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Published: 2023-02-14 17:00:35 ET
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EX-99.1 2 ma02142023exb-991.htm EX-99.1 Document

Mastercard Incorporated
New Net Revenue Disaggregation and Key Metrics
Full Year 2020, 2021 and 2022
(in millions)



Disaggregated Net Revenue by Category 1
Year Ended
December 31,
2020		December 31,
 2021		December 31,
2022
Payment network$9,897 $11,943 $14,358 
Value-added services and solutions5,404 6,941 7,879 
Net revenue$15,301 $18,884 $22,237 


Key Metrics Related to the Payment Network 2
Year Ended
December 31,
2020		December 31,
 2021		December 31,
2022
Domestic assessments$6,598 $8,064 $8,794 
Cross-border assessments3,498 4,646 6,597 
Transaction processing assessments7,137 9,041 10,646 
Other network assessments659 668 766 
1 Represents our new disaggregated net revenue by category as presented in Note 3 - Revenue to our financial statements and within Management’s Discussion & Analysis.
2 Key metrics related to the payment network will be presented in Management’s Discussion & Analysis within our Form 10-K filings beginning with the Company’s Form 10-K for the year ended December 31, 2022.





Mastercard Incorporated
Reconciliation of Historical Sources to New Disaggregated Revenue Categories and Key Metrics
Full Year 2020, 2021 and 2022
(in millions)

Year Ended
December 31,
2020		December 31,
 2021		December 31,
2022
Historical Disaggregation by Source 1
Domestic assessments$6,656 $8,158 $8,920 
Cross-border volume fees3,512 4,664 6,608 
Transaction processing8,731 10,799 12,595 
Other revenues4,717 6,224 7,198 
Historical Sources Moved to Value-Added Services and Solutions 2
Domestic assessments$58 $94 $126 
Cross-border volume fees14 18 11 
Transaction processing1,594 1,758 1,949 
Other revenues4,058 5,556 6,432 
Historical Rebates and Incentives Broken Down by New Disaggregated Net Revenue by Category 3
Payment network$(7,995)$(10,476)$(12,445)
Value-added services and solutions(320)(485)(639)
Historical rebates and incentives$(8,315)$(10,961)$(13,084)
New Disaggregated Net Revenue by Category 4
Payment network$9,897 $11,943 $14,358 
Value-added services and solutions5,404 6,941 7,879 
Net revenue$15,301 $18,884 $22,237 
Key Metrics Related to the Payment Network 5
Domestic assessments$6,598 $8,064 $8,794 
Cross-border assessments3,498 4,646 6,597 
Transaction processing assessments7,137 9,041 10,646 
Other network assessments659 668 766 
1 Represents our historical presentation of disaggregation by source for periods ended prior to December 31, 2022 and in our earnings presentation related to the period ended December 31, 2022.
2 Represents the portion of our historical sources (domestic assessments, cross-border volume fees, transaction processing, and other revenues) moved to our new value-added services and solutions category. The residual portion has been reclassified to the payment network category.
3 Represents our historical rebates and incentives that have been recorded within our new disaggregated net revenue categories (payment network and value added services and solutions).
4 Represents our new disaggregation of net revenue by category as presented in Note 3 - Revenue to our financial statements and within Management’s Discussion & Analysis. Payment network, value-added services and solutions and net revenue include rebates and incentives provided to customers.
5 Represents key metrics related to the payment network as presented within Management’s Discussion & Analysis.
Mastercard Incorporated
Growth and Growth Rates for New Presentation of Net Revenue and Key Metrics
Full Year 2021 and 2022
(in millions)

Growth of Net Revenue by Category
Year Ended
December 31,
 2021		December 31,
2022
$ Increase/(Decrease)
Payment network$2,046$2,415
Value-added services and solutions1,537938
Net revenue3,5833,353
% Increase/(Decrease)
Payment network21 %20 %
Value-added services and solutions28 %14 %
Net revenue23 %18 %
Currency-neutral % Increase/(Decrease)
Payment network 1
20 %26 %
Value-added services and solutions27 %18 %
Net revenue 1
22 %23 %
    

