MasterCard Incorporated (MA)
September 15, 2011 8:30 am ET
Kevin Stanton - President of Mastercard Advisors and President of Canada Region
Ed McLaughlin - Chief Emerging Payments Officer
Javier Perez - Member of Executive Committee, President of MasterCard Europe and Director of Europe Region Board
Timothy Murphy - Chief Product Officer of Core Products
Richard A. Hartzell - Member of Executive Committee and President of LAC Region
Barbara Gasper - IR
Ajay Banga - Chief Executive Officer, President, Director, Member of Executive Committee, Chief Executive Officer of MasterCard International and President of Mastercard International
Alfredo Gangotena - Chief Marketing Officer
Martina Hund-Mejean - Chief Financial Officer and Member of Executive Committee
Vicky S. Bindra - President of Asia Pacific, Middle East & Africa Region
Chris A. McWilton - President of U.S. Markets, Member of Executive Committee and President of U.S. Markets of MasterCard International
Christopher Brendler - Stifel, Nicolaus & Co., Inc., Research Division
Jason Kupferberg - Jefferies & Company, Inc., Research Division
Tien-Tsin T Huang - JP Morgan Chase & Co, Research Division
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
Unknown Analyst -
Darrin D. Peller - Barclays Capital, Research Division
David Togut - Evercore Partners Inc., Research Division
Good morning, everyone, and welcome to all of you, those of you joining us here in New York, also those of you who are joining us via the webcast. I'm Barbara Gasper, Head of Investor Relations, and on behalf of the entire MasterCard management team, we all welcome you. Thank you for joining us this morning for our annual Investment Community Meeting.
Here we go. We've developed a program for you today, which addresses many of the topics that we've heard you ask about and we think are of interest to you. And similar to last year, we've combined a morning of formal presentations with an afternoon of product demonstrations. Ajay Banga, our CEO, will kick off today's formal presentations with some comments about our progress in executing our strategy. You'll then hear from several members of our management team beginning with Alfredo Gangotena, who's our Chief Marketing Officer. Alfredo will be followed by the heads of our 2 product groups, Tim Murphy and Ed McLaughlin, who will each provide an update on some of the products and services from their respective core products and emerging payments areas.
Following Tim and Ed will be Kevin Stanton, who's President of MasterCard Advisors, who will discuss our Advisors Consulting business. Following a midmorning break, we'll move to hearing about the regions from their perspective, beginning with a look at 2 of our high-growth regions. Vicky Bindra and Richard Hartzell, who are presidents of our APMEA and LAC regions, respectively, will talk about the opportunities in their regions, and this discussion will be followed by an update from Chris McWilton, who's President of our U.S. markets.
After that, Martina Hund-Mejean, our CFO, will provide a financial perspective on the business. After our Q&A session, we will quickly preview this afternoon's product demo and a mobile experience for you all. And finally, Ajay will be back up for some closing comments before we adjourn about 12:30 for lunch and the product demos. A copy of the slides that we'll be using here today can be found in the binders that you picked up on your way into the auditorium. They were also filed publicly this morning with the SEC as an 8-K, and the slides are also posted on the Investor Relations section of our website for your reference.
Additionally, a replay of this meeting will be available for 30 days. Along with our presenters this morning, we have the other members of our Executive Leadership Team, including Gary Flood, President of Global Products and Solutions; Noah Hanft, our General Counsel; Walt MacNee, Vice Chairman, and our former President of International Markets; as well as Ann Cairns, our new President of International Markets. Rob Reeg, who is President of MasterCard Technologies; and Stephanie Voquer, our Chief Human Resources Officer. We also have our 2 other regional presidents who are not on the formal agenda today, Javier Perez from MasterCard Europe; and Betty DeVita from MasterCard Canada.
Additionally, each of our demonstration rooms this afternoon will have a senior management representative, including Mike Manchisi, who leads our Global Processing business; Garry Lyons, who's the head of MasterCard Labs; Debra Janssen, who heads up both our IPS efforts, as well as our recent Access Prepaid acquisition; Mung-Ki Woo, who's the head of our Mobile area; and Ron Hynes, who runs our Prepaid Group. I also want to acknowledge all the hard work and effort from the other members of our IR team, Greg Boosin, Adam Engelman [ph] and Tina D'Amato.
Now just a few administrative items to get out of the way before we get started. Behind your name tag is a little coupon, a ticket that says do not lose this ticket, which you will need to participate in this afternoon's product experience. So please don't lose it. If you are not able to stay for the afternoon session, that ticket is also your exit pass from the venue. Please hold your questions to the Q&A session, which we expect will begin somewhere around 11:40, and we will have the ability to take questions from those listening in on the webcast by hitting the ask-a-question button on your webcast player.
Our agenda calls for a 20-minute break, about 10:20 for those of you on the webcast, you can either stay connected or reconnect. It's up to you. And out of courtesy to the other speakers and to those around you, I would ask the attendees here in the room in New York if you would please silence both your cell phones and your BlackBerrys now.
And finally, just a reminder that today's presentation includes some forward-looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments today. Additional information about the risk factors that could influence future results is detailed in our SEC filings, including our Forms 10-K, 10-Q and 8-K.
And now with that, I'd like to turn the presentation over to Ajay Banga, MasterCard President and CEO. Ajay?
Good morning, everybody, and thank you for being here but also thank you for your interest and support for our company. I hope you like the fun facts, and I'm going to start with some less fun facts about real numbers as against all the funny numbers there, which was just a way of -- we use that video with, very often, with new clients and new employees as a way of them to understand our company in an easy tangible way.
So one thing about this location that drives me crazy, by the way, is when these curtains go down. It is such a gorgeous view outside but when the damn curtains go up, you can't see the slides, and so since we paid for you to come here, you're going to see the slides, right. All right.
So the first thing I want to make sure you get across from us is we’ve set up some commitments to you around this time last year. We’ve talked about our revenue growth profile. We’ve talked about what we would be willing to do in terms of sustaining margin, and we’ve talked about our EPS growth profile, and all I want to show you on this stage is that the first half is off to a decent start. Now first halves don't 3 years make, so the first half is off to a decent start and behind a lot of these numbers, behind this thinking of revenue growth, behind the thinking of margins and behind the thinking of profitability lies some basic principles that with some of you I've had a chance to talk to individually or in groups but never in a session of this size. So I thought I'd spend a few minutes going over how I think about our franchise and its possibilities over the next few years.
So the next slide really focuses on that, and it's a very simple way of talking about what I call the 3 concentric circles that determine how and where we can grow. The outermost circle is personal consumption expenditure growth. It depends on a ton of things that I have nothing to do with. It depends on globalization. It depends on the growth of the middle-class. It depends on urbanization. It depends on financial inclusion. It depends on so many things that governments and societies and economies go through ups and downs with. But it is at the end of the day, the factor, the foundation that decides the role we play in that space, and so it's an important space to keep in mind.
If you were to look at that number over the last 15 years through periods of ups and downs and economic crises in different parts of the world, it tends to show somewhere between a 5 and 6 percentage point growth in PC on the average across these years. You will have years when it's higher. You will have years when it's lower. You will have markets where it's higher. You will have markets where it's lower, depending on the year they are going through, but it somewhat averages out at around that 5 or 6 percentage points of PCE growth. And in fact, if you looked at spending, possibly you looked at yesterday's August spending data even in the United States, which talked about flat spend compared to July of 2011, it did say 7-point something percent compared to the prior year.
Inside this, by the way, is inflation. Inside this as I said, different factors we don't control, but it's kind of the ecosystem we work in and is the first most important concentric circle that sort of defines the bedrock of our business. The second one is how much or how many of those transactions, a little different from the spend, how many of those transactions go into cash and check versus electronic. And you've heard me talk about 85% of the world's retail transactions are still cash and check, and only 15% are electronic.
Again, in a sense here, in a trend sense, if you looked at this over a period of time, this secular change of cash and check to electronic tends to add somewhere between another 3 and 4 percentage points of growth into the system. So you get kind of 5% or 6% from the outermost concentric circle, you get 2, 3, 4 percentage points and the next concentric circle gives you a 7, 8, 9, 10 percentage point growth rate in the market for our space.
But the second concentric circle, which hasn't been a traditional focus of conversation or of resources has traditionally not really been seen as something we can influence. In fact, we can, while in that circle there are trends, global trends we don't touch upon, things like the growth of youth. I mean, the more you have younger population, it's much more likely they will go electronic payments than cash. My children are like that. Yours are like that, and it's –- well, why yours, some of you are like that, much younger than I am and that gives you the advantage of having the perspective of understanding the aspect and the attraction of electronic payments to cash and check. But the fact is that there are tons of other things we can do here. Acceptance, the most simple one, and you will see this being talked about when Vicky and Richard Hartzell get up to talk of how acceptance is one of their priorities. In their kind of market basically that determines what are the biggest possibilities of cash and check versus electronic payments and that trend.
But there are other things, too. There's all the new technologies that are coming into place that help fight that. There are relationships that we need to build even stronger on with governments and talk to them about the cost of cash. Cash is not free, and to a lot of people, in government and regulators and politicians, cash is free and electronic commerce has a cost to it. So cash is not free. It costs between 0.5% and 1.5% of GDP to print, secure and distribute cash by Central Bank in an economy, 1.5 percent of GDP.
In a new Canadian study, just done a few days ago, actually talks about 1.1%. And so at different markets at 0.5% to 1.5% of GDP. And then you add to that the cost for a bank of actually taking that and taking it into its branches. We need a truck, normally Brinks are the guys that supply it, and that's a great share to own, by the way, because they've got a great model. And if you buy there -- if you take a Brinks truck, it has 2 armored guards because you need more than one guy protecting your cash. You need 2 people, accepting the cash. One to count it, one to check the counter because otherwise if you're one person counting cash, it kind of tends to disappear. And so cash has got all kinds of issues with it. That’s just before it even reaches the stage of thinking about the cost to society of tax evasion, of cross-border issues. Drugs aren’t coming to this country from another country in exchange for a credit card payment, plus, I figured that one out. Neither do guns go from here to somewhere else in exchange for a wire transfer.
Electronic payments don't facilitate either tax evasion or cross-border issues, and so cash is not free. And yet unfortunately the dialogue has been one where cash is free, from a government's point of view, from a society's point of view. Cash is not free for merchants. Cash is not free for consumers, and yet that's the dialogue. And so one of the things we are doing very actively is to change that dialogue, and that's why I'm spending so much time on this. I believe increasing the pie, focusing on that second concentric circle is as important to our future as a company as is our share in the 15% today.
And a lot of our dialogue tends to be around the 15% and not about converting the 85%. I mean, the math is obvious. If the 85% goes faster and become 83%, and the 15% grows faster to become 17%, that growth rate of the market is way more interesting than just trying to fight for share in the 15% that today is electronic. And I think our role has got to be to help drive that second concentric circle in the right way. Again, today, during the course of today's conversations, you will see this thread played out in different parts of different people's presentations from the way Tim talks about it in core products to the way Ed talks about it in his emerging product area, to the way that Chris and Vicky and Richard will talk about this topic, it's not something we talk about directly, but it's now permeating into everything they're doing to focus on that little concentric circle.
And then finally, the obvious one is the inside concentric circle, which is the one that we talk about all the time. What do we do to be able to grow our share in there, and if you put those 3 things together, growing the pie in the second circle, as well as improving the share that we have in that pie, it's kind of what drives our future and our revenue.
There are 3 key influences that determine how those 2 circles change, and the first one is the consumer and their behavior for all the obvious reasons in terms of why and how they are determining the growth of this market. So one of the things that we have done in the past is that we used to be, as everybody said, a B2B company, and all I'm saying is we don't want to be an issuer. I don't want to be a B2C company. That's not the role. In fact, these days, it's probably not a good idea, but I want to a B2B to C company, in the sense I want to make sure that I bring insights, expertise and knowledge of that end consumer and their segments to my clients, be they banks, be they merchants, be they governments, be they transit authorities, and talk to them about products and services that are designed to meet some unmet and other needs of that crowd, of that segment. A working affluent traveling woman has very different needs from a non-traveling affluent woman, very different, and her payment products should reflect that. That degree of clarity on consumer segmentation is not something that the payments industry has, over the years, done with that degree of sophistication. But I believe that's coming, and I believe it's a real opportunity, and that's one of the things that you'll see Alfredo will touch upon, again you'll see Tim and Ed touch upon the issue. You'll see Kevin Stanton talking about insights and expertise. So you'll see all this threading through.
The second big piece is governments and opinion leaders, merchants, the like. I believe that not engaging with them -- you heard me talk about the cost of cash with some degree of passion, I believe not engaging in a positive way with governments and opinion leaders over time around the world, not just in the United States, will be something that could hold our growth back.
On the other side, government's a great opportunity for business, be it Social Security cards in the U.S. or with the Poste Italiane in Italy, be it transit authorities that they own and operate, all these things are opportunities for us that I think can grow the pie as well. If you work with them though, like we're working in India on converting 600 million rural Indians into having a bank account, which they can then access with their fingerprints, which is being facilitated by the Unique Identifying (sic) [Identification] Authority, that 600 million people -- small ticket sizes, but 600 million who weren't in the formal electronic payment space 7 years ago. It has take 10 years to get there, but that's the kind of thing that I believe can help us change this aspect of the influencer on our growth.
And the final one is technology. And technology is just the ultimate enabler for creating so many ways for our products to reach out not just to the traditional expensive distribution but so many other ways that you'll hear Richard and Vicky and Ed and Tim talk about again. Focusing on innovation you'll see demonstrations outside. You'll see things that we are doing with QR Codes that merchants recognize that some of you will take a flight today in the U.S., you'll get your boarding pass, the QR code, on your smartphone, and you can use that to board. You will see the merchant locations. You probably saw it at Yankee Stadium seats we had lying around in the city for a while. They had QR codes on them. You could get that QR code and from there, enter a raffle to get a ticket to the Yankee Stadium. These are things you can do with QR Codes, not just payments, but the entire experience. You'll see some of that outside. Those are the kind of things investing in innovation and investing in productivity that I believe will be very critical to us.
I genuinely believe that we are a technology company that's in the payments industry. And if we use that data that we generate through those billions of payments transactions, then we can convert that with insight and expertise into data and information services with Kevin Stanton's business. And that's the virtuous circle and cycle that we're trying to capitalize on. So 3 concentric circles growing the pie, as well as our share inside and these 3 influencers are kind of what determine a lot of what we do.
Now how do you execute this strategy of being in the payments business and trying to use insights and expertise to grow the pie and grow your share? It’s a grow, diversify, build execution road map, which is not to be confused with the strategy. It's the way we are executing against that thinking. And you'll see today examples of how they're growing our core business credit, debit, prepaid and commercial around the world. You will see examples of diversifying our geographies and our customers, be it what we're doing with China somewhere else, what we're doing in Latin America, what we're doing in different parts of Middle East and Africa, what we're doing with Walmart with payroll cards and consumer reloadable cards or with the Italian Post Office or with the U.K. public sector that you will hear talked about in the course of today.
And then there's the whole building out of new businesses, whether it be the prepaid program, management business now beautifully re-labeled Access Prepaid Worldwide, which is just a huge sort of multi -- that's Tim Murphy at work, he's got to figure that one out or it be DataCash and the e-commerce gateways or it be all the work we are trying to do in the mobile space from MSP enabled to SMS enabled or it be the work we're doing in information services.
To me, these 3 pillars are how we execute, and I tell our company inside, and I tell all of you outside, I spend 50% of my time on the first pillar, making sure that our core businesses are aligned in the right way. I spend 25% of my time thinking about how to get new geographies and new customers into our ambit and I probably spend 1/4 of my time really working hard on all these new spaces. That's me. It changes as you go into the system.
Similarly when you see grow, diversify, build being presented by different people in this first row, you're going to see their interpretations of this. It doesn't fit these boxes exactly. For Tim Murphy, theoretically, he's only in the grow business and he's done growing, right. I mean, physically, but he's actually -- you'll see his case, diversify and build, will show up on his charts, as will Ed’s for grow, diversify and build. So don't get hung up on the 3 pillars, get hung up on the grow idea, the diversify idea and the build idea and then it gets implemented by different people in our company for what suits their space.
All of this depends on technology, inside expertise and good people to power this G, D and B strategy and its execution. I can't do all this if I don't earn the right to invest the money back into what I'm trying to do. And so very focused on pursuing the efficiencies. In advertising and marketing you'll hear Alfredo talk a little bit about that, very focused on technology spend and G&A. I’ve said this earlier, I believe in using pricing selectively not as a blunt instrument.
We have 3,000 lines of pricing in our system. Right now, some guys in our company are figuring out which couple could be doing something with in some country. It all rolls up at the end of the quarter into a number that Martina talks about. Like last quarter, it was 200 basis points, 50 for one activity, 150 from a ton of other activities. That's kind of how we want to use our pricing selectively, but I want to use this process of managing expenses and using pricing selectively and the leverage in our P&L to actually put money back into growing the franchise for those concentric circles, growing the pie and share, using consumers' technology and governments as our key focal points.
And if I can do that and deliver that 50%-plus operating margin annually, then I'm sticking by my commitments to what I made to you this time last year. And so before I end, I want to make sure that I come back to the idea of why I talked about low to mid-teens as being the kind of revenue growth I see us having. We've quantified it for these 3 years as 12% to 14% cumulative average growth rate, but basically it's the low to mid-teens, and it comprises both that growing the pie, as well as our share through strategic investments. That's what we're focused on. That's what you're going to hear about today in the execution. You’re going to see new ideas outside, and you will talk to our people in the products as well as some people from the geographies. And then I'll come back up and we'll do a Q&A and hopefully spend some time mingling together.
Once again, thank you for your time. Thank you for your support and your investment and putting up with us guys through our crazy sense of humor, and I'm going to hand it over to Mr. Alfredo Gangotena, who's half-French, half-Ecuadorian, lives in the U.S. and is just slightly crazy. So it's over to him.
There's no doubt you are 100% Indian. Ladies and gentlemen, good morning, and Ajay, many thanks for this introduction. It is my pleasure to give you another view of the role that Marketing plays at MasterCard, and to give you some greater insight on how we will evolve our marketing strategies as we move forward.
The fact is that marketing plays a central role in our grow, diversify, build execution road map. For example, the primary focus on our grow pillar is to deliver integrated –- integrated product and marketing so that we drive preference and, in turn, generate revenue growth. In our diversify pillar, marketing actually focuses on winning, winning new consumers and winning into new geographies. This is key for our footprint development as we bring in more consumers into the franchise.
