Thank you, Crystal, and good morning, everyone, and thank you for joining us for our second quarter '21 Earnings Call. We hope you're all safe and sound. With me today are Michael Miebach, 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 section. It is only then 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 with the SEC earlier this morning. Our comments today regarding our financial results will be on a non-GAAP currency-neutral basis unless otherwise noted. The release and the slide deck include reconciliations of non-GAAP measures to GAAP reported amounts. Finally, as set forth in more detail in our 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 in our recent SEC filings. A replay of this call will be posted on our website. With that, I will now turn the call over to our Chief Executive Officer, Michael Miebach.

Thank you, Warren, and good morning, everyone. So here are the highlights of the quarter. The strong momentum we started the year with accelerated this quarter, with net revenue up 31% and EPS up 37% versus a year ago, all on a non-GAAP currency-neutral basis. On that same basis, quarter two net revenues are now 10% over 2019 levels, even though international travel is in the early stages of recovery, which is showing the strength of our diversified revenue streams. Domestic switched volumes are well above pre-pandemic levels with all regions growing at a healthy rate. We are seeing improvements in both domestic and cross-border travel with significant upside potential. Within this context, we're making progress against our strategic objectives and have expanded our relationships with key partners like Citi, JPMorgan Chase, Barclays, Stripe, and Verizon. Let's dive in. Looking first at the broader economy, domestic spending levels continue to show improved in-store sales and strength in e-commerce. According to our quarter two SpendingPulse report, which is based on all payment types, including cash and checks, U.S. retail sales excluding auto and gas were up 14% versus a year ago and up 10% versus 2019, reflecting improved consumer mobility and some residual effects of fiscal stimulus. SpendingPulse also indicated that overall European retail sales in quarter two were up 13% versus a year ago and 6% versus 2019. The vaccine rollout has scaled in the U.S., UK, and Germany and several other countries with over 35 countries now reporting that over 50% of their populations are at least partially vaccinated. Broadening this effort is critical and will take time. Turning to our business, specifically in the four-phased framework we established for managing through the COVID environment, we believe that most markets are at a growth phase domestically as cross-border spend is now starting to normalize, with border restrictions being relaxed. Looking at Mastercard spending trends, switched volumes continue to improve quarter-over-quarter with strength across all products. Debit spend remains elevated and we are seeing further recovery in credit, driven in part by the return of travel and increased discretionary spending. This recovery is led by consumer credit, but it's important to note that commercial credit is also improving and has now reached pre-pandemic levels as well. In terms of how people are spending, they are definitely getting out more as we are seeing improvement in card-present spending, particularly in the travel, retail, and restaurant categories, while e-commerce continues to be strong. Now turning to cross-border. Cross-border card-not-present spending, excluding online travel spend, continues to be very strong. On the travel front itself, it is clear people want to travel and they do so where and when they are able to. We've seen domestic travel and across borders where there are limited restrictions. For example, we're seeing strength between the U.S. and Latin America as well as an increase in travel within Europe. Our industry reports indicate there has been a recent increase in bookings for travel between the U.S. and Europe, and the quarantine requirements for entry into Canada are starting to be relaxed, creating further opportunities. Overall, we expect more borders to open in the second half of the year depending, of course, on infection rates, including the recent variants and progress on the vaccination front. Against this improving backdrop, we are focusing on our strategic priorities: one, rolling out core products supported by our services; second, driving digital enablement both in-store and online; third, ensuring the ecosystem is safe and secure; and fourth, providing choice through our multi-rail capabilities. As always, we will do this with an eye towards driving top and bottom line growth over the long term by continuing to manage our expenses carefully. Let's look at them one by one. First off, we're driving growth in our core products and leveraging our comprehensive services to do so, working with new and existing customers to solve their pain points both in payments and beyond. We're well positioned to capitalize on the return of travel, and remain focused on building on our strength in this area by expanding relationships with our travel partners. For example, we have renewed our exclusive co-brand with JetBlue Airlines in the U.S. We also entered into a long-term global partnership with Cathay Pacific and Asia Miles, who will migrate their existing co-brand portfolio to Mastercard. In the Middle East, we have expanded our British Airways co-brand; and in Latin America, we are now the preferred brand for LATAM Airlines. It is important to note that our services played a critical role in enabling all these deals, including our data analytics, Test & Learn, loyalty, consulting, and cybersecurity solutions. Of course, we also continue to drive growth in the core outside of travel. Here are a few examples. We are excited about our partnership with Citi to launch the new Citi Custom Cash Mastercard, offering card members cashback in the top eligible spend category. With JPMorgan Chase, we've extended and deepened our agreement in the commercial space and we have renewed our Master brand relationship with Chase in the U.S. We also continue to partner closely with community banks throughout the U.S., including a flip of First Southern National Bank’s debit portfolio to become their exclusive network brand. On the digital front, we’re well positioned to drive the acceleration of the secular shift with our digital capabilities no