Mastercard 2Q15 Earnings Call Notes

Environments in US and Europe have continued to improve but consumer still not spending all of their gas savings

“I’m going to just briefly touch on global economics this quarter. And overall, the environments in the U.S. and Europe have continued to improve, as key economic indicators remained healthy. But the U.S. consumer is still not spending all of their gas savings. Latin America and Asia-Pacific remain challenged, most notably in Brazil and in China, and our business continues to be impacted by the strong U.S. dollar. But our fundamentals remain strong, with double-digit volume and transaction growth in spite of these economic situations.”

Seeing better trends in July so far

“let’s discuss what we have seen in July through the 21st. Most of our business drivers are showing a higher growth rate compared to what we saw in the second quarter. The numbers through July 21 are as follows. Starting with processed volume, we saw global growth of 13%, up from the 11% in the second quarter. In the U.S., our processed volume grew 7%, up two PPT from what we saw last quarter, even after a continued 2 ppt headwind from lower gas prices. And we saw an increase in both our credit and debit programs.’

There are a lot of people competing to be a gateway for payments, but we’re not going to pick a winner

“PayPal is much more than a gateway. And Stripe is a different – they’re different. People use gateway very loosely. So in that whole space of digital transactions, whether they be through m-commerce or e-commerce channel or in-app or browser-based or whether they be through physical contactless, there are going to be a lot of players playing in this space to connect to the merchant, to connect to the acquirer and to connect to the issuer and the digital vehicle that they use. We’re just keen to be a regular player playing with all of them. We’ve had a view through many earnings calls and investor meetings. But we’re not going to pick winners and losers in this because this thing is evolving at a rate that’s very fast and people who looked like winners three years, four years ago are no longer relevant players there. So rather than placing bets, we’re being relatively agnostic in all these spaces”