Q1 2021 Mastercard Inc Earnings Call

First time since the beef of the pandemic in Q2 2020 includes a one pvt benefit from Acquisitions operating expenses increased 7%, which includes the price increase from Acquisitions? Operating income was down 1% and their income was down 6%. Which included a one eighty degrees. CPS was notified me that your New York to $1.74 which includes two cents of delusion related to a recent acquisitions offset by $0.02 contribution from sharing purchases home during the Border. We repurchased about 1.4 billion worth of stock and an additional $418 million from April 26th 2021

So let's do the beach where you can see the operational metrics for the first quarter volume or GDP increase by 15%. You earlier on a local currency basis, we are things in Wentzville Improvement in both debit and current vaccinations, and Mobility increases in addition, get his growth is being further from my fiscal stimulus and share, gains us gdv increased by 15% with debit growth of 26% ending and a decline and credit off. 1% volume increase 5% of 12%, and the decline in credit of 2%.

Volume down, 17% Global reporter would enter your volume down 11% and other cross-border volume down. 23%.

You need to be in 5 switch transactions, drilled nine percent in the first quarter of the card. Not present groceries. R accelerated during the past year and continue at those elevated levels. Wage and present. Transactions are now growing above 2019. That was for the first time since the fees depend timing. In addition bar goes was 6%. You do believe that point eight billion, MasterCard, invited for granted cause issue. Now, let's just be in place for highlights on a few of the revenue line items again, describe an encouraging you to basis. Unless otherwise number

Increase in revenue of 2% was primarily driven by domestic transaction and volume growth as well as strong rules and services. Often enough said by lower cross-border, volume. My rebates and incentives as previously mentioned Acquisitions. Contributed approximately 1 GB, internet Revenue growth

Looking at the individual running line items. Can I speak to 8% in line with Worldwide of 8% volume. Decrease 26% off volume decrease. 17% the 90 difference is primarily due to an address cross-border. Mix mainly driven by lower using employee or across water volumes being less than Thursday evening other profitable.

Transaction processing fees.

Transaction. 90% the price difference is primarily driven by headless mix.

Revenue 27th including the 350 contribution from Acquisitions. The remaining rules, was mostly driven by our cyber and intelligence and data and services Solutions. Plus rebates and incentives were up 4%.

Do you want to be 7? You can see that on a continual basis, total operating expenses increased 7%, this include increased from Acquisitions and a 3:15, Kris Kross to the mapping of a favorable has been gained from a year ago exclaiming, these items expensive. As we continue to invest, not easy priorities, while keeping an eye on Top Line growth

Let's discuss the specific metrics for the first three weeks of April. We are seeing significant improvements in the growth rates across our operating metrics. This is twenty-twenty primer you to the laughing. In fact, remains it to the pandemic that began mostly in March of last year, hence to provide you better reporting would be useful to present. The 2021 volume control actions. As a percentage of the printing, I need a mouse when we were not explaining experiencing the impact of the pendulum. So, if you look at the spending levels as a percentage of 29th volumes steady supply continues along, the same trend line we saw in q1

This is good primarily by the US, which has benefited from the recent fiscal stimulus. We have seen improvements in discretionary categories, like clothing, furniture and sporting goods. And we have also seen them in personal domestic travel in the US, and the UK, which are making strong progress in vaccinations. For instance, we have seen US Airline spend essential a double over the last four weeks relevant to where it was earlier in q1.

Brendan switch transactions, remain steady and are generally tracking. The trends, we're seeing is, which forms in terms of cross-border spending levels, as a percentage of 2019 remain mostly unchanged in the stock of April in card, not present for the volume excluding online travel-related spent, however, order restrictions remain wage and the engine start present and travel-related card, not present, volume to be impacted. As you can see. From the numbers, there is a significant opportunity for improvement in life to travel. In fact we're borders are open such as Mexico, certain Latin American countries in the UAE we have seen problem proof.

I want to share looking forward to make strong progress against our strategic objectives and feel. We are very well positioned to go with the new one or no deals. We have signed over the last several quarters. We have positioned ourselves for the return of travel. The travel oriented portfolios and have built a strong sense of this is capabilities, which continue to grow at a healthy rate and help diversify our Revenue base. In terms of the macro-environment domestic spending levels at continue to Blue entering the growth phase disorder, support group similar and rule out of the factor back. See the piece of vaccinations has been uneven. However, and as a result, we expect the pace of recovery to vary from country to Country Club. And Michael said, we do believe that a significant pent-up demand for travel and already seen domestic travel improve.