matter how consumers want to shop—in-store, online, or both. As consumers return to in-person shopping, the adoption of contactless continues to grow. In the second quarter, contactless penetration represented 45% of in-person purchase transactions globally according to our switched transactions, that's up from 37% a year ago. At the same time, e-commerce continues its strong growth and we are providing consumers choice on how they want to pay online. For example, Click to Pay, which improves the guest checkout experience, is now rolled out in over 10 markets and we continue to launch significant new merchants, such as the Canadian Tire Group. On to the Buy Now Pay Later space in Australia, we are partnering with Citi and Commonwealth Bank of Australia to offer instalments to consumers wherever Mastercard is accepted, whether in-store or online; we are securing and streamlining the consumer experience through our tokenization services. Tokenized transactions across in-store, online, and in-app surpassed 1 billion per month throughout the second quarter. We continue to partner with major digital players to expand the reach of our digital capabilities. For example, we just entered a strategic partnership with Stripe to give businesses more control over how they spend their money by enabling Stripe users to create, manage, and distribute virtual and physical cards for small business, commercial, and consumer across credit, debit, and prepaid. We also entered a partnership with Verizon to bring 5G innovation to the global payments industry. Leveraging our services and insights and pairing Mastercard's solutions with Verizon's 5G connectivity will allow us to create better experiences, from the checkout lines being built even to how businesses are run. The increased capacity and reduced latency of 5G will enable us to take another step towards making every device a commerce device. Now, on to securing the ecosystem. As more merchants and consumers shift to digital, the importance of keeping the ecosystem safe and secure is paramount and is creating a strong demand for our cyber-solutions. In addition to organic growth, the number of our acquisitions in the space continues to perform well. For example, Ethoca had strong deal momentum, including a fraud and dispute management agreement with EBANK, a payment solution provider operating across 15 countries in Latin America. RiskRecon, which monitors and assesses customers’ third-party cybersecurity risk, is now scanning millions of companies globally—up from thousands when we acquired them at the end of 2019. NuData is providing biometric fraud prevention tools to Major League Baseball, and we are very happy to advance our digital identity capabilities with the acquisition of Ekata, which is now closed and off to a strong start on the deal front. Last, but certainly not least, let's turn to our initiatives focused on addressing a broader set of payment tools with our multi-rail capabilities. The key here is to provide choice—essentially, the right tool for the job. With our multi-rail approach, including our expertise and capabilities in cards, real-time payments, and support for digital currencies, we are able to deploy the right combination of assets to meet our customers' needs. And more than just having this range of capabilities, we're making these solutions work together seamlessly. Let me give you a few examples. In B2B, we're making progress with Mastercard Track, building out our global open-loop network by working with buyer agents and supplier agents, such as banks, software companies, and ERP vendors. On the bank side, we're excited to have signed Barclaycard payments so we'll use Track to connect their global business customers on both the buyer and the supplier side ecosystem across multiple rails. You can also find FreshBooks, a premier accounting software platform with customers in over 100 countries. In the Bill Pay space, we continue to scale the Mastercard Bill Pay Exchange, which leverages our real-time payment capabilities to provide a transformative mobile-first experience to bill payments with Citi Treasury and Trade solutions now connecting into the platform. The Mastercard Send continued to penetrate a variety of new payment flows beyond traditional card payments; this enabled dozens of use cases and hundreds of programs across every region of the world. For example, we are partnering with innovative digital messaging platforms to offer P2P services to consumers. Today, users of WhatsApp in Brazil can transfer money directly in-app leveraging Mastercard's Send. We're also partnering with MoneyGram and Checkout to enable near real-time cross-border P2P transfers across Europe. And on the B2C front, we continue to support the fast-growing gig economy and are partnering with Payfare to enable instant earnings payouts for some of the largest gig platforms in the U.S. Through open banking, Mastercard is empowering people and businesses across the globe to easily and securely gain access to their financial data to create new opportunities for themselves. In the U.S., our efforts with Finicity are running ahead of expectations as we continue to enhance direct API connectivity for banks and fintechs. For example, we're partnering with Jack Henry to enable consumers to bank at more than 400 community financial institutions using its digital platform to access, use, and benefit from their own financial data. Navy Federal Credit Union recently signed direct data access agreements with Finicity. Finicity is also leveraging data connections to launch new products and new verticals, such as its mortgage verification service. Finally, in terms of cryptocurrency, we're making it easier for cryptocurrency wallets to connect seamlessly to our network through pilot programs with Paxos, Circle, and Evolve Bank & Trust, which simplifies the conversion of crypto into fiat. Secondly, we're partnering with ConsenSys, the Ethereum software engineering firm, to accelerate the development of crypto applications and services for all our customers. Now, summing all of this up, we delivered strong revenue and earnings growth this quarter, benefiting from our revenue diversification efforts. We believe that most markets are in a growth phase domestically and there is upside potential in cross-border travel. We're winning significant new deals and we continue to focus on our strategic priorities to drive growth over the long term. Sachin, over to you.