And third in our build pillar, Marketing's role is to accelerate MasterCard's expansion into new areas, the areas that Ed, my colleague Ed McLaughlin, is going to discuss, which is e-commerce, mobile or social media. Now as we look into the market’s development, it is very clear that we are focused on business growth. Together with the rest of Global Solutions and products, we identify local market opportunities, prioritize them and develop appropriate execution plans. It is very clear that marketing is developed country-by-country because it depends very much on the development level. For example, you will see that we've moved from awareness into preference as the market develops.
Let me take an example like Nigeria, with very strong growth prospects. Well, the focus there is squarely on consumer education and building awareness among merchants as well. But in the market that is now in transition and very fast growth, such as Brazil, again it's different. What we need to focus on is activation and usage of cards by bringing together issuers, merchants and the value proposition that MasterCard brings.
Now if I turn to the more developed markets, the United States, Western Europe, the game there is squarely put on gaining preference. We want to gain preference and affection, particularly among the key segment, the affluent, the travelers or the new segments such as youth and in the future, the unbanked. At the same time, our aim is to build new acceptance opportunities, for example, low-value payments, which I will comment on in a few minutes. And squarely, our third priority is to support the development of our issuers by bringing in MasterCard-specific benefits.
Over the years, MasterCard has developed a world-class advertising, which is the Priceless campaign that you all know and hopefully enjoy. It has become a major asset for the brand's development around the globe. We like to say it is 14 years young. It has aired in 112 markets around the world and in 52 languages. If you check around, this is an extraordinary achievement. I've been in marketing for most of my life, and I can tell you that feels us to be very proud. The campaign is built on a very deep insight that transcends geographies, that transcends cultures and languages, and that's why you are able to see the same commercial in Brazil, in Colombia and sometimes in Australia. That drives significant synergies and significant cost reduction that means efficiencies. Today, we are embarking to evolve the Priceless campaign by making it more competitive, more directly linked to the product and the product benefits. We combine in a way the heritage that the Priceless experience has given us, together with strong new functional product benefits. This combination, this integration delivers a much stronger, more visible, more palpable, if you wish, reason to keep your MasterCard, and we want to do this towards the consumer, the merchant and the issuers as well.
Let me start first by zeroing in onto the consumer where the aim is to build preference, and if I may say, brand affection. It is very important to understand first the consumer needs. There is no question that a 50-plus-year-old like me would have certain needs, whereas an 18-year-old may see it totally different, I'm looking at you, okay, 28, fine. If I take an example, the affluent consumer, research has consistently told us one thing, that experiences matter more than things. They have all the money in the world and getting an emotion peak is very rare. And that's what we have built for the last 14 years in our advertising because we say, there are things that money can't buy. For everything else, there's MasterCard.
So in that sense, we realized it's key to connect people with their passion. And my colleague, Tim and my colleague, Ed, are now delivering more and more products that can help make your life a little bit more priceless.
Let me share with you a recent development of such an advertising we developed for what we call the World Elite card, which is aimed at the affluent segment. We have taken golf, and as you know, golf can be a passion. It can be an obsession. And if it is an obsession, the ultimate experience is to actually play on one of the iconic courses, such as those that are played by the tour professionals, what we call TPC courses like Sawgrass in Florida. Let me share with you that commercial.
Something was wrong with the DVD, but I hope you enjoyed it. Actually, if you want to play on such a course and you happen to have a MasterCard World Elite card, you can call me. We'll make sure.
Now we are turning to the faster gear. We will go further as we launch the new Priceless Cities campaign. This is an entirely new and exciting program that connects people to their passions, right where they live or where they travel to, and these are the greatest cities around the world. Priceless Cities will allow MasterCard cardholders to enjoy experiences that are more dear such as shopping, dining, the sports, arts and culture or travel. Everything that makes the ecosystem that you like being a New Yorker, for example.
The advantage of Priceless Cities is that it caters to not just a few, but all our cardholders in gradually making MasterCard a preferred card. It's a little bit like if I were to sell you the Access card to Gorgeous New York. We just launched Priceless New York on July 11, and we will intend to grow this program around the world. It's a wide-ranging campaign that goes from television advertising to print to outdoor to make sure that consumers that live in New York, and want to enjoy what is available here, can really get access to it.
We also go on to social media to share comments on our Facebook page on Twitter channel. Therefore, we are also strengthening our advertising campaign one step further. Here's an example, no sound, of print. As you can see here, we chose to celebrate the unique moment between a father and a son. That is what we call passing on the tradition. The stadium, Yankee Stadium is the setting, and the experience is the unique batter's eye view area that is reserved for MasterCard cardholders.
I understand that the advantage of sitting in that area is that you can see right where the batter's line of sight is and where he plays. Don't ask a Frenchman to explain baseball to a U.S. audience, but by the way, it's also priceless. But apparently from everything we can see, the Yankee Stadium has become a great place to enjoy and even more so if you hold a MasterCard. We have developed actually offers, throughout the stadium, something special for everyone, such as the Family Meals that offer, if you have a MasterCard, a free Pepsi. In a hot day, it's a good thing. Well, they have been selling like hotcakes and what is important is our MasterCard market share has gone up to 60% among the professions that participate over the period since the launch last April.
We heavily feature the Yankees experience in social media as well. In fact, we brought the Yankees to the city. As Ajay was mentioning, we have been able to put the historical seats of the old stadium throughout the city at Katz's Deli, Murray's Bagels, Junior's or even, for you, especially for you, at the New York Stock Exchange. And people were there, they would scan the seat, which has a QR code, sit on it and have a chance to win tickets to the batter's eye view in Yankee Stadium. This generated very big buzz, 55 million impressions and increased our Facebook likes by over 100,000. So big success as far as the consumer is concerned.
Turning to the merchants, a similar experience. Merchants have 2 primary goals. The first one is increase sales, and the second one is to satisfy their consumers the best they can. Well, we have been partnering with Singapore for the past 8 years, and Singapore is a fierce competitor in the region. They want to be seen as the primary destination for shopping ahead of Hong Kong, ahead of Shanghai. Well, we have created, together with the city state, what is called now The Great Singapore Sale.
Over 120 merchants participate, 350 stores primarily in Orchard Road, if you know the town, and it is for the 2 months what I call MasterCard Land. You can't go anywhere if you don't have a MasterCard. And when you see the results, which we have announced, the city states saw MasterCard's volume grow by 49% year-on-year and importantly, by 44% for cross-border, because the city attracts people from India, from China, from all over the region. Based on this success, we have taken The Great Singapore sale to Indonesia, to Malaysia and most recently as well to Dubai.
Third is our partners, the issuers, who have become, over time, the core of our relationship and will continue to do so. One way for the banks to increase their own business is to enter into new spaces where they’re dominated by cash. That is, for example, the low-value payments area, the spending that is below $25. And by the way, this category of spend is the vast majority of transactions around the world.
We introduced a new technology known as PayPass, an innovation led by MasterCard, which will be shared by Ed a bit later. That was launched in 2002. And in 2006, we moved into Canada with major success. Today, over 90% of the active MasterCard cards are PayPass-enabled. That, in turn, has led all the merchant community and including new merchants, such as Tim Hortons coffee shop or the Coke vending machines, like the ones you will see in the demo room, so that's also PayPass. And what is important are the results because the PayPass-enabled cards have seen a 24% lift in spend. Needless to say, a very big win for the issuers.
So I have shared with you some of the great examples of successful marketing campaigns, and we continue to address our program and make sure that they work around the world so that we can build our business efficiently. We have significantly increased our marketing effectiveness program, while at the same time, managing, as is shown on the slide, to maintain our brand opinion intact.
Over 2008, 2010, we have reduced marketing by 20%, as you know, by focusing on greater efficiencies, such as advertising production agency fees or much better use of our sponsorship assets. Over this period, this has been very critical because if you look at the slides, brand opinion is vital for the growth of the business. This points to efficiencies and increases in effectiveness, and of course, we continue to do so as we move forward.
Three major metrics are being followed. First, transaction frequency, which measures brand usage; two, what we call position in the wallet, the fight for market share consumer-by-consumer; and third, Net Promoter Score, which is a widely used metric to define brand loyalty, brand recommendation. In other words, brand health.
In conclusion, we have made major strides in the marketing area by building more efficiency and more effectiveness to the game. We do that to ensure that we satisfy not just the existing consumers but the new consumers, use, unbanked, China, India. Not just the existing merchants, but also moving to new merchant categories; and third, the issuers in the existing geographies, as well as the new frontiers, the next billion consumers in India, in China, in Africa. All of this to fuel our future growth.
And now you will learn opportunities that are being developed in MasterCard Products, world products specifically, through my colleague, Tim. Thank you for your attention. Tim?
Thank you, Alfredo. Good morning, everyone. My name is Tim Murphy. I'm MasterCard's Chief Product Officer. I want to take you through our core product strategies today. As investors and analysts, you know that MasterCard is delivering on a strong growth story. And what I'd like to try to do is to focus that story for you a bit because I suspect that many of you have come in here this morning thinking about e-commerce, mobile, other new payment channels, the key drivers for our growth, and that's very good. But what I present to you today is simply this. MasterCard's a growth company because our core product business, consumer credit, debit, prepaid, commercial is a growth business today. We are well placed to capitalize on opportunities, and we're executing on strategy in the core to drive faster than market growth. So e-commerce, mobile, new channels, those are critical but they're accelerators to drive future growth.
So what do I mean? We're showing you here first half volume growth on a year-over-year basis. And we've broken out specifically Prepaid and Commercial to indicate clearly that all of our core products are driving growth today, very strong growth. But as Ajay indicated, more importantly, the prospects for the future are very bright, 85% of transactions around the world are still cash and checks. And our ambition is very clear, it's in the core to grow faster than market, to deliver consistently faster than market growth for MasterCard.
So how do we do that? Well, very simply, we execute the corporate strategy that Ajay discussed with you. And what I want to do today is spend some time talking to you about how our core products are deeply integrated into our grow, diversify and build execution road map, and also touch on some of the places where we're investing to grow the pie over the long term, that second circle that Ajay talked about, enabling more electronic payments. And it's threaded as he indicated into everything we do at the core.
But most importantly, I want to emphasize how we're driving faster than market growth, how we're leveraging market growth trends in our Debit business to capture outsized opportunities and bend the growth curve in Debit, if you will, to our favor, how we're investing in innovation, in commercial payments and in our affluent consumer business to drive growth, how we're diversifying through Prepaid, reaching new consumers with new partners, driving new revenues. And then finally, I will give you an update on Access Prepaid, if you don't like 3 words, you can just shorten it to Access Prepaid. I've said that before, and Ajay, I think you know his view. So I want to give you an update on that because it's a great example of building new businesses in high-growth segments. So we'll go through all these things.
Okay, now the first way that we drive, that we can drive growth is by taking aggressive advantage of one of the strongest facts within the payment business today, which is that we remain in the middle of a major multi-generational shift in consumer preference from paper to electronic forms of payment. And debit really is the principal beneficiary of that shift in consumer preference, and so our debit strategy is very simple. It's to take advantage of that, capture outsized opportunities, bend that growth curve in MasterCard's favor. And the way we do that is twofold.
The first thing we need to do is we have to win with issuers, and debit, it's critical to be on the card. And the second thing we need to do is accelerate cash conversion, not to electronic payments generally but to MasterCard specifically.
So how are we doing here? Well, the short answer on the issuer side is we're doing very well. In the U.S. this year, and Chris will talk to more about this later this morning, we've built on our success last year converting the SunTrust portfolio to the MasterCard Debit brand by further brand wins, and I'd point out one in particular, which is Sovereign Bank. Sovereign is a unit of the Santander Group. It's a top 30 debit issuer in the U.S. measured by volume. In June of this year, it completed its conversion from Visa to Debit MasterCard, very welcome addition to our business and an indication that we've been able to get deals done, notwithstanding the regulatory uncertainty in the U.S. over the last year.
We're doing well outside the U.S. too. In Europe, Swedbank, one of the largest issuers in all of Europe and a major player in Sweden, announced that starting next year, it would convert its portfolio debit cards to MasterCard. It's a major win in the Nordics for us. It's a sea change frankly, in the Nordics, which has traditionally been a strong Visa market, and it shows you that we can win in new markets in Europe, aside of the strong position in the separate markets with Maestro that we’ve talked to you about over a number of years. When you put these deals together, $50 billion of incremental volume on our network when they're fully up and running sort of on an annual run rate basis, 8 million cards not on the network before, that's driving growth.
But beyond winning with issuers, we need to accelerate cash conversion, and there's many examples of this, places where we're investing across the franchise. One of my favorites is in Italy with the Sconti BancoPosta program. BancoPosta is the bank of Poste Italiane, the Italian post office, a long-standing partner of MasterCard on a range of issues. BancoPosta has the largest Maestro portfolio in Europe today, 6 million Maestro cards. And the last few years, they've been looking for a way to drive more activation, more spend, more usage on their debit portfolio. And so we worked with them to build the Sconti program, which stands for discounts.
This is a multi-merchant rewards program in which participating cardholders can earn cash rewards for everyday spend at merchants. The program's been very successful, over 20,000 participating merchants. It's doing wonderful things for BancoPosta. It's giving them the lift in the performance improvement that they were looking for in their portfolio. And importantly, it's a win for merchants, too, which emphasizes the fact that this cash conversion effort very much has a win-win in it for merchants.
Participating merchants in this program are seeing significant lift in ticket sizes, 3x in the petroleum sector, they're seeing competitive share shift. What I like most about the Sconti program is that it is powered by MasterCard. It was designed with substantial help and merchants were sourced by our advisors teams and Kevin's going to talk to you about that in a minute. Our MasterCard rewards system, which is a service of our Cardholders Solutions team, is powering the rewards, redemption and processing. And our marketing colleagues are optimizing the program in Italy. So only MasterCard could pull that set of resources together to differentiate and to capture that cash conversion opportunity. Nice example of what we can do.
Okay, beyond leveraging growth trends, there's also innovation. Innovation is critical, giving new features, differentiated solutions to corporations and consumers and driving more business to MasterCard. The consumer space, particularly for affluent consumers, which Alfredo touched on, is a great example here. We know affluent consumers are critical across 21 global markets around the world, we estimate that affluent consumers are something like 11% of the population, 42% of personal consumption expenditure. So they have an outsized impact, and our aim here is to deliver a new generation of world-class affluent consumer products that draw people to MasterCard because of their differentiated features and their benefit.
We think we have a lot of room to play with affluent consumers, particularly mass affluent consumers who are already familiar and connected with our brand. So how are we doing? This year, we will launch, either have launched or will launch, 73 new World and World Elite programs around the world, and we're showing you some card art here. 73 programs across 57 issuers, generating, when again fully run rate up and running something like $23 billion of incremental GDV, not on the network before. So we're driving wins.
And how are we doing that? Well, we're doing a couple of things. We're simplifying our product requirement. We're asking our issuer partners to focus on best-in-class rewards. We are standardizing our naming conventions and our brand designs. We're investing in our services. Our cardholders Solutions teams answers 6 million calls a year from MasterCard cardholders, in connection with driving services like emergency card replacement, emergency cash advance. That gives us a great opportunity to interact with and influence the experience of affluent consumers. And so we're investing in those call centers to ensure they get a high-touch, high-quality experience, and we're putting in place differentiated features and benefits.
Alfredo talked to you about the Priceless Cities program. We're enormously excited about that, offers and experiences that consumers can only get from MasterCard both in their home markets and when they travel, and it's a wonderful partnership.
On the product side, we're doing things, too. In the second quarter of this year, we launched PriceAssure for our World Elite cardholders here in the U.S. PriceAssure is a service that allows cardholders to register their airfare purchases, and in the event that a ticket price is subsequently reduced, to be able to claim a credit. Cardholders tell us they love the security and the peace of mind that this gives them. It's available only from MasterCard, good example of differentiation.
Commercial is another category where we're focusing on innovation to drive that business growth. We love the commercial space. We think the opportunity is untapped and substantial, and we're seeing very strong growth now in markets around the world. Growth’s very well balanced, and we're showing you first half GDV growth for Commercial across all our regions here.
Our strategy in the commercial space is really to do 2 things. First, it's to capitalize on our investments, the investments we've made over time in some platforms that are providing differentiation for MasterCard today. We've talked in the past about the inControl platform, which is advanced authorization and alerts. We are -- within the commercial space, we've invested in a platform called Smart Data, which is an information reporting expense management tool powered by MasterCard, now being used by 0.5 million corporations, 53 countries around the world.
Our issuers in the commercial space consistently tell us these sorts of programs differentiate MasterCard. They're a reason to bring us business and so we want to both invest in them and then leverage them to drive our business. Beyond that in Commercial, we see real opportunities in procurement, helping companies use cards to spend, to buy the things they need to run their businesses. E-purchasing cards have always been part of the space, but the reality is that Commercial business has been very T&E focused, and so we see a real opportunity to grow that part of our Commercial business. And here, for example, is the grow the pie initiative because one of the key things we need to do is invest in acceptance in categories where companies spend for procurement purposes. And so good example of how we can grow the pie for electronic payments.
In terms of innovation within the commercial space, which is so key, there are a number of different ways to go about this. Sometimes innovation to drive the business is thought leadership and industry insights. You know the U.S. has obviously been through a difficult economic period in the last few years. As we've looked at that, we've recognized that our small business issuers would change the way they acquire new customers by going from a very broad-based kind of mass approach to much more targeted solutions aimed at finding and winning with the most creditworthy, the most high credit quality small business customers. And so we helped our issuers with that shift. We built marketing tool kits, we built new customer acquisition models. And in connection with that, our customers have appreciated the work.
Earlier this year, Chase awarded us exclusivity for acquiring new small business customers through its U.S. branch network, wonderful opportunity for MasterCard. We’ll add something like 400,000 new accounts by 2012, great opportunity for us to grow our share with Chase, such an important customer, nice example of thought leadership winning us business. But technology is important too and here, Smart Data and inControl are leading the way for us in the commercial space. Over the last 18 months, we have won 12 of the largest public sector portfolios in the U.K. We've been selected as the brand for public sector agencies such as the Foreign & Commonwealth Office in the U.K., Department of Justice and so on. And those wins which, by the way, make us a player in the U.K. public sector space, a space we had not been in previously. So a major opening of a key segment for us there, really driven by Smart Data and inControl. Government agencies in the U.K., as in so many other places, facing serious issues in reconciling invoices, controlling employee spend, precisely the kind of solutions that Smart Data and inControl are designed to address, and so those platforms have been key in delivering wins for us.
Let me now move to diversify, how we're seeking to grow or rather to diversify our core business. Here, Prepaid is key. New customers, new revenues. Our prepaid strategy has been consistent over the years. We think 3 verticals are critical in Prepaid: consumer reloadable; corporate and government and we're focused on those. We think MasterCard should play a larger role in the Prepaid value chain and the Access Prepaid acquisition getting us in the program management space a great example of that. And finally, we see real opportunities to migrate nonbranded Prepaid volumes, things like transit, meal vouchers, which are big in Latin America, big in Europe to the MasterCard network. So our strategy stays the same. Growth is very fast. You saw those numbers earlier. The real news in Prepaid, the opportunity continues to be strong. This is the BCG sizing study that we did last year. We'll refresh it again next year, should be an $840 billion market globally by 2017 with particularly fast growth outside the United States.
