to use
earnings,
we talk about the QR
you that are going to be able to do
that you can see that we are
our expectations are not going to be a very good
are not important
as a reminder in q2 earnings
were
higher
in
the rate
range.
compared to the
we told you that our expectations were higher in the range
earlier in the
compared to earlier in the year
the
year.
Our full year
remains
in
line with the
these
our full year remains in line with these expectations
expectations.
We
anticipate
minimal
impact
from
across the
and
we anticipate minimal impact from acquisitions and dispositions
dispositions.
and
a
and a tailwind
tailwind
of
a
a majority of the
1
of approximately one ppt
ppt.
from
foreign
from foreign exchange
exchange.
We
also explained that the extraction of the
maintenance is a very important
that we have lot of
for the
operating
expenses
we also expect
growth
to
remain
in
line
with
previous
expectations at the end of the
full year operating expenses growth to remain in line with previous expectations
low
double
digits
range
versus
a
year
ago on
a
currency
neutral
at the low double digits range versus a year ago
basis,
excluding in
inorganic
on a currency neutral basis excluding inorganic activity
activity.
We expect
a minimum of
impact
from
acquisitions
and
dispositions and
we expect a minimal impact from acquisitions and dispositions
ahead
a headwind on
of
0.5 to
1
ppt
from
foreign
exchange on the
a
full
and a headwind of zero point five to one ppt
four-year
from foreign exchange on a full year basis
basis.
As it relates to our
expectations
for
the
fourth
quarter of the
as it relates to our expectations for the fourth quarter of twenty twenty six
2026
year over 20
net
revenue
growth
is
expected to be
a new
at the highest
high end of the
low
double
year over year net revenue growth is expected to be at the high end of low double
digits
digits range
range
on
the
a
currency
neutral
basis.
excluding
in
all
inorganic
on a currency neutral basis excluding inorganic activity
activity.
We have to expect to get a minimum.
We expect
minimum inorganic
from
acquisitions
and
dispositions and
a
we expect minimum impact from acquisitions and dispositions
headwind
of
approximately
1
ppt
from
foreign
and a headwind of approximately one ppt from foreign exchange
exchange.
primarily during
by
the strength of the
primarily driven by the strengthening
of
the
U.S.
of the u s dollar
dollar
over
the
past
over the past quarter
quarter.
from
an
operating experience, the operating system is a very
standpoint, the operating system is a good
standpoint,
we expect that
can
Q4
growth
to be able
at
the highest
from an operating expense standpoint we expect q4 growth
high end of the QR
low
double
digits
range
versus a
year
to be at the high end of low double digits range versus a year ago
ago.
Again, on the
currency in
neutral basis, the
again on a currency neutral basis
excluding ink
inorganic
excluding inorganic activity
activity.
We anticipate a
1
PPT
drag
from
acquisitions
and
we anticipate a one ppt drag from acquisitions and
dispositions
while
foreign
exchange
is foreign
forecasted
to
be
a
dispositions while foreign exchange is forecasted to be a tailwind
tailwind of
a
approximately a
0.5
ppt for
the
of approximately zero point five ppt for the quarter
quarter.
On other
income
and
expense, it is a very important
the
Q4
we expect that
to be able to increase the
have a good
an
extension of
on other income and expense in q4 we expect an expense
expense approximately
$115
million.
of approximately one hundred and fifteen million dollars
This
excludes
gains and
losses under the
our economic
equity
this excludes gains and losses on our equity investments
investments,
which
are extremely
from the best of the
from
our
non-GAP
which are excluded from our non gaap metrics
metrics.
And finally, we will be able to do this.
And
and finally
finally,
we explained that we have
can do
a number of
tax
we expect a non gaap tax rate
rate in
the
range
of
20
to
21%.
in the range of twenty percent to twenty one percent
percent
for
both of
full
year and the full
for both the full year
and
and q4
Q4.
And with
and with that
that, I'm going to use the QR
be able do
turn to
the next
i will turn the call
call back to
over the
to
back over to devin
Devin.
Thank
thank you
you. Elodie, you may
now open
the
line for
elodie you may now open the line for questions
for questions.
At this
time, I think that's a good
little bit
to say
thank
remind you that I'm going be able
can't do
everyone that I would like
in the next
at this
order
to be able to do
ask you
a
question,
press
star
and
then
the
time i would like to remind everyone order to ask a question press
number
one
on
your
telephone
star and then the number one on your telephone keypad
keypad.
Please
only press
star
1 once you're in the
to
keep pressure on
up
for
a
question.
as
pressing
it
please only press star one once to queue up for a question
multiple
times
may
affect
your
position in
the
queue.
We'll pause just a
as pressing it multiple times may affect your position in the queue
moment to do
complete the quality of the
compile
Q
A
we'll pause just a moment to compile the q and a roster
roster.
You're
first
question
is for the next
from
line
your first question is
of
her
Hershita
Rawat
with
from the line of harshita rawat with bernstein
Bernstein.
Please go
please go ahead
ahead.
Hi,
good
morning.
Michael, I want to ask
about
a
hi good morning michael i want to ask about agenteq
Agentic
Commerce.
A lot has been
happening
here
and
it
feels
like
there's
a
lot
of
patchwork
of
commerce a lot has been happening here and it feels like there's a lot of patchwork of
checkout
options
ranging
checkout options ranging from
from
single
use
virtual
cards
to
single use virtual cards to wallets
wallets.
My question
is, how important is
it
is
for
you
that Marketing
MasterCard
agent
my question is how important it is for you that mastercard
to
open
are
being
used as
opposed to the
agent opens or being used as opposed to
to
wallets
or
virtual
cards
and and I know you have your
own
probability
based
risk
signals with
Agent
wallets or virtual cards and and i know you have your own probability based risk signals
pay
now as
with agent pay now as well
well.
And how can
you draw a lot of the
drive
adoption
for
master
agent
Pay?
I know you talked
about
and how can you drive adoption for mastercard agent pay i know you talked about shop
Shop Pay
and
OpenAI as
well.
and openai as well thanks
Thanks.
Thanks,
Arshida.
Morning,
thanks harshita
everyone.
Um so
morning everyone so
um the
um
this is an
important
question.
So Agentic
Commerce, first of
all, we
think
is
the this is an important question so agenty commerce
the
next
evolution
of
uh
digital
first of all we think is the next evolution of digital commerce
commerce.
It is
went
through you
a
year and
a
bit
in terms of
it is went through a year and a bit
getting
the
ecosystem
ready.
Um
there's
agent pay.
payout
there.
are the
solutions out
in terms of getting the ecosystem ready there is agent pay out there there are
there.
and you
just
ranged and
an
additional
uh you just
listed an
additional
set
the solutions out there and you just ranged an additional you just listed
of
checkout
ways
that
are out
there.
So the
ecosystem is kind
of
an additional set of checkout ways that are out there so
balancing
out.
So when you
think
about
what maps
what are
I
I'm going to do is that think
I that's what I'm
in
the ecosystem is kind of balancing out so when you think about what
my
uh
prepared
remarks
is
the
trust
in
payment of
is
this
key
the trust
what i said in my prepared remarks is
in
the
agent is
key,
the trust in the
ecosystem is
key,
the trust in the payment is key the trust in the agent is key the trust in the ecosystem is key and
and
generally reaches the
is
key.
So, we have to do a lot of the same
So if we thank you, we can do
I think that's a good
that that
matters
to
a
merchants,
that matters to
generally reach is key so if we think that that
to
consumers.
Altogether, I think this
is
the direction of
matters to merchants that matters to consumers altogether i think
that
the economy
is
going
into.
this is the direction that the ecosystem is going into so
So it's
also
true that the system is a very important
though
that
not everyone's going to be able to do
everybody's
ready
at
the same
time.
So there's a
lot
of
patchwork going
it's also true though that not everybody is ready at the same time
on right
now and I
wouldn't call it a lot of
that
solutions.
