You've seen the impact technology, digital payments, and yes, Mastercard have on people and businesses every day. This impact reinforces the company we've built under Ajay's leadership over the past decade. It builds on the foundation we established as one of the original fintechs. It's the momentum we have and the future we are delivering. Hello and welcome to our 2021 investment community meeting.
I'm Michael Miebach, President and CEO of Mastercard, and welcome to our New York City Tech Hub. It's one of the several hubs we've stood up around the world to give many of our 23,000 people a space to come together and to collaborate, to attract new ways of thinking, to test new ways of working, and to create new possibilities with partners. Here, it's all about energy and drive. That energy is what keeps us at the forefront of powering economies.
Today, that's what I want to focus on, the strong position we are in right now and the future we are building. Let me start by setting the stage with a few questions that are top of mind. What are the trends that will fuel our continued growth, not only for Mastercard, but also for our partners and our customers? Which are the new avenues for us to diversify, the new areas for us to build and shape entirely? How do we continue to create opportunities and strong partnerships out of what others could see as threats? How will we conduct ourselves as we maximize growth and make a meaningful difference in the world at the same time? The answers to these questions will reinforce that we are in a strong position.
We're leaning into the momentum and significant opportunities in payments and beyond to expand our total addressable market, to innovate and deliver at scale, to provide more and more value to our customers. We're a technology company that will continue to harness innovation, and we will do that in a way that powers economies and empowers people. We will deliver better experiences that will shape the future of seamless commerce. We operate in an incredibly dynamic space with a vast number of new entrants. Will some of these be future competitors? Of course, they will be. But as we've demonstrated over the years with telcos, digital platforms, and more recently, fintechs, we have an enormous capacity to build trusted and profitable partnerships, and we will continue to do so. That's where you see the value of the global open loop system shining. It's addressing the needs of all participants.
It's about delivering with speed. It's being able to tap into cyber and fraud solutions, plus the insights from across all rails. After all, even the brightest ideas and the latest personal finance management app need a path to scale to succeed. We've seen this again and again, and it shows in our leadership position with fintechs. For this and so many other reasons, we believe Mastercard's future is bright. I guarantee you, we will never take that future for granted. We will compete at every turn, leaving no wide space uncontested. Let's get into it. The world has evolved since our last meeting two years ago. Now, that would be true even without the pandemic. Technology accelerates change, and the good thing is we have navigated and shaped this evolution for decades. It starts with the changing nature of commerce.
The pandemic has accelerated the shift to digital among businesses, banks, consumers, and governments alike. Every change has implications for our business. First, the growth we've seen in digital commerce is a clear benefit for our business. New digital payments options have been implemented, and new payment habits have been formed. We believe the underlying trend here is very positive, short and long term, both for our person-to-merchant and our business-to-business opportunities. Second, we're seeing the importance of choice in how end users make and receive payments. People want the best way to pay that meets their daily needs, and it may not be a card. We are uniquely positioned to enable those choices. That is at the core of our multi-rail strategy, but not in parallel rails, but rather by offering one seamless on-ramp.
That applies whether you're a consumer paying a merchant or in modernizing how corporate buyers and suppliers engage. Third, end-user expectations around speed, simplicity, and personalization are evolving. This creates opportunities for us to help meet the needs of banks, merchants, and fintechs by leveraging our well-established data analytics and services portfolios. They deliver insights, opportunities for loyalty, and meaningful consumer experiences. Across these trends and all commerce journeys, we are uniquely positioned to extend Mastercard's competitive advantage, a brand promise of convenience, security, and trust. The digital world can be very complicated. There are lots of new players, lots of new technologies, lots of new options. But there's one thing that remains constant. People and businesses want to know that their data is safe and their identity is protected. They want the partner that will deliver the best experience without sacrificing that security and trust, and that's Mastercard.
Another area of opportunity we're seeing is driven by societal and geopolitical changes that are influencing the environment in which we operate and the ways in which we deliver. Governments, regulators, and central bankers are showing increased interest and participation in the payments ecosystem. That's a good thing. That's why we have been engaging with them for years in a productive and meaningful way. It's how we earned our right to play as a local partner. You see this in the Middle East, a region very familiar to me. For several years, we've been working with domestic players to deliver on the government's objectives. One example is in Egypt, where we're connecting 80% of banks and MNOs with mobile money rails. Being a local partner has helped us reinforce the value of our network, customize locally relevant solutions, and unlock alternative flows.
Staying ahead of technology trends is critical to how we set up our network operations, engage with partners, and provide value to the market. As a tech company, it's about our focus on the innovations that are most relevant to our business ecosystem, cybersecurity, analytics, digital currencies, IoT, and cloud. It's also about evolving to meet additional needs, where 5G and quantum will soon take us. Investing in new technologies has always allowed us to be everywhere, including some places where the competition isn't. We've always leaned into technology and new thinking through programs like our Start Path incubator, our innovation lab, and in our day-to-day business. Throughout today, you will see how we are harnessing these technologies to strengthen our operations, to enhance the value we provide to the market, and to expand our growth vectors into the future.
With that as a backdrop, let's focus on the evolution of our strategic framework. Our grow, diversify, and build strategy has stood the test of time. It has helped us grow our position in core payments, credit, debit, prepaid commercial, and through increased acceptance. It has expanded our business in new ways, including our differentiated services portfolio. It has empowered us to deliver outstanding growth and profitability, and it has cultivated a driven, competitive mindset across our organization. We will continue to build off this strong foundation, but we will fine-tune it, guided by a clear set of priorities that represent our most significant growth opportunities, short and long term. These priorities center around payments, services, and new networks. Payments are our core. They are our heart. We will expand in payments by executing on our multi-rail approach.
That's empowering consumers, businesses, and governments to make payments in a seamless, secure, and safe fashion. Our services portfolio is another important driver of growth. We will extend our services to further enhance and differentiate our payment solutions. With that, we will drive greater value to our customers and partners. We will be operating in many more use cases and segments, and we will embrace new networks. Our core competencies in managing a large payments network can be applied to other adjacent areas with similar network characteristics. Our immediate focus is on open banking and digital identity. Payments, services, and new networks each have tremendous runway, and collectively, they reinforce each other, multiplying our impact and value across the commerce value chain, making our business stronger and more relevant than ever. After all, power economies.
We see a future of seamless commerce where our trusted technology and franchise helps everyone prosper. You'll hear more about each of these priority areas later, but here are a few key aspects I want to share upfront. According to estimates, the total addressable flows in payments is now over $250 trillion. Within this space, we have tremendous runway in our core consumer payment franchise, fueled by the accelerated secular trend away from cash. We're also targeting specific use cases to go after additional flows. Key to that is supporting consumers over the next decade. It starts with our growing acceptance network and our digital and tokenized offerings globally. It's in new solutions like Mastercard Installments, our new scalable open-loop buy now, pay later program. You'll hear more about this and other new partnerships from Linda.
We will expand our total addressable market by continuing to capture flows in remittances and disbursements, commercial point of sale, B2B accounts payable, and bill pay. Craig will discuss this further, including some incremental disclosures in this area. We will stay focused on our multi-rail approach. It's simple. It's frictionless. It's delivering today that one seamless on-ramp to choose and activate any type of payment, cards, account to account, blockchain, and new open banking and digital currency capabilities. We are continuously evolving with new technologies and choices, offering more ways than ever to enhance the value we provide to end users. Crypto and stablecoins come to mind for many. On the third quarter earnings call, I noted the role we see ourselves playing in this area. Jorn will have more to share on this.