Now the way we leverage this diversification opportunity is by making sure we're paying attention to the key drivers of Prepaid's growth. And financial inclusion is and will continue to be the fundamental driver of Prepaid. 2.5 billion adults around the world without access to mainstream financial services, Prepaid is the bridge to this consumer base, and governments are very much leading the way in helping us get there. So I want to talk to you about some things we're doing in the government space.
In the U.S. this year, we've seen great progress. You know we've talked to you in the past about our work at the federal level with the Direct Express program. That continues to grow nicely. This year, we've seen some real progress at the state level. In fact, over the last 18 months, MasterCard's been chosen as the brand for a number of -- 60% actually, measured by volume, of all competitive public sector prepaid program, incremental $16 billion of GDV that will now run on our network that did not before. And it's winning us business with new issuers. I look forward to talking to you more about some specific wins in the coming weeks and months, but seeing nice progress there. We're also seeing progress outside the United States, and frankly our single global structure gives us a wonderful opportunity to work with governments and transfer our best practices. In Egypt, the government has chosen MasterCard payroll card as the means of paying monthly salaries to its employees. 65% of adults in Egypt are unbanked. This program has now got over 1 million cardholders. My favorite point of today's presentation. Egypt has been in a series of political and social unrest over the last period. During this entire period, the only public sector employees who have been paid on time were those who had this card, who had the MasterCard card. Great example of what we can do tangibly to improve people's lives with financial inclusion. I think a great example of what Prepaid can do.
But beyond the underserved, we know increasingly that Prepaid will be driven by bank consumers looking for solutions to segment their spend bucket as opposed to an overall approach. The travel business is a great example of that and we'll talk about more of that when we talk about Access, but there's some other examples as well. In the retail space, we've opened up this year for MasterCard the Walmart MoneyCard program. You know that we've had Walmart's payroll business for a number of years. Their consumer reloadable program sold through all their stores in the U.S. which have traditionally been branded with a brand of our competitors. We brought them -- they said to us, “So bring us some ideas and we're open to MasterCard.” And so over the course of this year, we've talked to them about different unique ways to segment their MoneyCard program and brought a couple of ideas to market, an easypay program which you can see if you go to Walmart, and a family card, both of those now in store with Walmart, MasterCard branded. Another example of, I think, thought leadership driving a win. And Mobile. Ed will talk more about Mobile in a minute, but the reality is Prepaid is now emerging and its flexibility is now emerging as the key driver of many forms of emerging payments, all right? P2P, remittances, mobile payments, and here's a nice very recent example. In August or just last month, we launched in Malaysia the first telco prepaid card of a simple card. Alliance Bank is the issuer. DG Telecommunications is our telco partner. This is starting as a prepaid co-brand card, providing point-of-sale, bill payments, mobile pop-up. But it will evolve over time to include a wallet, to include remittance services targeted at young people, targeted at overseas workers, great demonstration, right, of how Prepaid can expand into these new channels.
Fundamentally, I think you see that Prepaid is enormously versatile. It helps us get in a variety of different ways at new consumers and new spend, and thereby drive new revenues for MasterCard. So let me conclude with an update on Access Prepaid, which is the travel -- the Card Program Management business that we bought from Travelex in April of this year. That transaction closed in April. Integration is proceeding very well, very much on plan. In fact, the substantial part of the work is complete.
Program Management you may recall is -- think of Program Management as everything you need to do to run a prepaid program that is not issuing or processing. So it's things like fraud and risk management. It's consumer service like a call center, product marketing and so on. Acquiring that capability now gives us the -- MasterCard the ability to touch all points of the prepaid value chain, not just processing, not just branded switching but now program management. That lets us put end-to-end prepaid solutions into markets where there's need, but we found the infrastructure to be weak. And so having that full set of assets really lets us drive Prepaid's growth. That's why we think it's important.
We're executing on our growth plans for Access now and doing very well. We'll continue to keep Access focused on the travel vertical, which is very attractive and strategic for us. We will expand it into new markets, new geographies. We're continuing to invest in the business. We're launching 7 new chip and PIN markets for Access this year. We'll be bringing our multicurrency Purse solution into Australia next month. So significant investments into the business.
We're looking for select opportunities outside the U.S. to allow Access to go into other prepaid verticals. We'll be thoughtful about that, and what we're doing right now is introducing Access to our financial institution customers around the world, helping to propel its growth, seeing great progress Brazil, Middle East and other places. I think though a deal is the best way to show you the kind of value that Access can bring us. Ajay talked about the Ryanair deal in the second quarter earnings call. I'll mention quickly Cathay Pacific. Cathay, a leading airline in Asia. Access was chosen earlier this year to provide a passenger compensation card program, full turnkey prepaid solutions including Program Management. It's allowing Cathay to compensate passengers with a Prepaid Card as opposed to manual, very cumbersome paper processes in the 75 or so markets where it and its subsidiaries operate. Wonderful strategic example of what we can do, helps us build a new relationship with a new segment, airline, provides us the opportunity to put the MasterCard brand in the hands of consumers who didn't have it before and in a way that's high-value add and gets us access to, thus the name, I would say, Access, Access, right, access to and very attractive new segment, which is high power, the fast-growing Asian airline market. Nice example of the things we can do with Access.
Finally, so let me wrap up. My core message to you today is we're a growth company because we are growing fast in our core Cards business. The opportunities there are large and we're really well positioned to capture them. We're deeply linked into Grow, Diversify, Build. We're growing the pie, investments in things like financial inclusion or acceptance. Most importantly, we're working hard across a range of things to drive faster than market growth for MasterCard.
So thanks very much, and I will turn it over to Ed McLaughlin, my colleague.
Good morning. I'm Ed McLaughlin, and I look after the emerging payments product area for MasterCard. And if you'll allow me to open with a bit of a statement of the obvious that there are ongoing transformations in consumer behaviors that are happening globally. These transformations are driven in large part by near ubiquitous access to the Internet, social connectivity and mobility. And we've all seen this in our everyday lives, and these trends will continue to transform commerce.
When you look at the 85% of transactions that are still being funded through cash and check that Ajay and Tim have already talked about, emerging technologies provide MasterCard an unprecedented opportunity to accelerate the transition to our charge payments and grow our share of that payments pie, while also enhancing the lives of consumers, merchants and their communities around the world. Through our consumer-led approach and the relentless focus on innovation you've already seen from MasterCard, we will take advantage of these new technologies to accelerate the growth of and generate real preference for MasterCard by delivering new experiences and new applications to consumers and merchants.
In Emerging Payments, we start by leveraging the power of the MasterCard network, the fastest, most intelligent payments network on the planet and help grow Tim's core businesses by delivering enhanced payment capabilities such as PayPass contactless, our M/CHIP Advance, EMV platforms and integrated transit applications. We also continue to diversify and expand our businesses, leveraging unique platforms like inControl that enables MasterCard cardholders to do things like personalize the alerts and authorizations on their accounts in real time right from the MasterCard network and by providing additional payment services like bill payment or MoneySend funds transfer and by using the MasterCard network to do things like power the delivering redemption of merchant offers and reward systems. And we are building new businesses with the DataCash Payments Gateway we acquired, our Mobile payment solutions joint venture and in particular in the area of remote or e-commerce payments and the emerging mobile money sectors.
These services extend the value that MasterCard provides for our current customers and enables us to reach and work with new partners we've not been previously able to work with, with our traditional products and distribution channels. Now to help frame the Emerging Payments growth opportunity for MasterCard, we're going to focus today on 3 broad but highly correlated trends. First, the continuing growth of Internet-connected devices, which is transforming e-commerce and extending remote payments into new platforms. Secondly, the rapid adoption of smartphones and their ability to fundamentally improve the in-store shopping experience and the development and integration of mobile money services, which are enabling new ways for MasterCard cardholders to transact and also creating a channel to reach new customers in both established and emerging markets.
Now running through all of these emerging payments areas is the need to provide ways for consumers to make payments that are both extremely convenient and highly secure. If you think of your traditional MasterCard, this is, in many ways, simply a convenient physical packaging of your account credentials and some security features. As established commerce migrates to these emerging experiences and newer markets such as digital media goods expand, we are moving not only to that world beyond cash, but we are also starting to enable a world beyond plastic. And this creates an incredible opportunity for us to serve consumers with new experiences, create value for merchants and other partners and build new businesses for MasterCard.
So let's start with e-commerce. PC-based remote payments continue to be a strong growth sector, and our objective in this market is simple, to drive preference for MasterCard by making it easier and more convenient for consumers to shop online and simpler and more secure for merchants to accept MasterCard payments. One great example of making it easier for consumers to use our cards online is the work we have done last year in conjunction with core products to enable our PIN-based Maestro debit products to work for e-commerce. We are seeing good momentum in working with merchants to begin accepting Maestro using MasterCard secure code, recently adding new merchants like Groupon, Eurostar and others. We have grown Maestro online acceptance in Europe over 40% in just the last year and by July of this year, European issuers representing almost half of the Maestro cards in Europe were also enabled for e-commerce.
Going forward, MasterCard is developing digital wallet applications in order to make online shopping even more convenient for consumers, giving them secure methods to hold and use their payment credentials and providing merchants with streamlined checkout processes and improved security through dynamic transaction authorization. And our continued growth in e-Commerce will only accelerate as consumers begin to use more and more devices such as mobile browsers, tablets, game consoles or embedded applications to make online purchases. By some estimates, the number of connected devices by 2015 will be twice the number of the global population. If you just take a moment to think of the number of ways you can now connect, it's easy to imagine how soon every device you have may become a commerce-enabled device. And every commerce-enabled device needs a payments gateway.
Our DataCash Gateway, which we acquired in December of last year, enhances our acquiring partners’ businesses by providing them access to high-quality e-commerce gateway services and extremely sophisticated fraud tools. DataCash capabilities enable merchants to easily and securely process any type of electronic payment from traditional e-commerce environments or from mobile or other connected devices. The integration of DataCash into MasterCard operations is substantially complete and year-to-date, the DataCash Gateway is experiencing a 30% growth in online retail transactions with continued expansion of new acquirer and merchant relationships.
We are also expanding our gateway in fraud services into additional high-growth markets. Recently and most notably, you've seen with our arrangement with China UnionPay to introduce gateway services to the Chinese market. DataCash is also a platform to foster innovation, enhancing capabilities for merchants and extending the acquiring reach of the MasterCard network, particularly in areas that aren't using traditional terminals. For example, the DataCash gateway is the backbone for our open API and the launch platform for new fraud tools created by combining MasterCard and DataCash data, as well as our expertise. And as you'll see in the experience later today, DataCash is being used by MasterCard Labs as a payment gateway for many of their new innovations.
Now of all the connected devices that we're looking at, smartphones are by far experiencing the most rapid adoption. And they are now providing a platform for us to deliver new applications that are transforming the in-store shopping experience. In a recent survey, over 50% of smartphone users have already used their phone to assist them in shopping in some way. In developed markets like the United States, smartphones will soon represent over half of the handsets in market. And beyond providing messaging, browsing, apps and other capabilities, smartphones themselves are also becoming payment devices through the adoption of Near Field Communication or NFC technology. Major handset manufacturers including Samsung, Nokia and RIM are beginning to deliver NFC-enabled handsets to market, and by 2016, the majority of smartphones will support NFC.
Why is this important? Well, unlike that simple plastic card, smartphones provide an intelligent device right in the consumer's hands that we can use to interact with them in ways that were never before possible like showing you your account information before you make a purchase, giving you inControl alerts in realtime, delivering specifically targeted offers to your interest and location, enhancing loyalty programs and providing faster and more convenient ways for consumers to pay. And MasterCard is already delivering infrastructure and applications that integrate smartphones into our payments network, providing capabilities like over-the-air provisioning services, which enables the secure delivery of card payment credentials into the handset.
As Tim mentioned, virtual MasterCard prepaid accounts to load and store those funds and PayPass Tap & Go payment applications to shop with them. We can also provide information services to help merchants target offers to consumers and transactional capabilities to automate coupon redemption. And I'm very, very proud to say while last year at this event, we showed you a map of the world with innumerable mobile pilots that we had going on. Well, this year, we're demonstrating to you some of the mobile PayPass applications that are in market today. And as you will see at the heart of all of this payment service is a MasterCard account.
A few examples. In Korea, SK Telecom and Samsung card introduced in April their first phone with built-in NFC function using PayPass. This wallet is open to all MasterCard issuers in Korea and features things like integrated advertising, coupons and other rewards. In the U.K., we partnered with Barclaycard and Orange to launch a contactless payment service dubbed Quick Tap, which works on the MasterCard PayPass platform. The account on the phone is a MasterCard Prepaid account and the consumer can top it up with funds from their Orange cobranded card, a Barclays credit or debit card.
Now in Turkey, we've had quite a few launches of mobile PayPass taking advantage of the over 40,000 PayPass locations in the country. In May of this year, MasterCard, Turkcell and Yapi Kredi launched a mobile wallet targeting Turkcell's 33 million customers. Turkcell customers are able to use their mobile wallets for shopping, transit, entertainment and many other venues. And as you may have heard, earlier this year, we announced a partnership with Google, Citibank, Sprint and First Data for the first commercial launch of a mobile wallet in the U.S. including loyalty offers and an integrated MasterCard Prepaid Card.
We have worked closely with Google and our other partners to enable this innovative platform, and we are extremely excited to see it come to market. I would also mention that Google Wallet reflects our mutual commitment to open systems. And as we said when the partnership was announced, the Google Wallet will open up to additional payment brands for other cards consumers may have today. We firmly believe that open systems benefit consumers and merchants and help accelerate the movement to electronic payment.
Now later today, you will have an opportunity to not only see all of these mobile applications in action. We've also set it up so that you'll be able to use the Google Wallet and some other MasterCard Mobile applications so you will have the ability this afternoon to experience all of this for yourself running live through the MasterCard network. Now I think even more exciting than the adoptions of smartphones is the broader global movement towards mobile money. Mobile money services can provide every MasterCard holders -- MasterCard cardholder with new and convenient ways to pay from any type of handset. For example, by generating a virtual number to shop online or transferring money via MoneySend to a friend's mobile or shopping at merchants using your mobile phone without impacting their current terminalized environment, all creating new value and preferences for consumers using their MasterCard they have today.
But mobile money also creates a unique engine for financial inclusion, enabling our network and services to benefit consumers we have never been able to reach with our traditional products and infrastructure. In markets in Latin America, Africa, Asia, increasingly, mobile network operators and financial institutions are providing access to financial services to the underserved through mobile. MasterCard is working with our partners in these markets to use the assets of our network to help facilitate payments and replace cash, particularly in those markets where the penetration of point-of-sale devices for plastic cards may be very low. There are already over 100 proprietary or closed loop mobile money services operational or being launched throughout the world. These accounts are currently mostly store value accounts managed by mobile network operators, creating a new opportunity for MasterCard to link these accounts to our open loop network and reach that next billion consumers and merchants.
Because open loop mobile money services provide the ability to deliver funds to consumers in a pure electronic environment, creating new prepaid accounts for government distributions, salary or payroll or remittances. These disbursements can now be done through prepaid cards or be mobile money based but either way, the inefficiencies and risk of physical cash are eliminated. Now consumers receive these funds, they can then benefit from electronic transactions for things like bill payment, shopping in a store and online or other transactions simply by using the current handset they already have.
And MasterCard today is providing comprehensive mobile money services for our mobile payment solutions joint venture with Smart Hub. Smart, based in the Philippines, is one of the world's pioneers in mobile money services. And by combining their proven mobile network operator infrastructure with a MasterCard Gateway to our global open loop payment system, we've created a unique and industry-leading platform and one that is already in the market.
Now Brazil is one of the markets where the MPS solution has already been deployed. Working with VIVOTEK [ph] the platform is bridging both the bank and unbanked consumers and serving to expand the MasterCard network. One example with MasterCard mobile, the cardholder can use SMS to send payments to a merchant's handset, displacing cash and enabling a merchant who could never accept electronic payments before to join the MasterCard network using equipment and connectivity they already have. So when you visit the mobile breakout room today along with the PayPass-enabled smartphones that I talked about earlier, we are also demonstrating a live implementation of the MPS platform from Brazil. Across Latin America, and Richard will talk about this soon, we've also formed a joint venture with Telefónica, Latin America's leading mobile provider, to deliver mobile money services in 12 countries using MasterCard's MPS platform. Working with partner financial institutions, this will allow us to reach 87 million Mobistar customers, the vast majority of which are currently unbanked. A great example of using mobile money as an engine of financial inclusion and reaching new customers for MasterCard.
As you may have seen yesterday, Bharti Airtel money in partnership with MasterCard and Standard Chartered Bank announced full commercial availability of their pay online service in Kenya, and many other African countries are soon to follow. This services uses the MasterCard inControl technology to generate a virtual MasterCard number for any Bharti Airtel money account, opening up the world of e-commerce to consumers who were previously locked out. Now this innovative project was recognized by the GSMA as the mobile money product or service of the year, and I see this project as a great example of not only financial inclusion, but also the continued expansion of access to MasterCard e-commerce payment that we talked about earlier. So as Tim said for MasterCard, the growth in our core business is strong, and this is the global opportunity for Emerging Payments, using new devices and transforming consumer behaviors to enable better products and services. It is an incredibly exciting time in this market and we are delivering with easier and more secure e-commerce payments, intelligent smartphone applications and integrated mobile money services. These will all serve to accelerate the movement to electronic payments and extend the reach of our network with the end result driving growth and generating real preference for MasterCard.
And with that, I would like to take the opportunity to introduce my friend and colleague, Kevin Stanton, to tell you a little bit more about one of our other great strategic assets, MasterCard Advisors. Thank you.
Thank you, Ed. Good morning, everybody. Today, I'm going to talk to you about one of MasterCard's most leverageable differentiators, MasterCard Advisors. I'll cover our capabilities in the form of information services, consulting services and implementation services. I'll talk about our unique assets in the form of our data, our talent and our worldwide and market presence. And I'll talk about how Advisors help MasterCard stand apart as a [indiscernible] of electronic payments, diversified income stream from a consumer, customer and geographic standpoint and build new income streams with new customers.
So the capabilities first, and I'll start with information services. Information services essentially takes our substantial data advantage, which I'll expound on in just a moment and directly monetizes the analytics there in the form of near realtime decision analytics. And consulting takes that same set of analytics, applies a deep payments expertise and core consulting skills and converts them into pragmatic, that's the watchword, pragmatic future-focused advice. And finally, and I would say uniquely implementation services takes the same analytics, applies behavioral marketing skills across any channel and directly acquires accounts, activates portfolios and converts cards and runs merchant promotions in market on behalf of our clients.
