Mastercard Incorporated (NYSE:MA) Q2 2023 Earnings Call Transcript

Devin Corr: I think we have time for one more question.

Operator: And we’ll take that question from Bryan Keane at Deutsche Bank.

Bryan Keane: Sachin, just want to ask about FX volatility and how it impacts the model. I know cross-border assessment revenue growth was above volume, so it had a positive yield. I think in your peers — one of your peers’ reports, it was actually negative, and they called out the lack of FX volatility. So just trying to understand how it impacts Mastercard’s model.

Sachin Mehra: Sure, Bryan. So first, the — what — when we talk about FX volatility, you see that in our numbers in transaction processing assessments, not in cross-border assessments. It is tied to the activity about clear and settle, which is why it sits in transaction processing assessments. And what I called out was the higher growth rate in cross-border assessments relative to volume was driven by what we call favorable mix, which is the fact that our inter volumes, which is everything ex intra-Europe, right, are growing at a faster pace than intra-Europe. Inter volumes tend to be high yielding than — as compared to intra. And that’s the reason you had that positive kind of gap between where revenues were on cross-border assessments and where volumes were. And again, the volatility comment I made was tied to transaction processing assessments, which is where it sits.

Devin Corr: Thank you. Michael, any closing comments?

Michael Miebach: All right. Thanks, Devin. The first thing I want to say, you should all know that Warren sits in the other room and is listening to us. So this is the first time soloed by Devin, and we’re delighted to — with this next chapter now. As always, I want to make a comment about all the people at Mastercard who make this happen, the 30,000 of us. I sent them a note earlier today with the results that, this is the value that you guys deliver every day. So I just wanted to share that with you. And with that, thank you for your support, your questions today, and we’ll talk to you soon. Take care. Bye-bye.

Sachin Mehra: Thanks, everyone.

Operator: And this concludes today’s conference call. Again, thank you for your participation. You may now disconnect.