It's about being that one partner to solve pain points and creating new application opportunities. Our expanded end-to-end suite of capabilities offer differentiated value to our customers, and it will help us capture a broader share of consumer, business, and government flows. Now on to services. Our expansion into services has proven to be a tremendous growth differentiator to our business. In one way I see an incredibly bright future. That future is based on a foundation developed through deliberate investments and experiences accumulated over the years.
Today, we are a world-class leader in loyalty. Our Test & Learn capabilities are unsurpassed. We're putting data and insights to work in breakthrough and business-building ways. We are securing transactions and networks with embedded, seamless, and world-class cybersecurity solutions. Strategically, we're able to help our customers address a diverse range of issues, from approval rates to decreasing fraud, to attracting and retaining customers.
This deepens our relationships and helps us to be a true partner. Financially, services have helped us drive exceptional growth. It is now over a third of our revenues. Looking forward, we see a very large attractive opportunity coming to life in three ways. First, services have and will continue to enhance the value of payments. Services make payments safe, secure, intelligent, and efficient. Our technology know-how will continue to help customers optimize while combating fraud and cybersecurity risks. We will continue to extend our services to all types of payments beyond even our own. Second, we see our customers' needs expanding into more areas where the tremendous competitive advantage we have built can help them. We can address needs for banks beyond payments and provide a full suite of services to retailers, restaurants, hotels, airlines, governance, you name it.
For example, our relationship with The Gap, it started beyond the payment. Third, this is a really important point, services make our open banking and digital identity proposition stronger through capabilities such as faster, smarter loan decisioning. We're entering adjacent networks that are attractive and complementary, but it's our services that will ultimately give us a unique and differentiated position to scale, grow, and win. All this put together is a very exciting picture for us. Services is a way to add more value to our customers and a path to strong near and long-term growth for Mastercard. Those are the first two priority areas for growth, payments and services, but there are related areas that hold significant promise and are strategically aligned with our payments and services ambitions. We see opportunity to expand our business into adjacent networks that fit a few criteria.
First, they enhance our core payments and are central to the future of commerce. Second, they allow us to enter large, attractive, and growing markets. Third, they leverage our core competencies, our global footprint, our technology, how we define and manage our franchise, and our rules. That will allow us to compete and win in these areas. Our initial areas of focus, open banking and digital identity, do just that. We believe that both are critical for the future of commerce. Open banking is critical to enable the payments and banking services in the future and has the potential to revolutionize finance more broadly. In open banking, we're looking at the entire experience and value. This includes enabling ACH payments with PSPs, as well as directly with merchants and banks today. As commerce moves online, identity verification becomes increasingly important for the authentication of both individuals and devices.
Ajay and Chris will explore this more later on. Combined, open banking and digital identity extend our value both before and after the transaction. These are large, attractive, and growing opportunities. With our expertise in managing a global network, franchise excellence, data principles, and cyber leadership, we are uniquely positioned to be a leader in both. There are a few things that are absolutely critical to our success. Our people and winning culture, which we call the Mastercard Way, is grounded in decency and humanity. We have a high-performing team that is as broad and diverse as our business, and that comes with a commitment to always do better. Our technology is at the core of our strategy. Our technology stack provides us resiliency, scalability, and flexibility in how we serve our customers. Cloud-native software solutions are delivered at the edge to enable more seamless experiences.
Our data assets, data infrastructure, and data-rich platforms are critical to support our growth. Our leadership in establishing and living by clear consumer data principles of privacy, security, and trust will support that future. Our brand is priceless. Our iconic circles have always been a clear representation of what Mastercard stands for. Today, we are proud to be one of Fortune's most admired companies and rank among the top 10 of the world's most valuable brands. We're laser-focused to ensure that continues. To have a brand that lives in the digital world in a way that resonates through sound, sight, and other senses. Our franchise is the business model our customers buy into. It has defined the rules and structure that govern our business and establish trust across the payments ecosystem. We continue to evolve that structure to meet the needs and opportunities of tomorrow.
That helps extend connectivity and trust across the entire suite of offerings into new network opportunities. Doing well by doing good is a differentiator for us as an employer, as a partner, and as a brand. It's a connection between our people and their passions. It's how we infuse our values into every aspect of our business, and how we leverage technology beyond our own business. We're also pushing hard to enact change across the ESG spectrum. Why? We live in a time when sustainability and growth no longer work in conflict, but in concert. When compliance and governance are part of the DNA by choice, not by mandate. It's clear that I'm optimistic about our potential. To underscore this, we are reintroducing our three-year performance objectives, as Sachin will discuss in detail shortly.
We have the right strategy, the right focus, and the right people for this next era of Mastercard. As we now discuss our key priorities of payments, services, and new networks in more detail, I'd ask you to keep these four things in mind about what our strategy empowers us to do. One, solidify our leadership position in payments, not just in cards, across the whole playing field. Two, emphasize our differentiated value through services. And three, unlock adjacent growth opportunities, expanding our role before and after every payment transactions. And four, drive both near-term performance and long-term growth. All of us at Mastercard are grateful for the trust you've placed in us, and we are very excited about the future. Now let's keep going and dive into our core payments opportunity with Craig. Thank you.
Hi, my name's Chris Samway. I'm Senior Vice President and Head of Rewards, Loyalty, and Payments at Gap Inc. We recently signed a 10-year partnership with Mastercard as our network partner for our co-brand credit card. Our card members tend to visit more, spend more, and stay with our brands longer. Through this program, they can earn points inside our brand and outside our brand in everyday purchases anywhere Mastercard is accepted. We were most impressed with Mastercard's agile way of working, and especially their proprietary data science and analytics capabilities. In fact, we have been working with Mastercard's Test & Learn division over the years and are excited with this new partnership to expand that across all of our brands. Mastercard's Priceless campaign is really iconic and timeless. I think it's a great match for our brands, which I believe are iconic as well.
Mastercard and Gap Inc. relationship is such a strong cultural fit because we share the same values around diversity and inclusion, racial equity and social justice, and environmental sustainability. Mastercard, like Gap, puts the customer at the center of everything they do. We're excited to partner, unlock the creativity, and we really think the potential is limitless for this partnership.
Hi, I'm Craig Vosburg, our Chief Product Officer. It's great to be with you today and to share our strategy for driving growth in payments. As Michael said, payments are and will remain at the core of what we do. Payments, and more specifically, Mastercard, are at the core of the digital revolution, powering a new economy with new products, new sales channels, and new consumer experiences like never before. We're doing all this at scale with 2.9 billion cards in circulation and over 80 million merchant locations, powering over $7 trillion in annual gross dollar volume. The ongoing digitization of commerce provides the backdrop for a large and growing opportunity for Mastercard, both in existing carded flows and new payments flows that are increasingly addressable through the expanding reach of our network.
