Mastercard Incorporated · NYSE:MA
Mastercard — Mastercard SME Day (Latin America & Caribbean) (2025)
74 slides from Mastercard's conference presentation, 2025
Slide 1: ce ENTIAL
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Slide 2: Welcome & Opening Remarks
Welcome & Opening Remarks Mark Barnett Walter Pimenta Executive Paula Paschoal Executive Global Head of Vice President Vice President Global Small & Medium Enterprises Commercial & New Payment Acceptance & Market Mastercard Global Flows Development Mastercard LAC Mastercard LAC
Slide 3: SMEs at the Center of Growth: Igniting SME Potential
SMEs at the Center of Growth: Igniting SME Potential Antonio Cerqueiro is a seasoned business leader with over 25 years of consulting experience. As Partner and Payments Leader for Bain & Company in Latin America, he has worked closely with top management teams across major national and multinationa
Slide 4: Small Business, Big Impact: Unlocking the SME Payments Revolution in LAC Economies
Small Business, Big Impact: Unlocking the SME Payments Revolution in LAC Economies This information is confidential; it is not to be relied on by any 3rd party without prior written consent.
Slide 5: SMEs: Context and Relevance
Payments 2 Trends SMEs: Context and Relevance 1 This information is confidential; it is not to be relied on by any 3rd party without prior written consent.
Slide 6: SMEs: Context and Relevance
Payments 2 Trends SMEs: Context and Relevance 1 This information is confidential; it is not to be relied on by any 3rd party without prior written consent.
Slide 7: There are +22M SMEs in Latin America and they play a significant role
There are +22M SMEs in Latin America and they play a significant – though varying – role across economies SMEs by country SMEs’ contribution to each Total SMEs by country in thousands, 2023 country’s GDP SMEs represent 99.5% of 52% enterprises in the region, with 42% 40% microenterprises constitutin
Slide 8: SMEs represent 13% of the financial services profit pool
/DIRECTIONAL SMEs represent 13% of the financial services profit pool. Unlike other segments, payments constitute the primary source of profit Profit Pool by income segment – Brazil1 (%) ~580 SME (13%) High income (38%) Medium income (29%) Low income (20%) Note: 1Financial Margin + Service Fees This
Slide 9: SME policy performance remains uneven
SME policy performance remains uneven — financial access and regulation are still pain points across markets Policy Index for Latin America – scores are on a scale of 1 to 5, with 5 being the highest (fully developed policies) Score by LATAM category Average Note: Overall Average represents the mean
Slide 10: Challenges faced by SMEs require resilience and constant adaptation
Challenges faced by SMEs require resilience and constant adaptation MACROECONOMIC SALES & BUSINESS TA L E N T & P E O P L E FAC TORS MODEL MANAGEMENT • High interest rates • Market share pressured by • Pressure for flexibility, culture, and marketplaces and apps purpose – 50% of SMEs have 30% or mor
Slide 11: Pressures are present across business types
Pressures are present across business types, though with distinct nuances in each vertical PRESSURES BY TYPE OF BUSINESS Services Food & restaurants Industry Agribusiness Retail Digital competition from Growth of intermediaries Difficulty in competing Crop failures and Advance of e-commerce, new ent
Slide 12: 4 factors influence the level of disruption in a market
4 factors influence the level of disruption in a market Unmet needs Profit pool Competitor concentration Regulatory support attractiveness and strength for competition Access to credit Incumbents' margins Market concentration Regulator's encouragement of a broader and more Accessibility and Bank Pro
Slide 13: SME market now faces increased disruption potential
SME market now faces increased disruption potential, especially at the base of the pyramid that shows similar disruption levels to that of individuals in 2019 Base: Micro and Small companies (up to USD200K revenue/year) Top: Medium companies (up to USD10M revenue/year) CONDITIONS INHIBITING DISRUPTI
Slide 14: Disruption is already underway, with SMEs experimenting with new services
In factDisruption is already underway, with SMEs actively experimenting with new services and providers MAIN USES OF FINTECHS Online 43% Banking Payment 42% 3 out of 5 Processing SMEs used FinTech providers worldwide Loans through 5% marketplaces Source: OCDE This information is confidential; it is
Slide 15: Payments Trends
Payments 2 Trends SMEs: Context and Relevance 1 This information is confidential; it is not to be relied on by any 3rd party without prior written consent.