In terms of cross-border, the additional border, particularly between those countries with low infection rates and or vaccination programs.

Link to the second.

Order in spending levels. Continue on the current trajectory, we would expect you to net revenues to grow around in new to the twenties growth rate euro.

Toyota of Grand Canyon group. This is excluding Acquisitions is important to point out that this is just one potential scenario which could be impacted by factors, such as more restrictive. Measures importantly is Dead Rising infections or the opening or closing of orders.

Expense management was bothering, that's pretty competitive and keeping an eye on Top Line growth as we progress through the rule, phase of the pandemic domestically, we would move to increase investment in here. You're such as digital cybersecurity. Either analytics need to be at a multi real solutions as well as begin to increase or advertising and marketing. Related span expect operating expenses to grow at a rate in the low twenties versus a year ago, on a currency. New produces excluding Acquisitions wage as a reminder. Will now, beginning to lab this pending actions, we took last year as academic head

Transaction and expect activations will contribute about two to three D. Revenue, office in Q2 and Polly are similarly acquisition to contribute approximately 9 in the second quarter and Eastern DPT for the year. As a reminder, you'll be discreetly disclosing back-to-back positions of the year in which they close and the subsequent here after which time we do not set them up, other items to keep in mind or exchange is expected to be a detail when

Connect and for Headland earnings senses in Q2 on the other end of an expense line. We are having extended run rate of approximately $1,015 per quarter. Given the prevailing interest rate environment, this excludes gains and losses on our Equity Investments, which are excluded from our non-gaap metrics. And finally, we expect the tax rate of approximately 18 to 19% for the year based on the current Geographic mix of our business. And that until all that would warrant fashion, Denise were not ready for questions wage

Hey, ladies and gentlemen to ask a question please press star. Then the number one on your telephone keypad will pause for just a moment, can call the cue and a roster. Your first question.

Jim comes from Hershey. Robert with Bernstein the line is open. Hi good morning thank you for taking my question. My so can you elaborate a Nakata acquisition and you took the digital identity effort? You know digital identity has so many problems today claiming for Solutions and something has been looking at for quite a while so it can just be a long-term adjacent be for your business. How does it fit into what you're doing with open banking finicity. Thank you. Yes. And thanks for the questions. Are excited about it and I'm a continuation of what we have been doing individual identities. So clearly, you know, it's an unsustainable path forward and more digital economy to have even more password. So that that's pretty clear. So life is one pillar in our overall security strategy. So we needed to strengthen up here. The we started that activity with birth

In Pilot that we know.

Australian about a year ago and it is now going live in partnership with the Australian Telecom Optus, where we are introducing a reprieve include digital. Identity off. Does is it accelerates our efforts and accelerates our efforts because it caught that has access to verifiable data data points that I'm not allowed to establish an identity. In the said earlier, they can in near real-time produce very accurate, identity scores, and it comes along with a set of, you know, established set of global Merchants cryptocurrency change, financial institutions and so forth. So we were on the track akata is accelerating our efforts. It fits right into our existing said cyber solution would be to start up a transaction is at the end of the transaction and various other transaction focused Solutions. So it's a full package, it sets us apart dead.

And as you can appreciate your link that's back to open banking. As you ask the question, we are going beyond the payment transaction at such and you need identity solutions for data transaction. Just as much as I do for a digital identity use cases.

Great, thank you you are next question. Comes from Jason kupferberg. With Bank of America is open bank ones for me, first off, if anything, you can tell us in terms of second-quarter expectations on on rebates, whether it's also it's the last quarter or last year. I know you would given us a little bit of help on that. Prefer the first Courtney. Love to hear your thoughts on Q2 and then just wondering if we can get a quick comment on topics. I mean, I know that an organic constant currency basis. The second quarter effects is growing about in line, with net revenues, that kind of the right General model to think about in the second half, as well as the, if the recovery progresses in line with your base case or does the second quarter have more catch up objects page, thank you. So, is there anything that this question for the rebates and incentives is really depending on the timing of deals and how the volume and mix plays out having said