Thanks, Michael. Now turning to page 3, which shows our financial performance for the quarter on a currency-neutral basis excluding special items and the impact of gains and losses on the company's equity investment. Net revenue was up 31%, reflecting the continued execution of our strategy and strong recovery in spending. Acquisitions contributed 3 percentage points to this growth. Operating expenses increased 28%, including an 8 percentage point increase from acquisitions. Operating income was up 34% and net income was up 36%, both of which include a 2 percentage point decrease related to acquisitions. EPS was up 37% year-over-year to $1.95, which includes $0.03 of dilution related to our recent acquisitions, offset by a $0.02 contribution from share repurchases. During the quarter, we repurchased $1.7 million worth of stock and an additional $398 million through July 26, 2021. So, now let's turn to page 4, where you can see the operational metrics for the second quarter. Worldwide gross dollar volume, or GDV, increased by 33% year-over-year on a local currency basis. We are seeing strength in debit and credit. U.S. GDV increased by 34% with debit growth of 23% and credit growth of 50%. Outside of the U.S., volume increased 32% with debit growth of 39% and credit growth of 25%. Gross dollar volume was about 58% globally for the quarter with intra-Europe volumes up 48% and other cross-border volumes up 71%, reflecting continued improvement and the lapping of the depths of the pandemic last year. In the second quarter, cross-border volume was 87% of 2019 levels with intra-Europe almost back to even at 97% and other cross-border volume at 79% of 2019 levels. Turning to page 5, switched transactions grew 41% year-over-year in Q2 and were at 127% of 2019 levels. Card-not-present growth rates remain strong and card-present growth continued to improve, aided in part by an increase in contactless penetration across every region. In addition, card growth was 8%. Globally, there are 2.9 billion Mastercard and Maestro-branded cards issued. Let's turn to page 6 for highlights on the revenue line items again described on a currency-neutral basis unless otherwise noted. The increase in net revenue of 31% was primarily driven by domestic and cross-border transaction and volume growth, as well as strong growth in services, partially offset by higher rebates and incentives. As previously mentioned, acquisitions contributed approximately 3 percentage points to net revenue growth. Looking quickly at the individual revenue line items, domestic assessments were up 36%, while worldwide GDV growth was up 33%. The 3 percentage point difference is mainly driven by pricing and mix. Cross-border volume fees increased 60% while cross-border volumes increased 58%. The 2 percentage point difference is primarily due to favorable mix as cross-border volumes excluding intra-Europe grew faster than intra-Europe volumes this quarter, partially offset by the lapping of elevated levels of return activity a year ago. Transaction processing fees were up 33%, while switched transactions were up 41%. The 8 percentage point difference is primarily driven by the lapping of elevated return activity a year ago and adverse mix. Other revenues were up 32%, including a 9 percentage point contribution from acquisitions. The remaining growth was mostly driven by our Cyber and Intelligence and Data and Services solutions. Finally, rebates and incentives were up 49%, reflecting the strong growth in volumes and transactions and new and renewed deal activity. Moving on to page 7, you can see that on a currency-neutral basis, total operating expenses increased 28%, including the impact from acquisitions. The remaining growth in operating expenses was primarily due to higher personnel costs as we invest in our strategic initiatives, increased spending on advertising and marketing, and increased data processing costs. Turning now to page 8, let's discuss the specific metrics for the first three weeks of July. We are seeing significant improvements in the growth rates across our operating metrics versus 2020, in part due to the lapping effects related to the pandemic that began last year. To provide you better visibility into current spending levels, we thought it would be useful to once again present the 2021 volumes and transactions as a percentage of the 2019 amounts, when we were not experiencing the impact of the pandemic. So, if you look at the spending levels and the percentage of 2019 for switched volumes, the broad-based recovery continued through the second quarter and into July. Specifically, in the first three weeks of July, switched volume spend levels are at 130% of 2019 levels, which is a 9 percentage point improvement over Q1. We have seen further recovery in card-present spending with improvements in travel-related categories, including lodging and restaurants. Of note in the U.S., we are seeing consumer airline spending improve significantly since the early part of Q2, with the volumes now back to pre-pandemic levels. Present switched transactions remain steady and are generally tracking the trend we are seeing in switched volumes. In terms of cross-border, spending levels as a percentage of 2019 show an improving travel trend. Cross-border travel, which includes both card-present and travel-related card-not-present volumes, increased from 39% to 66% of 2019 levels from April to July, primarily driven by strength in Europe and between the U.S. and Latin America. Asia Pacific has been slower to recover. Cross-border card-not-present excluding travel continues to grow at a healthy rate above pre-pandemic levels; this has moderated recently relative to 2019 levels in part due to a reduced contribution from the purchase of cryptocurrencies and the lapping of significant e-commerce promotional activity in 2019. Turning now to page 9, I wanted to share our current thoughts looking forward. First off, we continue to make strong progress against our strategic objectives and see solutions to grow with the new and renewed deals we continue to sign. Domestic spending levels are showing healthy growth and we are well positioned for the return of travel with travel-oriented portfolios. Further, our service lines continue to grow at a healthy rate. Turning to the third quarter, if spending levels continue to improve along the current trajectory, we would expect Q3 net revenues to grow at the high end of a mid-20s growth rate year-over-year on a currency-neutral basis, excluding acquisitions. As a reminder, Q2 2020 marked the low point of the pandemic from a spending standpoint, with some recovery in the following quarter. So, we will be facing a more difficult bump of approximately 3 percentage points in the third quarter. It is also important to point out that this is just one potential scenario as the level of uncertainty remains related to new COVID variants and the progress of vaccinations. Therefore, the pace of recovery may not be linear. In terms of operating expenses, we will continue our disciplined approach to expense management while advancing our strategic objectives in key areas such as digital, cybersecurity, data analytics, B2B, and our material solutions, including related brand and product marketing investments. For Q3, we expect operating expenses to grow at the high end of a mid-teens rate versus the year ago on a currency-neutral basis, excluding acquisitions. As a reminder, we are lapping the spending actions we took last year as the pandemic developed. With respect to acquisitions, we are pleased to have closed on the transaction with Ekata earlier than expected and expect acquisitions will contribute about 2 to 3 percentage points to revenue in Q3 and Q4. Similarly, acquisitions will contribute approximately 9 to 10 percentage points to operating expense growth in both Q3 and Q4 as we integrate several acquisitions in promising new growth areas such as open banking, digital identity, and real-time payments. As a reminder, we discretely disclose the impact of acquisitions all in the year in which they close and the subsequent year, after which time we do not split them out. Other items to keep in mind: foreign exchange is expected to be a 0 to 1 percentage point tailwind to net revenues and a 1 to 2 percentage point headwind to operating expenses in Q3. On the other income and expense line, we are at an expense run rate of approximately $115 million per quarter within the prevailing interest rates. This excludes gains and losses on our equity investments, which are excluded from our non-GAAP metrics. Finally, we expect a tax rate of approximately 17% to 18% for the year based on the current geographic mix of our business, an improvement over previous expectations due to some discrete tax benefits realized in Q2. One last point: I wanted to let you know that we are planning an Investment Community Meeting for the fall in New York. We are planning a hybrid event on November 10th and we look forward to discussing our future plans with you at that time. And with that, I will turn the call back over to Warren.