Our total addressable opportunity continues to grow and stands at $255 trillion in 2021, up from the previous estimate of $235 trillion in 2018. This includes substantial volumes of payments being transacted through cash and checks and batch ACH. We see these as opportunities for growth, both in our core card franchise and through capturing new uncarded flows. Our immediate focus from a payments perspective is on five categories of flows, each of which we'll discuss in more detail today. They are consumer purchases, disbursements and remittances, commercial point-of-sale transactions, B2B accounts payable flows, and consumer bill payments. In the aggregate, these represent $115 trillion in payments flows, the majority of which are newly addressable through investments we've made to expand the reach of our network.
A key theme throughout is the acceleration of digitization, driven not only by the pandemic, but also by payments innovations in areas including e-commerce, the consumer experience at the point of sale, digital wallets, installment programs, digital currencies, open banking, and more. With innovation comes the opportunity to work with our partners, both existing and new, to better serve the needs of consumers and businesses as we shape the future of payments. Today we'll touch on three broad priorities that underpin our payments strategy. Driving growth in core consumer-to-merchant purchases.
Capturing new payments flows through targeted use cases and applications in remittances and disbursements, commercial point-of-sale transactions, B2B accounts payable flows, and consumer bill payments. Leaning into payments innovation with a particular focus on new acceptance technology and experiences, installments, digital currencies, and open banking. To describe in more depth how we're driving growth in consumer purchases, I'll hand things over to Jorn and Linda.
Thanks, Craig. Good morning. I am Jorn Lambert, and I lead Mastercard's consumer, digital, acceptance, crypto, and open banking. I want to talk about three ways in which we are driving payments growth, leaning into strong tailwinds. First, we accelerate cash displacement thanks to our rapidly expanding merchant acceptance. Second, we lean into the fast-growing digital economy. Third, we work to enable fintechs and new economy use cases, reaching new consumers and unlocking new spend. Let's first take a moment to talk about our incredible network effect. Having more merchants on our networks allows more consumers to spend more, to displace cash. That, in turn, brings more issuers, more service partners, more fintechs, and more wallets onto the network. This is a very powerful flywheel that has driven our core franchise and is precisely why increasing the number of acceptance locations remains a huge priority for us.
Think about it. We have doubled the number of merchant locations in just five years, now reaching over 83 billion merchants. That is a 15% CAGR. Far from plateauing, we have seen this accelerate this past year to 19% growth. The beauty of the network is that we're not doing this alone. With digital commerce on the rise, we are supporting these merchants to go multi-channel through channel partners like payment facilitators, integrated software vendors, acquirers, and gateways, who both benefit from and contribute to the power of the open loop network. The acceptance methods have also evolved. Contactless has become the preferred and most hygienic way to transact in-store. We more than doubled our contactless penetration over the last three years, now representing nearly half of in-person purchase transactions globally.
This adds further growth as contactless cards spend more, in particular in cash-heavy and small ticket sectors like quick service restaurants and transit. Obviously, contactless enables mobile transactions through phones and wearables, delivering a great consumer experience. Now, what's really exciting is that looking ahead, we will be turbocharging contactless acceptance by turning the world's 6.4 billion active smartphones into potential acceptance devices, allowing people to buy and sell whenever and wherever they want. We call this Tap on Phone, and we've already over 60 deployments across 30 markets to date with partners like Samsung, Global Payments, Mashreq Bank, Pine Labs, and many others. Our Tap on Phone specs and our cloud commerce platform make it very easy for any merchant to use their smartphones or tablets to accept payments.
As you can imagine, the potential for accelerated cash displacement, expanded financial inclusion, and increased volumes is just enormous. Every connected device can literally become a commerce device. Acceptance growth is right at the heart of our network effect, and its importance can simply not be overstated. Through it, we access new spend from cash displacement and make our network invaluable to many fintechs and closed loop networks looking to scale their business. Just as we expand merchant acceptance, we are also capitalizing on the digital growth, which is what Linda will now talk about.
Thanks, Jorn. Hello, everyone. I'm Linda Kirkpatrick, and I manage our business in North America. The pace of growth in digital commerce during the pandemic was significant, and Mastercard continues to be a beneficiary of this growth. In the third quarter of this year, card-not-present switch volume was 145% of 2019 levels. E-commerce spend doubled in merchant categories like supermarkets, department stores, and food delivery. Many small businesses quickly built an online presence, and Mastercard supported them through our Digital Doors program, which provide the tools they need to accept online payments. Our focus remains anchored in providing innovation to support our customers in a digital world. E-commerce growth is both domestic and cross-border. While we see promising signs of travel recovery, cross-border performance is driven by more than just travel. In fact, there's significantly more non-travel cross-border spend across digital channels.
In the third quarter of 2021, cross-border card-not-present spend, excluding travel, was 155% of 2019 levels. E-commerce spend can happen through card-on-file transactions, digital wallet transactions, or guest checkout. Across all forms of checkout, we are ensuring the experience is fast, safe, and secure. Card-on-file transactions for the first three quarters of 2021 are 166% of the same period in 2019 and now represent 58% of all digital spend. Card-on-file checkout allows merchants to control the end-to-end shopping journey, optimizing conversion and driving loyalty. Mastercard's card-on-file tokenization solution makes the experience even better. By replacing card numbers with dynamic tokens, we help protect against fraud. In addition, consumer payment details can be instantly refreshed when a card is lost, stolen, or expires.
This means consumers don't need to update their payment credentials with every merchant when their card number changes. It happens automatically. Our token solutions for both card-present and card-not-present are performing exceptionally well, and we are now processing over 1 billion tokenized transactions per month. Tokenization has become a key enabler of the strong growth we see in subscriptions, marketplaces, and gig economy business models and is being used around the world by partners including Google, PayPal, Mercado Libre, Adyen, and others. That said, consumers don't have their payment credentials stored with every merchant. Guest checkout, where consumers manually enter their payment details during checkout, is still common.
Mastercard's Click to Pay solution helps to streamline the guest checkout process and provide consumers value-added services like fraud controls, pay with rewards, and buy now, pay later functionality, as well as QR-based checkout. Over 10,000 merchants have already committed to implement Click to Pay, including KFC, Pizza Hut, Tickets.com, Canadian Tire, and others. In our increasingly digital world, consumers prefer to have their payment tools delivered in a digital way and right away. With Mastercard's Digital First program, consumers can get approved and start making purchases almost immediately through instant provisioning of their products to their digital device. Mastercard is leading the way on digital-first issuance, and we've recently signed new deals with Nubank, N26, and Falabella in Latin America. In addition to existing deals with players like FIS, Fiserv, and Thales.
A great example of a digital-first program is the Apple Card, which launched in 2019 and has quickly become one of the largest co-brands in the world. Our rapid progress in migrating Maestro to Debit Mastercard is also adding to our digital growth, especially with partners like Credit Suisse and UBS Switzerland. The growth of digital commerce is an important tailwind for our business, and we are seeing our investments in innovations in new digital solutions drive safety, security, and convenience for our customers and help accelerate our growth.
Third, we're very excited about the new economy use cases and strategic partnerships that are fueling more spend that simply did not exist before. The rise of fintechs, which is sometimes portrayed as a threat, is in reality a significant growth driver for us. Fintechs find huge value in our network's global scale and suite of services. They are integral members of our network and they help us look around the corner, anticipate the next marketplace economy, gig economy, subscription economy, content economy, creator economy, crypto economy and so forth. Together, we co-create, we unlock new business models and take these to billions of consumers. It's therefore so great to see that we continue to lead the market in partnering with fintechs and wallets, winning over 250 new partnership deals just year to date.