It's kind of
so there is a lot of patchwork going on right now and i wouldn't call that solutions it's kind of
patching
towards the
what
is
the
golden
goal
here.
and the gold
goal I
just
listed
is you
know
have
patching towards what is the gold goal here and the gold goal i just listed is you have
pretty you
know a
protect
the
transaction
that
works
in
the
same
way
as
consumers are
used
So, I think that's a good
protected transaction that works in the same way as consumers are used to
and merchants
are used
I to.
So, what are the things that are going to be a lot of
can
need
to
happen?
and merchants are used to so what are the things that need to
before
this to
really take
off
is you
know,
consumers need to be able to do
feel
happen before this to really take off
comfortable
so
use
of
agent pay.
and
having
registered
is consumers need to feel comfortable so use of agent pay and having
agent
is a good
key
thing.
And the other thing is merchants need to be a very important
good
need
to
be
actually
discoverable
because
registered agent is a key thing and the other thing is merchants need to be actually discoverable because then
then
the other
side
of
the turns
transaction
isn't
really
working.
So that's a piece that
is a
slightly
behind the piece of the
the other side of transaction isn't really working so that's a piece that is
first
one.
So if everybody
uses
agent
pay,
that
doesn't
mean everybody's going to be able to do
using a
every
merchant
slightly behind the first one so if everybody uses agent pay that doesn't mean that every merchant
is
still the
discoverable.
And by the way,
there
are a lot of people who
other
solutions out
there
similar
to
Agent
still discoverable and by the way there are other
Pay.
but it's
not
virtual
cards.
So, I'm going to go to the next one.
I'm going
So on the merchant
solutions out there similar to agent pay but it's not virtual cards
discovery, the current curve
side,
so
how do
I
get
my
so on the merchants discoverable side so how do i get my
product
catalog as
a
merchant
into
an
Agentic
experience
that
a
consumer
is
choosing
That's the
product catalog as a merchant into an agentic experience that a consumer is choosing that's
key
thing.
So our agent connects to the
solution helps
to
bridge
that
one.
the key thing so our agent connect solution helps
So we're kind of
ready
to
take
off.
It is in
everybody's
and you
to bridge that one so we're kind of ready to take off it is in everybody's
know
best
interest
to use the
agent pay.
and
an
equivalents.
best interest to use agent pay and equivalents
We are not in the
the
supporting
solutions
that
take
a
one-time
we are not supporting solutions that take
VCN.
out
there
as
you
know
your
you're
fronting
a
a one time vcns out there as fronting a transaction
transaction.
that
fundamentally
breaks
a
transaction
that
is
important
from
a
consumer
that fundamentally breaks the transaction
perspective they made
a
choice, it's
important from a consumer
reward
rewards
that is important from a consumer perspective they made a choice it's important
perspective from
a control
perspective and
so
forth.
So I think we're at the same
turning
from a rewards perspective from a control perspective and so forth so
point
where
everybody
is
pushing
in
the same
direction.
think we're at this turning point where everybody is pushing in the same direction we are very clear that
We are very clear that fully tokenized
all of
the
way
through
agentic pay.
or
an
fully tokenized all the way through agent pay or an equivalent
equivalent
is
the
way
to
go.
If we get this all
right
uh it will be a good
truly
the
next
is the way to go if we get this all right it will truly be the
evolution of the
digital
evolution of digital commerce
commerce.
Thank
you.
Next
question,
please.
next question please
Your next
question is from
the
line
of
Tinjin
Jin
your next question is from the line of tien tsin huang
Huan
with
J.P.
with jpmorgan
Morgan. Please go
please go ahead
ahead.
Thank
you.
Great
results
here,
Ling
Hi.
Welcome to
the
thank you
call.
I wanted to ask on just
the
outperformance
and
great results here ling hi welcome to the call i wanted to ask on just the outperformance and growth
growth for
the
quarter and
the
two
points
of
for the quarter and the two points of acceleration
acceleration.
in
revenue
growth.
has seemed
pretty
broad
but
just
want
to
in revenue growth it seemed pretty broad based
maybe
just give you a little bit of a
us
give more
detail
on
that.
Anything that was
more
one
but just want to maybe just give us a little bit more detail on that
one-time in
anything that was more one time in nature
nature.
et
cetera.
etcetera
Thank
you, Tenjin for
the
question.
Yes, if I look at the
thank you tien tsin for the question
overall performance, I think that's the first time
you can see
in
Q
it really
yes if i look at the overall performance in q3
speaks
to
the
strength
of
the
business in the
and it's
very
much
it really speaks to the strength of the business and it's very much
broad-based
especially
broad based especially in
in
value
services and
solutions.
I do want to point out that I'm going to do
be able
out
as
you
probably
heard in
value added services and solutions i do want to point out as you probably heard in my
my
prepared
remarks,
there
is
also
a
little
bit
timing
of
prepared remarks there is also a little bit timing
services
projects
and
also
the significance of the
deals
moving
from
of services projects and also the signing of deals moving from
q4
Q4
to
Q3.
So that really
means
it
is
a
revenue
benefit
for
to q3 so that really means it is a revenue benefit
Q3.
You will see a
similar
offset
in
Q4.
for q3 you will see a similar offset in q4
But overall, we continue to do
see
strength.
that underlying the strength of the
business is
very
but overall we continue to see strength the underlying business is very strong
strong.
Consumers
and
businesses
are
spending.
the
overall
environment around the
remains
consumers and businesses are spending the overall environment
very
supportive.
Consumer sentiment
is
positive.
so all those
things
remains very supportive consumer sentiment is positive so all those things
are
very
good.
But we also
know
there's a lot of good
there's
uncertainty
there's puts
and
are very good but we also know there's
takes.
But
overall
Q3
is
very
there's uncertainty there's puts and takes but overall
strong
and
we're
very, very
glad about
their
q3 is very strong and
the
we're very very glad about the accomplishment
accomplishment.
Thank
thank you
you.
You
Your next
question
is for
from
the
line
of
Adam
Frisk
your next question is from the line of adam frisk
with
Evercore
with evercore isi
ISI.
Please do
go
please go ahead
ahead.
Hi, thank
for taking
my
question.
Um, cross border
is the celebration of
a
little
cross border has
bit.
accelerated a little bit still
still
obviously
strong,
but
um I know there
were
some
portfolio
changes
in recent
quarters, so should
we explain to
obviously strong but i know there were some portfolio changes in recent quarters so
some
modest
acceleration
there as you
move
forward and
lap
the
comps
or are
should we expect some modest acceleration there as you move forward in lap
there
some
underlying
trends
that
are
having
a lot
larger
effect?
And then, Michael,
just a quick
the comps or are there some underlying trends that are having a larger effect
clarification, if there's
a
processor,
that
and then michael just a clarification if there's a processor
is
using
a
virtual
card
to
facilitate
a
gentic
that is using a virtual card to facilitate a gentic transaction
transaction.
So if
I put
my
master
card
in
this
particular
so if i put my mastercard in this particular wallet
wallet
and
they
use
a
virtual
card
and they use a virtual card to
to
facilitate
the
transaction.
Are you
not
supporting
that
facilitate the transaction are you not supporting that scenario
scenario?
Thanks,
guys.
Thanks, Adam.
Let me take the
first
part of the
question
thanks adam let me take
first.
the first part of the question first
I think I'm going to go ahead and
I first off the bat I would
say
when
you look at the best, you can do
cross-border
volume
at
i first off the bat i would say when you look at cross
11%,
that
is
very
strong.
And
border volume at eleven percent that is very strong
then yes not not
to
also
minimize
the
revenue
side
and then not to also minimize the revenue side cross
cross
assessment
is
16%
growth.
So that's very
strong
performance.
If we
break it out, we can't do
border assessment is sixteen percent growth so that's very strong performance
a little bit, we're going to be able to
little bit,
as you can
heard
me
talk about
about,
if
you look at the
if we break it out a little bit as you heard me talk about
if you look at
the
the cross border
cross-border
carton
present
excluding Trump
travel.
you
seeing
a
Q2
20%
card not present excluding travel you're seeing
go
going to
15%.
