Former senior executive at Mastercard Inc
- Overview of Mastercard’s (NYSE: MA) operating environment and considerations for performance
- Mastercard’s competitive positioning in the installment lending sector vs buy now, pay later competitors
- Regulatory considerations across geographies, including proposed US legislation by Senator Durbin to increase credit card competition and India’s tokenisation programme
- Outlook for Mastercard’s international expansion strategy and potential levers within cross-border payments, highlighting APAC dynamics
- 1-5-year performance outlook and headwinds and tailwinds for broader buy now, pay later adoption
Could you provide an overview of Mastercard’s operating environment, highlighting 2-3 key trends or drivers the investment community should monitor?
Could you expand on the implications of the regulatory environment in the US and elsewhere? Where is the most substantial risk for either Mastercard or Visa’s business in terms of fee compression? What’s happening in India too with its tokenisation programme?
What are your thoughts on Senator Durbin’s recent bipartisan proposal to potentially increase credit card competition?
How should we assess Mastercard’s penetration across APAC subregions?
How can we think of Mastercard’s value-added services in terms of product categories? What are some of the knock-on effects to that interchange revenue the company can generate off of, or how does it expand the revenue portion it’s generating off these transactions?
How did the pandemic impact cross-border payment flows out of APAC, and how do you see those payment flows trending over the next few years?
How does the increasing prevalence of digital wallets and payments impact cross-border payments?
What markets would you expect more stringent regulation in for cross-border payments?
Do you see buy now, pay later and related instalment lending as a secular growth category, and if so, where are we in the adoption cycle?
What are broader adoption rates for a buy now, pay later instalment-type loan offering across geographies? What might be some tailwinds or headwinds to further adoption?
What are your thoughts on merchant discount rates and how do you expect them to trend? I know they’re pretty substantial, in the realm of 2-6%. Would you expect any meaningful fee pressure as the market matures in different regions?
How are you assessing the buy now, pay later competitive landscape? Where is Mastercard positioned, and who do you see as the biggest potential market share winners and losers over the next few years?
Is there anything else you'd like to highlight regarding Mastercard and the broader buy now, pay later market?
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