All 3 of these capabilities are available on a customized or scaled basis. All 3 of these capabilities drive superior results that are in demand and that customers pay for. All 3 help MasterCard serve its traditional customers better, reach new customers in new places, all with increasing levels of embeddedness and all are underpinned by a substantial data advantage that starts with data sourced from a worldwide network.
Now to understand that, you have to understand every time you use your MasterCard to buy something, you generate a transaction message. Now to be sure, that transaction message does not contain the cardholder name or contact details and, in that sense, is anonymous. But it does contain the date, the time, the amount and the merchant details on the transaction. Those are rich sources of insights. Foundationally, our data is transactional. That means it's actual versus observed or recorded. And in that sense, stands apart from a consumer survey or something you're familiar with, a parking lot field rate report. It comes to us realtime. So it's not lagged and it's spend data, and that's important because you are what you buy, whether you like to think that or not, you are. We get it from many sources. So we have more perspective than a single merchant's financial institution or other service provider point of view. And we have the domestic and cross-border perspective that comes from 1.7 billion cards generating 160 million transactions every hour.
Now for sure, some financial institutions and merchants will have transactional data and some processes and networks will have multi-source data. Some payment networks have both, but only MasterCard has the sort of proprietary data advantage that's been 15 years in the making and let me explain that to you. You have to understand that raw transaction data in and of itself has virtually no value. It takes what only MasterCard does in 3 ways to unlock the value there. The first thing we do is we cleanse the data. That's because whenever any bank or network receives data through a network, the data will be of uneven quality. Deals will be missing. Some of it will be incorrect. Merchant information, which comes in a pretext format, will be inconsistent and confusing sometimes. A gas station might simply be called store #21. So we apply 700,000 proprietarily developed automated rules that are constantly updated and tested using artificial intelligence and supplementary data and sometimes sheer human sweat to cleanse the data to supply the missing information and most importantly to aggregate it into meaningful store chain names. So you know then that, that gas station was a Cidco [ph] gas station. And because we geocode it, you’ll know that, that Cidco station was in Norwalk, Connecticut, for example.
Now I'm sorry, could you go back one slide? The second thing we do is we warehouse the data. Now we've been doing it for 15 years and our warehouse is a globally integrated warehouse. Now it contains 1.3 petabytes of data. I had to look up petabyte when I first did this presentation. To give you some perspective, if your iPod could hold 1.3 petabytes of data, you could listen to 433 million songs. Only problem being, that's 4x the number of songs that have ever been recorded.
Now if you have that much data and you can't get at it quickly and accurately, it doesn't do you any good. So we've developed a proprietary data retrieval capacity that’s state-of-the-art bar none. A large issuer that wants to pull a full year's transactions would typically take a month to do that. With this capacity, we can do it in as little as 2 minutes.
Now the final step is we transform it into actionable insights in the form of reports, benchmarks, models and forecasts and things like that. Those can be used by consulting or implementation services to improve the outcomes to third party or they can be directly monetized by information services as such. A good example of that, you may have heard of it, it’s SpendingPulse. SpendingPulse takes retail sales information and transforms it into insights that analyze trends and gives guidance on sector performance. You'll be able to find a copy of it in the cyber lounge, and I hope you agree it's a good example of how we can take purchase data, essentially a by-product of our network and at low marginal cost, convert it into new income streams.
Beyond the data advantage and this is -- I don't have a demonstration room, I don't have movies, I have people. And I could deck our talent, compare our talent against the quality of talent of any big name consulting firm, data company or marketing house easily. Our staff has a unique focus on payments and purchase behavior across all 3 Advisors discipline. Our staff is in market, on the ground where it matters. We've learned that we provide the most value to our customers when we apply cross-market learnings to in-market execution and delivery.
And finally, Advisors workforce is in-house. It's not outsourced. That allows Advisors and MasterCard to accumulate the collected intellectual property that is gleaned from information consulting and implementation projects. That IT, in turn, can be used by Advisors to up the ante on its delivery, but it also enriches MasterCard as a whole. It's an important part of our model.
Between our data, our people and our worldwide footprints, we have an unmatched understanding of purchase behavior across the 3 disciplines of information, consulting and implementation. And no single competitor can match this. Some of them will have data. They won't have our data. Some of them -- well, one of them, spans the entire spectrum, but none of them have our data and spans the entire spectrum.
Now make no mistake about it. We know we can't rest on our laurels, so that's why we continuously evaluate our offerings, our talent and in particular, our data to ensure that we find opportunities to improve it, enrich it and refine it. So it's more and more valuable to us and others, so that it's more and more relevant to our current customers and new customers so that we essentially stay ahead of the competition. Now Advisors is an important factor in growing, diversifying and building new income streams from a customer perspective as well. We do that by helping to win deals that go after that 15% of payments that are already electronic. We do it globally by providing scaled solutions in the small and regional bank segments where we can actually provide even more value in the absence of in-house capability. We do it by aligning MasterCard and customer goals to jointly go after the other 85% of payments, cash and check. We do that principally with consulting and implementation services. Very importantly, we can provide direct, powerful and easily understood value-added services to merchants by helping them understand their customers better, target them better and reach them better. We do that with implementation services for sure, but especially with information services.
In fact, information services is one of the way MasterCard drives new income streams through new customers. Now our information services business today is a good one, but its future is particularly bright. That's why we've invested in recruiting information talent and talent in new vertical markets, and we're already addressing unmet needs in those new vertical markets.
The consist theme is that our data brings a powerful new dimension to the analytical tools people use to be successful in their jobs. Now Advisors is absolutely a leverageable differentiator and I'm proud of that, but it's also a financial contributor. We do that directly through the fees that were paid for the services we supply. We do it indirectly by providing tangible value in the form of Advisors services to win deals. We do it by providing a below-the-line complement to above-the-line activities designed to go after strategic consumer segment. We do it by providing consulting information and implementation wrap-arounds to aid in product sales like PayPass and inControl. And finally, we do it through the volume generated through the direct account activation, acquisitions and conversion activities of implementation services.
Now in terms of the direct revenue mix, it's increasingly coming from outside of the United States even as Advisors is growing in the United States. This is continuing and it's particularly accelerated in places like Latin America and Asia-Pacific where we've made some strategic bets.
I thought I'd close with a couple of case studies that I consider typical. They are geographically dispersed, and the first is in the U.S. And here we have a large analytically sophisticated card issuer that engaged Advisors information services to help improve its risk performance. The solution there was to augment their internal risk model with our proprietary transaction behavior variables. And those are essentially measurement of changes in behavior over time that can be historically linked to changes in risk profile. The result to the client was a performance lift of 15% in both delinquency predictions and a reduction in cost positive. And just to compare that to something, you can easily monetize an offering in this space that gives you as little as a 2% to 3% lift. It's pretty powerful.
Now normally our clients don't like us to name them. But in this case, I'll tell you the European example is [indiscernible] which Tim talked about in his Disclosure program. Advisors was brought in to up the ante on customer loyalty and the result was that we designed, built and implemented and it's currently running through implementation services that program. Now these results were achieved in a short 18 months, and the exciting thing -- most exciting thing to me is, I think -- I'm surprised it wasn't the most exciting thing to Tim, was that the MasterCard Loyalty and Rewards program became the exclusive platform of its type for the program. And I think this is a great example of how Advisors engagement -- we get engagements. We start with consulting. We went through information and ended up with ongoing implementation. But in particular, it's exciting to me because Advisors was leveraged to embed a core proposition into the infrastructure of a customer.
Now the last one I'll cover is LAC very quickly. Here, we had a large issuer that was historically a competitor loyalist. The account team for MasterCard [indiscernible], this has come in through implementation services and helped improve MasterCard's performance in the direct mail channel. So we did, and by the way that channel was that issuer's most important and one that had been almost exclusively dedicated to our competitor. It's an ongoing engagement, but we've been -- what we've been engaged to do is acquire accounts through the direct mail channel on behalf of that bank. As a result of the program, our representation of accounts acquired in that channel has gone up 167% and it should triple our representation in the channel.
So I'm going to close. I see I've gotten to 0s on the clock. I'm going to close by thanking you and saying I hope I've convinced you that Advisors has some powerful tools to work with, that through those tools, we provide differentiated services that, in turn, differentiate MasterCard in its efforts to grow its share at the core, to diversify income streams in its traditional segment and to build new income streams with new customers all through insights, foresight and good old-fashioned revenue stream.
With that, thank you, and over to Barbara.
We're now going to take a 20-minute break. We're running just slightly ahead of schedule. So 20 minutes from now by my watch is 10:30. So we're going to adjourn until then. If you're participating by webcast, you can just hold on the line or reconnect, your choice. For those of you here in the ballroom, restrooms can be found just outside the door, as well as over by the elevators where you came in this morning, and the beverage tables have been refreshed, so please help yourselves. We'll see you in 20 minutes. Thank you.
While everybody is taking their place, I have just a quick public service announcement to make. Anybody who has lost their ticket that was clipped into your name badge, please see Greg Boosin, he’s got a whole handful of them. You need that ticket for 2 things: you need it to either get to a phone to do the mobile demonstration later today or you need that ticket to get out of the building. So unless you just wanted to stay here for tonight, please make sure you have it. If you don't have it, Greg’s got a whole handful of them. Please see him.
Okay. We're going to shift gears a little bit now by moving from product discussions to a regional discussion and how those products and services that MasterCard has are finding their way out into the region. And this morning, we're going to start off the program talking a little bit about 2 of our high-growth regions that we haven't spent a lot of time talking about in the past in a forum like this.
So on the meeting with me, I've got Richard Hartzell, who is President of our Latin American and Caribbean business; and Vicky Bindra, who is President of Asia Pacific, Middle East and Africa. And what we do -- this is the part now, is as each of these guys spend just a couple of minutes to kind of ground everybody with a little bit of background about what their region is, what geographic area he covers and just a little bit of history and the general tone of what's going on in the region, and then we'll get into a discussion to kind of compare and contrast the things that are going on in each region and between the regions. So Richard?
Richard A. Hartzell
All right. Well, good morning. Sure. I'm sure speaking on behalf of Vicky. We really appreciate the opportunity to talk a little bit about our regions this morning. And I thought it was interesting, I was counting the number of times that growth was mentioned in the previous speakers' discussions, and I stopped at about 63, 64, but I think that's a nice lead in, in terms of us talking about what we're doing at the regional level because the stories that we have here really are about growth. And maybe just to level set LAC for a moment.
LAC is a region. It's not a market. It's actually a region that's an aggregation of 47 different markets in South America, Central America, the Caribbean. We have 6 different languages that are official in the region. I'm sure most of you can probably figure 4 real quick, 5 might be a stretch, and if you can figure out 6, you know the region pretty well. It's obviously extremely diverse in terms of looking at how business is done from a cultural perspective. And so I think one of the things I'd like to impress upon is the diversity that exists in the region and the importance of being close to the consumer and the customers to be really effective in growing our business there.
In looking at the slide that's behind me, for a moment I felt a little bit cheesy, because it only represents 4 years while the region has actually been existent in 25 years. And prior to 2007, we had some really spectacular growth rates that were taking place. But after looking at the slide, I really didn't feel that bad about it because if you look from 2007, 2008 you can see the type of growth that was available and taking place in the region. There's no doubt in 2008, 2009 we saw the impact of the worldwide crisis, not a surprise given Mexico and some of our markets' major reliance on the U.S. But I also thought what was really important is look what's happened from 2009 on. I think it's showing the resiliency of the industry in the region to come off that base that took place, and we're actually now at the point that we're back to growing at levels that were pre-crisis.
And so I guess one of the messages I'd like to get out there is yes, we're susceptible to obviously ebbs and flows of what's happening globally. But on a comparable basis, during this time, the region actually performed very, very well, and maybe in large part because we've gone through so many crisis in our past that we’ve learned from them from an industry perspective and from the authorities. But the region itself has actually shown a great ability to rebound and address the issues in a very proactive way in terms of taking it forward.
In looking at going forward on the region, I think there's a tremendous amount of opportunity. We have a lot of things that are in our favor. The region itself has just under 600 million people, 2/3 are unbanked -- 2/3 are unbanked or underbanked, 2/3 are the age of 35 or younger. That's more than in the U.S. and Europe combined. And possibly, most importantly, of all the developing markets, 75% of our consumers are located in cities. And that's critical, because if you're looking at bringing services and technology and advanced payments to the consumers, the fact that they're urbanized allows you to have reach and capability to deliver technology to let you go after that and formalize them. And so I think, in principle, one of the things I'd like to talk about is that -- going forward, and we'll talk about it in much more detail. As you see all this going on, there's a tremendous amount of interest in all sorts of constituents in going after those consumers.
Ajay mentioned regulators. Regulators are looking at the cost of cash. They're looking at -- not that, say, Latin America is any worse than everybody else in terms of tax evasion or anything but everyone’s recognizing the cost of cash, and regulators are making very many activities in terms of looking at how they can move cash, which is in our region estimated as high as 90% of transactions, to electronic. We’ve got our customers, they’re looking about how can they go out and reach those new customer segments via new innovative products, new product types, technology. They're looking at how they can develop acceptance to be able to offer conditions where these people spend that we can offer electronic needs to support that spend. And so as you look at all this, we'll talk a lot about it more later, but I guess one of the things as I say, the runway is long in terms of the opportunity going forward in LAC, and we're working very closely across a number of ways that we'll talk about later in terms of capturing those opportunities.
Thanks, Richard. Vicky, you want to take a couple of minutes and talk about your region?
Vicky S. Bindra
Sure. First, let me just ground the region. The region runs from Japan to South Africa, right? So it's Asia-Pacific, Middle East and Africa, which is why we've broken it down into 7 divisions, so that you have command and control closer to the markets and we can operate very effectively at the ground level. So that's sort of the core region.
I was thinking of what would describe our region, and I think the best word I come up with is diverse. And the reason why I say it is because we've got the most affluent country in the world, Qatar, on one side, and then you've got some of the poorest countries in sub-Saharan Africa on the other side. We've got some of the largest economies in the world like China on one side, and then you've got Mongolia on the other, a very small economy. You've got some very high-growth economies like India and China on one side, and then you've got Japan, which is growing sort of we are lucky if it grows positively. You've got sort of very, very stable economies like Australia and New Zealand, and then we have the Arab Spring in all of Middle East, right, and the list goes on and on and on. So really, it’s all so exciting, it's challenging, it's different, and every day begins with a new opportunity or a new challenge.
So that's how I’d describe our region. On growth, I think we've been -- the growth has been really fueled by a couple of factors. One is the growing affluence in the region. I think recent statistics show that China has the second largest number of billionaires after the U.S. And really, that rise has been rapid over the last decade or so. I think the second thing is again a large opportunity to displace cash. Ajay mentioned that 85% of the world transactions are in cash. And I'd say that in many of the Asian markets, that is well north of 90%, therefore giving us the opportunity to do it.
Third is demographics, which go in our favor. A lot of markets, we have more than 70% of the population is under 30. And again, if we go by the sort of thing -- by the idea that a lot of the youngsters will adopt new technology and adopt electronification, that is good. Now in the meantime, we've also done well at winning some great deals. And I'm going to refer back to Tim's note on prepaid. We won one of the largest prepaid deals in Australia recently, the National Australia Bank, which is because we now had the entire end-to-end product of prepaid, we had Access Prepaid with a program management, and we could deliver all of the other products on our network very effectively to National Australia Bank. So there's some effective things there.
And by the last but not the least, I mean, the currency has definitely helped. Given the fact that a lot of the local currencies have appreciated against the U.S. the impacts have been to some of the growth that you're seeing. So we're seeing some very rapid growth in the last 18 months, and I think that's sort of a good momentum for us to continue to build our growth story in the region. Now this comes with some challenges too. You have governments, which are reacting sort of positively or negatively, in their focus to influence payments. And that affects sort of how we grow our business by how the market develops in those markets.
There is work for the right skilled talent in terms of getting the right people and the right skills to run some of the businesses. And we work through those. There are some challenges around how we think about innovation in different markets and how many experiments we can run. But all in all, it's a market that has tremendous momentum behind it. Some of the demographic as well as sectoral things are going in our favor, and we hope to continue this trend at least in the near future very strongly.
Okay. Thanks, Vicky. Now on this slide, we've put up here the focus areas for growth, as well as the key imperatives. And they are the same for both regions. In fact, they are the same for all of our regions around the world. But depending on the region, these objectives can manifest themselves in very different ways, with how some of these things need to be implemented and executed within a specific market. So starting off on that theme, Vicky, you talked about your region being diverse was the one word you’d choose. And if you go back to Alfredo's slide when he talked about the different states of markets starting with developing and then moving up to more mature, what are some of the characteristics of those kinds of markets across your region that you could describe for us?
Vicky S. Bindra
Sure. I think on the developed markets, and let's take markets like Korea and Australia as examples of developed markets, I would say some of the factors that define developed markets in our region is one, it's a relatively high percentage of PCE that goes through -- or personal consumption expenditure -- that goes through the card business. In fact, I believe Korea is the highest in the world with 65% of all transactions going through card, which is just significantly high compared to anywhere else. I would say the acceptance infrastructure is very well developed. So you've got a very well-developed infrastructure in countries like Korea and in Australia. Again, all of them are approved electronically. So just like the U.S., this is a completely electronic and online system. And I would say that the regulators have got a good system of managing the payment system very effectively. Now on the other side, you've got markets like Kenya and Nigeria, which I think are defined a little differently. Very high portion of percentage of the population is unbanked. If you look at Kenya, it's probably higher than 85% of the population that's unbanked. You've got again a very high percentage of youth population. If you look at Nigeria, again, roughly a little bit over 80% of the population is under 30. Third is they've got some alternate payment systems that come into being to fill in a need. So, for example, in Kenya, you've got Safaricom that brought in the M-PESA system that stops off very frequently in the mobile payment space. I would say the acceptance system is undeveloped and largely absent in many segments. So there is a huge effort that needs to take place to develop that. The good news is that the governments in all of these markets have figured out that cash, and this is what Ajay had mentioned, cash is expensive. It's not good for the economy. It causes all sorts of issues in the gray economy, and they're working to figure out ways to electronify that in some way pretty, pretty shortly.
