Mastercard (MA) UBS Global Technology and AI Conference summary

Macroeconomic and consumer trends

• Stable macroeconomic environment supports healthy consumer spending, with inflation subsiding and a strong job market, though slightly less tight than earlier in the year.

• U.S. dollar strength has increased Q4 2024 net revenue headwinds to 1-2 percentage points, with a 0-1 percentage point tailwind on expenses.

• Consumer spending remains robust into November, maintaining a positive outlook.

Consumer payments and growth opportunities

• Significant opportunity remains to convert cash and check transactions, with $11 trillion globally and $1 trillion in the U.S. alone.

• 27% of U.S. transactions are still in cash, and major European markets like Germany and Italy remain cash-heavy.

• Expanding acceptance locations and promoting contactless and Tap on Phone solutions are key strategies.

• Targeting ACH-to-card conversion in verticals like rent, utilities, and healthcare, with new AI-driven solutions like Bill Pay Qkr.

Commercial payments and B2B flows

• Commercial payments present a $100 trillion serviceable market, with $17 trillion in commercial point of sale and $63 trillion in invoice payments.

• Only a small fraction of these flows are currently carded, but new solutions and partnerships are expanding reach, especially among small businesses.

• ERP integrations with major providers like SAP and Oracle are expected to drive future growth.

• Variable Interchange Program to be rolled out globally in 2025, offering flexible pricing to drive acceptance.