We expect rebates and incentives as a percentage of gross to me, sequentially as domestic spending recovers and new and renewed deals come online. I think you're aware about the fact that our wage, they put volume Czar, more index to have even sent to the more index domestic volumes there. Nothing next to cross-border. So depending on how that volume explains out things by moved, but generally speaking, we expect rebates incentives as a percentage of gross to be up from current levels, uh, pretty much remained of the your volume for cover. As long as we look forward, we see positive momentum and drivers that impact our top-line growth. And we will increase the investment, we put forward towards our strategic priorities. And these are essentially the ones we talked about growing. Our share of payments ensuring that the new experience for our customers, you know, driving a broader set of services capabilities executing on our view of strategies. Well as our home

Strategy, as we do this, we will keep an eye on on both the top line, as well as the bottom line. And we will basically be very focused on making sure that we are making Investments to drive the amount of growth of our business. And that's kind of these

Central thing I'd like to leave you with which is we will continue to stay the same place of an expense management standpoint. Uh, we see domestic spending is transitioning towards the road space, which gives us confidence off and back scenes, are effective in getting deployed in steel. So we will keep an eye on all of those metrics with, you keep an eye on the top line, and we will look to invest in the business, right? That long-term growth, which we talking with.

Okay. Thank you know. Next question, comes from Darren Keller, with Wolfram line is open that are impacting the business coming out of the page. It does look like you have, what could be, you know, several hundred basis points of incremental earnings power terms from all the variables you guys talked about and what you're putting your Investments? Do you also think I'm so, first of all, I guess if you can come in a man in terms of what are the most, the areas are most excited about in terms of incrementally and it changed now more spending in certain areas than maybe freaking demek. But would you also, whether you're spent the investment levels, you're at now on a percentage of Revenue basis, or on an overall dollar amount is, is something we can see some more operating leverage off of, if we get that uplift from better, social turns off,

All right, so let me start off with the structural changes. I mean, that that's the key question, what? What makes the trend, what will stick we have over the last fifteen months on a monthly basis helps consumers around the world, small businesses around the world, and, you know, the input that we're getting from this research remains unchanged. Wage is fundamentally starting with increasing consumer confidence, spending is going up. And then, when you look at the way, how people spend what we're hearing is when depend that makes upside, 70% of them are saying, I'm going to continue to use more online Commerce than I have before. Depending, you know, almost seventy percent of saying it's the same thing for visual for digital banking. All the same. Number said, more for contact list and then you look at the other side of the coin that, that is, you know, about 60% of people are saying, I will actually use this cash. So we believe that these trends of Alabama,

Anything elevated online will prevail. Maybe not that the same levels but it will be elevated. At the same time already seeing that in countries where you know strong vaccination programs are dead and social distancing measures are reduced, then the spend in store is coming back. So people do want to go and spend that the local restaurant or, you know, support the local shop and their local Main Street. So the good thing is we're ready for both of our Solutions, so that is around consumer Behavior to changing consumer. As we turn out of this night, man. And you look at what else is going on with? What else are we seeing? Is with this? Push toward the more digital economy. We're seeing there's more data around and the first for data analytics is increasing our, you know, our services team, be running past enough to satisfy that thirst. You look at more data, you look at increasing cyber Footprints, our Cyber Solutions that is going to be, it's going to suck.

Continuing Trend, I don't know. We talk

A little bit about our multi real strategy and what we're doing there, I'm going to talk about Europe, it being a local Partners, government is interested in payments. Government is interested in real-time payments, crypto Central Bank, digital currency. So this whole trend of government being in, I think it's important to our focus on our own government work. For the bill is going to help us there. It's finally home. You know, came across the news over the last couple of days, is the dependence on the International Supply change is showing up, you know, it shows up in the context of vaccine distribution lately, but it has been showing up across many different Industries. So, there is a real push to digitize Supply chains, make them more flexible, and of course, and comes to payments as well, and comes to associate data flaws. So often should also be seeing quite a push out of, as we turn up and Amex. So, it's a shifting picture and then I agree with you. That there's a lot of things to feel positive about in terms of birth.

Strategy is on point for all these drivers that's why we're increasing the investment Behind These and the second half of the question of you know, expansion. So so darn it. Just the one thing that kind of point out to you is off. And you can see that some in the in the flight deck which we shared with you. You can see how let's take something like cross-border and cross-border.