Thanks, Sachin. Crystal, we're now ready for questions.

Your first question comes from the line of Tien-Tsin Huang with JPMorgan.

Hey, good morning, everyone, and thanks for all the details as usual. Just want to - just going through, Sachin, some of the numbers you gave and just want to get your updated thinking here on operating leverage in the second half of the year, including the digestion of deals. It looks like there is some, but I'm just curious how aggressive some of the spending will be on the integrations given that there's a lot going on, a lot of good things going on there with some of the acquisitions that you’ve done and the focus on services if that makes sense?

Yes. So Tien-Tsin, it's like I said in my comments, I think what we have line of sight on is the acquisitions, which we have done, which we have announced, and that's why I've given you some level of guidance on as it relates to what contribution they're going to have from a revenue standpoint and an expense standpoint, all of which I just went through in my prepared remarks. Look, the reality is we're running the business for the long-term. We're trying to drive long-term revenue growth and at the same time long-term bottom line growth, and I will do this in a disciplined manner. We have demonstrated over the period of the pandemic that we have sufficient flexibility in our expense base to actually make sure that we continue to execute on our strategic objectives, and at the same time keep an eye on how we are seeing the top line come around. So, I guess, my point to you is the following, which is we will continue to do what's right for the business to drive long-term growth by investing in key strategic areas, both organic and inorganic, and that's just where we are. In terms of the specifics on the numbers, it's what I just shared with you. We expect that acquisitions will contribute between 2 and 3 points to revenue in the third and the fourth quarter.

Yes. Just something to add, Tien-Tsin, here is if you look at the three big acquisitions that have come in over the last year or so, Nets, the largest one we have done, giving us a real advantage in real-time payments around the world. You have the Finicity open banking, now that's a trend that's very hot. We feel really good about that one. And then digital identity, Ekata, is foundational to everything that we do online. So, these are critical acquisitions to Sachin's point. We have to do what is right. But one thing that is not changing is our discipline on execution. We stick to our 24-month non-diluted measure on all of these. So, I just want to put that out there with you as well.

All fair points and those are all important areas. Thank you.

Thanks, Sachin. Crystal, we're now ready for questions.