In the U.S. and U.K., for example, two of the most active markets, we have more than 70% win rate in this space, which speaks to the power of our assets, our partnership approach, and the co-creation mindset to meet their needs. As we continue our journey to be, as it were, the commerce operating systems for these fintechs, APIs become the connective tissue to access and innovate on our network, and hence, it's a core area of investments. We've moved quickly to publish new APIs, acquire API businesses. Think of Ethoca, NuData, Ekata, CipherTrace, Finicity, and Aiia. We're investing heavily in Mastercard Developers, a platform with rich APIs and sandboxes and sample code. In Start Path, our engagement platform with the startup community and in Fintech Express, which is an express lane for fintechs to move faster to market.
It's worth noting that fintechs are also great partners in ESG-related areas. For example, our program with USAID supporting female fintech founders in Colombia, our environmental Priceless Planet initiative globally, our Start Path track for early-stage Black entrepreneurs in the U.S. and our telco partnerships in Middle East Africa like MTN, Airtel, VEON, JazzCash Pakistan, et cetera, allowing us to reach millions of previously financially excluded consumers. It is this combination of a powerful network and a great access tools to go with it that allows us to be the partner of choice for this demanding fintech community.
In addition to all the great work Jorn just highlighted, we're advancing our core across all customer segments. The work we've done with banks, merchants, processors, and governments is both advancing the core and driving services. From 2018 through 2020, we've increased our global market share position across every core product: credit, debit, commercial, and prepaid. We're winning new business because we're supporting our customers across the entirety of their enterprises in payments and beyond. Our customers are increasingly leveraging our data and insights, cyber and intelligence tools, loyalty platforms, and Priceless marketing. Their decision to work with us is influenced by these services, which they tell us are value-added and differentiated in the marketplace. Turning now to the topic of installments. Buy now, pay later adoption continues to accelerate around the world.
This growth is being driven by strong consumer demand as well as merchant and lender desire to offer choice and flexibility at the point of sale. We recently announced Mastercard Installments, a new open-loop solution to deliver installments capabilities at scale. The solution connects lenders with merchants across Mastercard's acceptance network to provide buy now, pay later options for consumers. We're excited about this new solution because it offers a compelling value proposition that benefits all parties involved. Consumers will have access to use installments in more places. They will benefit from features they've come to expect from Mastercard products like zero liability fraud protection, a clear dispute process, and data privacy. Consumers can access Mastercard Installments through their existing banking apps. There's no need to open a new account or create a new financial relationship.
Merchants can provide more payment options to their customers without complicated implementations, operational burden, or separate agreements with third parties. This program also supports agreements between merchants and lenders, so they can share information like SKU-level data under the right data privacy and consumer consent conditions. In doing so, merchants will benefit from increased ticket size and reduced abandonment. Banks and other lenders like fintechs and digital wallets can use this functionality to create stickiness with existing customers and attract new customers. They will also have access to Mastercard's open banking capabilities to improve user experience and inform underwriting decisions. Through Finicity, consumers provide permission for lenders to access their financial data to have a more comprehensive picture of their creditworthiness based on more than a credit score. Digital wallets and existing buy now, pay later providers can easily integrate into the program and deploy the solution to their customers.
They can complement their existing merchant reach with additional merchant acceptance. For Mastercard, this program allows us to meet consumer and merchant needs, support lenders, and benefit from the growth in this category. In many cases, we'll not only benefit from the original purchase transaction, but also from subsequent repayment transactions, whether they happen on a Mastercard product or a bank account connected through our open banking assets.
Last month, we announced several customers who will be working with us on this new program. Today, I'm pleased to announce four new partners: American Airlines, CSI, Fiserv, and TSYS. Together, they will help us drive buy now, pay later scale and ubiquity across the ecosystem. Mastercard Installments is a great example of how we can leverage our global network and franchise to offer new payment solutions at scale with benefits for all involved. We've created a short demo to illustrate how this all comes together for the consumer.
Let's meet Clara, a digital native in her late 20s who just bought a new home. Clara is checking her bank app when she sees she's pre-approved for a buy now, pay later offer. She likes the flexibility of Mastercard Installments and decides this is a great way to pay for the new dining table she's been eyeing. Clara sees that her dining room table purchase will be split into four equal installments. Unlike other buy now, pay later offerings, Clara will benefit from zero liability fraud protection, the ability to challenge unrecognized charges, and the security and peace of mind that comes with Mastercard. Clara accepts the offer and sets up her debit card to be charged for each of the four repayments. A virtual card is immediately issued.
Pre-approved installments can be used directly on a merchant's website and can be pushed to digital wallets, including Click to Pay, to then be used online or in store wherever Mastercard is accepted. Clara is ready to shop. At her favorite site, she adds a new dining table and candles to her cart. Although she's budgeted for these items, she appreciates having the choice to stretch out the payments. Clara's virtual card is ready to use, and she quickly and seamlessly pays for her items. After placing the order, Clara instantly receives a text from her bank confirming the purchase with a clickable link to a clear repayment schedule. In another scenario, let's assume Clara has not yet opted into buy now, pay later financing through her bank app.
While shopping for her dining room table online, she sees an Installments offer at checkout with 0% interest powered by Mastercard. Clara clicks and learns approval for this offer will be equal to her basket size and split into four equal payments. Clara confirms her identity and begins the pre-qualification process. Powered by Mastercard's open banking platform, Clara seamlessly links her bank to set up repayment. With just a few clicks, Clara is taken to a payment confirmation page. She completes the transaction through the powerful combination of Installments and Digital First. Mastercard offers consumers like Clara flexibility, the ability to easily manage credentials along with complete trust and peace of mind.
Thanks, Jorn and Linda. I'll shift gears now and talk about the second important element of our payment strategy, and that's capturing new payment flows and developing new application-related revenues. As I mentioned earlier, there are substantial flows across disbursements, remittances, B2B, and consumer bill payments. We estimate that collectively, roughly $80 trillion of these new flows are addressable with products and applications we have in market or in advanced stages of development. This is at the heart of the investments we've been making to diversify beyond cards, building a range of payment capabilities that span cards, real-time payments, account-to-account payments, push payments, and blockchain. A breadth of payment capabilities that are unrivaled in the industry and that uniquely position Mastercard to innovate and scale new payment applications and access the data that will power new generations of value-added services.
We are thoughtfully, systematically, and pragmatically going after these new payment flows with a four-step approach. Establish reach across relevant rails and accounts and simplify access through a single connection to Mastercard. Target specific flows and use cases through applications. Overlay relevant value-added services and scale distribution through B2B partnerships to drive volume. Let me share where we are with each of these new payment flows we're pursuing, beginning with disbursements and remittances, which represents a $32 trillion opportunity. We target these flows with Mastercard Send and our cross-border services, two very complementary applications that serve a wide spectrum of domestic and cross-border opportunities. With Mastercard Send and cross-border services, we've established what we believe is unrivaled network reach, covering a wide range of card, real-time payment, and ACH networks.