Good morning at about 40%. So if you believe that travel comes back and we do believe that travel comes back, you know, we see from Philly, the opportunity for

You know, upside growth coming from that as well, just trying to bring a little picture together just to add to what Michael was saying and that kind of lends directly to your operating leverage question as well.

Okay, all right. That's awesome. Thanks guys, your next question comes from that Lisa Ellis.

Hi, good morning, and thanks for taking my question. I had a question on crypto specifically related to staple coins and cdc's Michael, you called out in the prepared remarks, that many governments are using a virtual testing platform for their CBC experiments. Can you describe just what you're seeing in terms of as governments, are looking at implementing stablecoins? What type of

But private Partnerships are, they considering meeting what type of role or roles. Could you envision? MasterCard play, thank you. Let's take a look at these, you know, across the whole crypto space. I mean where we want to play a role in cdc's. We want to play a role in private stablecoins. We want to facilitate the buying and selling of crypto assets. So it's it's a broader space specifically. I would describe it. It's relatively early days, so the engagement that we have and that's where I am. The oldest start with is to answer the ship with government is what is the right, construct? What is the role of the private sector? And you know where where we came out and off, as of late, has been a few thought leadership pieces involving some of the leading central banks around the world. Including, you know, the ECB and the bank of England and so forth is

Yeah, daily there's a two-tier system where the government takes the role of minding the currency. So to say they do in Fiat at the private sector takes them Distributing it and the private sector. And this comes to your question about the specific role that players could have including us kids, innovating around that innovating the true power of blockchain else. Could it do other than so I think there is there's a direction that we like, where this is going. So, contents of interoperability are also very important because the utility for a consumer or business, will only come when you can do something with.

Central Bank digital. I think this example, out of Bahamas is actually a very striking one. So here's a MasterCard partner program that allows you to Thursday and on the CBC unit that you have received at any place, MasterCard is accepted that solving the last mile issue. Imagine how it could be doing this in so many countries. So is that Jeff went on model? Is that engagement on policy now and you try to do something like the Bahamas. Did you get a test it and try it for now to be see our second role in a dating? A real life text bet where you can see how does this work and that's not only for government government like that sandbox. They engage, but it's also to pull in the office commercial Banks because it needs to go in conjunction if you have a two-tier system. So I see all of that. And then I'll come through as soon as scenario where this is in play and it exact

Can I get some country? Um you know I just talked about the Bahamas. There's this last mile issue but there's also then the questions of what other applications can run.

On this infrastructure, you've heard us talk about in the context of real-time, payments are going to Market is always underlying infrastructure applications services. And we, you know we intend to do the same thing here and that is what is an application that could ride on top of this is could be a smart trade contract. Um, so smart to contract technology is, you know, what, we're investing in them the reference earlier investing in further blockchain technology. And, of course, there are Services everybody right now is asking us, what should our about changing strategy and our advisors team is all over that off and they will be cyber questions. Governments are raising the question. When a blockchain comes along is that a back door for hackers? So our whole Cyber Solutions page also geared up to engage. So I think there's a role to play for the private sector and has a role to play very specifically for us to help the private sector and government job.

Terrific. Thank you. Very exciting. Your next question comes from Chris donat with Piper Sandler. Your line is open.

Hi, good morning, thanks for taking my question. You trying to get a little more specific on the benefits of vaccines and and lower caseloads for cross-border travel. As we think about the European Union, taking steps to allow vaccinated us tourists into Europe. When we think about that Corridor of the traveling to Europe, is that month? I imagine it's big enough to move a needle for cross-border. But can you help us? Understand how, how meaningful, like some key? Corridors would be if they reopen and in strong wage you, or, or is it a highly dispersed Corridor? That you've got around the world, that will take a lot of them coming back online.

If I can give you a little bit of color on that. So when you think about the the high-level answer, your question is the borders are pretty widely dispersed across the globe. Can see generally speaking in Europe constitutes a very significant portion of our cross-border volumes. You can see that from The Matrix between sharing with you and so am I will depend upon how travel opens up within the input port and appoint. One, BB recognize also that low evening then the other cross-border volume.