Richard A. Hartzell
Yes, as I said, given that 2/3 of the bank’s -- of the population’s unbanked or relatively poorly banked and not of cash, I'm hard-pressed to call any of my markets mature, in fact. But I think if I were to twist it and talk a little bit about the sophistication of the payment systems in these markets, you really see a wide range of sophistication that'll take place in a particular market versus another market or even in products and market. I mean, everyone knows Brazil's top of mind. I think if you look at Brazil from a sophistication of payments, it's pretty impressive the types of offerings that are made available in that market. In Brazil, with your credit card, you can go to the point of sale and the merchant will ask you how many parcelas, how many installments do you want this transaction to be split over. And so the consumer asks the merchant and say, do it in 3 equal payments, 6 equal payments, 9 equal payments. This type of functionality you wouldn't find anywhere else in the world, yet it's a function of the history of inflation in Brazil. In order to compete against checks, the card had to have that functionality. In Brazil, they have chip cards that are called combo cards. The consumer can say, I want this transaction to go against my credit line or I want this transaction to go against my savings account, my checking account. Once again, a very highly sophisticated system in terms of doing that. They also are doing and introducing new products such as the inControls. And so I think as you look at that and the demands that we have had to face in meeting demands of the market, one of the encouraging things all that functionality that we’ve just talked about is done on a world-class switching and processing switch system, which is what we provided in Brazil. All the transactions in Brazil that are MasterCard Maestro processed, are processed through our switch, cleared through our switch and settled through our switch. What this does, by learning to have that type of functionality, we're in a position to start exporting that type of know-how into other markets. Yet with all that sophistication, there's very little ATM sharing in Brazil. I mean, you get these odd things that are happening. Mexico. Mexico has done a fantastic job putting debit cards out in the hands of the consumer. Yet 85% of the volume in debit in Mexico is done at the ATM. We're doing and working very hard with the Mexican marketplace to increase acceptance. It's had significant growth in the last 18, 24 months yet the level of terminalization in Mexico is 1/5 per 1,000 people in Mexico compared to what you'll find in the U.S. And so even in certain markets like Mexico, which is going chip, Mexico, which is now going to say all social benefit payments by the end of next year have to be done electronically, you see combinations of sophistication, yet in other areas, you see some real -- how would I say, they're not quite there yet on a lot of different things. And these are some of the interesting things that we have to do in terms of being on top of things and looking at how we can push and promote growth in these regions.
Richard mentioned the ATM situation in Mexico where 85% of transactions are done at an ATM and then the transactions are done in cash. And in the past, Javier, you've talked about that same thing happening in Europe where people go to the ATMs, they pull out the euros and then they walk down the street and do their Saturday morning errands just paying with cash. Is Mexico the only place you see that in your region? Is that a common thread? And Vicky, I’m going to ask you to think about the same thing in your region.
I think you'll see there’s a wide range, as I mentioned, Mexico is 15%. That's probably pretty similar to a lot of the markets. But we'll also have in certain markets like Venezuela, where we have roughly 95% market share in debit, 40% of the volume is taking place at the POS. It's a combination of consumer education. It's a combination of behavior, which develops over time. And one of the things that we've been doing with the market is working with our issuers as far as creating programs that would do preference, that would do rewards, do activities that would cause people to use cash and build that behavior.
We've done consumer education programs that are on them. So this is really trying to release the opportunities that's in the existing bank segment where we have debit cards in hand. But even more importantly going after those other ones, how do we get product in their hands that will lead them to displacing cash and using electronic payments. This is where we're partnering with others. You heard some reference like going out with the MNOs and the telcos and looking at how we can -- using the mobile phones device, start extending our reach into getting these consumers that are using cash traditionally to start using other devices, electronic devices, for payment. We're going to accompany those phones with a prepaid card. We're operating with prepaid providers that do meal vouchers, that do a lot of these governments in a lot of places promote that you offer benefits to your employees by offering them meal vouchers, you're offering them gas vouchers. And so we're transporting and moving paper-based into card-based payments. And the other thing is the opportunities around prepaid programs in managers that are now doing prepaid. Prepaid is becoming a big part of how banks and how other players are looking at moving out. So we're forming partnerships with them in order to leverage their knowledge of these consumers, their reach into these consumers in terms of being able to do more on the payment side.
Vicky S. Bindra
I think you've answered a lot of the questions, or a lot of the things that we’d have in our region. I think just a couple of things to add. One is we're working a lot on acceptance in new categories. So for example things like schools and utilities, which could therefore expand the buy and therefore reduce the cash outflow in those segments are pretty critical for us. And second, again, just like European markets like Germany, we've got markets like Japan, highly developed but again, 85% of all payments happens in cash or checks. And that's a little more complicated. It's more a cultural shift in behavior that takes time, but we've got some momentum with the youth and the younger population. Prepaid is coming up in a big way in Japan much faster than debit to try and replace some of the cash elements there. So it's a slow process, but for us, it's almost so much work to be done in developed markets as much as some of the nascent or developing markets. But we're doing a lot of things around acceptance, around driving promotions, driving preferences as fast just like Richard mentioned.
We heard Ed talk about this morning the mobile initiatives and how they're developing differently in various markets. You can go from an SMS text payment down the chain to a remote payment on smartphone. And then we'll have solutions to meet those needs whatever way the market evolves. So how are you seeing that manifest itself across your region? I mean, what are the key imperatives? Talk specifically about mobile. Vicky?
Vicky S. Bindra
Mobile, yes. At one stage, this is the most exciting opportunity that I think will define our industry in very different ways. And in other days, I wake up getting a little concerned. Are we investing smartly enough? Are we investing smartly? Are we ahead of all the 250,000 experiments that are going on all over the world by different people? But what we brought together with Ed's team is saying, let's work on 3 different types of mobile payment in the region to ensure we are capturing the right elements across them. The first one, of course, where we can leverage our PayPass technology to directly move from contactless cards to mobile, right? So the technology is there. All of the acceptance terminals exist. So therefore, that move should be the easiest move. A great example of that is going to be Australia, where we're going to implement. And then we'll take it on to Singapore, Hong Kong and Dubai, where we can replicate that model very effectively. Second is, again, I think Tim spoke about briefly and Ed spoke about it, which is both the prepaid and the virtual card. So we're working currently, and I think Ed spoke about the deal with Bharti Airtel, where Bharti and Standard Chartered, the bank and the telco, have gone live in Africa with a product that both has money on your prepaid, as well as in a virtual card and you can transfer money from the prepaid onto your airtime. And really trying to make your mobile a lot more effective in the network MasterCard world, right? We see that as a rapid expansion across markets along with the mobile wallet where NFC is not as well developed. The third is mobile payment solution. Now this is the joint venture we have with Smart Hub. And the reason that, that is very special is because I think we do 3 things on that, which as I believe we are ahead of the market, and it's something our competitors can't replicate at this point in time. One is we do software solutions for the payment. That is one aspect of it. Secondly, is we have the hardware platform from Smart Hub that can actually go and process and can manage those transactions very well. Third, it's fully connected to an open-loop MasterCard world. That's pretty powerful. We're looking at deploying that both in Egypt and taking that to India. And one of the places where it's already live is actually Brazil.
Richard A. Hartzell
Well, I guess, I get to thank him for that because actually, I think we're a little bit ahead of you on the deployment. But similar to what Vicky had said was that, we kind of looked at mobile and we kind of bifurcated between offering mobile banking, which is to already bank customers and looking at our distribution obviously being through our traditional means, our financial institutions. And that was actually what we're doing in Brazil, which is a mobile banking application that we're doing in concert with Vivo and Itaú and a couple of our customers there. And not to repeat everything he said, but it's really a mobile banking application. But the thing is that as you look at Latin America and you look at the penetration of mobile, right now there's as many mobile devices in Latin America as there are people. And so they've got a much higher ability to penetrate the market, the mobile carriers, than our current financial institutions are doing. And 90% of their customers, once again, are doing what they call prepaid mobile, which means it's not -- you prepay on the mobile, you use it for a month or you use up your minutes, and then you renew it. And so we looked at that as being, once again, another major opportunity because the MNOs have that reach into that customer base. They have that touch. That's the reason we did the joint venture with Telefonica. Telefonica has 87 million customers in 12 markets, and that's not even including Brazil because Brazil at that point, we couldn't discuss because they didn't have the franchise there. But our belief is that leveraging their reach, their technical platform, and by the way, I think it's really important to note when we formed the joint venture, we hadn't decided what was going to be the mobile platform that we were going to use. You were saying that you felt that the Smart Hub and the MTS was – it was world-class. An independent decision was made by an independent party to use MTS as being the platform for the JV. And so what we're seeing is in combination, not in just mobile banking, but in mobile payments, what you've done in the Philippines as the point of that venture is actually being exported into LAC. And so for us, we're seeing a tremendous amount of interest. What's interesting on the Telefonica JV, basically you have 2 major players in mobile in Latin America. In those 12 markets, if Telefonica isn't the #1 player, it's #2 player. And so we're looking at aligning, as I said, working and creating those types of partnerships that will allow us to go after those unbanked and capture those opportunities.
Thanks, Richard. In Ajay's opening comments, he talked about governments and regulators as one of the key influences that we're interacting with. And Richard, you even touched on this in your opening comments. I don’t know if there's anything else you want to add to what you've already said about what the...
Richard A. Hartzell
Yes, I think regulatory interest in the industry is obviously rising throughout Latin America. It's no surprise we're becoming a bigger part of the payments environment. And the kind of way that we've looked at it over time is that they have a tremendous opportunity to accelerate the growth of the market or also to slow down the growth of the market depending upon the decisions they make. We've actually, in many cases, benefited from the actions of the regulators. I think it was 2 years ago, we were meeting another place where everyone's talking about that the regulators were breaking up the acquiring in Brazil. Well, actually that created a tremendous opportunity for us because our ability to move fast and forward in terms of signing up new acquirers, in terms of offering switching and processing services actually allowed us to be extremely well positioned to where we actually have more acquirers in market in Brazil right now than the competition. There are other things though that we've noted that learning from that experience we said, let's be more proactive in our engagement with the regulators. They're still learning a lot about the business, and they're looking for input. And so if you take all of our 5 major markets, we have proactive conversations with the regulators around switching, market build, interchange. All of that is being done in a very open and dynamic environment. And as I said, if done well, I think it's actually very opportunistic for us, and I think there's still a tremendous amount of learning they're seeking, and through their education we're actually, I think, being positioned ourselves quite well to take some challenges for growing.
Vicky S. Bindra
I would echo a lot of the stuff Richard has said. And actually the big difference, I think, that has happened over the last 2 years in the way we’ve operated with the regulators is that Ajay has moved back from being a regulator sort of regulator division responsibility to now being a business man’s your responsibility. So if you’re a country manager, if you're a region head, it is your responsibility to be proactive with the regulator, to basically have productive conversations with them and do it constantly. That's sort of our mandate, and I think that's changed. So if I can give the example of India where we worked with the regulator and looked at them more as a customer in addition to doing all the good stuff that Richard spoke about, we're now working with them to implement actually the biometric verification of the 600 million people that Ajay spoke about in the identification scheme there. On the other hand, in China, we said we'll go together with the government as a JV partner and really figure out how we can help them work with our Internet gateway and create an opportunity for them to be a complete partner. So I would say that has been really the fundamental shift in the last 18 to 24 months.
We all know that with opportunity, sometimes come some challenges. And so in closing, maybe what I'll ask you is first, a question that many people in this room often ask is what keeps you up at night? And then how do you balance the opportunities and the challenges in your region? Vicky, you want to start with that?
Vicky S. Bindra
Sure. Well, let me actually highlight 2. I think the first challenge I'd really talk about is people, and how do you get the right skilled people in your business working fundamentally in a changing industry to stay ahead? And there are probably 3 things or 3 types of people that I'd refer to. One is location based. Are they located in the right places in the market? So for example, we have a hub of people who look at the chip technology and are based all around Brussels in Europe, because that's frankly where it started. Is it time to now move them into Asia and Latin America? And we're doing some of that to ensure that they're closer to the market. Secondly, it's feet on the street, right? How do you get the right salespeople, product people, people who do compliance, legal in your business, and they’re working through that. We've gone on good recruitment drive. We're looking at the training of people well in terms of training them up for bigger jobs. We're trying to create an environment where people can grow and learn. So that I think is a steady process that's happening. And the third one, which I think is the most challenging, is really how do you fill in the skill gaps, right? There are lots of places around Mobile and e-Commerce, where there are not that many skilled people with the right background to come and help you. And how do you fill in that gap? Now, frankly, some of the acquisitions we have done have been actually a big help for things like DataCash, things like Access Prepaid, help fill in the gaps there. We've got incubation in the MasterCard Labs that really helps develop the sort of people, even though they may not have the right experience to come in and do it. We've also taken some -- we've recruited people from some of the vendors in the mobile space and from some of the competitors who had specific skills to fill in the gap. So ongoing process, but I would say that's the challenge that does keep me awake at night. I would say the second challenge that keeps me awake at night, and I briefly spoke about it, is innovation. And again, when I get up I think are we doing enough? Are we doing it smartly? Are our people geared up to communicate that effectively to our customers? Do our customers know how to deploy it at the consumer level well enough? Is the experience really seamless? When we say money remittance, is it -- can it be as easy as Western Union? Such as those are the 2 things that keeps me awake.
Richard A. Hartzell
I sleep like a baby at night. I wake up every 2 hours crying. No, obviously, building on what Vicky said, the people aspect, the innovation aspect. I think one of the big challenges that we're facing is obviously you're trying to address growth in a very high-growth changing market. And so how are you placing your bets on where you're going to bet, where you're going to place your resources, how are you going to execute. But I would guess if I were to say what are the 5 things that we're focusing on in terms of being [indiscernible] be successful, one is do we have the right partners for today and tomorrow?
As you look at so much of our business is really still very much a push business out into capturing customers. Do we have the right partners in terms of capturing those customers. Let's see if we can do this. The second thing is, as you mentioned, do we have the right products? Do we have the right solutions? Do we have the things that allow our customers to differentiate themselves and capture those growth opportunities? Third thing is what are we doing at the local market level in terms of dealing with all the constituents that are important to driving the business infrastructure for it, be the regulators. Are we bringing the right technology to the market? Are we providing the consumer the appropriate education in terms of driving their understanding, what payments mean and how it can impact their lives in a positive way? The other thing is the consumer itself. We're moving farther out on the value chain to really drive consumer preference for our product, and that's at the card and at the merchant level. And so you do that, you combine it with the fact that you really have to build a strong team that can do that and do it at the local level, that's what keeps me up at night. How are we doing in each of those 5 things? How are we doing against my partners? How are we doing against products? How are we doing against my technology, my markets, the consumer, and getting the right people.
Vicky S. Bindra
Barbara, I forgot to mention, my biggest challenge is how do we continue to beat Latin America. So but other than that...
Richard A. Hartzell
You better start.
Thank you both, Richard and Vicky. And hopefully, this discussion has helped you all understand a lot more of the aspects that we're facing in both of these 2 regions. And at this point, we're going to go from maybe regions that we haven't talked about quite as much to the next region, which you all know and love well. And that's the U.S. region, and I want to turn the program over to Chris McWilton.
Chris A. McWilton
Thank you, Barbara. Good morning, everyone, and thanks again for joining us and your support. As you're probably aware, the U.S. remains the company's largest revenue-producing region, although Richard and Vicky are doing their best to change that as they can. And I think like many global companies, getting growth in the U.S. has been very difficult over the past several years. When we stood here last year, we thought that the worst of the economic conditions were going to be behind us, that the unemployment rate would gradually trend downward, we'd see some improvement in the housing market, we'd see some increased consumer confidence. And we thought that 2011 would be fairly clear sailing.
But today we know that, that really isn't the case. The economic headwinds remain. We have lingering unemployment around the 9% level, and we have housing remaining a significant drag on the economy. I saw a statistic the other day that 12% of the homes in the United States today are either 3 months behind in payments or in foreclosure, which is pretty staggering. In the State of Florida that's 20%, so there's concentrations of that problem. But despite that, despite these tough economic periods and a period of unprecedented regulation of our financial institution customers, our U.S. business has been very resilient and has actually grown. And I'm happy to say this year, we're actually growing faster than the marketplace. And we're actually starting to see some tailwinds develop despite the economic woes that continue.
Consumer credit card losses have begun to moderate. In June, they fell to 6.3%, which is getting close to the historical norm over a long-term cycle of about 6%. If you’ve checked your mail lately or gone online, you've seen that financial institution customers have reenergized their acquisitions and new accounts. So we're seeing new account initiation where a year ago or 2 years ago, they were really in a bunker mentality shrinking lines, closing accounts. And consumers are spending despite the gloom and doom and the reports of poor consumer confidence. Consumers are spending. Our SpendingPulse report for August shows that even despite Irene coming up and disrupting a lot of retail spend that -- the last weekend of August and the debt debate in Washington sort of weighing on the minds of consumers about our government's capability of stimulating the economy, our SpendingPulse report saw nearly double-digit revenue growth.
And finally and a little ironically, we have more regulation, but we have clarity on regulation. So last year when we stood up here, there's a lot of speculation. What is Durbin going to say? How is he going to say it? What is he going to say about interchange? Is it going to be $0.21? Is it going to be $0.42? Where is it going to end up? But now we have it, nobody likes it. But we know what it is. Our customers know what it is. Other players in the payment systems know what it is, and we're at least able to go forward with a foundation of certainty.
So I'd like to do this morning, is cover some of the strong business performance we've had in the first half of the year, and those deal momentum, which we touched on a little bit earlier but I'll share some more details on our deals. Touch on how we are, in the U.S., strategically positioned in the mobile space, and you heard Ed talk about that earlier on. I'll focus a little bit on the U.S. efforts. Our efforts to diversify our business into new kinds of customers and new acceptance channels and how we're aligning, we feel very well, against U.S. consumer trends and behaviors.
In the first half of 2011, the U.S. delivered double-digit revenue growth, and this is something we strive for and we're quite proud of, given the market challenges here in the U.S. I frequently hear the U.S. referred to as a developed market, and then there's an implication with that, that sort of naturally follows. Well, that means it’s either slow growth or no growth. But when I hear that, I think of a couple of things. First is I think of all the high-growth industries that have been incubated here in the U.S. over the past 5 to 7 years, some of which have been industry transforming that don't work without electronic forms of payment. The one that comes to top of mind is iTunes. iTunes which revolutionized the music world, changed the dynamics of how music is distributed to consumers, can't work without electronic forms of payment. Apple is a U.S. company. iTunes was rolled out in the United States.
We think of Netflix and Redbox, which transformed the way people view entertainment at home. Again, can't take place without electronic forms of commerce. Amazon, a U.S.-based company, largest e-Commerce retailer in the world, also revolutionizing the way people read with distribution of electronic books. If any of you have teenage children and have checked your credit or debit accounts statements lately, there's a mysterious thing called Xbox LIVE, which appears. I quite haven't figured out how they bill for that. That is one of the great mysteries of life, but it doesn't work without electronic forms of payment. And if you think of Expedia and Priceline, again, they don't work without electronic forms of payment, and they revolutionize and transform the way consumers purchase flights and hotels and book their vacations.