But 15% of the
is
also very
q2 twenty percent going to fifteen percent but fifteen percent is also very
strong.
and I provided
the
explanations
for
why
we
are
strong and i provided the explanations for why we are seeing
seeing a little
bit of a lot
a
downward
trend
in terms
a little bit of a downward trend in terms of
of
the
volume.
and mostly it's
the volume and mostly it's intra
intra, which
is
uh
lower
yielding.
and the
other
cross-border
volume which
is
which is lower yielding and the
the
intra
remains
very
healthy,
very
cross border volume which is the intra volume remains very healthy very resilient
resilient.
Now, as I have
always
said,
we benefit from the best of the
benefit
our
now as i have always said we
diversification so you
can
have
impact
hitting
in
one
segment
one
benefit from our diversification so you can have impact
geography, but we
can
handle
that
because
we're
diversify
hitting in one segment one geography but we can handle that
and
also
benefit
from
up
optics
in
other
areas.
because we're diversified and also benefit from upticks
A great example of
this
year
is
we
saw
some
negative
impact out
of
the
in other area a great example this year is we saw some negative impact
Middle
East, the
GCC kind of
countries.
but
then
you see the fact that
this
benefit in terms
out of the middle east the gcc countries but then we see this benefit
of
our
outbound
from
Venezuela,
right?
So and and in terms
of
in terms of outbound from venezuela right so
where
cross-border
travel
standards
stands,
I look
alluded
to
the
and in terms of where cross border travel stands
fact that
yes,
the
East is a very
conflict
will
continue
to be a very important
i alluded to the fact that yes the middle east conflict will continue to have
have
an
an impact
impact.
but as
we look
at
this
the balance of
the
year, as we have to
we've
told
you
before, we
are
but as we look at this the balance of the year as we've told you before
expecting
a
level
that's
similar
to
the
end
of
Q2 and that's
what we're
we
we are expecting a level that's similar to the end of q2 and
see
in
Q3.
So I think that's a good
I
about
that's what we see in q3 so
the middle of
East
conflict, I
think about
the
share
shifts
you
mentioned.
i think about the middle east conflict i think about the share shifts you mentioned
both of
a
are
discrete and
do
not represent the
any
fundamental
change
to
both are discrete and do not represent any fundamental change to our
our
proposition.
I think that's a good question.
that
the underlying
spend
remains
proposition i think the underlying spend remains strong
strong.
and we're
are very focused on
driving
cross-border
travel.
We have those
services
that's
and we're very focused on driving cross border travel we have those services that's called
called
optimization
travel
rewards.
So we'll continue to do
that.
So what's
important
to know is that we're going
optimization travel rewards so we'll continue to do that so what's important
note
is
that
we
will continue to do
be
focused
on
giving
our
consumers
the right to
to note is that we will continue to be focused on giving our consumers the
propositions
for
cross-border.
whether it's
travel
or
right propositions for cross border whether it's travel or non travel
non-travel.
And Adam, to
your clarification
question on
the
test.
single
So let
me
and adam to your clarification question on agent
so let me
leave
be very
clear.
Um what we're not
supporting
is
VCN
as
me be very clear what we're not supporting is
a
solution
in
between that
is
not
the
consumer
scenario that
actually
you
vcn as a solution in between that is not
ask.
He said if
you
put your
cards
somewhere into
an
agent as a certain amount
an
agent for the
the consumer scenario that actually you are so you said if you put your card somewhere into an agent as an agent
first
solution,
or
whatever it
is.
Consumers don't have to do
what
they
do
and
it's
their
choice and we try to do
give
the
them
first solution or whatever it is consumers do what they do
many
choices to
choose
MasterCard.
If VCN is a
and it's their choice and we try to give them many choices to choose mastercard
processor,
decision,
that
is
a
bridge
to
get ready to do
for
a
a vcn is a processor decision that is a bridge
fully
tokenized
transaction all the
way
through
for
a
period
of
to get ready for a fully tokenized transaction all the way through for a period of time
time.
We are cognizant
that
these ecosystems
needs to be a very
get
there.
No
question about
it, but
that's
not
a long
are cognizant that this ecosystem needs to get there no question about it but that's
long-term
solution
that
we
will
not a long term solution that we will support
support.
Thank you
guys.
Your next question is from the
line of
Andrew
your next question is from the line of andrew schmidt
Schmidt
with
T-Bank
Capital
with keybanc capital markets
Markets.
Please
go
please go ahead
ahead.
Thank you very
much. Hi,
Michael. Hi,
Ling. Good
morning.
you very much hi michael hi ling good morning maybe you could just
Maybe we could just touch on the
competitive
environment
in, you
developing
markets
like
touch on the competitive environment in developing markets like
India
and
Brazil,
where there
are
entrenched
A2A
systems.
india and brazil where there are entrenched a2a systems are the
The
HDFC deals with the
sort
of pays for
my
interest,
but
there's
been some interesting
developments
there.
UPI
hdfc deal sort of piqued my interest but there's been some interesting developments there
pricing
has
increased.
It seems like the market is a very important
might
be
brought to the
out a little
upi pricing has increased it seems like
bit.
But if you could just talk
about
positioning
in
any
changes that you can
the markets might be broadening out a little bit but if you could just talk about
there, that'd be
would
helpful. Thank
you so
positioning any changes there that'd be helpful
much.
All right. Thank you for your
questions.
So let me
all right thank you for your question so
just frame
up
the
payment
ecosystem
to
start
with.
let me just frame up the payment ecosystem to
super
competitive
and
there's
nothing
new
there so
it's
been
competitive
start with super competitive and there's nothing new there so it's been competitive
for some
for
time.
And you have
these
for some time and you have these
wide range
ranges
of
competitors
that
are
coming
in.
uh
into
payments
and
wide ranges of competitors that are coming in into
seeing
the
potential
that
we're
seeing.
so if i go through
some catalogs, I'm going to go
because
before
payments and seeing the potential that we're seeing so if i go through some
I
myself, I'm going to go
my
way
all
the
to
India, you
know,
digital
players will be able to do
wallets,
categories because before i find my way all the way to india
buy
now,
I'll pay
later,
providers
have
come
in
and
in the
digital players wallets buy now pay later providers
end, found a way to do
partner with the
because
we
provide
scale
and
have come in and in the end found a way to partner
protections and so
forth.
So that's
one
angle
on
how
we deal with the
because we provide scale and protections and so forth so
uh
with you
know
how
we
partner
with
uh
new
that's one angle on how we deal with how we
entrants.
uh
Stable coins
has been
another kind
of
shift
in
the
partner with new entrants stablecoin has been another kind of shift in the
ecosystem.
We've integrated
that
out
at
into
our
ecosystem we've integrated that into our system
system.
to
make
that as
available
because
we
believe
in
consumer
choice.
and we partner
with
governments
in
to make that as available because we believe in consumer choice
and central
banks.
around
the
world.
and we do
that
on
financial
and we partner with governments and central banks around the world and we do that
inclusion we do
that
on
protecting
their
economies.
There are so many
on financial inclusion we do that protecting their economies
ways in
and how
we're
engaged
in
these
220
countries and
territories
around the
there are so many ways on how we're engaged in these two twenty countries and
world.
Now, you mentioned that the world is a very important part of the
India
and
in
particular.
territories around the world now you mentioned india in particular india in
Um yeah India in partic yeah is is
a somewhat
unique
uh
in
s
uh
situation
but
not
totally
is a somewhat unique
unique. You
could
uh
draw
some
comparison
to
Brazil
as
well.
situation but not totally unique you could draw some comparison to brazil as well
where there's
two
large
economies
that
have
had
one
particular
uh issue
that
wasn't
where there's two large economies that had one particular
solved
by
the
private
sector and
that
was
financial
inclusion with
very
issue that wasn't solved by the private sector and that was financial
large
population
sets where
people
don't
have access
to the power of the
financial inclusion with very large population sets
at
I talked
about
this in the
my
prepared
remarks.
where people don't have access i talked about this in my prepared remarks that
that you
know
we
as
the process of
private
sector
and
Maastricht and
in
particular
is
very
focused
on
financial
we as the private sector and mastercard in particular is very focused on
inclusion.