Philippine. As you think about it, you think about important outbound Corridor. There's no question about that, but there are several quarters. Well, beyond that, when I think about the middle east and south Asia Pacific, these are all important corridors. U.s. to Canada, another important cold Corridor, Latin America and Mexico. These are all important corridors. I think the offer of thing here is dead but we are spending a lot of time. Thinking about is Not only was the rule out of vaccines this. But what, our governments doing to establish travel bubbles. So you heard about Australia, New Zealand hearing about, you know, Hong Kong Singapore. You're hearing about China establishing some sort of a lot of, you know, work which is currently on the way in terms of seeing, is there a level of comfort to open our borders and to make it less orders for people to travel industry, problem thing as far as I'm concerned, it's vaccine is, you know, the opening up in establishing,

Modern kind of.

And then the phone is, have you needed less owners will people crowd and, and you got to look at all those three as you think about how crossword travel comes comes back. Now, the proof points. We've gone so far off in like he was Glass America. Things got pretty nicely. It's not that owner has people are travelling. You seen these in cross-border spent? Similarly, in the UAE. You've seen these Transporters back a lot of this wage was reminder, quick line, W as a lot of our cross-border. Travel volume is personal travel and we do expect personal travel will come back, and the leading indicator for that is we've seen it, come back in the domestic, invite Leslie. Now that he's working in the context of the US and several other countries. So that's the kind of color. I would just want to share with you, as you think about, you know, how, how this will be for.

Okay. Thanks very much. Your next question comes from Bryan Keane.

Hi guys. Good morning, just thinking about modeling, going forward, looking at the at the two-year in particular, thinking about the lapping of stimulus first, the economic recovery Sachin. I don't know if you could give you some help and how you guys thought about the impact of those two factors. And particularly, I'm just curious on how much stimulus had had an impact. Do you think having an impact and then, secondly on Services. I noticed this strength, they're just curious if that strength is is expected to continue as as we move forward through this year. Thanks so much, this is clearly for Sasha. So you just want to tell you I know you aren't based on what we've seen from the from the stimulus is just around. The stimulus has actually come into town from a spending Stanford, a lot more rapidly than the last round of stimulus did come through. What we've also experienced that the dollar spent are not in a once-and-done set differently. People are saving

And then that is the the trickle effect which comes through over a period of time. So it's our expectation, that the impact of the stimulus will continue to be felt, but had a defining Pace as time goes off because you started to see a lot of that comes through in the early part. Right now. As I kind of just mentioned you can see that in strengthen the numbers we've got and then on your question and services solid wage and services. Again you know look Services contributed to do reading capability. Also Powers the four of you know, we're we're winning. Share.

And, you know, I'm seeing a very strong pipeline in terms of what we're seeing from Services tampon going forward. So I feel pretty good. And, you know, the way I think about this is you have a set of interesting capabilities. How do you deepen your penetration with your customer base, existing a new customers and then you keep building on your services capabilities, for example, you've done. So I think when you have all of that, I feel pretty good about our service is down here. So um, there's the there's the deepening part in to our existing customer said and such and just said, you extend your capabilities. There's another Vector here and that is extending a new segments. So as long, you know, throughout the last couple of years, on the front of the number of Acquisitions like session M or apt, we're finding that there's other adjacent segment that are dead.

Leading these kinds of services. And as we go into these news for us to also then, so to say cross out our Payment Solutions so it works in different ways and then the last thing to add, obviously

You know, when it comes from multi real strategy, there's a growth dimension of extending our services across all the inflows.

Got it. Thanks for the help, guys.

Your next question comes from attending one with JPMorgan, your line is open.

Thank you. Good morning. I want to ask about Nets now that you've had it for a couple of months. It was, I guess it's different than what you originally agreed to by. So even that what are the priorities hear? Michael Bolton returned and long-term sounds like this is clearly part of it, but can you sketch us up on your on your TV set them for now? So, the first thing I would say, that's different from what we intended to buy and certainly different in terms of the expected time line. So it should have been acidified. You know, that aside, we were excited in August, 2019 and Thursday. We're excited on wanted. We welcome to team in Copenhagen.

