Mastercard Incorporated

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Thank you, Julianne. Good morning, everyone. And thank you for joining us for our second quarter 2025 earnings call. With me today are Michael Meebok, our chief executive officer, and Sachin Mehra, our chief financial officer. Following comments from Michael and Sachin, the operator will announce your opportunity to get into the queue for the Q&A session. It is only then that the queue will open for questions. You can access our earnings release, supplemental performance data, and the slide deck that accompany this call in the investor relations section of our website, MasterCard.com. Additionally, the release was furnished for the SEC earlier this morning. Our comments today regarding our financial results will be on a non-GAAP, currency neutral basis, unless otherwise noted. Both the release and the slide deck include reconciliations of non-GAAP measures to GAAP reported amounts. Finally, as set forth in more detail on earnings release, I would like to remind everyone that today's call will include forward-looking statements regarding MasterCard's future performance. Actual performance could differ materially from these forward-looking statements. Information about the factors that could affect future performance are summarized at the end of our earnings release and discussed in further detail in our recent SEC filings, including our most recent 10K. A replay of this call will be posted on our website for 30 days. With that, I will now turn the call over to our chief executive officer, Michael Mehra.

Thank you, Devin. Good morning, everyone. The headline this morning is, we delivered another strong quarter with our financial results exceeding our expectations. Second quarter, net revenues were up 16% and adjusted net income up 12% versus a year ago on a non-GAAP currency neutral basis. This is all underpinned by a winning strategy, diversified business model and a relentless focus on executing against the priorities that fuel our growth algorithm. I will share several compelling examples on that today, but before I do, I will provide a few observations on the macro environment. Consumer spending remains healthy, supported by low unemployment and wage growth that continues to outpace inflation. This is true across both affluent as well as mass market consumers. While macro uncertainty remains due to government actions and geopolitical tensions, overall we remain positive about our growth outlook as the fundamentals that support consumer spending have been strong. For that as a backdrop, let's get into the details of the quarter. We continue to deliver steady drumbeat of significant wins with leading merchants and retailers. I'm thrilled that we have extended our exclusive partnership with American Airlines, one of the world's largest credit co-brand portfolios. Our services continue to set us apart. American will leverage our advanced analytics, loyalty, personalization and security solutions to optimize their car proposition and enhance their industry-leading travel rewards program. We're also partnering with OnePay, a consumer fintech platform in synchrony, to launch a new credit card with Walmart that will be available to consumers across the U.S. And we're expanding our relationship with Uber, extending our exclusive Uber Pro card portfolios in the U.S. and Canada. We will also launch new programs and additional markets, including the U.K. as part of our global partnership. As you look around the world, it's clear that leading merchants see tremendous value in partnering with MasterCard. We're also winning with fintechs, buy now, pay later providers and marketplaces. With PayPal, we extended our card issuing partnership in the United States. We also signed new credit and debit issuing agreements in the U.K. and Germany. And we are excited for PayPal's recently launched contactless mobile wallet in Germany. I just love doing things in Germany. In the buy now, pay later space, we signed an exclusive prepaid and credit card issuing deal with Afterpay in Australia. In Argentina, we renewed our consumer prepaid deal with e-commerce and fintech platform MercadoLibre. We're also partnering with them to launch new credit card programs in that market. And we renewed our partnership with CECOP, one of the largest credit unions in Brazil across credit, debit and commercial. In addition to winning deals, we're capitalizing on the significant volume and transaction opportunity in consumer payments by expanding acceptance, transforming the checkout experience, opening new verticals, leveraging alternative distribution channels and launching innovative new capabilities. I'll give you a few examples for each of these five dimensions. Starting with acceptance. We continue to leverage our contactless technology to drive open loop acceptance in the transit space. Our momentum here continues. In the second quarter, over 60 new public operators hopped on board to accept cards from Ventura County, California to Taichung Metro in Taiwan. We're also opening transit acceptance in China. This quarter we launched Tap to Pay in the Shanghai Metro, which followed a successful launch in a Beijing Metro last year. In a QR based ecosystem, this represents an important evolution toward a multi-form factor market that includes NFC technology. We're also transforming the online checkout