So we are
driving
that.
Now, but it is
true
that you
in
inclusion so we are driving that now but it is true that in india
India, one of
the
most
competitive
and
dynamic
payments
markets in the
world.
the
Indian
one of the most competitive and dynamic payments markets in the world
government
has led to the
uh you
the
setup of
UPI,
which
is
a
tremendous
the indian government has led the setup of upi which is a tremendous
system,
is brought to the
a
lot
of
people
into
the financial
ecosystem which
is
generally
system and has brought a lot of people into the financial ecosystem which is
fantastic.
Now,
this has
grown
to
s
considerable
generally fantastic now this has grown to considerable
scale,
but you
know if
we
go
by
reports
uh there
are
reports
that
are
saying
that
the
scale but if we go by reports there are reports that are saying that
government
is
considering the
uh
the kind
of
owners
of
UPI are
government is considering the kind of owners of upi are considering
considering um
to
have
some
additional
fees
in
there that
will
I
to have some additional fees in there that will
presumably I
mean
can't
talk
for
them
but
there's
really
the
interest
of
taking
this
presumably i mean can't talk for them but it's really the interest of
amazing
ecosystem
that
they
have
built
and
continue
to
fund
it in a
way
that
works for
all
taking this amazing ecosystem that they have built and continue to
parties.
as it continues to be a fundamental
grow.
fund it in a way that works for all parties as it continues to grow so
So that is a
decision
that
we
funded.
fundamentally well
welcome.
We continue
that is a decision that we fundamentally welcome
to engage
in
India very
effectively
with the
government,
with
the private
we continue to engage in india very
sector.
We have
meanwhile
spent the
effectively with the government with the private sector
time
to strengthen the private
our
debit
proposition,
which
competes
we have meanwhile spent the time to strengthen our debit proposition which
uh
in
the
market.
uh but
fundamentally, I think that's a good
see
uh
what
competes in the market but fundamentally
UPI
has
done
is
bringing
a
funnel
of
people
fundamentally i see what upi has done is
into
the
digital
ecosystem
that
will
grow in
there, you
know
that
bringing a funnel of people into the digital ecosystem that will grow
will
grow that
will
graduate
to
different
sets
of
products,
which
will
include
and that will grow that will graduate to different sets of products
debit
and
an
then
eventually
credit.
So there
is so
which will include debit and then eventually credit
much
of
opportunity
in
India as
well in
so there is so much opportunity in
Brazil where
we
essentially
pursue the
same
india as well as in brazil where we essentially pursue the same strategy
strategy.
So, I think that's a good question.
So its
partner
and
compete.
It's a
market
web
we are
open
to
so it's partner and compete it's a market where we are open to compete
compete.
Same
for
Brazil.
and that
is kind
of the
key.
the
key
aspects
for
same for brazil and that is kind of the key aspect for that
that.
Um so
overall
um I think
no
news
on
the
India
front.
so overall i think no news on the india
but the
HD is a very important
deal
is
news.
um
so you
know
we'll be winning
front but the hdfc deal is news so
with
the
largest
private
sector bank
in the United
India
is
fundamentally
something
we're
very
excited
about.
winning with the largest private sector bank in india is fundamentally something we're very excited about
So we continue to
lean
so we continue to lean in
in.
Thank you,
very
much.
your
that.
Your next question is from
Darren
Peller with Wolf
Research. Please
go
on.
question is from darrin peller with wolfe research
Hey guys,
thanks. Nice
job.
Just
hey guys thanks nice job just
maybe when we look
at
VAS
and
again, I think that's a good
know there's lot
of things that
were
was
some
one
time
or
near-term
items
but
the
maybe when we look at vas and again i know there were some onetime
overall
strength
is
consistent.
And
so
maybe
just touch
or near term items but the overall strength is consistent and so
again on the key
maybe just touch again on the key drivers
drivers.
honing in
a little
bit
on
cyber and what you're
seeing
there.
I know recorded
future has
had some
really
good
success with a lot of
honing in a little bit on cyber and what you're seeing there i know recorded future has had some really good
governments
that
are
maybe
even
incremental to
just paying for the
payments
offerings.
So, can you help us
expand on
success with a lot of governments that are maybe even incremental to just payments offerings so
what
that could
mean for
the
overall
business
going
forward.
you help us expand on what that could mean for the overall business going forward and then
And then just a quick
question
on the puts
and
takes for
Q4.
if you don't
mind.
just if you
could
quickly
just a quick question on the puts and takes for q4 if you don't mind
just
give
us
a
sense, given
we
know
comps get a lot of
little bit
easier, the capital
One
conversion
if you could quickly just give us a sense given we know comps get a little bit easier the capital
started.
and
pricing can
continues to be a good
strong
prior
our
checks for
fourth
one conversion started and pricing continues to be strong prior
quarter.
So what are the
puts and
takes
on
guide
for
checks for fourth quarter so what are the puts and takes on guide for q4
Q4?
Thanks
again,
guys.
Okay, well, let me
start
with
the
color on
the
okay well let me start with
financials
first.
So Darren,
you're
absolutely
the color on the financials first so darren you're absolutely right
right.
Broad-based
strength
in
value
broad based strength in value added services
services.
If I think
about where
the
strong
strength
strengths
and
the due to
durability come
if i think about where the strength and the durability come from
from.
I think
about
the
following.
First of all, as we
have told you, have to talk about the
told six years
of the time, we have to do a lot
of the
people are going be able
of world is a lot of
our
i think about the following first of all as we have told you sixty
services
are
network
linked.
So the
drivers that are going to be able to do
themselves
create
percent of our services are network linked so the drivers themselves
the
tailwind.
So that
ability to
create the tailwind so that ability to have
have
payment
volume
where
we
can
then
apply
services and
the
services
then
create
the
payment volume where we can then apply services and the services then create
different
That's
differentiation that's
the
flywheel
effect.
flywheel effect and we're
and we're
very proud
of
this
business
model.
Secondly, if I
look
at service, I'm going to
very proud of this business model secondly if i look
services just
just
if
I
think about the service, I would
existing
services
there's
room
for other
kinds
of
trading
our
existing
if i think about existing services there's room for
customer
base,
right?
So if
we
penetrating our existing customer base right
have a
very
disciplined approach, we have a lot
in
terms
of
cross-sell
so if we have a very disciplined approach in terms of cross sell
upsell
upsell.
in terms
of looking
at
the
customer
base
and
where
the penetration
gap
is.
terms of looking at the customer base and where the penetration gap is
And the third
one,
I
would
say
is
you mentioned that the map
it.
There's room for
new
and the third one i would say is you mentioned it there's room for new services
services
in
cyber in
the
new
world
of
Agent
or
the
evolution of the
towards
that and by the
way i
don't think
in cyber in the new world of agentic or the evolution towards that and by the way i don't think
agentic
is going to
be
the
only
mode
of
commerce.
It is going to be mode of
So
is going to be the only mode of commerce it is going to be multimodal so therefore
therefore we have to do the same
be
versatile
and
cut
across
all
these
different
modes, whether it's
in
in-person, trying to do
we have to be versatile and cut across all these different modes whether it's in person transactions
transactions,
online.
and
a gen tick
down
the
world.
they're going to all
coexist.
and that's
online and agentic down the world they're going to all coexist
speaks
to
the
versatility
of
the
network.
and our
services
can
apply
across
the
and that speaks to the versatility of the network and i'll
board.
And cyber is a
big
issue.
AI will create
services can apply across the board and cyber is a big issue
more of
vulnerabilities.
and
therefore
we
will need to do
come
up
with
ai will create more vulnerabilities and therefore we will need to come up with
the
best
solutions
to
help
our
customers
and
the best solutions to help our customers and consumers
consumers
customer
safeguard
the
network,
and
their
systems and
the
consumers
to save
safeguard the
customers safeguard the network and their systems and the consumers
their
freedoms and
their
wealth.