And still large swaths of the U.S. are still dominated by cash and check. So areas like rent, insurance, it’s the time insurance bills tend to come out. Both the payment of premium and then the claims reimbursement coming back from the insurance company are all done with paper, massive amounts of flow. And even college tuition, again, big this time of the year, again, done mostly with cash and check. So we're working -- our commerce development group is working with many nonfinancial institution customers on breaking open those acceptance channels and new payment streams.
On the deal front, we've had significant improvements in our debit position. Last year, we announced our debit wins and flips from Visa for SunTrust, Capital One and Sovereign Bank, which Tim mentioned a little bit earlier on. You will also be hearing very shortly in the marketplace about another Visa signature debit flip to MasterCard. Unfortunately, we're unable to identify that institution today because they have not informed their customers, but they will be doing that shortly, and you will be hearing about that as evidence of continued momentum in that space.
Our consumer credit business has also returned to growth. With Citibank, we launched the American Airlines World Elite MasterCard. And we're working with issuers like Citibank and Silicon Valley Bank on providing EMV solutions to their high-travel international customers.
On the prepaid front, you heard earlier Tim mentioned the family and Easypay prepaid programs of Walmart, the nation's largest retailer, which complement the prepaid payroll program they have for their many associates. And we haven't forgotten the 14,000 community banks and credit unions in this country that have weathered the storm, and we focused our marketing efforts on these institutions to help further diversify our revenue base away from the large megabanks in the country.
You heard Ed talk about mobile and Vicky and Richard about the specific things that are going on with mobile in their region. And I think, in the U.S., we are really at the center of a major mobile payment initiative. As you know, we're a founding partner of the Google Wallet, which we're going to be piloting here in New York City in the next coming days. And also then rolling that out to San Francisco, and we're a player in the evolution of Isis to an open platform mobile payment solution. We think Mobile will take time to develop and roll out. We feel the pace of mobile development in the U.S. will largely be driven by acceptance.
I think Android phones and open-platform phones are coming, smartphones are coming. The real key is to build out the acceptance network. And at the heart of mobile payments acceptance is our PayPass technology, which is, as you know, a fast, convenient way to pay for everyday purchases. We continue to see progress and acceptance with PayPass with customers including Subway, Foot Locker, OfficeMax and Walgreens. And I think you're going to have a chance to test this technology in our demo rooms shortly after we're done here. So look forward to that.
Well, no discussion on the U.S. would be complete without Durbin. I imagine there's going to be a lot of Durbin questions when we get done, so I'll touch base on that briefly. I did cover a lot of our strategy around Durbin, our thinking around Durbin when we did our second quarter earnings call. So I will keep it a little bit briefer than I normally would. We continue to believe we have a superior PIN debit proposition in Maestro. It's global. It's interoperable. It's fast. And we will pursue with issuers opportunities to get our Maestro capabilities on the back of cards, and we'll do that with -- and get routing with issuers, acquirers, merchants and others in a strategic surgical way. We're not going to go out and buy every piece of PIN debit business that is out there.
And I'll reiterate that volume growth will exceed revenue growth in the PIN debit market. Economics in this space are very, very thin, but you have to remember that our PIN network is built out. Again, its global, it's established. So the cost of putting an incremental transaction across the PIN network is insignificant. So any revenue we do get will be high margin and it will be profitable, therefore, we're going to pursue it, but we're going to pursue it thoughtfully.
I'm now going to touch on the priorities for the U.S. region starting with debit. I think 2 or 3 years ago, there was a real concern about the viability of MasterCard's debit program in the U.S. after our largest debit customer, Washington Mutual, failed. Since then, we've had a very focused and aggressive mission to beat Visa in debit, and I think we've succeeded. We are now the fastest growing debit program in the industry. And you can see by this chart on the right-hand side our growth rates versus Visa, the lines crossed in the first quarter of 2011. Starting with the third quarter last year, as I said, we've had steady increase in the growth and performance of our portfolio, and we are doing this not only with the portfolio flips like I've mentioned, but with providing new products and services to our existing debit customers through inControl technology and the new duo credit-debit card combo technology that Fifth Third Bank announced just a few weeks ago.
Prepaid also remains a priority for us. Although some of the economics of Durbin have been – of Prepaid, excuse me, have been affected by Durbin, there remain 60 million unbanked and underbanked individuals in the U.S. that can benefit from electronic payments that are provided by our prepaid products. We focus on prepaid in 3 high-growth segments. First, the public sector, and we're seeing strong interest in tax refund programs, and we'll be announcing 2 new income tax refund programs in the next several weeks.
Tim mentioned the success of our Direct Express program with Comerica, which has led the Treasury Department to announce the discontinuance of paper checks in the Social Security program. In the corporate space, we're focused very much on the payroll area, in institutions like Walmart, Sam's Club, Walmart being our biggest. In the consumer reloadable space, we continue to work hard with Western Union and Green Dot to expand our distribution of cards through their networks.
Commercial has really been a bright spot for us in 2011 from a volume perspective and a revenue perspective. In the large market space, we have our Smart Data suite, which provides insight to corporations on how their travel and entertainment dollars are spent. We think it's world-class. We have added Starwood Hotels and Hyatt to our base of 13,000 e-folio customers, and we launched PriceAssure this year, which enables a MasterCard cardholder who uses their card to purchase airline tickets to make sure those prices do not drop and provide a method that they can make sure they're getting the best price available when they get on the plane.
In credit, we're decking additional resources against the affluent and international travelers who generate a disproportionate percentage of PCE. We've supported issuers by streamlining previously distinct product categories making their lives easier to issue new products and roll out new programs. And with refreshed World and World Elite products, affluent customers get superior benefits, rewards, and select merchant partners get access to those affluent cardholders as well. So it combines the merchant proposition with the proposition to our financial institution customers.
We talked about our Priceless New York campaign. So you get unique dining experiences, shopping experiences, entertainment and it will be rolled out to other high destination business and tourist markets in the U.S. and abroad. And our goal here is simple. It's just we want New York City, which appears to be the destination for all, to be the place you absolutely can't be without having a MasterCard and using it.
From an acceptance standpoint, we've looked at all the verticals of acceptance, and we're focusing on those areas of acceptance which provide the highest revenue yield. And a great example of this is the restaurant business, which is a $350 billion business in the U.S. It's highly fragmented, and to us, it generates very high yields on our volume. And we teamed up, as you might have heard, with Stand Up To Cancer this year to make a charitable contribution every time a MasterCard cardholder uses their card to make a purchase at an eating establishment. And our transaction volume was so strong that we met our $4 million contribution a week early. But more importantly, we've actually saw our restaurant sales, the category sales outpace the market in the period this program was initiated and operated. And I think that's a great example of moving beyond -- of marketing moving beyond just brand awareness but moving to brand preference and getting it to motivate people to pull out their MasterCard and to use it at the point-of-sale. And on top of that, we feel good as a company about supporting Stand Up To Cancer, which is a great cause.
From an alignment perspective, I think we're very well aligned against consumer behavior and preferences. While consumer confidence is low, consumers are spending. There's no doubt about it. They may be spending more thoughtfully. They may be spending more on necessities, particularly those that have been impacted by inflation and other cost pressures like fuel and food. And perhaps they're spending more online than in the shopping malls themselves, but they're still spending. And we think with our package of debit, credit, both commercial and consumer and prepaid, we're very well aligned against their behaviors and their needs.
So in closing because I think you all want to hear Martina speak, since she's got the numbers, I think if you look back and if you were to replay my talk from last year, our strategy really has not changed that much. The priorities I discussed are not new to the U.S. market. We've been in a very difficult economic climate and a difficult regulatory climate, and that's required us to be flexible and adaptive, but we've stayed the course. And I think the results speak for themselves in the first half of 2011, and I'm confident with all of the resources and assets we have here and the great talent, we're going to continue that into the future.
So with that, thank you, and I'll turn it over to Martina.
Thank you, Chris. Okay. Good morning, everybody. Yes, and I do have all the numbers, and I believe you have all the numbers since 8:00 a.m. this morning. So there is a lot of -- not a lot of new news for you, but I want to thank you, first of all, for joining us here in New York as well as to all of those who are able to join us on the webcast. So hopefully, you found this morning's session helpful with our senior management team. You heard first obviously from Ajay about our strategic ambitions and perspectives. Our product and services leads took a lot of those themes and tried to show you in real life what we're doing and then, of course, you heard from our 3 regions in terms of how they are using those developments and perspectives and really putting it out into the market.
Now I'd like to put it all together from a business driver point of view, as well as what that means for our financial performance. So what we're going to do is we're going to go first through some July and August data, the business drivers, and I'm going to talk a little bit more about our 2011 outlook. Then I'm going to touch on our capital structure strategy, as well as liquidity considerations, and then we're going to close off and talk a bit about the long-term opportunity and financial performance targets for MasterCard.
So with that, let's just start in the business drivers, and this is the data for July and August. And looking first at worldwide volumes, the quarterly volumes that you are seeing here are those volumes, the GDV volumes that you're seeing on our quarterly earnings calls. But the July and the August numbers are actually processed volumes, which is pretty much our best intra-quarter measure of quarterly GDV.
So as you can see over the past year or so, volume growth has increased from high-single digits into the mid-teens, and the increase has actually continued into the third quarter, pretty much driven by the positive impact of the U.S. wins versus the losses, as well as the underlying strength of the businesses in every one of our regions. So process volume for July and August were 16.7%. As you can see, about 1.1 percentage points higher than what we saw in the second quarter of 15.6%. And you see the process numbers on every one of the charts, where I have to call it out in this little black box.
So let's break this apart and first go into the U.S. So starting with U.S. credit. Our U.S. credit volume is growing steadily. And despite the mix that we're really seeing in the economy, as well as the low consumer confidence, you can see, as Chris was saying, that people are still spending. And we are particular noticing that with the affluent population that they continue to spend on items such as luxury goods. But also you can see some impact from an inflation point of view such on -- on such categories as food and gas. So overall, credit spending growth is now 6.5% on a processed-volume basis. You can see that in the black box. With consumer credit growth being slightly positive and commercial credit growth actually being in the mid-teens.
Now let's turn to U.S. debit. And here over the last several quarters, we have seen U.S. debit volumes increasing to 15.1% in the second quarter of 2011 as the net impact of our debit wins versus the losses actually turned positive. Okay, now debit growth in the July and August period, you can see is 20.1% on a processed basis. That's actually significantly higher than the numbers that we saw in the second quarter. That's the 16.8% here on the chart as a result of our recent wins. So if you remove all the portfolio wins and losses, to kind of go to a steady-state basis same-store sales, our underlying debit GDV is going in the 10% range.
So let's go to the rest of the world. As you know, 1/3 -- 2/3, 2/3 of our GDV, really comes from the markets outside of the United States, and we continue to see double-digit growth of all regions, with the highest growth actually in APMEA, Asia-Pacific, Middle East Africa and Latin America. I guess that's why we have these 2 guys up here. Emerging economies like China and Brazil are particular countries we're doing to this growth here.
In terms of processed transactions. So you see the growth over the last 12 quarters, and it has been steadily increasing and continued actually into the July and August period with a growth of over 20%. The U.S. has actually seen double-digit growth as the impact of the new business such as the SunTrust win, as well as the Sovereign win is overtaking the diminishing impact of prior debit losses. Outside of the U.S., process transaction is actually -- process transactions is actually growing over 30% in the July and August period. And this number is higher than our second quarter number driven primarily by Europe and Brazil due to the processing wins that we had in the Netherlands, as well as with Itaú in Brazil.
And finally, this is the final chart on our business drivers, we see that cross-border volume has been in the high-teens for the past 3 quarters, and this trend pretty much continued into the July and August period. So although the cross-border volume, as you know, is strongly influenced by travel within Europe, the high growth is actually supported by double-digit growth in every region. More specifically to Europe, our cross-border growth is in the high teens and despite the sovereign debt issues and the reduced consumer confidence, we are still seeing or we still saw Europeans taking their annual vacation albeit with a tendency to stay a bit closer to home.
So let me wrap this into our 2011 financial outlook. So Ajay already covered our first half performance versus our longer-term performance targets. Let me talk about our expectations for the full year of 2011, which remains pretty much in line with what we have said on our August earnings call. So first of all, we continue to expect that second half net revenue growth will be slightly higher than the first half. And keep in mind that the deconversions will have a diminishing impact on the second half. And in addition to that, we had Access Prepaid -- Access Prepaid acquisition close in mid-April and therefore, it will contribute fully to the third and to the fourth quarter.
And finally, the DataCash acquisition actually anniversaries in October. Now with regard to foreign exchange, and I know the Euro is whipping around, so I just pick a time here. If the euro and the real rates at the end of August hold for the balance of the year, we expect a full year net tailwind of about 2 to 3 percentage points to revenue growth. So we remain committed to our target of a minimum 50% annual operating margin and continue to expect for 2011 only a small operating margin expansion relative to 2010.
Operating expenses continue to include investments in strategic areas. You heard quite a bit of that here, and also include the operating expenses of the 2 acquisitions that I just referenced. These will contribute more to the growth of operating expenses than they will contribute to the growth of net revenue. And therefore, they will actually result and continue to expect to result in a $0.04 to $0.06 dilution impact on EPS for the full year. We expect that the proportion of the annual A&M spend by quarter to be similar to the pattern that you saw in 2009, as well as in 2010. And finally, the 2011 full year tax rate could be slightly lower than the 33% due to the currently expected impact on some of the tax planning initiatives that we have going on around the world.
Now I just would like to spend a little bit of time on capital structure strategy, as well as our liquidity position. First of all, you all know, the guiding principles are obviously to maintain a strong balance sheet liquidity and credit rating, and really we are doing this in order to enable the long-term growth of our business and if we have after that excess cash, we endeavoring it to give it back to our shareholders.
Now we believe it's very important for us to be maintaining a strong balance sheet and a very good credit profile given that we are financial counterparty in the market to many, many financial institutions. So in this regard, we made actually some good progress as you can see by the recent upgrades that we got from S&P in our credit rating to A-. And clearly, I mean, in today's age especially, having a strong financial profile does provide us with a flexibility to play offense at the time when good growth opportunities become available.
Now finally, given the strong cash flow that our business is producing, we may still have excess cash after pursuing our growth strategy. In such instances, we would target return of excess cash to shareholders. And to this date, you have seen us having our focus being more on share repurchases as this provides more flexibility to the business at this point in time.
Now let's talk a little bit about liquidity profile. Here you can see it on this chart, and then you work from left to right. You see that the total liquidity position at the end of the second quarter of 2011 between cash, other liquid assets, as well as a fully available credit facility, is about $6.4 billion. And then when we determine our excess cash, we look at our largest potential uses of cash and which may arise actually due to a technical failure of a settlement position by a customer. So what we do is we size the exposure by taking our single largest settlement position for our largest customer, we add a little bit of working capital needs to it, and we estimate that number today to be about $3 billion as you can see on the chart.
With respect to our share repurchase program during the July and the August period, we repurchased another $77 million worth of shares. So that leaves about 882 million of remaining share repurchase authorization. So when you add all of this up, our excess liquidity is approximately $2.5 billion.
So allow me to close with our view on our longer-term financial objectives, which are linked to the strong growth opportunities for MasterCard. And Ajay gave you a great view on the 3 growth drivers. So I basically copied his chart and added a few more things in here. But first, MasterCard will continue to capitalize on the growth of personal consumption expenditure. We know personal consumption expenditure can be impacted by the economic cycle and many markets and each country, et cetera. But as Richard and Vicky actually explained, when you just look at Asia, Africa and Latin America and at their proportion of PCE, of total world PCE, and look at the changes with the high growth in demographics as well as the rising middle class, it provides a great opportunity, especially as more than 60% of our revenues are actually outside of the United States in those markets. So MasterCard is just ideally placed to be taking advantage of this macroeconomic trend.
Secondly, talking about the second circle here. The growth of electronic payments just continues to outpace any other form of payment. So when you look at the expansion of acceptance footprint, for instance, through innovations like PayPass or the public sector use of electronic payments or what's happening in the e-Commerce world or in the mobile world, these are all factors that help us work down the percentage from 85% of global transactions being done by cash and check to more transactions being done actually by electronic form.
And finally, when you go all the way to the middle here, we believe that MasterCard will grow faster than market. Obviously, we have to execute on agreements and win deals with issuers and other partners. But in particular, our advanced partnerships with partners such as Telefónica or perhaps in China are key and the expansion into nontraditional customers such as governments are very important.
Touching on Kevin's presentation for example, we believe that the value created by our Advisors Services clearly differentiates us when we're working with our customers. And last but not least, building innovation solutions that will help us strengthen the core product offering such as the tools inControl and Smart Data that Tim has referenced or the new technology deployment in the e-Commerce in the mobile space.
So let's go a little bit deeper into PCE and the secular trend growth and how MasterCard's ability to grow remains significant.
So the main competitor really remains cash, you still have the 85% of global transactions being done in cash and check, here I'm going to put it more into a volume metric. So as of 2010, 56% of the world's PCE, of the world's PCE is still conducted in cash and check. So there's a lot of room to be converting these volumes, especially if all over the world, the appetite for electronic forms of payment is just tremendous, be it in the store, be it online or be it via the mobile channel. So overall, we assume that PCE will grow at about 6% on an annual compound basis between 2010 and 2015. That's pretty much what it had done over the last 5 years. So of course, over time, the PCE rates will change. As I said before, they will vary significantly from country-by-country. But when you take it together and when you average it over a 5-year period, we assume that these nominal rates are directionally right. Obviously, rates would have to be revised in the case of significant changes through worldwide economic projections such as worldwide recession, changes in the inflation rates, et cetera.
So from a card purchase volume, which represents as you can see on the chart, about 30% of PCE in 2010, that will grow at a pretty healthy pace and is expected to grow at about 10% to 12% per annum until 2015. Again, that's fairly similar to what we have seen over the last 5 years. So remember just one, these numbers are personal consumption expenditures and therefore, they actually exclude government spending, as well as business spending. Some of which is also spent on cards and other electronic forms and really provides an opportunity for us.
So with the underlying PCE growth of 6% and the card volume growth of 10% to 12%, you get to what we call the secular trend of cash and check to electronic forms of payment, which is around 4% to 6%, depending which year you're looking at it. So let me put this in a little bit of a different context. Here you can see PCE growth of 6%, and then the secular growth trend of around 4% to 6% over the next 5 years, and I'll try to put it in context of our expected revenue growth for the longer term.
So we adjust the expected 10% to 12% interest repurchase volume growth for the next 5 years of MasterCard's mix of business. So compared to the overall market, we're actually smaller on debit and higher on credit. And when we adjust for that, the 10% to 12% goes down by about 1 percentage point to 9%, 11% growth. And then in addition to that, you see in the green box our strategic investments, of which you've heard quite a bit from all the other presenters. And those will help us achieve revenue growth in the low to mid-teens over the next 5 years. And this excludes, by the way, any future merger and acquisition activity, and it also only includes minimal pricing changes.