Hi, good morning. Thank you for taking my question. Michael, last week you announced the card offerings to crypto companies, which simplifies crypto conversion to fiat, and this fits within the other announcements you’ve made in crypto. Take a step back. Can you talk about the value proposition Mastercard is bringing to the table for crypto companies, central banks or CBDC, stablecoin providers, and the different ways they are either engaging there? Thanks.

Right. Thanks, Harshita. Great question, very important topic is obviously a vibrant space around digital currencies. Let me go back to what we discussed in the previous call, where we said there’s broadly three different categories that are in play here: central bank digital currencies, private sector stablecoins, and floating cryptocurrencies. We told you that we want to play a role across all of them. We also said in the first quarter call that as far as stablecoins are concerned, we are getting ready to technologically enable our network to carry these stablecoins as settlement currency, provided they meet one of our - all three of our criteria, which is regulatory compliance, consumer protection, and stability. None of that has changed. Let me just give you a view on what has happened since we had that conversation. So, on the Central Bank digital currency front, things are definitely continuing to move forward. We see a lot of central banks engaged on the topic. The ECB has just recently announced that they will actually move forward with the digital euro after a period of industry consultation. The Bank of England is in this period of industry engagement at this point right now, so there is clear progress. What is our value proposition to central banks and governments in this space is first of all, we bring a unique perspective to the market as - to these players as a multi-rail provider because all these countries have to make the trade-off what is my existing financial system delivering my existing financial infrastructure and what else is the central bank digital currency solving for; everybody has different motivations ranging from financial inclusion to cross-border payments and hence we're sought after partly because we have experience in all of that. I think a particularly critical proposition here is our virtual testing platform because all of these design choices the governments have to make and that we consult them on, we then have to live in the wild, so to say. They’ve got to work with the existing financial infrastructure and that's what our virtual test platform does for them. So that's the proposition at this stage for central banks. On the private sector stablecoins, nothing much different, other than engaging with private sector players as well as regulators on what does good policy look like around private sector stablecoins because this question about regulatory compliance is still unresolved and regulators do need to weigh-in and we're a part of that dialog. In floating cryptocurrencies, the point of currency stability is not solved. So, we won't be enabling that as settlement currency on our network, but clearly, people want to invest in that and want to sell their investments and we're going to make this as easy as possible, so we have all these partnerships out there. Now, here's the thing with our announcement last week and that is coin digital currency wallets out there oftentimes prefer to stay in crypto as these transactions are made selling and buying of investments. And here's where our partnerships, for example, with Paxos come in. It is our partner that allows the digital wallet to stay in crypto as they settle with Paxos and Paxos settles with us in fiat. That's a step for us as and when we reach a point that we might be enabling stablecoins on our network itself. So that's kind of where we are, playing a role across the board. This is relevant technology. As a multi-rail player, we got to be in this space because people are looking for answers.

Perfect. Thank you very much.

Good morning. Good stuff. Thanks for taking my question. I have one question on B2B payments. Michael, in your prepared remarks, you called out progress on Mastercard Track and Bill Pay Exchange. Taking a step back, can you just give us a sense right now of where you are in terms of scale and trajectory holistically in the digitization of B2B, especially as it seems like some of that digitization has gotten a bit of a jump-start to the pandemic? Anything you can dimensionalize around volumes growth rates, etc.? Thank you.

All right. Thanks, Lisa. B2B is a huge, huge space, obviously, with a TAM of $125 trillion. So how we're going about it? One bite at a time, I would say. The first thing I should say is our commercial business. It is there; it's coming back, commercial travel is coming back as I noted earlier in my comments. So, here the focus is on small business and virtual card. In the B2B space, specifically virtual card solutions, for example, on online travel agencies. So all that is continuing, but it's worth noting. We gave you a number sometime back and in 2020, this was 11% of our GDV, and that is what we're happy about. Now, when it comes to B2B, very specifically, it has a multifaceted approach; I talked you through earlier across Bill Pay, Track, and the whole list that I talked about. Here, I see that if I take Bill Pay today, if you look at the fact that we have a quarter of all bills being paid addressable and a third of the biller, so that gives us real scale. So, I think we have come to a point of scalability here with the right kinds of players. Last quarter, we added Verizon as a biller to the mix, so that is encouraging. We haven't given specific numbers and we haven't done that in this quarter yet, but I really see that is going in the right direction and with Nets coming in, we have a significant footprint in Europe. They run a scale Bill Pay business over there. So, when the time is right, we'll share some numbers around that. Now, at B2B specifically, Track, the excitement around a large bank like Barclays joining the Track ecosystem is great. We fine-tuned our go-to-market approach with ERP and software providers. So the rollout here is progressing well with both sides, buy-side supplier and buy-side supplier agents. Again, we haven't given numbers yet, but it would be what you would expect when you build it at a two-sided network. We're starting to connect the corridors. So, the value proposition of Track, a payment optimization engine, and the choice in multi-rail payments is really starting to gain traction. We said a couple of times this is going to be a multi-rail journey. COVID, while there was a realization that B2B supply chains have been affected by COVID, and there is a desire to digitize, it wasn't exactly top of mind through COVID. So, we're starting to see this interest coming back. So, that's kind of where we are. Sachin, do you have anything to add?