So fundamentally
those
are
the
to safeguard their payments and their wealth so
things
that I've
I
are
driving
over to
Michael, you
also
asked the
fundamentally those are the things that are driving before i hand over to michael you
about
the
Q4
guidance
and
the
puts
and
takes.
I I would
also asked about the q4 guidance and the puts and takes i would say
say
again, I would say that I would have to do
talked the
about
the
timing
of
revenue.
again i talked about the timing
So you see a little
bit
of
acceleration.
and
services
are
play a
big
of revenue so you see a little bit acceleration and services
role
because
we
accelerate it
a
lot
of
the
services
projects
in
play a big role because we accelerated a lot of the services projects in q3
Q3 and
therefore according to the
you're
going
to
see
an
offset
in
in
Q4.
and therefore accordingly you're going to see an offset in q4
Michael,
please.
Yeah, you can see
gave
a very
holistic
answer. I just want
to kind
of remind you that you
michael please yes you gave a very
everybody
holistic answer i just want to kind of remind everybody so
So
this
situation
where
AI
is
not
only
driving
productivity
this situation where ai is not
upside
in
the
is
fueling
new
products for
us,
but
it
is
also
only driving productivity upside and is fueling new products
unfortunately,
you
know,
a
tool
in the
for us but it is also unfortunately
hand
of
fraudsters
and
scammers
and
so
forth. So
a tool in the hand of fraudsters and scammers and so forth so that's
that's
that's a
the
situation
that
is
fairly
new.
What is not
new
that we step
stepped
into
the
that's a situation that is fairly new what is not new is that we stepped into the
security
market
like
a
decade
ago.
So we
are
very
deeply
invested in
this
security market like a decade ago so we are very deeply invested in this
space.
And it this
has been
a
significant
contributor to the
our
growth
rate for the first
space and this has been a significant contributor to our growth rate for
that
past
decade.
So overall
that
uh business
was
initially
a
fraud related to the
that past decade so overall that business
than we
expanded
into
identity
and
now
we're
in
cybersecurity.
was initially fraud related then we expanded into identity and now we're in cyber
security.
Uh.
in a
significant
And I talked about the
that.
cybersecurity in a significant way and i talked about that in my prepared remarks
Yeah.
we
I think that's a good
it's very
don't want
to take a look at the
too
much
credit,
but
yeah, I think that's a good
our investment
we i don't want to take too much credit but our
investment
in
recorded
future kind
of
looked
ahead
and
said, you
know and
in
this kind
of
a
world
where
the
threats
are
recorded future kind of looked ahead and say in this kind of a world where the
coming
from
all
sides, it is a very important
so
critical for us to be able to do
prove
provide, you
threats are coming from all sides it is so critical for us to provide
threat
intelligence
to
people
because
nobody
can
really
conc you
know
defend
threat intelligence to people because nobody can really
themselves
against
all
these
risks.
So if you knew with
higher probability, you can't do
where
defend themselves against all these risks so if you knew with higher
your
risk
is going to be a good
particularly
on
the
payment
side and
the
fraud
probability where your risk is going to be particularly on the payment
sides.
what are the
compromise
cards,
et
So this has been
a long
arc for
side and the fraud sides what are the compromised cards etcetera so
us and it
just
meets
the
moment.
But that
this has been a long arc for us and it just meets the moment
business has
been
growing
very
fast
all of the
time.
so we're not
but that business has been growing very fast
expecting
a
significant kind
of
all the time so we're not expecting a significant kind of
jump
from
one
day to the next
other.
So all of this
is kind
of
playing
out at
the right
jump from one day to the other so all of this is
time and
as
predicted and
expected
for
kind of playing out at the right time and as predicted and expected for us
for
us.
Yeah, yeah,
Your next
question
is for the next
from line
of
Will
Nance
with
Goldman
your next question is from the line of will nance with goldman sachs
Sachs.
Please go
please go ahead
ahead.
Hi, thank
I think you can take a
the
question.
I heard some of the
commentary
hey thank you for taking the question i heard some of the commentary
on some of
the
entry
Europe
volumes.
and I was just
wondering if
you
could take a look at the
up
kind of
take a step
back
talk a little
on some of the intra europe volumes and i was just wondering if you could take a
holistically
about
what you're
seeing
around
the
European
consumer you
know
peeling
back
some of
the
a step back talk holistically about what you're seeing around the european consumer
noise has
been a
lot of
focus on
energy
peeling back some of the noise has been a lot of focus on energy shocks
shocks.
when you take out some of
the
discrete
impacts.
how are you kind
of
feeling
about
the
trajectory
when you take out some of the discrete impacts how are you kind of feeling about
of
because
spending
there? Appreciate
you taking the
the trajectory of consumer spending there appreciate you taking the question
question.
Thank
you,
Will.
I'll take this
one.
thank you will i'll take this one so
So of course before
this
job,
I
also
oversaw
Europe.
It's a
very
important
market
for
of course before this job i also oversaw europe it's a very important market for mastercard
MasterCard.
Very
sizable.
I would say if I take a look
at
the
very sizable i would say if i take a look at
macro
environment,
right
now
the
European
consumers
are
a
very
resilient.
the macro environment right now the european consumers are very resilient
That's probably the
best
description.
And the other
thing
that
I
would say
is
that's probably the best description and the other thing that i would say is
I
see in
our
own
business in
the pay
payment
business,
we
see a lot of
innovation.
i see in our own business in the payment business we see a lot of innovation
that innovation
comes from the payment of the
our
customers,
whether
the bank
banks
the
think
fintechs,
the
that innovation comes from our customers whether the banks the fintechs
Digital
players, but
also
our
teams
on the
ground.
right? And that is going
to
a very
then digital players but also our teams on the ground right and that is
important
driver in terms
of
our
growth.
going to be a very important driver in terms of our growth
To your specific
question about
intra-Europe, I
talked
about
the
reasons,
to your specific question about intra europe
right?
i talk about the reasons right
Nothing
struck
structural.
uh it's it's
more
about
timing
and
nothing structural it's more about timing and comparisons
comparisons.
But I think
and but i think overall
overall
we see that
the
the
market
being
stable
and
consistent right
we see the market being
now.
I think that's a good question.
stable and consistent right now we've got some
We've got some shared
shifts, but we're going to have to go to
but
we
continue
to
win
deals in
this
market as
well.
share shifts but we will continue to win deals in this market as well
And we are seeing tremendous
success
in
value
services and
solutions.
and we are seeing tremendous success in value
Europe is probably a
standout
on
the
this
front.
So that's
also
very
added services and solutions europe is probably a standout on
important
for
us
to
achieve
that
this front so that's also very important for us to achieve that sustainability
sustainability.
And if I can add
one
point, I think
it's
important
to
remind you that you can do
us,
know,
when
we
look
across
and if i can add one point i think it's important to remind us when we look
Europe, you
know,
very
evolved
economies,
but it's
still
also
true
across europe very evolved economies
that
at
the
same
time
you still have to do
a
significant
secular
opportunity as I
but it's still also true that at the same time you still have a significant secular
mentioned
in
my
prepared
remarks
earlier.
So DSK Fau and the
Z bank
opportunity as i mentioned in my prepared remarks earlier so dskfau and the z bank
um
are
just
two
big
wins they're going to have
help
us
eat in
into
that
secular
are just two big wins that are going to help us eat into that
opportunity in
parts
of
rule
rural
Germany for
example.
secular opportunity in parts of rural germany for example so
So it's
not
just about
spend, it's
also about spending
the
secular
opportunity
and
the
it's not just about spend it's also about the secular
tools
that
Ling
Hai
r
referred
to are going to
help
us
to
opportunity and the tools that linghai referred to
go
after
that.
in
uh many
different
ways
including
our
real-time
payment
are going to help us to go after that in many different ways including our real time
position and
in
Europe and
our
services and
our
car
card
payment position in europe and our services and our card propositions
current
propositions.