Growth of Key Metrics Related to the Payment Network
Year Ended
December 31,
 2021		December 31,
2022
$ Increase/(Decrease)
Domestic assessments$1,466$730
Cross-border assessments1,1481,951
Transaction processing assessments1,9041,605
Other network assessments998
% Increase/(Decrease)
Domestic assessments22 %9 %
Cross-border assessments33 %42 %
Transaction processing assessments27 %18 %
Other network assessments1 %15 %
Currency-neutral % Increase/(Decrease)
Domestic assessments22 %12 %
Cross-border assessments30 %53 %
Transaction processing assessments26 %23 %
Other network assessments4 %14 %
1 For the years ended December 31, 2021 and 2022, refer to Management’s Discussion & Analysis for disclosures related to rebates and incentives and the respective growth rates, including currency-neutral.








Mastercard Incorporated
New Net Revenue Disaggregation and Key Metrics
Interim Periods 2021 and 2022
(in millions)



Disaggregated Net Revenue by Category 1
Three Months Ended
March 31,
2021		June 30,
2021		September 30, 2021December 31,
2021		March 31, 2022June 30,
2022		September 30,
2022		December 31,
2022
Payment network$2,648 $2,875 $3,234 $3,186 $3,399 $3,609 $3,765 $3,585 
Value-added services and solutions1,507 1,653 1,751 2,030 1,768 1,888 1,991 2,232 
Net revenue$4,155 $4,528 4,985 $5,216 $5,167 $5,497 $5,756 $5,817 


Key Metrics Related to the Payment Network 2
Three Months Ended
March 31,
2021		June 30,
2021		September 30,
2021		December 31,
2021		March 31, 2022June 30,
2022		September 30, 2022December 31,
2022
Domestic assessments$1,782 $2,030 $2,113 $2,139 $2,108 $2,251 $2,220 $2,215 
Cross-border assessments926 1,072 1,271 1,376 1,390 1,612 1,804 1,791 
Transaction processing assessments1,948 2,178 2,397 2,518 2,457 2,572 2,786 2,831 
Other network assessments169 163 164 172 168 213 195 190 
1 Represents our new disaggregated net revenue by category that will be presented in Note 3 - Revenue to our financial statements and in Management’s Discussion & Analysis within our quarterly filings with the SEC.
2 Key metrics related to the payment network will be presented in Management’s Discussion & Analysis within our quarterly filings with the SEC.


Mastercard Incorporated
Reconciliation of Historical Sources to New Disaggregated Revenue Categories and Key Metrics
Interim Periods 2021 and 2022
(in millions)

