Mastercard (MA) investor relations material

Macroeconomic and consumer trends

• Consumer spending remains resilient, supported by wage growth outpacing inflation, leading to increased purchasing power.

• Business spending is healthy, with stable supply chains and continued investment, aided by a relatively low cost of capital.

• The diversity across geographies, products, and merchant categories helps smooth out volatility from sector-specific spikes, such as gas prices.

• Monitoring of discretionary versus non-discretionary spending continues, but overall trends remain stable.

Regulatory and competitive landscape

• The regulatory environment is focused on competition and cost, with robust competition from digital currencies, wallets, and ACH.

• CCCA is viewed as unlikely to gain traction soon, with concerns about reduced consumer choice and transaction safety.

• In Europe, payment sovereignty discussions persist, but flexible network architecture and strong government partnerships support ongoing business.

• 40% of revenues come from services, many of which are not network-linked, providing flexibility in regulatory environments.

Partnerships, deals, and growth drivers

• Long-term relationships with major partners like Capital One have been renewed and extended, including new agreements and co-brands.

• Hundreds of new deals were won last quarter across core payments and services, with a diversified customer base including banks, merchants, governments, and fintechs.

• Recent wins include renewals with American Airlines, Apple, Scotiabank, and new agreements with Aeroméxico and Rogers Communications.

• Growth is driven by PCE growth, secular shift from cash/check to digital, share shift, and expanding services.