Yes, sure. I'd just make one more point which is, as we think about B2B, we also think about it from a segment growth perspective, right? What is the micro kind of business environment, small business environment, mid-market, and then large corporate? When you actually dissect along those lines, you will see that there is a significant amount of spend which takes place across the micro and small business space? If you further break that down, you will see that there is a significant amount of that spend which takes place in cash. So, the only point I'm trying to make is that the value prop of the card rail in B2B still stands strong to displace cash, much like it has in the consumer space and is a tremendous opportunity for digitalization to continue down that path there as well. So, I know we talked a lot about unstable flow, and I think that's super important, but we certainly internally are not losing sight of the fact that a significant amount of cash spend still takes place, where the value prop stands good.

Yes, hi, thanks for taking the questions. Two questions for you. One, any thoughts on the reopening of the Durbin Amendment discussion? And second, are you planning to update your three-year guide at the Investor Day later this year? And I know you just announced it, but figured I'd ask anyway. Thanks.

Okay. So, let me take the last one with a bit of a cheeky response. I think you will just have to tune in Craig to find out if we’re going to get three-year guidance or longer-term guidance at the time. On interchange, it's a complex topic for sure and the new administration is looking at various regulatory and lawmaking initiatives as we all know we've just seen news yesterday. Now, from the outset, we've learned in with the new administration to build a really positive relationship. So, that is very good and we're continuing obviously the same kind of interaction and engagement on the topic as important as interchange to our industry with lawmakers on the Hill House, Senate on both sides of the aisle. We're monitoring this very closely. There is chatter here and there on interchange; it is a topic that's always been focused by different parties. What I would say is we've had the benefit of now having many years to observe the interchange regulation on debit play out and have enough data for us out there to say that really what it was intended to do, we can't see it happening. Costs for consumers have gone up and benefits have been reduced. We keep providing that data to lawmakers and other interested parties and say, here’s what I want the facts are stating. Now, when it comes to interchange regulation regarding credit, you would expect the same in terms of cost impact and in terms of benefits impact, but there is another aspect here, and that is the access to credit. You should assume that the access to credit for middle-class Americans is going to be impacted and not in a permanent way if this interchange regulation comes in, so it is something that needs to be thought through very carefully. What are the puts and takes? Why does this make sense? And that's the dialogue we're leaning into; it's a good thing as we see things play out in many other markets around the world and have some experience with that to bring to the table as well. So, that's kind of where we are—closely monitoring.

Thanks. Good morning. Obviously, a lot of eyes on cross-border travel spending and there were some constructive data points this quarter. Maybe two interrelated questions understanding the Delta variant adds complexity to our view, but do you think that we will continue to see progress on travel spending going forward? And I think Sachin, you mentioned in your third quarter view, you expect continued spending trends. Is there a view on cross-border as well?

Yes, Sanjay. I'll address that question. The current uncertainty in the environment persists due to various variants. However, it is clear that people want to travel, and they are doing so whenever they have the opportunity. This trend has been evident in both domestic and international travel. We monitor booking patterns, spending trajectories, and the opening of travel corridors closely. Recently, there was a conversation about the UK allowing vaccinated travelers from the U.S. and other nations, which is promising. The data we've seen so far in July gives us a positive outlook as we enter the second half of the year. As vaccination rates increase and more corridors reopen, people are eager to travel, which is crucial. Looking globally, in the U.S. and Latin America, we've observed that as borders open, people are taking advantage of the opportunity. We've also heard about Canada opening up, which is encouraging for us. Conversely, Asia remains more cautious due to higher variant levels in some countries, making predictions difficult. However, overall, we are optimistic about the resurgence of travel, and we are strategically positioned to benefit when it occurs.

I just want to add one point as I listen to Sachin. What I find very noteworthy here is back to the comment about like 35 countries have now over 50% of vaccination levels. So, this kind of sequence of you are vaccinated and you are willing to travel, which we have both seen as proof points and then governments finding ways to enable these corridors as we've seen in Canada and the UK. There is a full stock of people who are vaccinated and want to travel and until you come to the point of who else is not vaccinated. There is a long runway for us for this to play out, but as Sachin said, it is difficult to predict at this point, but those are facts that we are looking at and we've seen over the last three weeks.

