Mastercard's strategy centers on expanding its core business, diversifying its customer base and geographic reach, and developing new growth areas through organic and inorganic initiatives. The company is executing this strategy with a focus on consumer payments, commercial and new payment flows, and services and other solutions.

Cross-border volume growth, on a local currency basis, increased by 18% year-over-year, indicating successful expansion into new markets and increased international transaction activity.

In 2024, Mastercard began processing domestic transactions in China through its joint venture, expanding its market presence and enabling acceptance of Mastercard-branded cards for both domestic and cross-border purchases.

Contactless payments now represent approximately 70% of all in-person purchase transactions on Mastercard-branded cards, demonstrating successful adoption of new payment technologies and enhanced consumer convenience.

Approximately 30% of all Mastercard transactions are now tokenized, enhancing security and reducing fraud.

Mastercard recorded a restructuring charge of $190 million, indicating efforts to streamline operations and reallocate resources to support long-term growth initiatives. This suggests a proactive approach to improving efficiency and adapting to changing market conditions.

The company acknowledges that global regulatory and legislative activity related to the payments industry may have a material adverse impact on its overall business and results of operations. This includes increased compliance burdens, potential limitations on products and services, and increased costs.

The company faces increasing complexity and fragmentation in laws and regulations related to privacy, data protection, AI, and information security. These regulations could increase costs, lead to legal claims and fines, and negatively impact growth and reputation.

Substantial and intense competition worldwide in the global payments industry may materially and adversely affect the company's overall business and results of operations. Rapid and significant technological developments and changes could negatively impact the company's overall business and results of operations or limit its future growth.

Mastercard faces competition from established payments networks like Visa and American Express, as well as emerging fintech companies and digital wallets. These competitors may offer different business models or innovative solutions that could impact Mastercard's market share.

The company acknowledges the risk of disintermediation from stakeholders both within and outside of the payments value chain. This could occur as parties attempt to eliminate Mastercard's intermediary role in payment processing.

Mastercard highlights its competitive advantages, including its highly adaptable global network, franchise model, multi-rail payment capabilities, globally recognized brand, and data and AI capabilities. These factors enable the company to create value for stakeholders and the payments ecosystem overall.

Operating expenses increased by 13% compared to the previous year, with general and administrative expenses being a primary driver. This indicates potential areas for cost management and efficiency improvements.

A restructuring charge of $190 million was recorded, intended to streamline the organization and enable reinvestment in the business. This suggests efforts to improve operational efficiency and resource allocation.

The company emphasizes the importance of cost containment and productivity initiatives to mitigate pricing pressures and maintain profitability. This highlights an ongoing commitment to operational efficiency.

Contactless payments now represent approximately 70% of all in-person purchase transactions on Mastercard-branded cards, demonstrating successful adoption of new payment technologies and enhanced consumer convenience.

Click to Pay transactions almost doubled year-over-year, indicating increased adoption of this online checkout experience.

The company is focused on securing transactions by replacing card numbers with secure tokens, scaling Mastercard Authentication, and streamlining online checkout. This demonstrates commitment to enhancing security and effectiveness of transactions.

The company repurchased $11.0 billion of its common stock and paid $2.4 billion in dividends, demonstrating a commitment to returning capital to stockholders.

The company completed acquisitions for a total consideration of $2.8 billion, indicating investments in strategic growth areas and new technologies.

The company issued $4.0 billion of debt, indicating a strategic approach to managing its capital structure and funding future investments.

The company emphasizes its commitment to sustainable impact through three pillars: People, Prosperity, and Planet. This demonstrates a focus on addressing social, economic, and environmental challenges.

The company highlights its commitment to high ethical business practices and compliance standards, emphasizing honesty, decency, trust, and personal accountability. This is driven by 'tone at the top,' reinforced with regular training, fostered in a speak-up environment, and measured by periodic employee surveys.

The company is dedicated to fostering an inclusive environment where everyone feels valued and empowered. This is continuously evolving and guided by customizing global inclusion strategies by region and remaining dedicated to practices designed to ensure there is equal pay for equal work.

The company acknowledges that adverse economic trends in key countries, government interventions, and geopolitical conflicts could negatively affect its financial performance. These factors can impact customer spending, cross-border transactions, and relationships with customers.

The company notes that increased activity with respect to interchange rates could have an adverse impact on its business. Governments and merchant groups are seeking interchange rate reductions through legislation, regulation, and litigation.

The company recognizes that preferential or protective government actions related to domestic payment services could adversely affect its ability to maintain or increase its revenues. Governments may mandate switching of domestic payments or implement data localization requirements.