And before I hand it over to him, I'd like to share a few comments on diversity and inclusion. So like I said, we do expect that there will be an uptick in our rebates and incentives as a percentage of gross in the third quarter on account of new deals which we expect to occur in the third quarter. So all around, I see clear differentiation of Finicity versus other players that make them, as far as I can see, our best possible partner. Switched transactions were also impacted by the pandemic. Our digital and multi-rail solutions are enabling us to address key opportunities by providing customer choice and the capabilities required to capture a wide range of payment flows. But also, when there is an opportunity to go back on the street and buy at that local shop around the corner, then they do that. Meanwhile, the world is becoming more digital. Your line is open. So as it relates to where our services revenue side, they, for the most part, reside between other revenues and our transaction processing fees. 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And we are focused on investing in key strategic priorities, in areas like open banking, real-time payments, cyber and intelligence solutions and B2B payments. Q2 2020 Earnings Conference Call. Your line is now open. Andrew Jeffrey -- SunTrust Robinson Humphrey -- Analyst. But tokens, as you said, make a real big difference. I would tell you that some of the second-quarter numbers are impacted by the stimulus programs, right? Your line is now open. Warren Kneeshaw -- Executive Vice President of Investor Relations. Your line is now open. Yes. Was that mostly debit versus credit as people wanted to purchase online? I mean we typically think border restrictions when we're thinking for Europe. And then just on cross-border, should we just assume you can't see material improvement unless there's some kind of medicinal cure for the virus or how should we think about the progression of cross-border on a go-forward basis? The remaining decrease in operating expenses of 9 ppt primarily reflects lower advertising and marketing, travel and professional fee-related expenses. I guess, how big can this be? And then there's countries in the middle, like Germany which was cash heavy, but then COVID has clearly accelerated the trend there. And then my follow-up really relates to Europe which historically has been debit-centric. And just a few things to add on that. MasterCard, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $3.34 billion for the quarter ended June 2020, surpassing the Zacks Consensus Estimate by 3.40%. Visa earnings topped fiscal Q2 results late Thursday, after Mastercard earnings topped Q1 forecasts on Wednesday. The decrease in net revenue of 17% was primarily driven by a decline in transactions and volumes due to the effects of border restrictions and social distancing measures, partially offset by continued growth in our services offerings which continue to help diversify our revenue base and differentiate our core, as Ajay mentioned. But really what's underlying our expenses, as Sachin spoke about in his prepared remarks, is that. MasterCard (MA) came out with quarterly earnings of $1.36 per share, beating the Zacks Consensus Estimate of $1.15 per share. And for a couple of years, we tell you that this is X acquisition. nodes[i].dataset.subscription : nodes[i].getAttribute('data-subscription'); if(status ==='true') {nodes[i].checked = true;}}};var nodes = document.querySelectorAll('#form1783 select[data-value]'); if (nodes) { for (var i = 0; i < nodes.length; i++) { var node = nodes[i]; var selectedValue = node.dataset ? Savings in banks have gone up too. Those sales cycles take longer. Q2 2020 Mastercard Inc. Earnings Conference Call. And I think with our organic stuff and Finicity, we have the tools that we need. Please go ahead. We see domestic travel around the world happening. Europe, for example, there are some early green shoots there. At any given point in time, there's a whole set of services and engagements around real-time payments, and we expect those to really pick up over time. So now over to Michael. So that's what I would say where we are on that. Let's go open banking first. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Can you just speak maybe more holistically to Mastercard's initiative to help the broader ecosystem address and rapidly reduce online fraud, specifically things like accelerating deployment of tokens? July 30, 2020 9:00 AM ET. Good morning. Tien-Tsin, it's Sachin. So that effort is paying off significantly. As you can see however cross-border outside of Europe remains in the stabilization phase, with some recent signs of improvement in Asia Pacific and North America which have been offset by declines in Latin America and Middle East and Africa. Q2'20 and Q2'19, net gains of $75 million and $143 million, respectively, were primarily related to unrealized fair market value adjustments on marketable and non-marketable equity securities. Good morning Bryan. That's what Ethoca does for us. Cross-border volume fees decreased 52%, while cross-border volume decreased 45%. So let's start with the consumer. We are differentiating our Click to Pay offering through an additional layer of security enabled by new data, AI and machine learning technology and through push provisioning of consumer enrollment through banks like Citi which will help to speed up and ease consumer adoption. Our Mastercard installment solution has been available marketwide for several years. As we can see, a lot of the events which Mastercard sponsors didn't necessarily come to fruition because of the pandemic in the second quarter. See you at the top! And then separate from that, a pain point which exists which is around fraud, is another area which -- where our cyber and intelligence capabilities are a key differentiating factor. Thank you. MasterCard shares have added about 3.6% since the beginning of the year versus the S&P 500's gain of 0.9%. These services allowed to offer differentiated solutions that are valued by a wide variety of customer segments and provide us with a level of revenue diversification. So that's all fantastic. Mastercard Q2 2020 Earnings Preview. This compares to year-ago revenues of $4.11 billion. So the good thing is we have a business that benefits from the trend from cash to contactless and cards, and we will continue to drive that as hard as a digital partner. Let me take that. For years, we here in Mastercard have championed inclusion. So open banking is in the end all about putting control into the hands of a consumer to use their data, in this case, the data in their bank accounts to get access to better financial services, just generally benefit from the data. They have been a voice in that for years. So you know what, we