Financial Results: Connecting the Pieces for Greater Value

MasterCard Result

July 28, 2016/MasterCard

Martina Hund-Mejean

Earlier today, Mastercard reported our financial results for the second quarter.

If you read the press release or listened to the call, you heard about continued momentum through the first half of the year with strong revenue growth of 14%. This growth was driven by strong volume and transaction levels, as well as contributions from our services.

Our business and core fundamentals continue to be strong across the board. While we are making significant investments in a number of areas such as digital payments, safety and security offerings, and geographic expansion, we are also closely managing our expenses.

For the full-year, there is really no change in our business outlook.

The global economy has remained largely unchanged for quite a few quarters. The U.S. economy is holding steady, as was Europe prior to the UK referendum vote a month ago. While there was an initial reaction to “Brexit” in the markets, there was no operational impact to our payments network. This event will continue to play out over the coming months and years, and we’ll be prepared to manage our business appropriately.

The outlook for Asia remains cautious due to the prolonged slowdown in China and a weaker than expected recovery in Australia. India continues to be a bright spot. In Latin America, Brazil and Venezuela are still challenged for different reasons, but Mexico remains on a steady growth path.

With that as our daily reality, we continue to deliver against our strategy, looking to provide more value to our customers, merchants and consumers. I’d point to two examples from our call this morning:

VocaLink – Last week, we announced our intent to acquire VocaLink. By reading this blog and following our company, you’re familiar with how we’re using our technology to bring innovative payments products and services to consumers and businesses.

We want to be an active participant in all types of electronic payments and flows. ACH represents roughly half of all payments in the top 50 countries. That’s all payments – including business and government – not just retail payments in PCE. Faster payments and faster ACH are being promoted by regulators across the world.

We believe that VocaLink is the best asset in this space. They have very talented people and great technology that will allow us to expand in the strategic UK market. In addition, their Fast ACH technology has already been sold into other countries around the world. And finally, this will also allow us to offer an even broader range of data analytics and other services to our partners, given that we will now also see ACH transactions in addition to card transactions.

Masterpass People are leading more of a digital life. It’s how they’re interacting with friends and family. It’s how they work and shop. We’re focused on empowering our customers and partners to maximize the opportunities in this space. Just two weeks ago, Mastercard became the first network to deliver a digital payment service that allows consumers to decide when and how they want to shop, in-app, online or in-store, using the bank-branded solution of their choosing. Our digital-by-default strategy will see our issuers auto-enroll more than 80 million accounts globally by the end of the year.

We’ll continue to build on our momentum, innovate and enhance the consumer experience, and deliver on our brand promise. Visit this site for the latest news and first-hand experiences from our colleagues and partners. And, be sure to tune in again next quarter for another update on our global efforts.

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