Importantly, this reach also includes mobile networks and cash out networks that extend beyond traditional account-based endpoints and enable greater financial inclusion. Our reach covers more than 100 countries and 50 currencies and can access more than 90% of the world's population, all accessible through a single secure global platform. That's a powerful proposition. We're seeing a wide variety of use cases, more than 40 in all, demonstrating the broad appeal and applicability of our capabilities. The number of use cases continues to grow with recent additions, including healthcare-related payments, gaming payouts, B2B payments, and crypto wallet cash outs with more to come. We're also providing value-added services such as market-level financial crime solutions to help detect money laundering, corporate fraud insights, and consulting services to support our partners in launching new solutions and corridors to broaden segment appeal.
That broad appeal is reflected in the variety of partners we're working with. Roughly 650 across the globe in every region, including banks, digital wallets, merchants, marketplaces, insurers, gig economy employers and workers, governments, aid organizations, and more. The results speak for themselves, with volumes and revenues growing consistently and at a healthy clip. These applications now account for roughly 2% of Mastercard's total revenue, with volumes growing at roughly 45% year on year in the third quarter of 2021. In addition, many of these disbursements utilize Mastercard cards as endpoints, so we also benefit from incremental spending in both debit and through our market-leading position in prepaid.
We believe this opportunity is still in its early stages and has ample room for ongoing growth through extending geographic reach into new markets, addressing additional use cases, and continuing to add new distribution partners. Another category of new payment flows we're targeting are commercial and B2B payments. I touched on the cross-border components of this as part of Mastercard Send and cross-border services. Beyond that, there are two large pools of flows we're going after, cardable point of sale volume of roughly $14 trillion and B2B accounts payable flows of roughly $24 trillion. In the cardable point of sale transaction space, we continue to make progress across a full suite of products, including small business, travel and entertainment, purchasing cards, and fleet cards. Small businesses continue to migrate and embrace digital payments and commerce, and with that, we've seen strong growth in digital enablement and payments volume.
SMEs are leading the way for us in terms of cross-border spending growth, card on file growth, and overall online payments growth, which combined with a number of important partner wins, is driving SME switched volume growth that is tracking at 150% of 2019 levels. The T&E category has clearly been impacted by COVID-related travel restrictions. However, with recent reopening of travel corridors, our overall T&E volume reached 75% of 2019 levels in the third quarter of 2021. Importantly, our overall number of T&E cards in market has continued to increase during this period, positioning us well to capture volume as travel continues to recover. This progress has come in part through working with leading issuing banks like Citi, AirPlus International, and Nexi.
We're also benefiting from innovation in this segment, including working with partners like Teampay, Brex, and Pleo. Each of these areas continue to represent strong growth potential for us as we deepen our penetration in cardable commercial spend and benefit from increasing digitization, geographic expansion as commercial payments become prevalent in a growing number of markets, and as ongoing innovation opens access for new segments and new verticals. This is translating into strong revenue driver for us. Currently contributing roughly 7% of Mastercard's total revenue with a pre-pandemic growth rate of roughly 13% in 2019. Turning to B2B accounts payable flows, we continue to build out the reach of Track Business Payment Service, our two-sided open loop B2B payments network with initial focus in the U.S., U.K., and UAE markets.
We're working with new and existing partners to extend our payments platforms through API connections to enable B2B payments through virtual cards and account-to-account rails, including real-time payments and cross-border services. These flows can benefit from value-added services, including fraud solutions, business analytics, and supply chain financing through our recently announced partnership with Demica to benefit our partners and drive incremental revenue to Mastercard. To date, we've signed on roughly 70 partners to enable market coverage. For example, our partners in the UAE represent 65% of the issuers in the market. Partners across markets include leaders in the space such as Barclaycard, HSBC, Global Payments, Fiserv, CSI, Boost, FreshBooks, First Abu Dhabi Bank, Priority Commercial Payments, and Network International, with many others currently in discussion.
Our most recent addition to the Track BPS network is Moneris, the largest merchant acquirer and leading processor of B2B transactions in Canada, giving us a strong beachhead for building out that important market. While still in the early stages of build-out, volume is flowing and growing. Much of our B2B accounts payable volume today is captured through virtual cards, in which we're the market leader. Virtual cards continue to grow and expand in their applicability, driven by the accelerated digitization of B2B payments, expansion into new verticals, like B2B marketplaces, and product enhancements, such as straight-through processing and flexible interchange. Partnerships with market leaders, including WEX and Comdata, are powering growth that is now at 112% of 2019 volumes.
Overall, revenues from B2B accounts payable volumes are contributing roughly 2% of Mastercard's total revenue, with annual growth rates at or above 20% in the years immediately prior to the pandemic. Consumer bill payments are a fourth area of new payment flows that we're actively targeting. These are primarily domestic flows, and for the most part, will be developed as country-specific opportunities, but built on common technology and capabilities that can be deployed globally. To date, we've been focused on the U.S. and Nordics, where we have applications in the market to enable digital bill presentments to consumers and small businesses through their online or mobile banking apps. Payments can be made in a variety of ways, via card, real-time payment, or ACH, through a digital interface providing a convenient, secure, and paperless means to manage household bills all in one place.
Mastercard's bill payments presence is well-established in the Nordics, where in both Denmark and Norway, we have household penetration rates of 95%, with broad engagement among billers in both markets. Meanwhile, in the U.S., we continue to expand distribution for our Bill Pay Exchange, and currently have access to approximately 1/3 of bills paid and 25% of active bill pay consumers through partners including FIS, Jack Henry, Verizon, KUBRA, Payveris, and CSG. We're laying the groundwork for additional markets as well. In the U.K., we launched Request to Pay within our bill pay application, a messaging service that enables billers and consumers to communicate in-app before a payment takes place. A simple and convenient innovation that makes it easier for consumers to manage their finances.
While this is also in its early stages of development, bill payments are already meaningfully contributing to our business, generating roughly 2% of Mastercard's total revenue. This is in addition to card economics generated when a Mastercard credit or debit card is used to make the payment. That's where we're focusing to capture new payments flows, and we're making real progress in each as we continue to execute on our multi-rail strategy. I also wanna underscore the connection between our multi-rail strategy and the investments we've made in open banking. We'll discuss open banking in more depth a little later today, but the connectivity we're establishing through open banking integrations supports a number of use cases, like improving access to credit, account aggregation for personal financial management, and importantly, payments. Those payments can flow over a variety of rails, including cards, real-time payments, and ACH.
Regardless of the rail, can be enhanced with value-added services, such as verifying account, identity, asset, and income information, fraud management, and settlement confidence scores, just to name a few. Payments enabled through open banking connectivity expands our addressable opportunity with flows that will likely never be carded. We're already making progress here and are active with partners, including TomoCredit and Rocket Mortgage, with more on the way, and we see this as an exciting opportunity to drive future growth. Let me now hand it back to Jorn to discuss examples of where we are leaning into new payments innovations.