I mean, I tell you why, why very excited. So, with our existing set of multi real capabilities, particularly in the account, to accounts, paid off, you know vocalink, vocalist has strong infrastructure, capabilities applications and helped us to build a Services business. What next month that gives us additional infrastructure capabilities because here is a significantly customizable high-end solution. That vocalink brings which wage for large established markets that have had some Journey in real-time payments. And then there is next which is a more Nimble platform that allows us to deal with a smaller Market, a couple more in a shorter period of time. So there is complementary assets here in that. If you look across that it makes us the one-stop-shop partner when it comes to real-time payments and that is that is unsurpassed

There's nothing else out there at this point in time on the application side. I'm even more excited because he what we're having is we're not just getting technological capabilities and we can hold on to what we've already done in vocalink, but we're getting scale businesses that are live in Market. There are strong, bill payment, propositions and volumes large, customer reach and particularly in the nordics regions, but other parts of Europe as well. So, you know, we've identified built as a growth opportunity, sometime back here in the US. And now we're both off at on and then we have the choice of taking, some of our capabilities and other parts of the world, or do the same with net. So, that is accelerating our girls in the application space, which, you know, I'm I'm focused on, I think,

The last but not least. If you have activities in, in open banking space and in a few services around real-time payments so that just runs off the picture off and I come back to Legal day. One, we're getting a fantastic team of Engineers and experts in this space. That you know, is just really rounding off our capability side. Now the the aspect on how this might look different. So did you, you made that reference and all want to remind us that the rep and we had put on the table in you know in kind of negotiation negotiation of the EU commission throughout the approval process and that basically means we will license down the network infrastructure technology to a licensee and the licensee was identified as part of the approval process that allows birth

Much of an issue because we have, you know, other assets to compete and have we can use it ourselves so we're not excluded here.

A package of having infrastructure application and service altogether. I think makes such a differentiated proposition that we were quite happy to give that remedy. It may you commission happy and it comes to the point about. Yeah, this is particularly important in Europe because in Europe being seen as a true European partner, we have the commission put a stamp of approval on this transaction and you know, that worked well for us, but we're going to take it elsewhere, for sure. I mean that's the whole plan, very complete and clear answer. Thank you.

Your next question comes from David togut with your line is open. Good morning may affect the roll out of account to account payments in Europe, under PSD too much more akin to debit, and credit and and we know debit has certainly accelerated. So any, any thoughts would be appreciated?

Yeah, Dave, that's a great question. You know, throughout the last quarter calls, we made references to engagements on the government fraud. And often times that involved, you know, our progress and our engagement with governments on account to account. And there are other things obviously that we had to die down throughout the pandemic because it simply was no appetite in the market. But you know, account account wasn't one of them. We never missed a single set, their needed the government. This was really dead by a lot of the government's trying to get stimulus money into their into their citizens hands and they couldn't do it fast enough and it couldn't do it in an efficient enough way. So the focus home and the light shed on real-time payment infrastructure was certainly helped. So I would see there's an increasing engagement around to account to account dead.

If you look at, you know, what else was going on? You saw the two-factor authentication thing in Europe. Strong customer authentication. The actual technical term there, was that whole throughout the endemic. So the government, the financial sector players in Europe, Advanced that and that was broadly it. And then you you look at what time open banking I mentioned earlier that's again a regulator driven some aspect of payments and the broader Financial Services here Tesco. We talked about that last photo. I think an hour Lloyd. So there is momentum, I think it's actually a literally, a shot in the arm rather than anything else. Should you have any time to speak one more difficult, let me think about account account. That's certainly the domestic close. And then there's the account account cross-border, and I think we've got to kind of think about it in the composite because, you know, generally we're seeing some very decent wage.

Transaction date is even in that cross-border space on the counter count standpoint. Michael mentioned, the same thing as a month where you talked about the the traction were having with the integration of transfast being complete and not only

To be ordered by the way. It's it's, you know, pretty much across the globe. So we think about it holistically, including the cross-border encounter costs,

Thanks very much, appreciate your insights.

Hey, good morning. Thanks for taking the question. I wanted to ask on yield within domestic assessments, where they held in pretty well for most of the twenty-twenty but just over the last couple of years I've been down about 5% or so. And I, I get there. A lot of moving pieces with mixed shifting around from quarter-to-quarter with the pace of recovery varying by reason region. But just any color you could give us on maybe where some of the recent weakness might be coming from and really what needs to happen whether that's a recovery in certain geographies or anything else. We might not be thinking about to get yields in that segment. Moving back up. Next question, specifically around domestic assessments yields correct. Just want to make sure correct. Yeah yeah I mean I've seen a little bit of recovery and domestic assessments use in in the first quarter relative to what we saw in the fourth quarter. You know, that kind of moves around, right? And it moves around, there's a whole bunch of stuff which is kind of going on.