Slide 16: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 17: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends Consumers’ payment behaviors Merchants’ pressure & simplification Artificial Intelligence Macro-economic challenges might slow Merchants demand for unified payment Biggest opportunities on processes that down consumption and
Slide 18: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 19: Consumer purchasing behavior is boosting cash displacement
Consumer purchasing behavior has been changing and is boosting cash displacement across Latam countries 1 2 Consumers are more They are also cautious about their spending more digital • Consumers are increasingly more • Consumers are getting even more concerned about cost of living, digital and e-co
Slide 20: Consumers are becoming more conscious about their purchases
Consumers are becoming more conscious about their purchases The price increase Consumers are starting to respond to that… perception across Change of spending habits in past 3 months & reasons for expense reduction % respondents actively trying to reduce spending categories is consistent among Latam
Slide 21: Level of trust in financial institutions varies among countries
Level of trust in financial institutions has substantial discrepancy among countries and types of institutions Latam Avg. level of trustworthiness by country 3.29 3.48 3.00 3.09 3.35 3.36 3.28 Level of trustworthiness Average in Latam, Mar ‘25 Weighted Avg 1 (Extremely untrustworthy) 2 3 4 5 (Extrem
Slide 22: Consumers are getting more digital: e-commerce captures +15% of retail sales
Consumers are getting even more digital – E-commerce already captures +15% of retail sales in Latam and penetration is expected to keep increasing KEY HIGHLIGHTS Retail e-Commerce penetration (%, 2019-2029E) E-commerce growth is accelerating FORECAST across markets, expanding opportunities to 35% In
Slide 23: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 24: Merchants' behavior is also evolving
Merchants' behavior is also Merchants are promoting electronic payments evolving – They • Merchants have been promoting electronic payment among are pushing for 1 customers to reduce operation complexity and costs digital, integrated • Merchants are actively promoting A2A as payment method for both
Slide 25: SMEs have a broad set of needs linked to financial services
SMEs have a broad set of Acquiring needs — from managing cash flow to attracting customers — many of 7 8 9 10 11 which are closely linked 5 6 12 13 to financial services 4 14 15 3 16 2 17 1 18 41 Merch. 40 19 39 20 38 37 21 36 22 35 34 23 33 24 32 25 31 26 30 29 28 27 This information is confidentia
Slide 26: Integrated offers for SMEs tap into new profit pools
Integrated offers for SME aim to satisfy their needs, while allowing payment providers to tap into new profit pools and to increase customer retention Accounting Monetization potential (revenue/growth) Short term debt ERP Life/health insurance Payroll Long term debt May include financial Commercial
Slide 27: Financial Services and Products (Stripe)
About Target segment Global financial infrastructure platform that • Startups and tech companies provides payments, banking, and credit services • Marketplaces and platforms for all types of digital businesses (40+ countries and 135+ currencies). • Subscription-based companies Estimated valuation of
Slide 28: Payments promote client primacy and access to robust profit pools
For FS providers payments is not only relevant by itself, but also as a way to promote client’s primacy and access more robust profit pools (e.g., Credit) Payments are a means to a Banks are being threatened and deeper relationship, since... ... With payments and account are acting on it Beyond • Th
Slide 29: Value captured is higher with integrated acquiring and banking offers
Data show that value captured is higher with integrated acquiring and banking offers Clients with main acquiring and primary bank account from same provider ... … are more satisfied … hire more products … stay around longer Main acquirer NPS Avg number of products from acquiring Average lifetime in
Slide 30: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 31: Payments-specific and industry-agnostic GenAI use cases
There are a set of payments specific GenAI use cases, as well as a range of industry-agnostic GenAI use cases that payments companies can implement PAYM E N T S - S P E C I F I C I N D U S T R Y- A G N O S T I C U S E C A S E S USE CASES Marketing Sales and product Personalized digital Marketing con
Slide 32: Different players benefit from GenAI at different points in the cycle
Different players will benefit from implementing GenAI at different points in the cycle; Card issuers and acquirers have the largest value creation potential Payments player Value creation opportunity Automate KYC/KYB, streamline customer account set-up, and provide customers with CARD ISSUERS inter
