Mastercard Updates Second-Quarter 2020 Operating Metrics
May 13 2020 - 5:14PM
Business Wire
Mastercard today is updating its operating metrics with an
additional two weeks of information. We are monitoring the impact
of the pandemic and related actions being taken by governments as
it relates to border restrictions, social distancing measures and
opening of businesses, and the resultant impact on spending levels.
With an additional two weeks of activity, we believe that we are
starting to see the transition from the Stabilization phase to the
Normalization phase in some markets, although it is very early
days. The Stabilization phase is characterized by spending
stabilizing around new lower levels as a result of compliance with
social distancing and mobility limitations. The Normalization phase
occurs when these restrictions are relaxed and spending begins to
gradually recover from the new lower levels, with some sectors
recovering faster than others.
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Cross-Border Volume growth trends versus
the comparable year ago period. (Graphic: Business Wire)
The table below shows weekly growth trends of certain operating
metrics versus the comparable year ago period.
*NEW*
Week ending April 7
Week ending April 14
Week ending April 21
Week ending April 28
Week ending May 7
Switched Volume1
(25)%
(30)%
(20)%
(17)%
(12)%
United States
(22)%
(26)%
(15)%
(12)%
(6)%
Worldwide less United States
(28)%
(33)%
(25)%
(22)%
(19)%
Switched Transactions2
(24)%
(24)%
(20)%
(16)%
(12)%
Cross-Border Volume1
(48)%
(55)%
(49)%
(49)%
(43)%
1. Mastercard-branded programs only
2. Total number of transactions switched
by Mastercard
Additional commentary:
- Switched Volume is showing an improving trend over the past two
weeks, in part due to the relaxation of social distancing measures
in several markets and the impact of fiscal stimulus in the United
States.
- Switched Transactions trends are similar to what we are seeing
in Switched Volumes.
- Cross-Border Volume continues to be impacted by the decline in
travel, although we have seen modest improvements over the last
week in part due to an increase in intra-Europe travel.
Additionally, we continue to see strong demand for our Data
& Analytics and Cyber solutions. In Q2, we expect services
growth will continue to outperform our core products and deliver
positive growth.
The accompanying table shows Cross-Border Volume growth trends
versus the comparable year ago period.
Additional commentary:
- We believe card present growth (orange line) has bottomed and
remains minimal due to the lack of travel, although we have seen
modest improvements over the last week in part due to an increase
in intra-Europe travel.
- Card not present growth (yellow line) has been more resilient
than card present growth.
- We continue to see strong growth in card not present volumes,
excluding online travel related spend (green line).
- Online travel related spend, which accounted for roughly a
third of card not present cross-border volume in 2019, improved
modestly in the first week of May, but remains minimal.
Forward-Looking Statements
This press release contains forward-looking statements pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than statements of
historical facts may be forward-looking statements. When used in
this press release, the words “believe”, “expect”, “could”, “may”,
“would”, “will”, “trend” and similar words are intended to identify
forward-looking statements.
Examples of forward-looking statements include, but are not
limited to, statements that relate to Mastercard’s future
prospects, developments and business strategies. We caution you to
not place undue reliance on these forward-looking statements, as
they speak only as of the date they are made. Except for the
company’s ongoing obligations under the U.S. federal securities
laws, the company does not intend to update or otherwise revise the
forward-looking information to reflect actual results of
operations, changes in financial condition, changes in estimates,
expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing
since the preparation of this press release or to reflect the
occurrence of any unanticipated events.
Many factors and uncertainties relating to our operations and
business environment, all of which are difficult to predict and
many of which are outside of our control, influence whether any
forward-looking statements can or will be achieved. Any one of
those factors could cause our actual results to differ materially
from those expressed or implied in writing in any forward-looking
statements made by Mastercard or on its behalf, including, but not
limited to, the following factors:
- the impact of the coronavirus (COVID-19) outbreak and measures
taken in response to the outbreak
- regulation directly related to the payments industry (including
regulatory, legislative and litigation activity with respect to
interchange rates and surcharging)
- the impact of preferential or protective government
actions
- regulation of privacy, data, security and the digital
economy
- regulation that directly or indirectly applies to us based on
our participation in the global payments industry (including
anti-money laundering, counter financing of terrorism, economic
sanctions and anti- corruption; account-based payment systems and
issuer practice regulation)
- the impact of changes in tax laws, as well as regulations and
interpretations of such laws or challenges to our tax
positions
- potential or incurred liability and limitations on business
related to any litigation or litigation settlements
- the impact of competition in the global payments industry
(including disintermediation and pricing pressure)
- the challenges relating to rapid technological developments and
changes
- the challenges relating to operating real-time account-based
payment system and to working with new customers and end users
- the impact of information security incidents, account data
breaches or service disruptions
- issues related to our relationships with our financial
institution customers (including loss of substantial business from
significant customers, competitor relationships with our customers
and banking industry consolidation), merchants and governments
- exposure to loss or illiquidity due to our role as guarantor
and other contractual obligations
- the impact of global economic, political, financial and
societal events and conditions, including adverse currency
fluctuations and foreign exchange controls
- reputational impact, including impact related to brand
perception and lack of visibility of our brands in products and
services
- the inability to attract, hire and retain a highly qualified
and diverse workforce, or maintain our corporate culture
- issues related to acquisition integration, strategic
investments and entry into new businesses
- issues related to our Class A common stock and corporate
governance structure
For additional information on these and other factors that could
cause the company’s actual results to differ materially from
expected results, please see the company’s filings with the
Securities and Exchange Commission, including the company’s Annual
Report on Form 10-K for the year ended December 31, 2019 and any
subsequent reports on Forms 10-Q and 8-K.
About Mastercard Incorporated (NYSE: MA), www.mastercard.com
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart and accessible. Using secure data and networks,
partnerships and passion, our innovations and solutions help
individuals, financial institutions, governments and businesses
realize their greatest potential. Our decency quotient, or DQ,
drives our culture and everything we do inside and outside of our
company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all.
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version on businesswire.com: https://www.businesswire.com/news/home/20200513005861/en/
Investor Relations: Warren Kneeshaw or Gina Accordino,
investor.relations@mastercard.com, 914-249-4565
Communications: Seth Eisen, seth.eisen@mastercard.com,
914-249-3153
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