For Mastercard, new payment flows and digital innovation outpaced card spending growth, although consumer resilience remained.
And, as management noted in its press release and earnings call discussing the fourth quarter of 2023, demand for security and authentication solutions to protect these transactions is growing.
Supplementary material The total for the fourth quarter was revealed to have increased by 10% to $2.3 trillion.
In the United States, debit and prepaid card spending increased 2.7% to $345 billion, and credit spending increased 5.5% to $382 billion.
Measured year-over-year, overall cross-border volume increased 18% in the most recent quarter.
The company also noted that net revenue from value-added services and solutions increased 17% on a currency-neutral basis. This increase was primarily driven by demand for cyber and intelligence solutions, as well as his identity and authentication products.
For January, management said on a conference call that through the 28th, exchange volume increased 10%, slowing slightly from 11% in the most recent quarter, while cross-border volume remained stable at 18%. Ta.
“Overall, we remain quite positive about our growth prospects, but we are monitoring the environment closely,” CEO Michael Miebach said on a conference call with analysts, as inflation continues. We will manage our business accordingly.”
Digging deeper into payments innovation, he said that Click to Pay is currently available in 35 markets and transaction value will increase by more than 60% through 2023.
He said tokenization is effective in combating fraud and increasing support by 3-6% across all regions.
Chief Financial Officer Sachin Mehra said on a conference call that growth rates for both card presence and non-card presence remain strong.
Contactless continues to perform well
He said contactless accounts for 65% of all in-person exchange purchase transactions.
Looking ahead, Mehra said the fundamental outlook is for net revenue to grow at a double-digit rate on the back of strong consumer spending and a strong labor market. He told analysts that the value-added solutions and services sector has recorded high growth rates and there is a “good outlook” for these services going into the current fiscal year. Management said real-time payments will continue to be a driver of performance in the coming years.
“What interests us is the intersection of open banking and payments. Open banking connectivity allows us to pursue use cases that we couldn't pursue otherwise,” Miebach said. – Data authorized by Consumer Assistance.
“Our real-time payment solutions, card-based solutions, are essentially creating a trend that is expanding the digital economy, putting financial inclusion in the headlines and lifting everyone's boat,” he said.
In a Q&A with analysts, Miebach said there remains a “long-term opportunity” in pending U.S. card-related growth, even with inflation. Elsewhere, China is a market with great potential, especially as Chinese consumers use cards for transactions while traveling.
Investors pushed the stock up 1% at the market open on Wednesday.