Slide 33: Highest value and most feasible GenAI use cases in payments
The highest value and most feasible use cases for language models in payments relate to fraud, spend analytics, KYC/KYB, and payment inquiries Data generation Disputes, returns, Fraud review and Highest value and most High for fraud models & chargebacks investigation assistant feasible GenAI use cas
Slide 34: Payments players are already deploying Generative AI
Payments players are already deploying Generative AI across a number of use cases Payments analysis solution and New generation AI tools focused AI- powered tool focused on payments processing assistant. on B2B solutions, including AR payments processing designed to Helps derive insights from raw re
Slide 35: Payments players are already deploying Generative AI
Payments players are already deploying Generative AI across a number of use cases Knowledge assistant Finance co-pilot Optimizer Helps replying questions on the industry, products Focused on Accounts Receivables (AR), it pulls data from AI powered tool for payments processing companies functions and
Slide 36: New GenAI-powered consumer interface players are entering the market
New GenAI-powered consumer interface players are entering the market with disruptive solutions, reshaping how consumers interact with financial services Magie is one example of a startup that is already moving Players entering the market are offering two types of customer towards those new interacti
Slide 37: Traditional banks face the risk of disintermediation
Traditional banks face the risk of disintermediation, especially in transactional services; fight for customer engagement is likely to increase Probability of bank disintermediation by new interfaces High High Medium Low Checking & Savings Payments Credit Investments Accounts Interfaces are already
Slide 38: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 39: What is embedded finance?
What is embedded finance? We define embedded finance as a nonfinancial software platform providing an adjacent financial service, for which it takes some degree of economic ownership. This allows the platform’s customers to take advantage of a value-added offering within the native customer journey
Slide 40: Value Added Software: generic and vertical-specific categories
/ILLUSTRATIVE Value Added Software: two categories divided in generic VAS software that applies for all verticals and specific features for sectors VERTICAL-AGNOSTIC FEATURES VERTICAL-SPECIFIC Features in VAS functions that can be used in payments systems Features in VAS functions that add value to
Slide 41: Payment companies react to ISV threat with partnerships and acquisitions
More nimble payment companies are reacting to ISV threat by investing heavily in partnerships and acquisitions of SaaS players PA RT N E R S H I P ACQUISITIONS Both PayCos and ISVs propose the partner solutions to their PayCo acquires ISV to integrate its payment offering with SaaS prospect customer
Slide 42: Tech companies and platforms are well positioned to capture payments revenues
Tech companies and platforms are well positioned to capture payments revenues given their strong customer interfaces Mercado Pago, ML’s Financial Google launched “Pix WhatsApp is starting Services arm, accounts for contactless” on to advance into ~50% of ML Revenue GPay, a feature that financial ser
Slide 43: Headwinds challenging big techs' entry and success in payments
There are however multiple headwinds challenging big techs’ entry and success in payments Regulators and competition can act as hurdles Local presence and alignment to market structure are key to Challenges for big techs moving into payments Right to win accelerate expansion UNDERSTANDING MARKET REG
Slide 44: Competition will intensify with alternative revenue shift scenarios
Competition will intensify in different degrees, with alternative scenarios of potential revenue shifts being feasible Scenario Scenario Scenario 1 Big techs continue gaining share through digital wallets, underpinned by card rails 2 Big tech funnel their own card onto wallets. Aggressive attack on
Slide 45: Big Techs face challenges in core businesses and limited interest in Latam
Big Techs are facing important challenges in their core businesses, and showing limited interest in moving beyond payments in Latam, especially in Brazil “We’ve launched payments “Google Pay was authorized “Apple Pay is now accepted Amazon has no formal FS STRATEGY on Whatsapp in Brazil to by Brazil
Slide 46: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 47: Instant payments solutions in Latin America at different maturity levels
/NON-EXHAUSTIVE In Latin America, many countries have been deploying instant payments solutions with different levels of maturity CENTRAL BANK LEAD CO-EXISTING OPTIONS Brazil Argentina Mexico Colombia Peru IIT Maturity High Medium Low Medium Low Launched in 2020, developed Launched in 2020, Launched