experience by driving adoption of capabilities like tokenization, click to pay and payment pass keys. We have significant momentum towards our 2030 vision to transform online checkout into a single click experience. In Europe, over 50% of e-commerce transactions are now tokenized. And for click to pay, Commonwealth Bank of Australia and Westpac are automatically enrolling card holders over the months, bringing mass market adoption in Australia. Issues around the world are committed to removing manual entry by also making click to pay a core card benefit, including NetWest, Standard Bank, Bank Vostok in Ukraine and others. And on the acceptance side, the number of click to pay transacting merchants was up 4x in the first half of 2025 versus a year ago. We're also focused on driving acceptance in new verticals that have not historically been penetrated by card. Insurance payments are a great example. Significant flows, strong consumer demand and a vertical that has undergone a digital transformation in recent years. However, card penetration is far lower relative to other carded categories. We are attacking this opportunity through new agreements with partners like Adyen, Checkout.com, Stripe, Transcard and Worthpay. These partners will focus on enabling consumers to pay their insurance premiums. They will support claims disbursements to policyholders and they will facilitate B2B payments from insurers to vendors providing services for these clients. Next, we're tapping into alternative distribution channels. For example, we're enabling stored value wallets around the globe. Our partnership with Alipay in Hong Kong and GCash will enable 36 local e-wallets to extend their use for cross-border through the international Alipay plus wallet gateway. And MasterCard credentials automatically added to the wallets allowing any stored value to be spent by a simple tap anywhere MasterCard is accepted around the globe. This is again a huge vote of confidence for NFC. Let's look at other areas where we're creating and deploying smart and engaging consumer experience that drive brand preference and incremental spend. First up, we're providing offerings that meet the unique needs of each individual cardholder. In Canada, we partner with CIBC to launch the CIBC Adapter MasterCard which automatically applies additional rewards against your top three spending categories each month. It also includes our innovative touchcard functionality which allows cardholders including the visually impaired to easily distinguish the card from others in their wallet. Next, Aslan cardholders. On average, they spend over two times more per card and up to three times more on border. We're elevating our Aslan value proposition with the MasterCard collection, a comprehensive set of premium benefits created to drive -of-wallet behavior. That's paired with the expansion of a world product suite in the newly created World Legend MasterCard. Our most prestigious consumer card is now available to banks globally. This first launch this month with the Citi Strata Elite Card. Finally, we're providing greater flexibility from consumers. We've deployed the MasterCard One credential as a network level capability worldwide enables issuers to offer a single digitally connected credential to give consumers flexibility as to how they want to pay debit, credit, prepaid installments or stablecoin all through their banking app. And as Raj and Joran explained in detail in our recent call on the Gentic Commerce and Stablecoins, we're leaning into open up and drive new opportunities for our network in these spaces. If you didn't have a chance to join, I encourage you to listen to the replay. Today, I reinforce a few key points. First, the Gentic Commerce. We see this as an exciting opportunity across consumer and commercial flows to shop with merchants easily and securely. We're a scaling agent paid globally, leveraging our capabilities to extend the trust of the MasterCard brand. It enables us to support a new way for consumers to transact. It gives us yet another capability. It sets us apart from domestic and alternative payment systems. And it provides a way for us to drive switching and sell more services. And as for stablecoins, we see it as another currency. We also see it as additive to the network. It's opportunities for us to provide the on and off ramps from fiat to stablecoin, to partner with devise and wallets, to bring interoperability, bring relevant services, bring global reach and trust to the specific use cases. With new technology, we always embrace innovation. We offer choice and extended network to new partners. And we're doing the same thing here. We will bring our reach, ubiquity and trust to Gentic Commerce and Stablecoins and will provide an environment for our partners to innovate upon. That is the MasterCard way. Now turning to commercial payments. We're driving growth by launching differentiated capabilities, scaling our industry-leading virtual card solutions and expanding small business card distribution through new and expanded partnerships. In terms of new capabilities, the small business navigator provides U.S. entrepreneurs access to cybersecurity solutions, insights and analytics, and partner tools to support more efficient and effective operations. Through the platform, Fiservs Clover is partnering with us to offer SMEs discounted point of sale capabilities. And