Thanks, Craig. One area that is capturing a lot of headlines these days is blockchain and digital currencies. Without question, one of the most exciting payment trends today, with rapid advances in stablecoins, CBDCs, DeFi, non-fungible tokens, collectibles, and other digitized assets, not to mention the metaverse. Over the past five years, we have been experimenting and issuing patents. We've now taken steps to enable consumers to participate in this ecosystem. We are building a stack of services for market participants, and we have started to adapt our core network to support digital currencies and interoperate with this evolving crypto economy. Let me unpack this. Firstly, there is our crypto program. It is here and already delivering significant volumes for Mastercard. This starts with consumers buying crypto assets with their Mastercard card, an area that is seeing huge growth, much of which is cross-border spend.
Once they have crypto assets, our program allows consumers to use their crypto balances at any Mastercard-accepting merchants, or alternatively, consumers can cash out their proceeds instantly to their bank account via Mastercard Send, like they already do with CEX.IO or Coinbase. Finally, we see a lot of interest in crypto rewards as more and more card issuers are looking to reward their consumers in the crypto asset of their choice. Secondly, there is an enormous opportunity to provide services to both the new and incumbent players as they look to serve their consumers in this space. As always, we lead with security. We have acquired CipherTrace to fight fraud and bring trust and security to this budding ecosystem.
We are also adapting our identity services to address another key pain point in this area, and we recently announced our partnership with Bakkt to provide custody, buy, sell, hold, and issuing services to the new and incumbent players in this space. Given the huge demand for services, we are very excited about that particular opportunity. Thirdly, we're adapting our network. Already in July, we announced a pilot with some of the leading crypto players, including Circle, Paxos, and Uphold, to manage the complicated step of converting crypto outside our network to fiat currencies inside the network. This allows crypto wallets and banks to stay crypto native while making it much easier for consumers, merchants, and marketplaces to buy and sell cryptocurrencies, NFTs, collectibles, et cetera. The demand for this service way exceeded our expectations, and daily transaction volumes are twice our projections.
Building on these early successes, we're opening this up to new partners and have decided to quickly make this a full commercial offering that all our partners can use. A critical next step in this work will include bringing eligible digital currencies, central bank digital currencies, and certain stablecoins that meet our principles of engagement directly onto our core network. We unveiled this plan earlier this year and continue to move forward with this effort by turning our core network into a digital currencies network as well. We become, in effect, the most powerful layer two network in the world for moving CBDCs and stablecoins. We believe that our settlement guarantee, purchase protection, fraud and other services will help bring trust to this exciting new space and enable digital currencies to be used more widely.
It is also in this context that we created testing space for CBDCs to allow central banks to develop and test digital currency and blockchain technologies and explore interoperability with existing payments infrastructure. These platforms power, for example, the Monetary Authority of Singapore's hackathon and are used by several governments and central banks to explore and design their currency. What's next? You could expect us to continue to deploy solutions and partnerships that are laser-focused on where we can help address some of the existing challenges, be it acceptance, scalability, security, identity, compliance and trust, to ultimately bring blockchain tech to more people and more places. The crypto and blockchain story is still in its early chapters, but it is truly fascinating. We already see windfalls today, and we see an enormous opportunity ahead. The other major exciting payment trends that we are seeing are open banking.
We'll hear much more on that from Jess and Steve a little later. Suffice to say that whether in digital payments, in crypto or in open banking, our aim is to offer consumer choice on how they pay for their goods and services. Our job is to enable this in a simple, secure and safe way. With that, I'll hand it back to Craig.
Thanks, Jorn. It may seem cliché, but there really has never been a more exciting time to be in payments and for Mastercard and our network to be at the center of it all. The opportunity to continue driving growth in core consumer purchases, powered by the acceleration of digital commerce and continued expansion of merchant acceptance remains substantial and is at the center of our payment strategy. At the same time, investments we've made to extend the reach of our network have significantly expanded our opportunity to address new payment flows. We're executing on this opportunity with particular emphasis on disbursements and remittances, commercial point-of-sale purchases, B2B accounts payable flows, and consumer bill payments.
We are, and will continue to lean into the trends and technologies that will shape the future of payments through initiatives like Mastercard Installments, Tap on Phone acceptance, Digital First issuance, digital currencies, account-to-account payments and open banking. Together, we see these representing a long and attractive runway for continued growth in payments for Mastercard. With that, I'll hand it over to Raj to kick off a discussion on our services strategy.
Co-founder and co-CEO, Pedro and I were both engineers by training. We both started coding when we were kids. For us, a main point of decision was how good the technology is. Mastercard's technology is just like superior by all comparable means.
We launched our Maze card with Mastercard. Being first to market is important for fintechs. The second piece, which is very important for us as a fintech, is the ability to do things fast. Okay. Work off APIs, really create products which are quick to launch. That flexibility really helped us tide over, you know, the initial period whereby, you know, we could test in the market while things were being built.
We're able to tap into the globally ubiquitous acceptance footprint of Mastercard to enable huge value proposition to our customers, and that is to, in real time, decide through our mobile app which digital asset they would like to spend, either through e-commerce or at the physical point of sale. Any of the digital assets that we support on our platform are then available for that customer to spend through that purchase transaction using his or her Mastercard.
Really, it's about the people who provided the guidance and air cover, and direction to be able to achieve the goals we set for ourselves. The people. It's the people and the culture. The people and the culture are the secret sauce of Mastercard.
Hello, I'm Raj Seshadri. I'm delighted to be with you today to talk about services at Mastercard, including data and services, which I lead, as well as cyber and intelligence, which Ajay Bhalla leads. As Michael mentioned, extending our services is a strategic priority. Both to add value to the rest of Mastercard and increasingly to also drive unique value. First, services makes payments safe, secure, intelligent, and efficient in consumer cards and now in other rails and across rails. Second, services are now addressing a broader set of customer needs and a broader set of customers. Third, services can make our new network stronger and more valuable. We estimate our 2021 services revenues will be more than $6.5 billion. Why services? Because they drive four critical benefits to Mastercard. First, services drive growth. Our services journey started over a decade ago as support for consumer cards.
Today, our services go well beyond that with a long-standing track record of accelerating payments adoption and use and increasing gross dollar volume. Services are growing faster than core. Second, services differentiate us. We've invested carefully and innovated thoughtfully over the years to hone our competitive edge through new capabilities in cybersecurity, in loyalty, data and analytics, performance marketing, digital identity. Our services help our customers grow their portfolios, better engage with their consumers, and reduce fraud. As a result, services have been instrumental in winning payments deals and making relationships stickier. In fact, almost every Mastercard issuer uses at least one of our services. Third, services diversify our revenues. They do this by driving relevance and value beyond payments at issuers and increasingly at merchants, acquirers, fintechs, neobanks, and governments.
We've doubled down on solution selling and bundling to combine the right expertise in the right way to meet each customer's specific needs. In fact, even during the pandemic, services grew at 18% on a currency-neutral basis in a challenging year like 2020. Our services have grown progressively over the past decade, now making up 35% of our forecasted net revenue in 2021. Fourth, services bring in great talent. About one-third of new joiners to Mastercard come in through services. As they develop in their careers, they seed and help lead the rest of Mastercard. Our acquisitions bring terrific talent into our Mastercard family, and they help us accelerate the growth of our services and solutions. Our data-driven intelligence underpins our services, both in data and services and in cyber and intelligence. It makes our services unique, as do our data responsibility principles.