Hey, thanks guys. We're now a year and a quarter basically into the pandemic, Michael, when we think about the structural and sustainable elements of what we're seeing in volume and even some of the other aspects of your revenue, like some of the value-added services that you've really been growing well probably better than I think we would have expected pre-pandemic. Can you give us a sense now if you've revisited that? What do you see as being sustainably elevated, structurally better that could persist over the next few years beyond just stimulus and pent-up demand?

Yes. So, Darrin, the pent-up demand at some point is going to level out. I think you're right. Once you've caught up time and met everybody again, and what we're going to come to the back of that, but there's still some more pent-up demand to go, particularly on commercial traffic. We'll see how that plays out. You know it's interesting when you look over the last two quarters; we see continued elevated levels of digital e-commerce spend, but we see in-store coming back. So, there is not a net zero game going on. I think this is actually a generally secular trend against cash that is going to continue to run for a very long time. So, it's good to have these two legs to stand on from our business model. I think that will remain. You will see some of the e-commerce reduce over time, but I don't think we will go back to the levels that we had before the pandemic because people would have learned better experiences and they would like to continue with that. I think every bit of consumer research that we do tells us that. By the way, this is not just for online shopping; it is for digital banking, for contactless, it's for everything across the board, and generally between 60% and 70% of people that we ask every month say exactly that. With this push towards a more digital world, more data needs to be kept safe, so I could see that the path for our cyber-security solutions is very clear. We will not see a reversion to something back before because you have the elevated driver of more digital just out there driving that business and the same for data and analytics. Data analytics, again, more data; people want to understand it. Back to what Sachin talked about—small business. Here's a bunch of players that have traditionally maybe not used tools like that. Understanding and managing their business through data and analytics, but now they can, so there is a whole new segment that is opening up that we would like to serve through our partners in terms of real insights and how to run a business online from whatever you might have been doing in the brick-and-mortar space before. So, I think those are structural changes that are here to last. I don't think the cross-border will have dramatically structural changes; it's really the cross-border e-commerce. Some people would have figured out that this actually works. It couldn't go anywhere; they were using cross-border e-commerce platforms and tools, and I think that will continue. One more thing that comes to mind structurally is the heightened and elevated interest of governments in electronic payments and digital payments that has started last year. Again, that was driven by the price initially, how do I get my stimulus payments out to now a conversation on why this is an interesting space, and I find my infrastructure is stated; I need to partner with people. That is something that I see fundamentally as an opportunity, but it's important to engage with governments as you know as a fair partner and see that local footprints and things like that do matter. We are well positioned with our multi-rail infrastructure to address these needs.

Okay. Hey, guys. Thank you so much. I was very interested in the Stripe partnership and in some of the other partnerships. Can you maybe shed some more light on what we're doing with Stripe? It sounds very differentiated. Thank you.

Yes. Dan, regarding the joint partnership, as I mentioned, this is a comprehensive strategic collaboration. It enables their customer base to utilize virtually every available payment tool, ultimately offering more choices. Verizon represents a completely different strategic partnership focused on their 5G network. We explored possibilities together. We've discussed small and medium enterprises in this context multiple times. Consider a small or medium enterprise that currently uses a card terminal; they need to find ways to compete effectively. If they have full internet connectivity with minimal infrastructure, they can deliver a genuine omnichannel experience, something even the smallest businesses can achieve. That’s the potential of 5G, accessible at any location under any circumstances, and that’s the vision being developed by our teams. This initiative has been in the works for some time, and we anticipate it will make a significant impact. While these are two distinct types of strategic partnerships, both are important. The key takeaway for us is to provide payment options to all who are involved in payment transactions.

Hi guys, good morning. I know we talked about cross-border travel; just thinking about cross-border card-not-present excluding travel. I know that dropped a touch in June and then the month-to-date July. Just wondering what the outlook might be. Should we see further lower growth numbers there as we head into further through the year as we think about maybe more in-store activity, tougher comps, less e-com promotional activity? Just trying to get a pulse on that number as we go forward. Thanks.

Hey, Brian. So, a couple of things to point out on that line item. The reality at the end of the day are things which I can call episodic that took place in the months of April and June, and there is volatility in the price of crypto. There were more purchases that took place there as the price came down, then you had the inverse effect of that taking place. So, the reality is that to us is kind of one of those things that will remain volatile, and I say that only because I don't know when the price is going to go and how people are going to exercise their choice to purchase crypto on a going forward basis. What I'll tell you is we've seen a decent level of deceleration taking place in how people utilize Mastercard products to purchase these digital currencies like crypto over the last three weeks, as reflected in the numbers. So that's kind of one of the factors that include that. The second thing is the timing of the e-commerce promotional activity that took place in 2019 happened to be in the first few weeks of July. So that angle will give us an impact on what the super index growth rate is for this line item in 2021 versus 2019. Suffice it to say the following: the trend towards digital continues—it's true at home and cross-border. And the fact that this is a positive tailwind, back to what Michael just talked about in terms of structural changes, something we are well positioned to keep participating in as economies evolve and things start to improve in different parts of the globe. So that's what I'd like to share with you on that one.