Slide 48: PIX exceeds all instant payment adoption standards
PIX exceeds all instant payment adoption standards in both P2P and C2B transactions P2P C2B P2P transactions per capita C2B transactions per capita (transactions/inhabitant/year; year after posting) (transactions/inhabitant/year; year after posting) 70 40 PIX 60 PIX 30 50 40 BiR 20 BiR 30 FP 20 10 U
Slide 49: Broad roadmap of features created on top of Pix
Broad roadmap of features created on top of Pix 2020 – 2025+ - RELEASE FUTURE DEVELOPMENTS • Data manual input (with keys) • PIX in installments • Static and dynamic QR Code • Improved MED • Data manual input (TED • Guaranteed PIX model) • Offline transactions • Instant payments • Alias (3 options)
Slide 50: Companies developing alternative solutions on top of Pix
Many companies are developing alternative solutions on top of Pix, bringing additional services that go beyond what is currently offered by BCB Fintechs/Financial institutions as providers Banks/acquirers as providers Pix Installments via fintechs Pix payments in the POS via QR codes Payment in inst
Slide 51: Instant payment rails deploy ISO20022 overlays and additional features
Internationally, instant payment rails have deployed overlays/additional features based on ISO20022 that may represent future opport. for RTP providers and mkt participants UPI (Unified Payments SCT Inst (SEPA – Single Interface – Gov) Euro Payment Area) MobilePay (Fintech) Vipps (Fintech) UPI Lite:
Slide 52: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 53: Definitions of CBDCs and Stablecoins
To understand CBDCs and Stablecoins, we need to be clear on their definitions Fiat-backed Tokenized assets Stablecoins Cryptocurrencies stablecoins • Digitized representations of • Digital currencies issued • Stablecoins pegged 1:1 to a • Decentralized digital real-world assets, recorded directly by
Slide 54: Latin American CBDC development and stablecoin regulation stages
/DIRECTIONAL /NON-EXHAUSTIVE Latin American countries are at different stages of CBDC development and have less developed stablecoin regulations when compared to benchmarks CBDC maturity varies by country... ... and stablecoin regulation is overall still nascent M AT U R I T Y Legend: ? Inactive or
Slide 55: Key value propositions of stablecoins
There are 6 key value propositions of stablecoins High Speed Cost Programmability Stable value Transparency yield/interest Stablecoin Stablecoin Stablecoins are Stablecoins Greater Stablecoins backed transactions are transactions can be programmable, offer a stable store transparency on by treasurie
Slide 56: Current stablecoin use cases for payment companies
PRELIMINARY Current use cases, most relevant for payment companies, focus on global and corporate money movement Use case Potential relevance in latam Impacted institutions Value proposition B2B payments (incl. High Banks, corporate treasuries, Intermediaries • Cost cross-border • Programmability co
Slide 57: Stablecoins could have varying impacts across the financial system
Stablecoins could have varying impacts across the financial system Banks & Issuers Payment Rails & Tech Platforms Non-Bank Payment Corporates Large Networks Companies Non-Bank FIs Existential Potential impact to Potential reduction in Significantly enhance Improved economics New economic models New
Slide 58: Participants are taking action on stablecoins
In response, these participants are taking action Banks & Issuers Payment Rails & Tech Platforms Non-Bank Payment Corporates Large Networks Companies Non-Bank FIs • Developing in-house • Enabling architecture • Enabling stablecoin • Building new • Developing • Developing permissioned blockchain for
Slide 59: Payments in LATAM are being influenced by 6 main trends
More specifically, payments in LATAM are being influenced by 6 main trends 1 3 5 2 4 6 Consumers’ Artificial Instant payment Intelligence payments behaviors (A2A & RTP) Merchants’ Embedded Stablecoins pressure & payments & & CBDCs simplification Big Techs This information is confidential; it is not
Slide 60: Key points for players in response to forces reshaping payments
Key points for players in response to forces rapidly reshaping payments Key Trends Implications Issuers • Consumers go more digital; e-commerce gains share, accelerating cash displacement and shifting mix across • Be rail-agnostic at the wallet/card front-end; keep best-in-class rails UX while using
Slide 61: Small Business, Big Impact: For questions or inquiries contact
Small Business, Big Impact: Unlocking the SME Payments Revolution in LAC Economies For questions or inquiries contact: Antonio.Cerqueiro@bain.com This information is confidential; it is not to be relied on by any 3rd party without prior written consent.
