As a CFO, one of the critical things that I am keenly focused on is the execution of our strategy.
Back in November, Michael, our leadership team and I shared an update on both our continuing Grow-Diversify-Build strategy and the strategic priorities that inform where we will invest and how we will deliver each day. Those priorities – expanding in payments, extending our services and embracing new networks – are how we bring the execution of our strategy to life.
Today’s quarterly earnings report provides us an opportunity to formally share an update on our progress against these strategic priorities. In this first quarter, Mastercard, like the rest of the world, had to deal with Russia’s invasion of Ukraine and issues that have both short- and long-term consequences like inflation and supply chain constraints. Despite this, consumer spending remains robust as local economies reopen further.
In a fluid environment, we delivered a strong quarter, seen in both our revenue and our earnings growth. They’re supported by our solid underlying business fundamentals, reinforced by cross-border travel being above 2019 levels on a local currency basis for the first time in March – ahead of our expectations.
A few highlights from the quarter that I would note include:
Expanding in payments: During the call, we noted a number of expanded and extended relationships with key customers and partners across the globe like Wells Fargo, Capital One and American Airlines. Our delivery of the core card payment capability is critical to our partners and consumers every day. So too is how we’re innovating and bringing greater choice to consumers and merchants. One example is how customers have responded to our open-loop Mastercard Installments program. This choice will be offered to U.S. shoppers this quarter, with international expansion later in the year. It’s also seen in how tech companies across Europe, North America and Asia have signed on to the Mastercard Send Partner Program, supporting additional P2P functionality.
Extending our services: As Michael noted earlier, services play a critical role in strengthening relationships and offering additional value to our customers. The closing of our Dynamic Yield transaction adds to our efforts to provide customers with a unique consumer engagement and loyalty hub. That’s complemented with the expansion of our consulting services to help customers identify the opportunities in several growing sectors – ESG, open banking and open data, and crypto.
Embracing new networks: Last quarter, I noted the potential we’re working toward in the open banking space. As we’ve brought this closer to our multi-rail capabilities, we’re providing customers and the end consumer more functionality and more value in how they activate their data. On a parallel path, our investments in cyber and digital identity are helping to protect each transaction. For example, this week’s announcement with Microsoft reinforces how through partnerships and technology we can help drive greater efficiency and greater peace of mind.
As we look to the rest of 2022, we’re optimistic about the opportunities ahead and our ability to deliver on them. We believe we have the right strategy, the right technology, the right partners and the right people to continue to deliver on our goals for top- and bottom-line growth.