Thanks, guys. Good morning. I just want to follow up on cross-border. In the second quarter, the cross-border volume growth excluding intra-Europe was a really good proxy for your overall cross-border revenue growth. So, hypothetically, if July month-to-date trends hold for these volumes for the rest of Q3, it would seem like cross-border revenue growth could approach 60% this quarter. So I just wanted to see if that's a fair characterization or if there's any other moving parts we should be aware of. And then, if you can just give us some quick comments on Q3, Q4 rebates; that would be great. Thank you.

Sure. So on cross-border, Jason, I mentioned to you that intra-Europe cross-border is low yielding compared to other cross-border. I think that's one thing to keep in mind because growth rates across those populations will determine what revenue growth rate ultimately looks like. The reality in the second quarter is we had a couple come from an elevated level of returns that we had seen last year, which had the impact of subduing our cross-border volume key growth rate some in this second quarter. And again, it's not like those returns were elevated and returns only took place in the second quarter of last year as the pandemic hit people started making cancellations in terms of their airline bookings, hotel bookings, and that's why it tapered. It's still going into the third quarter as well. So, it's something to keep in mind as to what the puts and takes are when you're thinking about growth rates. On rebates and incentives, here's what I’d tell you: I think you're very well aware of the focus of the company on making sure we are setting ourselves up to continue to win market and winning market share. It comes through creating fantastic value propositions and then delivering them at great value to our customers, whether rebates and incentives come into play. So, we continue to do that and we will continue to do new deals which will have an impact on rebates and incentives. The one piece of information I'll share with you is that as it relates to Q3, we expect rebates and incentives as a percentage of growth to be generally in line with what we saw in Q2. That's the extent of what I'm going to share with you in terms of where I see rebates and incentives playing out. Obviously, the mix of volume is also to be considered.

Hi, good morning. Appreciate you taking my question. Michael, lots of progress on risk, fraud, ID, etc. It sounds like services generally are a pretty important growth driver. I wonder if you could compare and contrast what Mastercard is doing versus some of the independent risk and fraud products in the market, different channels, different capabilities, kind of how you coexist and compete with some of those independent providers looking at, like, a risk applied.

Thanks, Andrew. That’s a great question. When we examine our services portfolio, we aim to find an entry point that utilizes our strengths in payments and data, combining our technological capabilities and talent into a unique offering. We are already competing with other service providers in areas unrelated to our payments position, which is the foundation of our strategy. We are also exploring adjacent opportunities that enhance our core strengths. Regarding cyber solutions, our product, decision intelligence, assists customers in making informed choices. This leverages our transaction data, available in real time, along with advanced AI for decision-making. This gives us a distinct advantage against pure-play competitors. In loyalty, we are among the largest players globally. While there are a few competitors, our ability to analyze transaction flows allows us to aggregate anonymized data on preferences for rewards and offers, enhancing our unique proposition. We are expanding our cyber offerings by considering the entire value chain, focusing on decision intelligence before transactions occur. We are establishing foundational elements that enable us to help customers assess the quality of account opening requests with a high confidence score. These customers are interested in working with us on the entire transaction value chain and other cybersecurity solutions, such as automated fulfillment, to ensure addresses are valid. This holistic approach allows us to effectively leverage our payments expertise.

Thank you and good morning. Andrew kind of stole my lead question there, but also question on open banking. I think it has been suggested that Finicity is performing better than expected. So, hoping to maybe get a little bit more color on what's working better than expected and the longer-term open banking strategy for Mastercard.

Bob, that's an excellent observation. Open banking is a significant trend. We appreciate the idea of empowering individuals to use their data for better choices in financial services. We've been engaged in Europe for about two years, having launched in the summer of 2019, and we've seen positive momentum. You've heard about our partnerships with Tesco and Lloyds in the UK, which are now operational, and we are pleased with that progress. Additionally, closing the transaction with Finicity last November was a significant achievement for us. The Finicity team, particularly your team in the permission API, has been instrumental in developing the FDX standard, which is crucial for us as we operate in the U.S. market. We are noticing more engagement with banks, who possess superior data connections and a strong presence in the industry. This momentum is not just on the banking side, as we are also witnessing advancements in the Fintech sector, highlighting how this ecosystem functions effectively on both sides. We are excited about their range of solutions, such as account verification and credit decisioning systems, and we are also building out our mortgage verification service while continuing to drive deals forward. We are expanding our product offerings by integrating our data with theirs and combining our technological expertise, and overall, we are very satisfied with our progress related to Finicity.

All right, good. I think that brings us to the end of our time. I gave you a summary of the quarter just earlier on, so I am not going to repeat that again. Just wanted to thank you for all your support throughout and looking forward to speaking to you in a quarter from now. Thank you very much, and goodbye.

Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.