So let me spend just a little bit of time on the strategic investments. I know you've heard it now from a number of people and hopefully, they made my job a little bit easier to actually articulate some of the things that we're spending money at and how we're really trying to make sure that we do this in a very responsible way and that we really gate in terms of what we can perform on the top line and what we then invest in the business in order to continue to have this kind of growth potential going forward.
So as you know, we are using the grow, diversify and build execution road map in order to make sure that we deliver on our strategy. Here you see first, where Tim has been spending quite a bit of his time on the grow part of the business, the debit, commercial and prepaid even though you have it in diversify, but that's fine. It's really an important focus that we are growing our base businesses and that we continue to do that.
In addition to that, the revenue we're trying to add to the revenue from our existing card base by capturing a larger share of the value chain as evidenced by our recent processing growth. And then secondly, you can see we're seeking diversification of our customers, as well as in geographies, and we're having quite a bit of investment in there in order to build these solid relationships with governments, with telcos, with merchants, et cetera, around the world. In addition to investing in countries around the world, in particular, where we can move the needle quite significantly in markets such as Brazil and Russia.
And finally, you heard a lot from Ed about building new businesses in the e-commerce, in the mobile spaces, as well as from Kevin in the information space. So now with our strategy and the industry expectation as a backdrop, let me take you through our longer-term performance objectives for 2011, 2013, which remain unchanged.
Based on our current PCE estimates, the secular growth trend in our strategic investments, we expect to achieve a net revenue compounded annual growth rate in the 12% to 14% range over the 2011, 2013 period. So with respect to the operating margin, we expect to achieve a minimum of 50% margin on an annual basis. We’ll carefully manage costs while making the right investment decisions for our businesses. We are focused on the total return for our shareholders and expect an earnings per share compounded annual growth rate of 20% plus over this period, the 2011 to 2013 period. And all of these objectives, as many of you know, are on a constant-currency basis. They exclude future merger and acquisition activity, but they do include our more recent acquisitions DataCash, as well as access prepaid. They also include a reduction in the annual effective tax rate to about 32% over the 3-year period.
Now thank you for listening, and let me hand over to Barbara for the Q&A session.
Thank you, Martina. Not only are we outgrowing our meeting room space, but we've kind of outgrown the stage space for Q&A. And we were trying to get all the speakers up here on the stage for the Q&A, and we just couldn't logistically get it to work. So at this point, I'm going to ask Martina and Ajay to come up and join me on stage, but remind you that our speakers are still all mic’d, and we also have a handheld mic to pass up here between the front row. So the Q&A session is really open now, and questions can be directed to anybody on the management team.
For those of you who are here in the room, we ask that you wait for a mic before you ask your question, and please remember to state your name and your affiliation. For those of you who are on the webcast, remember we do have the capability to take questions from you. We've actually already gotten one. So please feel free to fire those away, and they'll forward them up to me and I'll intersperse them in with the questions from the floor. In order to allow for as many questions as possible, we ask you that you please keep your question and one very brief follow-up. With that, let's start here in the room. Jim?
Jason Kupferberg - Jefferies & Company, Inc., Research Division
Jason Kupferberg from Jefferies. My first question is just on mobile payments in the U.S. specifically, and looking forward to testing out Google Wallet in product demo. But wanted to get your perspective on how are some of those trials going so far in the East Coast and the West Coast with Google? Any specifics you can share with us? And then with Google now buying Motorola's mobile device business, how does that change the opportunity set, theoretically increasing it over time?
Ed, do you want to take that?
Ed McLaughlin, your mic should still be live, Ed, or did you take it off? [Technical Difficulty]
Ed McLaughlin. Addressing the mobile question. In the U.S., we’ve had good technical success with the pilot. We have not put any tracking systems out there or anything but it's something that we've been watching very, very closely. The answer is it’s working extremely well, and I think we can see across time that as we roll this out in countries with more and more geographic locations and then we’ll see other services such as the [indiscernible] services coming online. So we really think next year you’re going to see a broad spread [indiscernible] of that type of service. As far as the Google acquisition of Motorola and things like that, it's a great element of their business. I think getting Android in more places helped a lot and we're working on it. So how do we bring it back to what MasterCard do? We’re [indiscernible] for competitors like JPMorgan Chase and Bank of America, who use our products. So what works for you will also [indiscernible] all of the players in the mobile space, and I talked about it earlier. [indiscernible] to provide a network of platform and capability like PayPass technologies. So I think we do see strong growth [indiscernible].
Joanne, you want to hand the mic back? Somebody back there. Hand them a mic.
Unknown Analyst -
Bob Napoli with William Blair. Just a question on the prepaid business. There was some pricing movement either change side out of Visa and I wondered if you were planning on following that. Based on your growth just looking at in your book here on Tim Murphy's section, you showed 16% growth in prepaid. It would seem to me like you've lost market share with prepaid and I understand you have a number of initiatives going on with Walmart and others but is the industry just growing at that pace or did you keep some share?
Tim and Chris, do you want to? Can you turn Chris McWilton's mic on please?
Chris A. McWilton
From an interchange perspective, we don't necessarily follow Visa. That's not our intention to follow Visa. It's one of the factors that we consider when we set interchange rates. I know they announced some things a few weeks ago. We announced a few things a few weeks ago, and there are some disconnects. We're watching what happens in the marketplace. The nice part about interchange is if we do find a disconnect, that we find our products or acceptance disadvantaged because of interchange, it doesn't require a lot to change that. We can deal with fairly short notice, but we think we're in the right place. We think our products are well positioned, we think acceptance is well positioned both pre- and post-Durbin. So I'm pretty comfortable where we ended up.
Sure and I'll take the second part of that question. In terms of prepaid growth, in the first half of 2011, there was some impact in a couple of programs. Just very specific, one-time only impact that might have impacted that number. It's a little bit lower than the long-term growth rate that I quoted later that you would have seen. But from a share perspective, we feel very good that we're on our plan in terms of growing share globally. And I think the momentum that we've been able to talk about in the U.S. in public sector wins is clearly coming our way. In the majority of ways I feel very good about where we're doing, what Chris and his team are doing with some of our prepaid program partners. So with the first quarter impact, in there a little bit [indiscernible].
Unknown Analyst -
John Nepp [ph], [indiscernible] Capital. Two questions. I guess one unrelated follow-up may be a better way to put it. Could you maybe describe why the commercial growth opportunity is so untapped? At least to me, it seems somewhat counterintuitive, given that businesses aren't typically paying each other with cash. So if you could elaborate on why that’s such an untapped opportunity? And then second follow-up there is, can you talk about the settlement collateral exposure in Europe? Are you doing anything differently in terms of how you're thinking about or managing that risk?
So why don't you take the second one first?
Okay. So first of all, on the settlement exposure, as you know, we make pretty robust disclosures in our Qs and Ks on that. We have actually a great [indiscernible] knowledge, Treasury Group who is monitoring this exposure on a daily -- and actually, to some extent, on an hourly basis. Obviously, given that some of the things that are going on in the world and we love to talk about Europe a little bit and Greece, we have to always keep on the forefront of managing this kind of exposure. From time to time, we have to make some changes. So let me just give you an example, with Greece, for instance, where we did have some exposure, over time we had to move our footprint in such a way that we still encourage the business so that the business can do what it needs to do. But at the same time, that we protect ourselves. And one way, and it’s just because of the specifics of that particular market, it's not in every market like that, when you look at the issuing and the acquiring entities that actually a relatively large overlap, and you can actually, from an agreement point of view, make sure that you have the issuing exposure near and far in your exposure residing in from entity to entity and therefore, really reducing our exposure. So we feel relatively comfortable about the exposure that we have with Greece. But we are taking these kinds of things into the market space, and really look at what is going on with the financial institution, how healthy they are, what kind of problems they have had, what kind of infrastructure services we have and try to protect ourselves the best way possible. One could be collateral, others could be structural changes like what I just talked about Greece. So with that, let me hand over to Ed.
Sure. So I'll comment on the commercial growth. I think I'd answer your question, I think, in 2 ways. One is as you look globally, one of the reasons commercial is still an untapped opportunity is because it is a somewhat more complicated space for banks to enter and it's not just the payment. It's also about information, data reporting, analysis and so on. So we need to work with financial institutions to enter the space more aggressively with that said tool, the payment with the information plus the analysis. That's a little bit of a bigger pill. And I think as you think about Latin America, if you think about Asia, big opportunities in commercial there to do just that. And I think Vicky and -- would agree, right, that institutions in those countries are waking up to commercial, but it's still an opportunity to be built out. I think in more mature markets, the teeny space is pretty well penetrated. I mentioned in my presentation, procurement. I think procurement, it’s still room to grow because historically, it's been, frankly, there's a lot of procedures built up in companies around paper-based payment. And so it's not the natural first place to look. But now that we've gotten card payments into a variety of other categories, it's sort of the next frontier. There are clearly places where we can use cards to solve procurement pain points. And we think we can do that by investing in acceptance. I mean, you can't use your card if it's not accepted for payment by a vendor, and that is the work that's in front of us to do. So I'll tell you those 2 things. One of the reasons why commercial remains still a go-forward opportunity around the world.
Okay. Back in the back?
Craig J. Maurer - Credit Agricole Securities (USA) Inc., Research Division
Craig Maurer with CLSA. First, a question about your MOU with China UnionPay. That was designed to facilitate for a recently expanded to facilitate cross-border payment and online transactions. How do you expect that to ramp up? Is it as easy as flipping a switch for those customers within CUP and what was that process? Secondly, on mobile, you talked about open systems, how do you get a closed system like Apple to participate with you when they’ve been so, you’ve heard from banks, so restricted on how they might implement things with new handsets?
Sure. Vicky, will you -- on the China UnionPay question for a second?
Vicky S. Bindra
Okay. Let me answer the China UnionPay, the China UnionPay question. With the China UnionPay question, I think what we alluded to here was the pure data up and running. So the JV on the Internet gateway is up and running in terms of moving towards production. So they've already done the trial. We're moving towards production. Anywhere in the next 6 months or so, we should be up for production. The MOU regarding this time was [indiscernible] in China, it's a little more expansion than you mentioned, sort of whether the cross-border or not. It’s essentially looking at not domestic profit, because that's not something the MOU encompasses. But it encompasses sort of trying to help them get accepted overseas so that we can get their acceptance in China. That is work in progress. So that's what the MOU is about. It's also -- and it’s the more usually to ensure that whatever chip standards are being used in China, that becomes interoperable overseas. They start with the things you have, but chip, which is solely China-based, quickly realizing that it's not probably advantageous to have a chip that's not interoperable with sort of Visa, MasterCard, American Express and so on. And then there are a couple of other things, but those are the 2 or 3 main factors. Does that help?
The only thing I'll add to that is that we hope they will challenge the MOU with us. It's not just about acceptance per se, it’s about gaining revenue from banks. So, for example, they'll expect it to improve the acceptance for MasterCard in China outside of the traditional outlets, it is then very definite. Because then the extra positive going -- if we get them to be incentives or revenue. To do that, we give incentives, if we help their acceptance outside. So China migrated to our new channel we can both do it in a way that looks for the bigger picture and in competing only once again, inside that innermost concentric circle where we think that they're both enemies of each other. That's our key approach. Yes, I'd like to get the domestic processing business in China a bit more open. And I’m finding that to be a very unfortunate situation that puts us even today. But in the meantime, there's a partnership to be built on the [indiscernible] business, and the e-Commerce gateway business. And that's very difficult. Kind of fragmented on the ground. Your second question was on mobile, right, and so there’s similar problems.
Richard A. Hartzell
Certainly, and the specific question, I think, was on Apple. And I would open by echoing Chris' comment. Apple is an incredibly important merchant for MasterCard, and every iTunes transaction is fundamentally open payment transaction. They have benefited greatly on how we serve their customers by taking advantage of the existing payment systems for their apps there. Now certainly, I don't think anyone can speak to Apple's strategic direction, but I would assume from everything we've seen from them, they'll look to continue to deliver great consumer experiences onto their handsets. And with that focus on the consumer experience, I would only expect they’d look to leverage the payment products and capabilities that their consumers already have. So I think it's really a question of what's going to be best for them as they go forward, and I think working with the open system is absolutely the right engineering position.
Vicky S. Bindra
One thing I'd add there [indiscernible]. To me, the whole global space is an evolving, cyber ecosystem. And I think that while e-commerce of 17 years get to 7% to 8% of the income nationally, I doubt, however, it will take that long. It won't take 2. It will take somewhat 8 years to get there. During that period, the whole global sales-- they evolve on 3 dimensions and the customer business cycle. One dimension would be ASP-enabled, not just payment but information, coupon and all that jazz. Some of it you'll see outside of us. The second dimension is built around SMS space money movement and faster mobile payment solution space and all, it works very well with developing country where globalization and infrastructure is a challenge. Well, it could work equally well for P2P movement of money in a developed form. And in a further aspect, is fully-enabled mobile [indiscernible], which really requires total technology. So one day, it gets to the point where as automatic [ph] as your computer. And I think we’ll get there one day [indiscernible]. In those 3 dimensions, there are no big players who will see the value of working in a way that creates the right ecosystems, involving the right players. There are others who will attempt, at some point in time, to go out in their own stride who might believe finally is the payment system will only take full advantage of the [indiscernible] of it all. And I believe that passionately. I believe that anyone who tries to control this system will make a [indiscernible] for consumers or merchants or banks [indiscernible] which will hold back the power of what this device will do over the next 10, 15 years. And so yes, there'll be opportunity there that save time, continue that [indiscernible] for a while, they are not thinking about how to take that to the next level, they also add a little bit of time, which now is working with us. Though, I just have said, we've only discovered, the market economy picks up. [indiscernible] I don't know where Apple will go yet but we're talking with every [indiscernible] we make. We're talking to hardware manufacturers. We're talking to [indiscernible], we’re talking to the likes of Google around [indiscernible] hardware manufacturers. There is nobody whom we’re not in conversation with. Because to a large concern, that's the big prophecy. We're getting to creating something, then it goes to evolve. It's not going to be easy. I actually believe that hardware manufacturers and [indiscernible] are going to have some kind of a bull fight over the next 2 years on who control the elements that goes into that phone. Their mobile network, all payments made, that data control, [indiscernible] over the air provisioning service. They will control the access, the hardware guys think it’s them. And it's their results, this thing will evolve. It's like Richard, the baby who wakes up every 2 hours, but it's absolutely going to happen. But if that's going to happen, it's going to happen with these guys as well. Since building from time these statements, but I'm not going to stand and watch from the outside. We'll participate in helping and [indiscernible] So that's what we're going to do.
Christopher Brendler - Stifel, Nicolaus & Co., Inc., Research Division
This is Chris Brendler from Stifel, Nicolaus. My first question is the process transaction growth. I just want to focus a little bit on the rest of the world figure. Is any of that outstanding growth of 20%-plus? I think you also mentioned a 30% number too. If you could just clarify what's the right number?
Well, what I said is that worldwide, about 20% process transaction growth, right. And then I said then when you look at a subslide, that means when you look actually at the world outside of the United States, all of the non-U.S. countries, that we are see actually a 30% growth, 30%-plus growth rate in the June and July period. And pretty much and that is higher than what we saw in the prior quarters, but what we are seeing is that some of the wins that we had and I gave 2 examples, the processing win we had in the Netherlands where we are now really processing the majority of the debit business, as well as what we were able to do with Itaú in Brazil where we're also now processing pretty much 100% of the volume, they really benefit in these kind of numbers.
Christopher Brendler - Stifel, Nicolaus & Co., Inc., Research Division
Okay. That was kind of -- the root of my question is, is any part of the [indiscernible] presentation and we haven't heard...
Absolutely and we cannot...
You recall very well as I tell you every year as you know, we're always struggling with the question of -- but you're always waiting for big explosion of SEPA, and I keep on telling you that SEPA is happening. You've seen the numbers. I think that the proof -- it's in the numbers. You see just all of you, what are we doing outside of the United States. Now that's only the beginning, we’ve only talked about from one country. There are many others, and there are many things, with the rule -- and this is a full country, The Netherlands as Martina was suggesting. But there’s a bunch of stuff that we’re doing around SEPA, that doesn't necessarily move the whole country but it moves segments. For example, a particular problem, namely, corporate cards for example, for our MasterCard family of product. So these things we're doing that will lead MasterCard Europe to continue to capitalize on the SEPA opportunity. Are you going to it see it done in a year or 2? No, but are you going to continue to see the trend towards MasterCard processing more and more transactions in SEPA Europe? Absolutely.
It's an evolution, part of the evolution there. And, in fact, if you look at The Netherlands and Itaú, it took us the better part of 3 to 4 years of work to actually be at this point. So the majority of debit transaction in The Netherlands are all for us. So there's a ton of examples in the other markets, and in fact, in the second quarter earnings call, I actually shared the numbers that said that SEPA processing compared to the prior year is up an enormous amount. I kind of remember the numbers were looking like this, what...
40-something percent. But Greg will check for you. Netherlands is one example because of the big lumps. It's tough in Germany, tough in France and so on in SEPA. SEPA's very much happy.
I just had the hand signal from the back. It is over 40%.
Christopher Brendler - Stifel, Nicolaus & Co., Inc., Research Division
A quick follow-up. Last year, you [indiscernible] the transaction and [indiscernible] process [indiscernible] in your 3.4% to 6.9% in '09 and [indiscernible] that number is today. Are you gaining share? Are you, the Netherlands [indiscernible] any type of business? And in my follow-up, the U.S. domestic banks test around debit fees that you wouldn't try to -- I think they would try to discourage debit usage? Are you seeing the impact [indiscernible] conservations where it is widely unpopular. [indiscernible] any comment you have around Durbin related debit?
The short answer to your question, is MasterCard capitalizing on the SEPA opportunity better than others, the answer is yes. Yes, we are.
Chris A. McWilton
We're seeing lots of different things in response to the Durbin impact on retail banking, and it's not just on the debit card itself. The banks are looking across the entire spectrum of their pricing for retail bank services. In some cases, they might be applying a fee to access a card, or have a card, for a month – a $3 a month fee. They may be thinking about their ATM fees. They're thinking about minimum balance requirements for maintaining the positive relationships. They're thinking about charging for paper statements. So it depends on where you're going and how big a hold these institutions have from Durbin and how aggressively they're pursuing revenue replacement opportunity. But it's not -- I expect an overwhelming desire to discourage the use of debit cards. I think consumers like debit cards. They like the convenience of them. They tend to play in the consumer preference not to get overly extended in credit. Merchants, they don't like the cost, but they like the convenience of them. So I don't see a groundswell of either discontinuing debit or discouraging its use.