You're
next
question
is
from
the
line
of
Timothy
Chiodo
with
your next question is from the line of timothy chiodo with ubs
UBS,
Please go
please go ahead
ahead.
Great. Thank
you.
I also want to touch
on some of the main
mechanics around the
agentic
great thank you i also wanna touch on some of the mechanics around agented commerce
Commerce.
so
I appreciate
that
we're
moving
past
the
one-time
use
used virtual
card at some
point and
moving
so appreciating that we're moving past the onetime use
more towards
the
long
term
of
a
gentic
network
tokens.
virtual card at some point and moving more towards the long term of agentic network tokens
Specifically, I'd like
to
dig
into
some of
the
steps
for
merchant
readiness.
specifically i'd like to dig into some of the steps for merchant readiness
You mentioned earlier some of the
discoverability
aspect and I told
appreciate
that.
you mentioned earlier some of the discoverability aspect and i totally appreciate that
but I want to focus a little
bit more
on
the ability to do
accept
a
network
but i wanna focus a little bit more on the ability to accept a network token
token.
and some of
the
work
that's
being
done
by
either
merchant
or
acquirers
or
merchant
merchants
some of the work that's being done by either merchant acquirers or the merchants themselves
themselves to
be
ready
for
that.
and whether or not
the
standard
website
can
be
that
to be ready for that and whether or not the standard website can be that acceptance
acceptance
tool
or
if
a separate
endpoints
might
be
needed in
certain
cases.
any of
that makes
tool or separate endpoints might be needed in certain cases
mechanic
and
the
progress being
made
there
would
be
much
any of that mechanic and the progress being made there would be much appreciated
appreciated. Thank
thank you
you.
Right.
Yeah, it's uh Tim, this is a wide
wide
right it's tim this is a wide wide spectrum
spectrum.
um
on
kind
of
where
merchants
are
on
that
to take a
small
on kind of where merchants are on ads
business
uh
um that
is
uh
just
as
moved
take a small business that is
from
a
physical
only
business
to have
having
some sort
of
digital
just has moved from a physical only business
component of
their
business they're gonna
to
need
all the
help they can
get
to
set
that
to having some sort of digital component of their business they're going to need all the help they
up
and
you
take a
large
merchant
they're
going
to
probably, you
consider the
be
first
can get to set that up and you take a large merchant they're going to
merchant a first
merchant
uh
or
first
probably consider a first merchant
agentic
uh
agent
experience
themselves
and
in putting
their
own
or first agent experience themselves in putting their own
agent
out
there.
So in everything in
between
so the
community
of
agent out there so and everything in between so
PSVs
and ISIS is the
ISVs
and
processors are going to be able to do
absolutely
the community of pscs and isvs and process
critical
to
cater to the
all of
of
that.
are going to be absolutely critical to cater to all of that
We will, you know, with our
solutions and
Pay.
Agent
we will with our solutions
Connect, et
cetera, well,
we're
solving
for
is
that, you
know
agent pay agent connect etcetera what we're solving for is that
the
individual merchants are not afraid of the
will
not
have
to
go
with
one
solution
for
one
partner.
the individual merchant will not have to go with one solution for one partner and with
and with some other
solution for some other
partner
because we're going to be
that
interface
deals
with
a lot
of
some other solution for some other partner because we're gonna be that interface that deals with a lot of that
that.
So that's kind
of
where
we
are.
There's a lot
of
details and
so that's kind of where we are there's a lot of
nitty
in
that.
our d a
chief
digital
officer,
details and nitty gritties in that
yarn
I
love
loves to talk about the
talking
this
in all of
the
our chief digital officer lauren loves talking about this in
detail that
you want to
but
currently
that
is
the
situation.
so we are
covering
the
base that we
can
all the detail that you want but currently that is the situation
cover as
a
network.
and we're
are
engaging
the
so we are covering the base that we can cover as a network and we're engaging the process
processor
community
to
ensure
that
things
like
VCNs
are
only
a
bridge
because
community to ensure that things like vcns are only a bridge
that's
not
a
good
long
long-term
solution but some
of these issues are not a good
that you
highlighted
Tim,
need to
be
addressed
because that's not a good long term solutions but some of these issues that you highlighted tim
because
otherwise
it's
not going to be a good
take
off.
and we
believe it
will take
need to be addressed because otherwise it's not going to take off and we believe it will take off
take
off.
Thank
you.
Your next question is from the line of Sanjay
Sokrani
with
your next question is from the line of sanjay socrani
KBW.
Please
go
with kbw please go ahead
ahead.
Thank
you. Good
morning.
I guess, Michael, it's been three
months
since
the
thank you good morning i guess michael it's been
B
BVNK
acquisition.
and the
stable
coin
three months since the bb and k acquisition
ecosystem contains
to be a good
evolve
and
I
know
there's
a lot
of people who are going to be able to do
and the stablecoin ecosystem continues to evolve
lot
also
happening
with
Agent
as
well
So I'm
and i know there's a lot also happening with
just
curious
like
what
your observation
observations
are
with
agent pay as well so i'm just curious like what your observations are with the
B V N
DB
ink
the
opportunity is a good
is sort of
moving
forward?
bbnk do you think the opportunity is sort of moving forward any
Any
learnings
and
obviously
any
other
types
of
deals
you
might
do in the middle of the
learnings and obviously any other
space. Thank
types of deals you might do in the space thank you
you.
Right. Thanks,
Sanjay.
Um
always
good to
hear
your
voice.
So
uh
B V and
right thanks sanjay always good to hear your voice
K
so bb and k
um
it
closed between
the last two
and the
call
this
call.
So
that's the first
it closed between the last call and this call so that's the first
uh
big piece of
Um
and we
are very
happy
that
it
big piece and we are very happy that it closed
closed.
We're
getting
really
you
the
strong out of
the
gate
from
we're getting really
uh
from
day
strong out of the gate from day one
one.
Um
the
uh you
The Jewish colours of the United
is
the
joint
new
product
the
that
I refer
referred
to
in
uh
my
prepared
remarks, the
Global
Money
Account,
the joint new product that i referred to in my prepared remarks the global money
is
out
there.
so
that
takes
uh our
capabilities
on
the
MasterCard
side,
our
is out there so that takes our capabilities on the master
global
reach, and it takes a lot of
the
stablecoin.
capabilities
of
stand
send,
side our global reach and it takes the stablecoin capabilities to extend
receive,
store,
convert, and
puts
it in the middle of the
all
it
together
to
enable
our
customers
to
receive store convert and puts it all together to enable our
customers to choose
choose
between
fiat
fiat
and
the other
side
or
our
are
custom
customer as
between fiat and stablecoin to the other side or our customers rather
well.
So, I'm going to go ahead and do a little bit of a little bit of a little bit of a little bit of a
tremendous
product, very
good, uh
great
in the
demand.
So this is
so tremendous product very good great in demand so
a
really
good.
Um this
can
just
came
at
the price
perfect
time
on
where
the
ecosystem
is
this is really good this just came at the perfect time on where the
ecosystem is going
going.
Um E V and K, you know, if
you're not going to be able to do
it just
go
a step
back
and
bb and k if i just go a step
say, you
know
what
I
they
doing
for
us?
you know what
is
um
in
back and say what are they doing for us what is
its
simplest
form
um
they
uh you
are not
in its simplest form
The
reason
for
them
to
join
us.
And here it
is.
it's really providing a lot of the
the reason for them to join us
that
choice
between
and
all
these
capabilities.
send
and here it is it's really providing that choice between in all these capabilities
receive
convert,
and so
store.
that's
very
much
it.
Now but there
are
some other
send receive convert and store that's very much it
reasons
for
that
uh
for
choosing
V
and
K not
choosing
to
build
this
now but there are some other reasons for choosing bb and k
our
own.
One
is that
they have
the
full
and not choosing to build this our own one is they have
licensing
footprint
that
is
needed.
and then
have
a
very
established
compliance
the full licensing footprint that is needed and then have a very established compliance
function.