have been, since this whole pandemic started, basically locked up together for the last four and a half months here in purchase. I want to reinforce that we are carefully managing through this period to preserve our ability to invest in strategically important initiatives that will deliver on our long-term growth opportunities, digital, cyber, data and analytics, B2B and multi-rail solutions. Turning now to Page 10 and our outlook going forward. However, the bottom line declined 26% year over … With that, I will now turn the call over to chief executive officer, Ajay Banga. Starting with switched volumes, we continue to be in the normalization phase in most markets domestically. And so I do think you're seeing a little bit of that impact come through. I wonder if you and Ajay just generally can comment on sales cycles and in the current environment, and whether perhaps they've shifted, elongated, whether you think there's pent-up demand and we could see perhaps more portfolio flips or more activity generally as the economy recovers. Add to Calendar. The applications that they bring, specifically around credit decisioning, makes Finicity a leader. And quarter to date through July 27, we have repurchased approximately 3.3 million shares at a cost of $1 billion. And then we might end on Wirecard, and I'll make a comment, and then if Sachin has more to say. So let me take the part about Europe for a second. And I don't expect there to be some dramatic change there. We expect that the progress through the phases will be nonlinear. We are going to see puts and takes which will take place. Yes, no, fully agree. Mastercard Inc (NYSE:MA) – Equities researchers at SunTrust Banks raised their Q2 2020 earnings per share (EPS) estimates for Mastercard in a research note issued to investors on Wednesday, May 13th. And then, Michael, you'll be taking over as CEO in the near future. MasterCard Incorporated Q2 2020 Earnings Conference Jul 30, 2020 • 09:00 am ET. In 2019, Mastercard employees in the United States who are people of color were paid the same as Caucasian employees. MasterCard (MA) Q2 Earnings and Revenues Top Estimates, Airbnb (ABNB) and DoorDash (DASH) IPOs: One Day Apart But Timing Is Completely Different, 3 Top IPO Stocks To Watch In December 2020, 3 Psychedelic Stocks to Invest In the Future of Medicine, #TradeTalks: Alternative Investments and How They Fit Into Investor Portfolios, #TradeTalks: Social Impact Investing and TELUS ’S Newly Launched Fund, Markets Are Pricing for Next Year, BlackRock’s Watson Says, Investing Strategies: Top Tech Trends For 2021, China EV Stock Frenzy, Holding Long-Term Leaders, Aphria Expands Footprint for U.S. Growth; Analyst Says ‘Buy’. A quarter ago, it was expected that this processor of debit and credit card payments would post earnings of $1.72 per share when it actually produced earnings of $1.83, delivering a surprise of 6.40%. Good morning. Moving on to Page 7. Warren Kneeshaw – Executive Vice President of Investor Relations Just think about when you convert a portfolio during a flip. And people do get into their cars and drive across borders. Worldwide gross dollar volume or GDV, declined by 10% year over year on a local currency basis reflecting the impact of the pandemic. Your next question comes from the line of Darrin Peller with Wolfe Research. (RTTNews) - Mastercard Incorporated (MA) released a profit for second quarter that declined from the same period last year. We're already starting to see border restrictions being eased in some parts of the world. With respect to the tax rate for the year, we now expect to be closer to the bottom end of the 17% to 18% range we last provided, assuming the geographic mix of the business does not change significantly. Please go ahead. Q2 2020 Mastercard Inc. Earnings Conference Call. So I have to say from the first interaction that we had with the Finicity team, with the leadership team, with Steve and Nick over there, the founders, we felt a very strong cultural affinity here. So turning to Page 3 which shows our financial performance for the quarter on a currency-neutral basis and excluding both special items and the impact of gains and losses on the company's equity investments. Thanks. All right, open banking. In addition to the success we've had in the digital space with companies like Apple, we recently announced an expanded partnership with Samsung which includes the digital-first Samsung Money by SoFi product here in the U.S. and the Samsung Pay Card with Curve in the U.K. Southeast Asian super app, Grab, has launched a digital-first Mastercard prepaid card in the Philippines and by partnering with emerging fintechs like C24 in Germany, Doha Mastercard Debit solution and Tide in the U.K. to provide a new commercial prepaid product. ... 2020 as compared to the … And finally, our services capabilities provided key elements of differentiation to help us win several deals this quarter. And that's the discipline we follow on our acquisitions. So we talked about planning processes on branch opening and what retailers are doing to stocking their shelves and so forth. I just wanted to get your views on a range of things, Durbin, EPI. Mastercard (NYSE: MA) is scheduled to announce Q2 earnings results on Thursday, July 30th, before market open. And I continue to be very constructively optimistic about Europe over the next few years. July 30, 2020 09:00 AM ET. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. And Europe has improved with several markets, such as Italy, Russia and Poland, showing positive year-over-year growth and others, such as the U.K., Germany and the Netherlands, showing significant improvement. We are long-standing partners of several civil rights organizations, and we have closed the racial pay gap over the years. One point to note: while the week ending July 21 shows slightly lower growth metrics relative to the prior week, I would not make too much of it since growth in that week is being impacted by the timing of significant e-com merchant promotional activity from a year ago. In addition to cyber, our customers are leveraging our data and analytics capabilities to assess, plan and react to the pandemic. So just to come back in a big way, I think you're right. January 30, 2020 02:00 PM PST. And here, as an ecosystem leader, as a custodian of the payments ecosystem, we're putting out our solutions that help making chargeback solutions go away even before a chargeback is actually filed. There might be a neobank that says, I want to have a pay with rewards capability and here's a premium API from Mastercard. Subscribe to Investor Email Alerts. In the meantime, we will save where as appropriate based on factors such as market readiness and customer demand. 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