Slide 62: Building SME Ecosystems: Extending Reach with Strategic Enablers
Building SME Ecosystems: Extending Reach with Strategic Enablers Nicolas Ingaramo Vice President Alternative Distribution Small & Medium Enterprises Mastercard Global
Slide 63: Who Attends What you can Expect
Building SME Ecosystems Who Attends What you can Expect 90% of consumer-packaged goods receivables from SMEs in emerging markets are not made with digital payments
Slide 64: eB2B
Building SME Ecosystems Who Attends What you can Expect The shift of the B2B purchasing process to digital platforms eB2B A digital transformation with impacts across the CPG
Slide 65: eB2B
Building SME Ecosystems Who Attends What you can Expect Loyalty Programs . eB2B Data Intelligence One-Stop Shop Embedded Finance
Slide 66: Payment Solutions – Model (Framework)
Building SME Ecosystems Payment Solutions – Model (Framework) Low cost acceptance solution Low cost acceptance solution Business card with a CPG loyalty program Digital First Virtual Cards & Controls Digitizing Ordering SME Retailer CPG
Slide 67: Essential elements the issuer must guarantee to achieve success
Building SME Ecosystems Essential elements the issuer must guarantee to achieve success Digitizing the SMEs Embedded Finance Value of Partnership • Cultural change • Bundle acceptance, credit, and • Validate the business case loyalty programs • Everything begins with consumer • High market-share acc
Slide 68: Creating value, driving growth
Building SME Ecosystems Creating value, driving growth Merchant Distributor Issuer • Increase Sales • Lower operating costs • Lower cost of acquisition • Reducing Cash dependency • Improved cash flow • Increase Market share • Credit and working capital • Increase loyalty to SMEs • Unlock new segmetn
Slide 69: Building SME Ecosystems: Extending Reach with Strategic Enablers
Building SME Ecosystems: Extending Reach with Strategic Enablers Nicolas Ingaramo Alejandro Repetto Leonardo Ramos Rafael Noriega Vice President Co-Founder & CTO Country Manager Founder & CEO Alternative Distribution INI Pagos Mexico & Colombia Yalutec Small & Medium Enterprises Clara Mastercard Glo
Slide 70: Redefining the Future of Commerce
Redefining the Future of Commerce Melanie Lambert Senior Vice President Software Ana Paula Aceves Engineering Vice President Foundry Mastercard Global Mastercard LAC
Slide 71: Technology adoption is moving at an unrivalled pace
Redefining the Future of Commerce technology adoption is moving at an unrivalled pace, transforming the way we live and work 1992 2022 Smartphone3 GPT years 2 months 1873 1876 1983 Electricity Telephone Mobile Phone 46 years 35 years 13 years 1897 1975 1991 Radio PC Internet 31 years 16 years 7 year
Slide 72: Individual technologies are shaping the future and converging
Redefining the Future of Commerce EXTENDING BLOCKCHAIN PRIVACY- ZERO-TRUST CLOUD NATIVE STABLECOINS ENHANCING PLATFORMS TECHNOLOGIES individual technologies are shaping the future and converging to propel trends forward MIXED REALITY NEXT-GEN NETWORKS QUANTUM AI TECHNOLOGIES 5G/IOT/EDGE/UWB COMPUTIN
Slide 73: The agentic market is forecast for significant growth
Redefining the Future of Commerce The agentic market is forecast for significant growth Brazil is the third-largest contributor to ChatGPT traffic. 5.3% of global traffic, totaling 310 million monthly visits. Behind the United States and India 15.1% 833m 9.3% 90% of Fortune 500 companies and 544m 43
Slide 74: Fuel exploration and prepare for new opportunities
Redefining the Future of Commerce Fuel exploration and prepare for new opportunities ↑ ↑ SCALING UP Producing applications that redefine customer ↑ BUILDING FOUNDATIONS interactions and innovate within regulatory guardrails. Enhance existing products. Create and establish a portfolio EXPERIMENTATION
Mastercard — Mastercard SME Day (Latin America & Caribbean) (2025) on 6ix