So if
you
do,
all
the setups, you can do
and
receive
that
you
want, it
we
want
them
make
like
a
function so if you do all the send and receive that you want we want to like
show
that
it's
totally
you know
fully
compliant, very
visible,
usable,
easily
sure that it's totally fully compliant
managed
to
for our
customers and then
we're
very
reliable
taking
very visible easily managed to for our customers and that we are very reliable taking
that
uh that
k you
know
responsibility
on.
That's a
piece.
And the other is really the
native
that responsibility on that's a
talent and
the
digital
asset
space.
So we now
have
a
set
of
and the other is really the native talent in the digital asset space so we now have
colleagues.
So we just had
our
global
leadership
meeting and they were
a set of colleagues so we just had our global leadership meeting and they were there
there and
you just see
a
very,
different
mindset
coming into the middle of the
MasterCard which
is
excellent.
you just see a very different mindset coming into mastercard which is excellent so
So all those things are going to be a lot of
so new
product
is
out.
in different
mindset
is
in
compliance
all those new product is out
is
ready
and
we're
out in
the
market.
and
we're
different mindset is in compliance is ready and we're out in the market
seeing
great
demand.
As this is
very you
know
very
straightforward for
our
and we're seeing great demand as this is very straightforward for our
customers to
say all
right,
I
want
to send a lot of
somehow
inform
let's
take
a
bank.
you
know, I
have
really
no
customers to say all right i want to somehow and let's take a bank
conversation
with a bank
CEO
where
this
topic
doesn't
come
up.
i have really no conversation with a bank ceo where this topic doesn't come
What should I be
doing in a
digital
asset
space?
Obviously there's a bunch
of banks.
who
are
very
clear
what
they
want to
do
but
what should i be doing in the digital asset space obviously there's a bunch of bank
there
are
many
others
who
are
not very
clear
and they're
asking
us
the
who are very clear what they want to do but there are many others who are not very clear and are asking us the question
question.
Our crypto
consulting
team
comes
in.
and of
course
with
BB and
we
can
now
only do
our crypto consulting team comes in and of course with bb and k we
offer
consulting,
but
also
cover
a
set
of
solutions so
people
come
in
and
it's
kind
of
can now not only offer consulting but also cover a set of solutions so people
an
on
behalf
service
that
be
the
provides
along
with
the
come in and it's kind of an on behalf service that bb and k provides along
money
move uh
capabilities
that
it
has.
But it's not just about
stable
coins.
So they want to
with the money move capabilities that they have it's not just about stablecoin so they want to choose
choose
for
my
customer
that
is you
know,
uh
for my customer that is
a
buyer in the
United
States
and
is
importing
from
somewhere
in
Asia, what
is
the
best
way
a buyer in the united states and is importing from somewhere in asia what is the best
to
send
this
I think that's a very important
and they might choose
stablecoin.
coins
or
and they
might
just choose
something
way to send this money and they might choose stablecoins and they might just
else.
And we have all
the
rails
together.
So it comes at the
perfect
choose something else and we have all the rails together so
moment.
BBNK, the USB, the
and
bringing the
everything
that
we're looking
comes at the perfect moment bb and k bringing
for, but it's
early
days,
We just
closed
and
in
august there were
two
months
in
everything that we're looking for but it's early days we just closed in august so we're two months in into
Integration goes
well that's a
non-issue.
So we're
ready to
goes well that's a non issue so we're ready to go
go.
You're
next question
is for the next
from
line
of
Trevor
your next question is from the line of trevor williams
Williams
with
FT
T
with feet partners
Partners. Please go
please go ahead
ahead.
Great. Thanks very
much.
I wanted to ask on
pricing.
I think it
was
called
out as
a
great thanks very much i wanted to ask on pricing i i think it was called out
driver
as a driver across
across pretty
much
every
revenue
line in
the
quarter.
So just be
helpful
to
hear
how
sustainable
you
think this
pretty much every revenue line in the quarter so it'd just be helpful to hear how
level
of
contribution
from
pricing
is.
And then just to
clarify on
sustainable you think this level of contribution from pricing is
the
value of
growth
in
Q3, I
know
M
MA
A
and then just to clarify on the vast growth in q3 i know
was
not
material
to
total
company
growth,
but how
much
of
an
impact behind
can
m and a was not material to total company growth but
and
had on the
value of
growth
rate in
Q
three would
be
how much of an impact bb and k had on the vast growth rate in q3 would be helpful
helpful. Thank
you very
very
much.
Thank
the
trevor thank you so
first of
all,
regarding
pricing.
first of all regarding pricing
As we have told
you
before,
we
price
for
value.
so we will
always look for
as we have told you before we price for value so we will always
opportunities
to price for
because
we deliver
value.
look for opportunities to price because we deliver value
Um and um
token
pricing is a very good
probably
good
example
for
me
to
illustrate
this
and token pricing is probably a good example for me to illustrate this point
point.
I think that's a good idea.
I feel, like I
said
i feel like i said before
before,
from
a
vast
perspective,
especially
you
have
more
room
for
from a vast perspective especially you have
penetration.
You have new
functionalities you
can
more room for penetration you have new functionalities you can build
build.
especially in
the
world
of
agentic as you
see
where
we're
using
MDAS
as
the
especially in the world of agentic as you see we're using mdas as the platform
platform
to
enhance
our
token
for
the
gen tech
world.
And of course they will be able to do
new
use
to enhance our token for the agentic world and of course there will be new use cases
cases.
So I think that a
ability is very important
for
us
to
further
penetrate
existing
customers
create
so i think that ability for us to further penetrate existing customers create new
new
use
cases,
and penetrate the
new
verticals
is
there and
will
we'll price
for
the
value
we
use cases and penetrate new verticals is there
deliver so that's going
to
be
the first
and we'll price for the value we deliver so that's going to be
point.
And of course,
the first point and of course
um
our
pricing
in
our pricing in q3
Q3
has
a
component
of
previous
pricing,
but
also
some
new
pricing.
We will expect some of the things that we have to
of
lack
has a component of previous pricing but also some new pricing
lapping
of
the
pricing
as
we
head into the
to
we will expect some lapping of the pricing as we head into q4
Q4.
But again, we will
continue
to look at the QR
but again we will continue to look for
for
opportunities.
Uh
You asked
about VAS
and
the impact of the
opportunities you asked about
from M
and
So I would
say as
far
I can
BDS, the
vas and impact from m and a so i
and
is
concerned, the impact is a good
really
minimal.
say as far as bb and k is concerned the impact is really minimum
It is a revenue
generating
enterprise
it is a revenue generating enterprise already
already.
but it's
uh
of
it's
all for
a small
but it's off a small base
base.
You're not going to be able to do
next
question
is for the next
from
Fahad
Kunwar
with
Rothschild
and
Co.
your next question is from fahad kunwar with rothschild and co redburn
Redburn.
Please go
please go ahead
ahead.
I don't
think it's a good
and
thanks
for taking the
hi both thanks for taking the questions and
questions.
Could I just get
an
update
on
incentives?
I think we
talked
about
it a
last
could i just get an update on incentives
quarter
for
the
broadly
stable.
i think you talked about it last quarter being broadly stable
So slightly
higher and it came
in pretty
stable.
um was
there
any
deal to
so it seems slightly higher and it came in pretty stable
kind
climate
affecting
incentives?
Can we
expect
any of
the Q
was there any deal timing affecting incentives can we expect
key
impact
you
feel
would
happen
going
into
any of the q3 impact you thought would happen going into q4
Q4.
And any sense of
how
large would be the same
in
real
cycle
is
at the
last
to
card
going is going to
and any sense of how large the annual cycle is the mastercard going into twenty twenty seven
Thank
thank you
you.
Thank
you, Fahis, for
the
question.
Let me take this
one.
thank you fahid for the question let me take this one
well look I I have
a
tendency
to
call
this a
uh
contra
uh
but
it's
well look i have a tendency to call this a contra
recently
revascing
and
incentives
Well, this contract is a very important
revenue is a very good
but it's rebates and incentives well this contra revenue
reflection of the
our
solid
yield
momentum.