Privacy, security, transparency guide everything we do. We have access to a significant amount of high-frequency, high-quality data. For example, in consumer card alone, we see 90 billion transactions each year from 2.9 billion cards in 210 countries and territories. We use best-in-class machine learning plus advanced analytical techniques to cleanse, anonymize, and aggregate this proprietary data to ensure its quality is ready for robust analytics. We also leverage relevant third-party data sources appropriately to add context and nuance to glean meaningful, actionable insights. This is all hard to do, and it's hard to replicate quickly. We have built this over two decades. There is no shortcut. Our data-driven intelligence spans key areas such as cybersecurity, consumer engagement, travel, macroeconomics, and identity. Let me bring this to life for you.
Linda described our plans to introduce open-loop buy now, pay later at scale with Mastercard Installments in 2022. Today, we're already providing value-added data-driven services to a number of buy now, pay later providers to design and launch value propositions, drive consumer acquisition and adoption, verify applicants and support account opening, reduce false declines, and measure and optimize performance. All of these services will be part of our Mastercard Installments solution. As you can see, our insights are invaluable today. We're not at our destination. There's plenty more distance to go on our journey here. With that backdrop of our overarching services strategy, I'll turn now to data and services in particular. In data and services, our mission is to drive smarter decisions with better outcomes. Today, we have eight services.
With a focus on our customers and their needs, we've developed a highly curated and thoughtful suite of services. Each service takes advantage of our data and technology and our expertise and experience, and they evolve from different origins. We leveraged Mastercard's strengths to create innovation services and labs as a service to help customers innovate. To help drive experimentation and informed decision-making, we acquired Test & Learn, a software-as-a-service platform, via APT in 2015. To inform day-to-day and long-term strategy, we organically built analytics and insights, including our business intelligence software-as-a-service platforms. The oldest services came from consumer cards, issuer loyalty and marketing to drive consumer engagement and preference, and consulting services. Most recently, we acquired our merchant loyalty software-as-a-service platform via SessionM in 2019.
How and where we invest and innovate is based on market demand and customer relevance, what we're hearing and what we see. We go to market with the customer and their opportunity or challenge at the center. We then use a systematic four-step approach. Discover, which uses the customer's data, rich Mastercard proprietary insights, relevant third-party data, all within Mastercard data principles. Recommend, where we tease out so what's and identify the best actions to take. Act, which some customers choose to do themselves, while others ask us to support them. Improve, we have a relentless focus to optimize and uncover further opportunities. Sometimes a single service meets a customer's need, and at other times the solution is a combination of services. Let me illustrate this with Test & Learn.
Test & Learn helps customers experiment and test multiple approaches to find the best paths forward in a variety of use cases, which range from designing a new store layout, to determining the best hours of operation, to new product development. It is used to measure results and to deliver more efficient and effective programs. Test & Learn is a standalone service with a strong retail customer base. We also combine Test & Learn in many bespoke ways with other services and payments products. We have off-the-shelf solutions. For example, Test & Learn is embedded into marketing services, issuer loyalty, and merchant loyalty to allow customers to test the effectiveness of offers, targeting, and marketing spend. In fact, nine out of ten Test & Learn users have a 5x return on investment, and our renewal rate for Test & Learn multi-year subscriptions is 95%.
In each of our eight services, we are strong and getting stronger by investing and innovating. With each service, we compete well with a different set of specialist players. While our growth in each is faster than the relevant market today, there's plenty of opportunity. Each of these markets is highly fragmented, with even leading players having single-digit market share. While we are doing very well, this also means we have tremendous room for further growth. Across the eight services, no one has this unique set and no one can do exactly what we do. The data and services advantage creates long-term impact for Mastercard, attracting new customers, strengthening our relationships with existing customers, embracing new talent and exciting new technology. We serve a large and rapidly growing, rapidly diversifying customer base. Data and services has a truly global footprint that attracts world-class talent.
We bring global scale coupled with in-market local relevance in a way few other companies can. Our software platforms, data-driven intelligence and technology are central to what we deliver with a track record of innovation. What do these advantages mean day to day for our customers? I'll talk about this in a few minutes, but first, let's hear from a few customers themselves.
Over the last years, we've been leveraging more and more of the Mastercard Data and Services offerings. For example, in our latest project, we've been bundling the competencies of Mastercard Advisors, Mastercard Managed Services, and Mastercard Loyalty Services to realize our newest feature, Miles Pay.
With the partnership with Mastercard, we're able to build on what we already know and leverage the expertise that Mastercard has in technology and data analytics. With combined, we're able to grow our business.
We can innovate, and not just for cardholders, but for retailers, merchants, and other banking partners to really bring products to life.
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Mastercard's tech and data capabilities help us launch new products and services that increase customer engagement at Miles & More.
Not only in the payments business, but more of a technology company to expand our presence and create a difference in the market.
Mastercard has been a big part of our overall digital transformation.
The pandemic has only heightened the importance of what we can do for our customers to help them attract, engage, and retain ever-evolving consumers. During the pandemic, the Mastercard Economics Institute has engaged with federal governments, central banks, cities, and states in new ways. We've published important timely trends and recovery insights in areas such as travel, small business, and digital. On the issuer side, we created programs like the Airport Security Fast Track in Europe for a more convenient and safe travel experience. We launched digital-first services like telemedicine in Mexico and Colombia, expanding access to doctors and ambulances. We coupled e-commerce insurance with identity theft protection for cardholders shopping online in the Middle East.
On the merchant side, we helped grocers quickly test which stores should stay open and established hours to address the needs of the most vulnerable shoppers, while at the same time managing supply chain disruptions. We're emerging from this pandemic even stronger, even more relevant, and even more deeply embedded with our customers. Data & Services is well-positioned for continued growth. We have a tremendous track record in enhancing the value of payments while delivering double-digit growth. We help acquire consumers, stimulate card usage, optimize portfolios, drive contactless adoption, and enable the shift to digital. There's an abundance of opportunity here. We can sustain our growth in the areas where we're already driving hard today, including continued focus on services that support consumer cards. We also have many ideas to bend that growth curve, aligned with Mastercard's broader payments, services, and new network strategy.
We're leveraging analytics and AI for our commercial card issuers and corporates, and we're creating insights across all types of commercial spend for treasury banks. We're helping accelerate multi-rail deployments globally and helping customers create multi-rail strategies. We aspire to bring all of our analytics, insights, and loyalty know-how to bear across all of our rails. Looking at new customer segments, this has long been a sweet spot for data and services. We will continue to leverage our services to support our financial institution customers in their businesses beyond payments. We will continue to expand into new segments, including retail and commerce, digital and fintech, and government and the public sector. We have a lot of value to add in our new networks. Let me use open banking as an example. Open banking brings open finance.
We're using our existing solutions, analytics, consulting, innovation, services, AI know-how to help our customers reimagine consumer experiences and make the most of open banking opportunities. We're also focused on how our open banking can unlock powerful new information to improve access and inclusion. For example, better decisions and access to credit, an ongoing challenge for both small businesses and their lenders. This is a truly exciting time to be part of data and services at Mastercard, working across the firm to drive value for our customers and their consumers, for our company, and for our shareholders. With that, I'll turn it over to Ajay Bhalla.
