Topic: Cross-border volume growth outlook and composition
Key points:
Cross-border volumes (ex-Europe growth at 12% in July) have been consistently slowing outside of Q4 last year; travel represents ~60% of total cross-border, non-travel (card-not-present ex-travel) is ~40%
Non-travel cross-border is growing at roughly 20%; no single cross-border corridor pair represented >3% of 2024 volume
Company does not provide long-term guidance on cross-border; diversification by design across geographies and between travel/non-travel
Mgmt stance: Neutral. Acknowledges slowdown but highlights diversification and value prop; does not identify a "normal" floor for growth.
Q7 — David John Koning
Topic: Client incentives trend (rebates & incentives as % of revenue)
Key points:
After years of growing faster than revenue, incentives grew at same or slower pace for last three quarters; but mgmt expects the ratio (rebates & incentives as % of payment network assessments) to be sequentially higher in Q3 vs. Q2
Q2 ratio was helped by higher FX volatility boosting the denominator (payment network assessments)
Market remains very competitive; pipeline of deals is strong; focus on winning "right portfolios", not every portfolio
Mgmt stance: Cautious. Confirms competitive pressure and expects ratio to pick up in H2; denies any structural change in approach.
Q8 — William Alfred Nance
Topic: Impact of potential bank data-access fees on Finicity/open finance
Key points:
Company does not have full visibility on specific bank fee proposals; Chase and other banks are described as "fantastic partners"
Fundamental belief remains that consumer-consented data sharing is a winning long-term proposition; no current engagement in these specific fee discussions
Open finance trend (U.S., Europe, Australia) is viewed as durable and important for consumers
Mgmt stance: Neutral. Acknowledges topic but has no direct involvement or visibility; waits to see how it evolves.
Q9 — Rayna Kumar
Topic: Competition with domestic fast-payment schemes (Pix in Brazil, UPI in India)
Key points:
In Brazil, company has revamped debit platform with new solutions; offers competitive installment payment and recurring payment products alongside Pix
Strategy: partner with banks/fintechs, provide choice, and compete with differentiated product set; consumers can "graduate" from Pix into Mastercard card products
Brazil business continues to see "very healthy growth rates"; similar approach in India (partner where possible, compete effectively)
Mgmt stance: Bullish. Sees significant opportunity; cites strong partnerships and product competitiveness alongside domestic schemes.
Q10 — Craig Jared Maurer
Topic: Pillar 2 tax implications & digital identity/auth solutions demand
Key points:
Pillar 2: Any exception for U.S. multinationals requires not only OECD agreement but also reversal of each country's enacted legislation (e.g., Singapore's 15% rate starting 202