Three Months Ended
March 31,
2021		June 30,
2021		September 30, 2021December 31,
2021		March 31, 2022June 30,
2022		September 30, 2022December 31,
2022
Historical Disaggregation by Source 1
Domestic assessments$1,798 $2,056 $2,139 $2,165 $2,134 $2,283 $2,252 $2,251 
Cross-border volume fees932 1,076 1,276 1,380 1,395 1,615 1,803 1,795 
Transaction processing2,351 2,612 2,849 2,987 2,912 3,061 3,288 3,334 
Other revenues1,347 1,475 1,562 1,840 1,584 1,745 1,824 2,045 
Historical Sources Moved to Value-Added Services and Solutions 2
Domestic assessments$16 $26 26 $26 $26 $32 $32 $36 
Cross-border volume fees6 4 5 4 5 3 (1)4 
Transaction processing403 434 452 469 455 489 502 503 
Other revenues1,178 1,312 1,398 1,668 1,416 1,532 1,629 1,855 
Historical Rebates and Incentives Broken Down by New Disaggregated Net Revenue by Category 3
Payment network$(2,177)$(2,568)$(2,711)$(3,019)$(2,724)$(3,039)$(3,240)$(3,442)
Value-added services and solutions(96)(123)(130)(137)(134)(168)(171)(166)
Historical rebates and incentives$(2,273)$(2,691)$(2,841)$(3,156)$(2,858)$(3,207)$(3,411)$(3,608)
New Disaggregated Net Revenue by Category 4
Payment network$2,648 $2,875 $3,234 $3,186 $3,399 $3,609 $3,765 $3,585 
Value-added services and solutions1,507 1,653 1,751 2,030 1,768 1,888 1,991 2,232 
Net revenue$4,155 $4,528 4,985 $5,216 $5,167 $5,497 $5,756 $5,817 
Key Metrics Related to the Payment Network 5
Domestic assessments$1,782 $2,030 $2,113 $2,139 $2,108 $2,251 $2,220 $2,215 
Cross-border assessments926 1,072 1,271 1,376 1,390 1,612 1,804 1,791 
Transaction processing assessments1,948 2,178 2,397 2,518 2,457 2,572 2,786 2,831 
Other network assessments169 163 164 172 168 213 195 190 
1 Represents our historical presentation of disaggregation by source for periods ended prior to December 31, 2022 and in our earnings presentation related to the period ended December 31, 2022.
2 Represents the portion of our historical sources (domestic assessments, cross-border volume fees, transaction processing, and other revenues) moved to our new value-added services and solutions category. The residual portion has been reclassified to the payment network category.
3 Represents our historical rebates and incentives that have been recorded within our new disaggregated net revenue categories (payment network and value added services and solutions).
4 Represents our new disaggregation of net revenue by category as presented in Note 3 - Revenue to our financial statements and within Management’s Discussion & Analysis. Payment network, value-added services and solutions and net revenue include rebates and incentives provided to customers.
5 Represents key metrics related to the payment network that will be presented in Management’s Discussion & Analysis within our quarterly filings with the SEC.
Mastercard Incorporated
Growth and Growth Rates for New Presentation of Net Revenue and Key Metrics
Interim Periods 2022
(in millions)

Growth of Net Revenue by Category
Three Months Ended
March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
$ Increase/(Decrease)
Payment network$751$734$531$399
Value-added services and solutions261235240202
Net revenue1,012969771601
% Increase/(Decrease)
Payment network28 %26 %16 %13 %
Value-added services and solutions17 %14 %14 %10 %
Net revenue24 %21 %15 %12 %
Currency-neutral % Increase/(Decrease)
Payment network 1
33 %31 %24 %18 %
Value-added services and solutions20 %19 %21 %15 %
Net revenue 1
28 %27 %23 %17 %

Growth of Key Metrics Related to the Payment Network
Three Months Ended
March 31,
2022		June 30,
2022		September 30,
2022		December 31,
2022
$ Increase/(Decrease)
Domestic assessments$326$221$107$76
Cross-border assessments464540533415
Transaction processing assessments509394389313
Other network assessments(1)503118
% Increase/(Decrease)
Domestic assessments18 %11 %5 %4 %
Cross-border assessments50 %50 %42 %30 %
Transaction processing assessments26 %18 %16 %12 %
Other network assessments— %32 %19 %10 %
Currency-neutral % Increase/(Decrease)
Domestic assessments21 %13 %9 %6 %
Cross-border assessments57 %61 %57 %40 %
Transaction processing assessments29 %23 %23 %17 %
Other network assessments1 %35 %13 %11 %

1 Growth rates for rebates and incentives within payment network, including currency-neutral, are as follows:
Three Months Ended
March 31, 2022June 30,
2022		September 30, 2022December 31, 2022
Rebates and incentives within payment network
% increase/(decrease)25 %18 %19 %14 %
Currency-neutral % increase/(decrease)28 %22 %25 %18 %
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