Square is providing tailored educational programs to help small business thrive. In the fleet space, several leading U.S. issuers, including Corpray, are deploying our new capability to integrate fleet cards into digital wallets. For the first time, fleet managers can instantly issue and manage digital cards, while drivers will be prompted to provide key data, like a domino to readings, when they tap to pay at the pump. When it comes to invoice payments, we continue to scale our proprietary virtual card technology by making it easier for issuers and technology platforms to integrate our capabilities. We are now live with eight leading B2B platforms, including Coupa, Cvent, GEP, HRS, Navon, Oracle Fusion Cloud ERP, and SAP Talia. Several more in implementation. On the supplier side, our receivables manager platform is now available globally. It's being deployed through partners like Elevant, RunPayments, an easy page to streamline virtual card acceptance and payment reconciliation. We're also driving small business and card distribution through a series of new and expanded issuer and marketplace partnerships. We've enhanced our exclusive relationship with Payoneer through a suite of services designed to accelerate growth of their small business customers across Europe. We're partnering with e-commerce marketplaces like Box Commerce, who will distribute prepaid business cards to their merchants so that they can make and receive payments on cards across several countries in Africa. Shifting to disbursements. We continue to see strong growth in our MasterCard move capabilities, with -over-year transaction growth of over 35% in quarter two. We're focused on penetrating a wide range of new and existing use cases. For example, in the disbursement space, we've partnered with Jack Henry to distribute MasterCard move to thousands of community banks through their rapid transfer solution. We've expanded our relationship with New Way, who will leverage MasterCard move to enable Canadian businesses to facilitate near-instant payouts to MasterCard debit and prepaid cards. And staying in Canada, BMO Canada is expanding the use of our cross-border services in about 20 additional corridors. Moving to our third strategic pillar, value-add services and solutions. We continue to leverage the power of our data and product capabilities to differentiate payments and capture adjacent revenue opportunities. We do this by penetrating existing customers, diversifying into new customer types, targeting new buying centers, leveraging B2B partners for distribution and deploying new services. Our use of experience and full suite of products helps us build -for-purpose solutions for clients. We're seeing this in practice with several large customers. For example, we've partnered with Garanti BBVA to support multiple strategic initiatives, including revamping their digital wallet, optimizing collections and boosting credit card sales across digital channels. And we've partnered with Deutsche Bank to use our open banking capabilities to grow -to-account payments across Europe. These services deliver significant value in their own right, but they are even more powerful because of the linkage to payments that fuels our virtuous cycle. We also continue to capture payment-adjacent opportunities and win business with customers beyond issuers and acquirers. We're leveraging our test and learn capabilities with partners as Diversis Lufthansa and ad tech company Bleece to help them conduct scalable, sophisticated testing in areas such as media measurement, operations, and marketing. Our range of capabilities also enables us to expand into new buying centers with existing customers. For example, the credit risk team at Stone, one of the largest acquirers in Brazil, plans to leverage our small business credit analytics product to enhance the accuracy of credit offerings to SME clients. We're also leveraging B2B channel partners to distribute our services at scale. SolidGate, a payment processing platform in EMEA used by merchants over 150 countries, will use Identity Insights for transactions to help reduce fraud and increase acceptance. Finally, we continue to develop new services. We just announced MasterCard -to-Account Protect, which will combine our cutting-edge fraud prevention technology with a new dispute resolution framework to safeguard consumers when making -to-account payments. Deploying services like this across -to-account rails is a major step forward as it helps us grow our addressable market while also further protecting our customers and the ecosystem. We're starting with customers in the UK, including NetWest, Santander, and Monzo to bring to global -to-account overlay to other markets later this year. We remain enthusiastic about our future growth potential for services. Our breadth of data, network of partners, unique product capabilities, strong customer relationships, and our incredible talent will help us to continue to differentiate and provide us with substantial runway for growth. So with that, that was a lot. I will wrap it up. In summary, we delivered another very strong quarter despite an uncertain backdrop. There is significant opportunity ahead. The fundamentals of our business are strong. Our proven growth algorithm and differentiated solutions position us to deliver and win as we have demonstrated time and time again. Sachin, over to you.