David Togut - Evercore Partners Inc., Research Division
David Togut of Evercore Partners. On October 1, once the interchange cuts go through in the U.S., what do you see as the sustainable growth rate for the U.S. debit process transaction growth? And then I have one follow-up.
Chris A. McWilton
I can't predict what the sustainable debit growth rate will be once the interchange rates go into effect. That would be speculative. But like I said, I think debit continues to be a very valid consumer proposition. Banks are starting to think through how they're going to replace their revenue around debit. So I don't see a huge discontinuity of the debit experience in the U.S. caused by the reduction in interchange rates. I think whatever happens will happen. Banks will fill out -- either figure out how to either replace the revenue through debit products themselves, other sources of retail bank services or they'll cut costs one way or another. But they will get there. I just don't see it as being a precipice on October 1.
David Togut - Evercore Partners Inc., Research Division
Then my follow-up question is on April 1 of next year when the network non-exclusivity rules go into effect, what do you expect to happen in terms of your own debit volume growth? You've highlighted you’ve got competitive advantages there. Do you expect to gain significant share for Visa on April 1 of next year? Or do you expect this to be sort of a slow process?
Chris A. McWilton
Right now, we're in the throes of a lot of negotiations with institutions around getting them on the card as a Maestro proposition. As you know, we have a very small position in debit in -- PIN debit in the United States today. It's 8% roughly. Visa, I think, is in the 30%, 35% range. There are a number of other regional PIN debit networks out there. So there's a fairly intense competition to get on the back of the card. I feel confident that we have upside here. We are not in a position, fortunately, of having to defend a large incumbency position in PIN debit. So because of that, we can be selective. We can do things that make sense rationally from an economic standpoint. We can pitch our superior product proposition, and we can get share in a way that's thoughtful. So I think we will get more, but we're going to do it in a way where, like I said, we're not going to buy all that business just to pound our chests at the end of the day, and so we've got massive share in fairly thin economic-type business.
David, I just want to add something to your first question. You need to look at the overall MasterCard business, and yes, we are focusing on one slice of the business, which is U.S. debit, unless you really think that the consumer is going back to using cash or check, there are undoubtedly products out there that we are having in the market and that we are, Chris’s team is working actively with the banks in order to give choice. So the growth will show up somewhere. It might not be in debit. It might be in prepaid. It might be in credit. It might be in combo products. It might be somewhere. But as long as you have the belief that people know and like the convenience of using an electronic means to process their transactions and not go back to cash, we'll be winning out somewhere.
Vicky S. Bindra
I think there's going to be some very interesting things that will come out of it. It's hard to predict. This is the point that -- your question’s very predictive and not going to get an answer from predictions. But [indiscernible] get an answer on thinking process. If you take, for example, the fact that even on signature debit, a lot of consumers have been trained over time to use their signature debit cards and then fetch credit [indiscernible] because by doing that, they are eligible for rewards on their debit cards. I think that kind of stuff, which actually has to push the users of debit while giving you the feeling of a debit or a credit card rewards program, you’re going to see those things drop off pretty quickly. If you already have [indiscernible] more are going to do that. I think that kind of change will happen. Will that drive a great deal of differentiation of getting away from debit altogether to something else? I don't know the answer to that yet. But you have to believe [indiscernible]. And so duo cards, combo cards, credit cards, prepaid cards, and even the debit system itself. This will be an interesting shift over the next couple of years. It won't happen the 1st of April. [indiscernible] But if it happens over a period of time, it will happen. There will be a change. A lot of what's happened on debit over the last 10 or 12 years, was not just consumers suddenly waking up to the idea of saving if they used a debit card or credit card. It's also there's a lot of work done in the banking system to help debit cards get out there. But early ATM cards been issued when you open an account, they want energy that went into teaching branch people how not to give an ATM card or they give a debit card because it has the potential of unlocking revenue for the ATM banking business in the big banks, which is all we have done technically from the credit card business of that bank. Don't underestimate that change and that drive and what that may happen over the next couple of years. I don't know the answer, but it will happen. Something will change in that field.
Darrin D. Peller - Barclays Capital, Research Division
It's Darrin Peller from Barclays. When looking back on 2008 and 2009, there was -- you can see trends. You can see the trends in transaction growth on credit card, on debit. Credit had some hiccups obviously. Debit was a little more resilient. I think cross-border, obviously, a big driver of your revenue yield was -- also came down. Now is there anything in the either MasterCard structure or mix – maybe even, if you can comment, Ajay, on the environment, that you think is materially different going today and what we may be going into versus in '08 and '09?
[indiscernible] Here's the issue. I don't know how to take that. I can tell you this. [indiscernible] earnings call after earnings call, the retail consumption spend in the U.S. is healthier than the newspapers [indiscernible]. It's unfortunate that there are [indiscernible] and those kinds of trends are in very deep trouble. And I think as a [indiscernible] society, we need to think about this and care for them. But there's 90% that's employed and gainfully employed and doing very well, including a bunch of you in this room. Actually, if you think about your [indiscernible], how has that changed over the past 3 years? Two years’ time, [indiscernible] changing a little bit but some of the changes are with respect to [indiscernible]. So fear of [indiscernible] has reduced dramatically in the American population over the last year or 2. We’ve changed the way we feel for how you spend. There is the fact that credit cards for August showed 9.3% for retail spend [indiscernible]. Now take out gas and [indiscernible] not very different from what the [indiscernible] but the newspaper headlines say it's flat growth. A flat. It's flat over July [indiscernible] How could we all forget that as a society and as an economy and as the issue. So there's a whole dichotomy going on in our country here today that I find fascinating to look into [indiscernible] and to look into political leadership and the newspapers. [indiscernible] Latin America and Asia and Europe and then India, Mexico. We have to [indiscernible] because ultimately it's a globally interconnected world. So that's why my comments for next year's revenue growth are not the same as what we delivered in the first half. We are sitting through a number of, let's say, between 12% and 14% cumulative average growth. Even though it's 16% in the first half on a constant-currency basis. And that's the reason why. I don't know how to break down these, but I'm going to try to make sure that it's a picture of getting to this number for 3 years is [indiscernible].
Darrin D. Peller - Barclays Capital, Research Division
Just a quick follow-up on the debit side. Chris, I think you mentioned earlier there was another issuer that has recently flipped from Visa over to MasterCard on the debit side. That comes on the heels of multiple others in the past year. So is there anything you can give us more color on what actually are the drivers of this one now? And maybe some of the others as well.
Chris A. McWilton
It's a slight technical issue. They're going to flip. So they haven't actually announced it to their customer base. So we were unable to discuss that today. To be honest with you, I think a large portion of success in our debit flips has been the things that Kevin and his team have been able to do from an advisors standpoint. And also, I think excellence in executing a debit flip that started with SunTrust has had contagion of confidence with other potential banks considering a flip. On the first point, Kevin's team is able to go in and talk to retail banks about how they can segment their debit portfolio; how they can activate a bigger percentage of debit cards that are in the hands of their consumers; which categories of merchants they're not seeing spend on in their debit portfolios that others in their region, in their territory might be; and really having intelligent conversations about how you turn that portfolio into a larger profit engine. On the second point, one of the things that keep CEOs awake at night and CIOs awake at night is a bad conversion. The last thing you want when you're fighting all the regulation, all the cost pressure, you're fighting for market share, is to issue a bunch of cards that don't work. And so there's disruption of consumer experience. They go to the store, they swipe, and it doesn't work. And it's a complicated process, but something we’ve developed a real core competency in. And SunTrust has been a great reference point for us in terms of flawless execution, making it happen, making it happen seamlessly and getting uplift on the economics. And that's going to Cap One, they went to Sovereign Bank, and like I said, you'll hear another one in a couple of weeks. So I think those are the 2 major reasons.
They're actually getting done faster than we've expected. The second one is [indiscernible].
Tien-Tsin T Huang - JP Morgan Chase & Co, Research Division
Tien-Tsin Huang, JPMorgan. Actually, just following on to that question. Just trying to pinpoint down the price. I think we've heard Visa here. They said in the past that if they lose the deal, especially on debit, that it's got to be unprofitable because they can match any pricing and they can retain that. So how would you respond to that, Ajay or Chris?
I think Chris has already said 2 times earlier [indiscernible] deal based on customer [indiscernible]. Interactions with the SunTrust folks in their public space will tell you why they switched, and they switched for reasons of exactly [indiscernible] expertise and insights. It's political. The only other thing I can tell you is the years of that transaction is lower than average. I won't tell you that what you're hearing is not quite right. Now I am sure that [indiscernible] that somehow it happened, that the price of my competitor just like [indiscernible] have been able to get [indiscernible] each of us have approached this in 2 very different ways. We are looking at our yields and our ability to extract revenue from that transaction. [indiscernible] I think consistently attaining a 50%-plus operating margin is a pretty fair estimate, and [indiscernible] I talked about spending the money when I have almost [indiscernible] I just want to get off the table the assets of [indiscernible] margin improvement every year. When I see 85% transactions coming around in cash and check and the amount of opportunity to do strategic [indiscernible]. So it's a long answer to a simple question but the simple answer is [indiscernible] coming from. But I don't know what they think.
Tien-Tsin T Huang - JP Morgan Chase & Co, Research Division
Appreciate that. Just real quick follow-up. I want to extract a couple of data points from Martina. First, can we get an idea on percentage of revenue for MasterCard that comes from Europe either absolute or in relation to volumes? And the second one is maybe for Chris. Thinking about your MasterCard debit portfolio today, how much of it does not have a Maestro bug attached to it and actually has an ability to network already on the card? I ask because it’s really, I think you talked about it before, right, it’s a 2-phased battle. One is to be on the card, and the second one was to get around the decision. So trying to get some sense on that.
So let me just do the first one. First of all, you obviously know that we don't do revenues like that, but in order to be helpful, you can view GDV in transactions a little bit as your guidepost, okay. But obviously, outside of the United States, the second-largest contributor to our revenues is Europe, okay. That's very clear. And then you have between Asia-Pacific and Latin America, and then you have Canada, okay. So that's all I can tell you. But you can look a little bit at our GDV numbers and you can try and take the numbers.
Chris A. McWilton
Yes, the second part, Tien-Tsin, we have a very small piece of our debit portfolio today that has an exclusive Maestro mark on the back of the cards. Visa has a much bigger proportion of that, and that's why I think they're more vulnerable from the Durbin exclusivity rules than we are. So we have a very small percentage of the PIN marks on the back of our debit cards. I think we've gone public that Citibank has the biggest debit card portfolio that is exclusive to MasterCard. But the rest of it, it's fairly limited.
[indiscernible] It's a large, it's actually a [indiscernible]. It's a large proportion that's not exclusive. [indiscernible] It's a larger than large [indiscernible].
Okay. Before we go to the next question here, I did promise people on the phones, so I'm going to throw in one question that we got from the webcast. That said, can you talk about how you compete in the affluent area, particularly versus Amex and their strong rewards program? Tim, can you?
Sure. So it's a great question. I think there's a couple of ways we need to go after the affluent and target Amex. I think the first thing we have to recognize is that the 4-party model that we operate in is really a source of extraordinary strength. And so the first thing we can do and are doing is leveraging our issuer partnerships. So issuers have wealth management programs, for example, where they're providing services to affluent consumers. And we’ve had a lot of success working with issuers on branding MasterCard wealth management-focused card-based programs, in fact, last time I recall, Ameriprise-Amex spin-off to MasterCard branding program. So I think we have a good shot because we know how to do that. I think the other thing that we need to do and are doing is focusing on co-brand partnerships. We've had some very strong success in markets around the world with co-brand, and I talked to you last year in this room about how airlines were a focus for us, continue to see some nice progress there. Javier's team in Italy has launched an Alitalia co-brand with MasterCard. It was previously exclusively Amex. We're now in that space. So I think wealth management, co-brand are the 2 key players through this. And then the critical thing for us is to make sure we're raising our game in terms of the services that we provide. And so I talked about competitive differentiated features, I talked about the things like PriceAssure. Frankly, I think the work that Alfredo is doing with Priceless Cities, unique MasterCard scope for 180 markets around the world, can give us some differentiation too. So a variety of levers we’re pulling to get at that space.
The only [indiscernible] piece that you could add to that is the U.S. [indiscernible] an outstanding job of [indiscernible] in Europe. And so you talk [indiscernible]. And so it's easy for us to do it in the U.S. and it's really hard abroad. So in the U.S., our effort is good. It's the actual level of profile [indiscernible]. So it actually has a fair amount of affinity to what we can achieve and do for the large part of Tim's team and Alfredo's team [indiscernible] soft. It's not about getting somebody else [indiscernible] booking that nobody does. That's an important element for a certain kind of [indiscernible] where if you get access to being able to [indiscernible] even if you're not be careful. [indiscernible] That's the difference that we're driving it. It's a slight and a subtle different in the U.S., it's a very easier outside the U.S. [indiscernible].
Okay. We're out of time. We're going to take one more question. Management is going to be around. So you'll have plenty of opportunities to ask your questions.
Unknown Analyst -
[indiscernible] Global. Just had a couple of quick macro questions to follow up on. Firstly, one of the things that I was sort of surprised by was the resilience of credit growth here in the U.S. Can you give some commentary on that? Are you seeing that as pretty broad-based, or is that sort of primarily driven by the affluent customer? How do you think that kind of plays out? The second question I had kind of goes back to '08 and '09. And as I look at MasterCard's [indiscernible] with volumes. But at that point in time, you did have a pretty significant pricing opportunity and cost management opportunity, and perhaps that was offset by specific customer weakness and maybe an inflated base. As you look at today's set of circumstances, again, we don't know what happens to the macro. But the things that are more directly in your control, how do you feel you are positioned versus how you were positioned back then?
Chris A. McWilton
I'll take the first one. We're quite pleased as well that credit growth held up as well as it did. I think you need to remember that there's 2 components to credit growth that we report, and we don't break them up separately. So there's commercial credit growth, and then there's consumer credit growth. And as I mentioned in my remarks, commercial was really a strong part of our success in the first half of 2011. I think business came back but spending -- before the consumer came back spending, you're starting to see people go out and visit customers more. You're seeing increased attendance at trade shows and events and dinings. You wander around New York City, you see a lot more business lunches and dinners transpiring. So I think that was helping to buoy our credit numbers in a lot of ways, and the rest of that was principally affluent folks that had survived the layoffs and the loss of income, continue to spend with a fair amount of confidence. So both factors, but I think commercial probably a bigger factor.
As you look at that chart that Chris had [indiscernible] debit card. You could see the Visa consumer credit growth last year as well. In fact, the merchant credit growth [indiscernible] still be below Visa but to be better than where it would have been if it had only consumer. And Martina's effort to consumer credit is in part being slightly positive as commercial credits [indiscernible]. However, we expect the consumer credits to [indiscernible] for us versus some of our competitors is that some of our major drivers. [indiscernible] They are coming out of cycles at different levels. Interestingly, that includes that almost all of those clients are paying at a relatively low level now compared to what they used to a little while back. And so the appetite for value seems to be recovering slower than – I don’t know what happened to the growth in terms of affluent versus middle segments over time but right now, it's very affluent, nearly bring out the affluent space or [indiscernible] will be described as affluent [indiscernible] compared to what it used. The second part [indiscernible]. You could say that revenue growth next year would be lower than what you’re seeing. It’s entirely possible. At the end of the day, consumers have the [indiscernible] program. And so for a period of time, [indiscernible] strategic area pricing is [indiscernible]. I suspect that the most [indiscernible] by every guy and his grandfather right now in the mobile space might be usable. That will help to reduce the investment that goes into that space. [indiscernible] the appetite to strengthen these new things, to continue if the level of factors affecting the growth that way as compared to the 6%, 7%, 8% we hear [indiscernible]. So then think about [indiscernible] confidence on the way our [indiscernible] are constructed to be able to help [indiscernible] 12 or 14 on revenue cumulative average growth rate at 30% on the minimum margin and then we have 20% above EPS over the next 3 years [indiscernible]. I’d always remind you to say cumulative average growth rate [indiscernible]. That's a joke.
Okay. Yes. Thank you very much. Now before I turn the podium back over to Ajay, I just want to spend just 2 seconds talking about this afternoon's session. We've created an opportunity for you to experience firsthand some of the features, functions and platforms that we're working on to drive value and position ourselves well in the future.
Lunch will also be outside. You can grab a box lunch, and as I said, management will be around to answer your questions. You've got the brochure that outlines what's going on this afternoon. We've got 2 rooms down here on the 17th floor. There are 2 sessions with Mike Manchisi on the networks after lunch. Check your agenda to get the exact time. The MasterCard Labs room also has some really great new innovations, some stuff that they're working on, much of which is not in the market yet.
Upstairs on the 18th floor, we've got a mobile room. We've got a prepaid room. The people from Access Prepaid are going to be there. Remember, they're one of the largest distributors of chip-enabled prepaid travel cards, and I believe they're handing out samples. So there's an enticement to get you upstairs.
But the thing that we're really most excited and proud about is this year's product experience. And each participant here in New York can exchange that little coupon that you had tucked in your name tag for a mobile phone, which is on loan. You've got to return it when you leave. It's loaded with several apps, including the current beta version of the Google Wallet.
The Wallet has been preloaded with our Citi credit card for your use here at the venue to purchase things like movie tickets, drinks from a vending machine or even make a donation to charity. The phones have been set up to allow you to experience this firsthand, with the innovative product features that are outlined in this brochure and that will be coming to the market soon.
But as they say, a picture is worth a thousand words. And so now we've got a short video. I ask you to pay attention to this video because it's going to step you through how this Google Wallet on your phone is going to work. Can we run the video, please?
Now don't worry. We are going to continue to run this video on a loop out in the lobby. So if you forget something, you can go back and refer to it. Our product folks can also provide assistance. We've actually brought in a couple of our technical folks as well who will be available and floating around. So hopefully, you will find that this will be a great 2 hours well spent, and you'll get an opportunity to experience firsthand what we're doing.
With that, I'm going to turn the program back to Ajay for some closing comments.
Okay. So that goes through the quick summary. There's actually very little to summarize. I remain convinced of those 2 concentric circles, growing the pie as well as focusing on what we're doing inside that pie are actually what this is all about. It's about using our technology, using this innovation - you will see some of it -- using our people, our insights, our expertise to make sure our role and our franchise grows with it. The Grow, Diversify, Build is the way we go about doing it. In the meantime, those commitments stand to what we are trying to do for these 3 years, those revenue commitments, operating margin and EPS commitments that Martina laid out.
So thank you, all, once again. Thank you for your faith and your support and your questions and your participation, and I'm sure you're going to have a good time. We'll be hanging around, circulating with you. See you again soon. Thank you.
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