In there because remember in the denominator when you're doing Union collations you don't like gdv. I think the natural instinct is to think about GB and only as domestic values is a competition domestic and cross-border volumes whereas the numerator which is domestic assessments is only the revenue we on our domestic volumes so depending on how that makes them move around as well. And then there are other moving parts and intelligence assessments you know you know the card peas and those kind of things which actually featured in there as well. But by and large I would tell you between the the the full quarter of 2019 going into the first quarter. Twenty Twenty-One, I used to have held pretty steady by taking those two endpoints. They bounced around a little bit, quarter-to-quarter the conference today.

Okay, terrific. Thank you appreciate the color. Your next question comes from Craig. Yeah, I think I wanted to ask about the material Bill debit wins that you've had in Europe and now in the US with TCF going to obviously be on boarding, a significant amount of debit volume over the next two years, which begs the question. How do you view the long term in terms of debit versus credit growth rates? And we've seen significant outperformance of debit during the pandemic, it's the obvious choice placement for cash. So, do you view the spread between the two versus historical levels is widening significantly over time. Thanks.

Craig. Let me check this and then you have anything to add money really a relative rise and debit or credit transactions. Yeah, the way I look at this is this is a time of economic uncertainty. Frankly, I'm certainly in general and in those times, people generally prefer to spend money they have and have more control over that. So, that is, you know what? We seen a dead zone. All surprised there that is Crisis induced. We see that benefit from stimulus, pay payments because they attached to a bank account. So we saw that off. And then you looked at how the mix of spending has changed in terms of overweight everyday, spend versus discretionary spending that is just, you know, there's a lot of historical consumer behaved.

Your ingrained and that is that, you know, you use debit for more everyday.

That is what we're seeing in many markets around the world and that has played out here as well. So now the question is, what about is going to stick back to what we said earlier in terms of Trends and I don't, I do think what we're going to see is that the crisis in used spend this, you know, the trigger there is going to go away because this might man will be over at some point. Hopefully sooner and you will also see that the discretionary spending categories are coming back there already seeing this in the last three, three weeks. And when I look at the first three weeks of April here so long, you start to see travel, you know, strong travel programs, and it's very I think reasonable to expect that a lot of that is going to drive credit growth back up. So we going to see a bit of a bath do for us. I think the strategy has to be. We have to have the best Solutions across debit and credit and frankly be on cars as well because we just talked about earlier house, dog.

Payment landscape is changing. And that's that's where the focus is. That's why we need in on the Travel side. But that's also why we need a non debit that you're right. You know, net West Palm, it's in conversion right now. It just said earlier that's going to be good for us if we try to bring our best Solutions forward with with consumers. So such an if you have you might be pretty much covered in the point. It may cry in addition is obviously that this increase circular ship, which is taking place, I think you were alluding

He's been dropping to be using that. Come through, there will be some level of reversion to the mean the one product lifecycle standpoint is people tend to start off when you think of coming to spending an electronic

start with Prepaid to move to debit. Then they start during the touring into credit and that's just the Natural Evolution from take place. We want to have a balanced portfolio. We want to win across the board, and we won't be ready to actually get off and they come across Kevin Engel. Correct.

Thanks so much.

Maybe I'll just turn it over to Michael to see if you have any final comments as we wrap up. All right. Thanks. You take away to bring it all together. You know we're back in the girl's face domestically that's fantastic. When it comes it's going to be selective. Second half of the year. We keep strong focus on life. You know, strategic priorities. Don't have to repeat them again or excited about Nets as I just laid out and where are excited and hopeful that we offer. So all that is good. None of this would happen without our people. And I do just want to recognize that it's been fourteen months. That's a marathon and our phones running in hard and that is a big shout-out. I sent a note to the whole team this morning with our results and told them that that momentum that we were, you know, just sharing with you is really

when that, um,

I'm going to leave you to it and look forward to speak to you in apart from now. Thank you very much and thanks for all your support. Thank everyone else.

Joseph.