If that goes
down, sometimes that will be a good
worry about
is a reflection of our solid deal momentum in fact if that goes down sometimes i worry about
it.
So that's one thing
to
keep in
it so that's one thing to keep in mind
mind
because
the
deals
that we're
what
drive
our
business
growth.
And we have not
given
guidance
for
20
because the deals are what drive our business growth and we have not given guidance for
2026 so
I'm not going to do
do
that
twenty twenty six so i'm not going to do that but
but
as a
reminder
though,
we
use
rebates
and
incentives
to
drive
as a reminder though we use
volume
and
transactions onto
the
network.
rebates and incentives to drive volume and transaction
I'm just going to
reiterate
my
flywheel
point.
You get the
onto the network i'm just going to reiterate my flywheel point
volume,
then we
deliver
services on the
volume, and
then
the service is going to be a
in
you get the volume then we deliver services on the volume and then
turn
become
the
differentiation that
will
would
drive
even
more
volume.
So we'll continue to do
services in turn become the differentiation that would drive even more volume so we'll
that.
And we have
continue to do that and we have been
been
winning
We have been
winning
deals.
and
with
winning deals
new
customers
and
expanding
and with new customers and expanding our
our
our
customers.
and
in terms
of
our
deal
base.
But we've been very
customers in terms of our deal base
disciplined.
We've been
very
disciplined.
and but we've been very disciplined we've been very disciplined
and
in terms of the
how
what do
with
we
want
to
win,
what deals we
and in terms of how what deals we want to win what
want to
work
walk
away.
We're not just
going to
win
every
deal and we're
not
going
to
do
deals we want to walk away we're not just going to win every deal and we're not going to do
that.
We don't want to do
that.
We're going to wing
deals
that
gives
us
a
higher
growth
we don't want to do that we're going to win deals that gives us
momentum.
That's a
to
the
growth
trajectory.
a higher growth momentum that's accretive to the growth trajectory
We're going to win
deals
that
are
added to the
additive
the
cross-border
flows.
we're going to win deals that are additive to the cross border flows
and we're going to
wind
deals
that
will
allow
us
to
deliver
services as
well.
and we're going to win deals that will allow us to deliver services as well so
So, I think that's a good idea.
So the
punchline
is
we'll use
R and
I as
a
tool
to
drive
the
the punch line is we'll use r and i as a tool to drive the growth
growth
momentum and
the
growth
algorithm.
Now, at the end of the day,
I
also want
to remind you that I'm going
be able
momentum and the growth algorithm now at the end of the day
to to
that
I'm
everybody
we
measure
ourselves
on
driving
net
revenue
i also want to remind everybody we measure ourselves
growth.
and
expanding
on driving net revenue growth and expanding overall
overall
overall
net
revenue
yield.
So R and
I, in my mind, is
an
overall net revenue yield right so r and i in my mind is an input
input, but
the
ultimate
measurement should be the
net
revenue
but the ultimate measurement should be net revenue yield
yield.
I also want to
maybe take a look at the rest of the
take
this
moment
to
mention
that
for
Q4,
we
i also want to maybe take this moment to mention that for q4
would
expect
our
rebates
on
and incentivize
as
a percentage of
growth as
assessments
we would expect our rebates and incentives as a percent of growth assessments
to
be
higher
than
to be higher than q3
Q3.
You're
Your last
question will be a very good
from
Dan
Dolev
with
your last question will be from dan dolev with mizuho
Mizuho.
Please
go
please go ahead
ahead.
Hey
guys, thank
you so
much for supporting
squeezing
me
in.
I just had a
question. I
hey guys thank you so much for squeezing me in
know you're not
giving
any
formal
guidance
for
20
twenty seven,
but
just had a question i know you're not giving any formal guidance for twenty seven but maybe
maybe you
know
given
the
strong explanation of
rates that
you've
highlighted,
like
anything
that we
should
keep in
given the strong exit rates that you've highlighted like anything that we should
mind
especially as
we're last
lapping
things
in
2026 I
think
it'll be
will
very
useful
keep in mind especially as we're lapping things in twenty
for
twenty six i think it will be very useful for investors
investors.
and he puts
and
takes
on
so
the
growth
and
what
we
should
expect
any puts and takes on sort of the growth and what we should expect
And
congrats
again on
great
and congrats again on great results
results.
Yeah.
Yeah,
Um let me let me
also
yes okay
d
then
very
nice
to
talk
to
you
but let
me
take
this
let me also then very nice to
one as
well.
talk to you but let me take this one as well
um I also
maybe want
to
quickly clarify when
I talk
about
guidance
previously in
my
i also maybe want to quickly clarify when i talk about guidance
answer I'm
talking
specifically
about
rebates
and
incentives.
It's not so
much
20
previously in my answer i'm talking specifically about rebates and incentives it's not so much
versus
27.
So it is
rebates
and
incentives, which
we
don't
twenty six versus twenty seven so it is rebates and incentives
guide.
which we don't guide
But for
27, I
guess
then
maybe
but
the
first
answer
but for 'twenty seven i guess maybe the first answer is
is
we're
going
to
give
our
formal
guidance in our
next
quarter's
release. So
stay
please tuned we will
we're going to give our formal guidance in our next quarter's release so please stay tuned
get
into
the
detailed
discussion.
Now, remember, there's so many different
puts
and
we will get into the detailed discussion now remember there are so many
takes
in
our
business throughout the
year.
And they're
just
so
many
puts and takes in our business throughout the year and there are just so many
different
factors
that
at
play.
So sometimes it's
really
hard
to
say how to do
hard
predict, you
know,
different factors at play so sometimes it's really hard to say hard to predict
the
macro in
environment can
play a
role
wings
and
losses can play a
the macro environment can play a role wins and losses can play a role
a
role,
demand
for
our
vases, and the money is a very important
can play
a
role,
right?
We have to
continue
to
develop
new
things and
demand for our vars can play a role right we have to continue to develop new things
drive new
penetration.
FX
volatility. That's another
factor.
and drive new penetration fx volatility that's another factor
So, I think that's a very important thing.
And just so
many other
things.
And the other thing I would
say
is that I think that's a good
is
yes,
you're
right.
some of the
headwinds
and so just so many other things and the other thing i would say
can
become
yes you're right some of the headwinds can become tailwinds
tailwinds but
of the windows are not
tails
tailwinds can become a bit
are
aware of the
can
also become
headwinds
because
a lot of the time is a lot
laughing
So there's all
those
but some of the tailwinds can also become headwinds because of lapping there's
things.
so all
I
can
say
is
we have
a
very short
strong
business
model.
all those things so all i can say is we have a very strong business model
We have a very
diversified
business
model.
We are
optimistic about the
future but
do
we have a very diversified business model we are optimistic about the future but
stay
tuned for
do stay tuned for twenty twenty seven
2027. Thank
you very
much.
Michael, any closing
Thank
you.
Yeah.
and Dan, thanks for the
question. That's a great
question to
And
the question
yes dan thanks for the question that's a great question
call
on.
um so thank
you
again
for
all
of
your
end the call on so thank you again for
questions and all of
your
support in the
past
quarter.
uh and
we
look
to
talk
all of your questions and all your support in the past quarter and we look to talk
to
you
over
the
coming
quarter
as
we
to you over the coming quarter as we engage
engage.
All of these strong
results,
not
possible
without
the
all of these strong results not possible without
amazing
team
at
MasterCard. So I want to thank
all of
our
colleagues
around the
the amazing team at mastercard so i want to thank all of our colleagues around the world
world.
who
make
this
happen every
day.
and I want
to call it a lot of
close
this
first
call
with
who make this happen every day and i want to close this
Ling
Hai. Thank
you very
much, and we'll speak to
you next
first call with ling hai thank you very much and we'll speak to you next quarter
quarter. Thank
you
Bye-bye.
Thank you
thank you bye bye
all.
This could be
just this
Ma'am. Thank
you for
attending and you may need
now
you for attending and you may now disconnect
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