Specialist
Former director at Mastercard
Agenda
- Overview of Mastercard’s (NYSE: MA) operating environment and performance implications for digital payments
- Global digital payment adoption and key considerations for execution
- Competitive assessment vs peers such as Visa (NYSE: V), PayPal (NASDAQ: PYPL), Apple (NASDAQ: AAPL) and others in the digital payments ecosystem
- Mastercard’s product strategy and levers to drive additional growth opportunities
Questions
1.
What are your thoughts on Mastercard’s operating environment, highlighting 2-3 key trends or drivers you think we should be monitoring?
2.
How would you describe Mastercard’s broader strategy around digital payments and how is the company positioning itself to capitalise on that?
3.
What are Mastercard’s key differentiations vs Visa’s digital payments strategy?
4.
Would it be fair to say that domestic digital payment schemes, such as Pix in Brazil or India’s tokenisation programme, are the most meaningful threats to Mastercard and Visa’s strategy?
5.
Could you discuss the tokenisation programme in India? How might that be a potential threat to card networks such as Mastercard and Visa?
6.
Could you discuss the broader adoption of digital payments across geographies we’ve discussed? Where are we seeing the most significant adoption and what markets have been the laggards?
7.
How do you quantify penetration rates for digital wallets across geographies? How might those figures evolve over the next 1-3-5 years? What might be some potential tailwinds or limiting factors?
8.
Is there any threat of regional digital wallet players expanding into other international markets and continuing to take market share from card networks?
9.
How is digitisation influencing the concept of broader globalisation and vice versa?
10.
How do you see card networks leveraging data in terms of product development? What potential use cases could that enhance or develop down the line?
11.
What are your thoughts on the recent proposal from Senator Durbin about promoting additional competition among the card networks?
12.
What might be the implications for things such as processing, issuing or licensing fees, or even just cardholder reward schemes if Senator Durbin’s proposal passes?
13.
How are digital payments impacting or could be further integrated into the B2B space? What is the relative positioning of Mastercard and Visa in that sense?
14.
How do you expect the increasing prevalence of digital payment schemes to impact cross-border fees, given that Mastercard makes a substantial portion of its revenue from them? Do you see that putting ample pressure in terms of cross-border fees?
15.
By what magnitude might cross-border fees decline, if they were to do so? Where do you see them going over the next 3-5 years?
16.
What might be the application of central bank digital currencies, blockchain or broader crypto application for digital payments? I understand the idea of them as an asset class, but it seems there isn’t really a compelling payment use case.
17.
Would broad adoption of a central bank digital currency pose a meaningful threat to the card networks?
18.
Where do Visa and Mastercard’s positionings in digital payments leave players such as American Express or Discover?
19.
How do you see the “friend but competition” relationship between players such as Mastercard and PayPal evolving as digitised payment channels become more ubiquitous and open in terms of an account-to-account transfer that could happen from simply a PayPal account? Would that disintermediate from the cards in any way down the line?
20.
The argument I’m hearing for buy now, pay later is that it just is a way to disintermediate from traditional credit card spending. How do you see the buy now, pay later space trending over the next few years and what portion of credit card spend do you think it could actually take?
21.
How does everything we’ve discussed around digital payments influence Mastercard’s M&A strategy?
22.
What’s your 1-5-year outlook for Mastercard’s performance, given everything we’ve discussed? What best- and worst-case scenarios would you leave us with?
