Mastercard faces significant legal risks from ongoing and potential litigation, including class-action lawsuits related to interchange fees, liability shifts, and consumer protection claims in the US, UK, Europe, and Australia. Uncertainties in the outcomes of these cases, including potential treble damages, could materially impact future operating results and financial condition. The company also faces risks from global economic and market conditions, including currency fluctuations and customer settlement failures. Regulatory changes in the payments industry also pose a risk.
Financial Upside
Mastercard's net revenue increased 11% in the nine months ended September 30, 2024, driven by growth in payment network and value-added services. The company completed debt offerings for $4 billion and repurchased $7.6 billion worth of common stock. Acquisitions, such as Recorded Future, are expected to enhance capabilities and potentially drive future growth. Continued growth in key drivers like gross dollar volume and cross-border volume also represent potential upside.