Welcome, and thank you, Raj, for the introduction. I'm Ajay Bhalla, President, Cyber and Intelligence. As we heard earlier, our services lines represent a huge opportunity for us. We have built a broad and differentiated range of cyber and intelligence capabilities to help us successfully capitalize on this opportunity. Our mission is clear. Trust is our business. We have created a diverse portfolio of security solutions across cyber, identity, and artificial intelligence, which help to build that trust and power the future of commerce. I will start with a look at the strategic trends that are shaping the world around us. Firstly, we are experiencing unprecedented levels of connectivity. The convergence of the physical and digital worlds, Internet of Things, and 5G are creating an almost invisible integration and use of technologies in our everyday life.
It's predicted that 75 billion IoT devices will be connected to the internet by 2025. This brings with it new opportunities and the need for new solutions. Secondly, these connected devices and networks are generating exponential growth in data. This data creates a powerful new level of personalization and convenience, but needs to be protected and kept safe. Thirdly, emerging new technologies are influencing everything. AI, quantum, blockchain, and digital assets are transforming the ecosystem and opening up new opportunities rapidly. Next, the acceleration of digital demand and emergence of a digitally native generation brings a new set of challenges for our customers. Consumers are seeking the best experiences, which often requires them to share details, such as their location or connect their devices to unknown networks. There is a need to ensure the right solutions to enhance experience are available without compromising security.
Finally, as a result of many of these changes, cybercrime is now a global industry and will be a $6 trillion problem in 2021, according to industry reports. These evolving market dynamics, in addition to the digital acceleration caused by the pandemic, are providing opportunities and driving demand for our cyber and intelligence business. Now on to our strategy and how we are responding to these opportunities. We have a multilayered approach to security with our strategy organized around five layers, prevent, identify, detect, experience, and network. You can think of each of these layers as being a portfolio of cutting-edge, highly competitive solutions designed to work together and provide additional security at every stage of a transaction. If a criminal defeats the first layer, the next layer kicks in, and so on.
These layers and enablers are focused on supporting five strategic segments that have complex needs and cannot always be served with a one-size-fits-all approach. Looking at our layers, let me highlight some of our successes and explain how we are adapting solutions for specific segments. Our prevent layer is our first layer of defense, designed to build resilience and stop attacks on infrastructure, computers, networks, devices, and data. This year, we were the first network to announce the retirement of legacy magnetic stripe technology. We are also getting ahead of new technologies like quantum computing, which could challenge security. From a segment point of view, we are protecting financial institutions with solutions like Safety Net, which helps stop real-time attacks that are visible on our network but aren't easily seen by banks. Safety Net saved more than $7 billion of fraud in the first half of this year.
Our second layer is Identify, which focuses on helping consumers prove they are who they say they are. We have developed an approach focused on consumer, device, and account identity. Ekata will be a key building block to help us create a trusted digital identity for consumers. Acquiring Ekata accelerated our strategy by giving us access to an intelligent engine powered by a global data set of 2 billion identities and more than 5 billion digital interactions, helping to support consumer identity verification. New data's advanced technology assesses behavioral user data, such as how you hold your phone or how fast you type or swipe. It acts in real time to help identify devices, detect when they are compromised, and prevent fraud. Account identity is also a big space for us and leverages technology like Mastercard Identity Check to help protect e-commerce consumers.
Our third layer is Detect and is designed to detect vulnerabilities and block fraudulent behavior. In this layer, RiskRecon's pioneering scanning and evaluation technologies assess the cyber risk of digital merchants or any digital entity in any segment. We are now one of the world's largest cyber assessment providers, covering over 13 million entities. Our fourth layer, Experience, is focused on security solutions that enable a superior experience for consumers. Contactless transactions now represent 48% of all in-person transactions on our network. For consumers seeking the smooth experience, we've launched new enhanced contactless, our Ecos solution, which enhance the convenience, security, and privacy of contactless transactions. Our Ethoca acquisition is helping to fight digital fraud and reduce chargebacks via their alert service for issuers and merchants. Our fifth layer, Network, is focused on connecting the ecosystem and enabling services.
Mastercard continues to operate as one of the most trusted and secure networks globally, leading with differentiated services such as Decision Intelligence and our tokenization capabilities. These services are helping to secure our customers' transactions on a real-time basis. As we drive our strategy forward, there are six key areas where we have identified significant growth potential. Firstly, AI. We are successfully harnessing its power across our business, and over the last two years, our AI-powered solutions has saved $25 billion in fraud. We will continue to leverage this key enabler to enhance security, improve experience, and minimize risk. We are integrating Brighterion's AI capabilities to build solutions that help issuers accurately assess risks in their portfolio. AI is now a signature feature for our services.
If I look at any of our biggest products by revenue, such as Decision Intelligence, which in the first half of this year provided our customers with a 23% reduction in fraud when compared to the same period last year, or our new business areas like digital identity, AI is playing an active role and providing a significant competitive advantage. Secondly, moving to multi-rail. This is really important to the future of our business, both as a runway for payments but also for services on these flows. Our multi-rail products focus on three areas. Consumer fraud products to help protect consumers against fraud, such as impersonation scams. Corporate fraud products to help protect against corporate fraud, such as supplier invoice scams. And anti-money laundering products, such as our Trace Financial Crime solution, to support consumers and businesses.
Third, we are expanding services beyond our switch transactions as part of our network of services strategy I mentioned earlier. Fourth, digital currencies have experienced significant growth in recent years, and the market value for cryptocurrencies reached $2 trillion this year. We are seeing heavy investment from banks and governments in the digital currency space, and there is a big market for solutions that solve the problem of trust with these new currencies. To help address this gap, we have acquired CipherTrace, a leading digital currency intelligence platform that can map and trace blockchain-based transactions between entities, providing greater risk transparency and helping manage regulatory and compliance obligations. The fifth opportunity is around segment expansion. Segment needs are changing rapidly and require specialized solutions. For example, SMEs are one of the most targeted sectors for cyberattacks.
We have addressed this by developing cyber health assessments and cyber insurance solutions designed for small businesses and are leveraging our partners to help accelerate market access. Lastly, as you heard me say earlier, we are heavily focused on digital identity as a core component of our strategy. You will hear more on this from Chris Reid. I hope you have seen today that we are focused on making Mastercard the most trusted brand in payments. We have the knowledge, tools, and people to take us forward. Critically, we also have outstanding customers who share our vision and who place their trust in Mastercard and our partners to keep the digital ecosystem safe and secure for people, businesses, and governments around the world. We are proud of the value our services provide and are excited about the journey ahead together.
Hi, my name is Stuart Dwyer, and I lead a team focused on payment partnerships and optimization at Microsoft. We're a globally distributed team, and we focus on ensuring that Microsoft's payment capabilities are a match for the regions in which we're present, the products we sell, and the customers we serve. Payment strategy at Microsoft involves ensuring that as a platform, we can support the full width and breadth of commerce scenarios at Microsoft. That means on one end of the spectrum for consumers, the ability to support transaction scenarios for Xbox. On the other end of the spectrum, the ability to support transactions for our commercial businesses, Azure or Microsoft 365 as two examples. Partnership with Mastercard is fundamentally underwritten by our existence as two technology companies.
We center around the ability to innovate with technology as that then speaks to generating better experience for customers across our platforms. As a merchant, we need to fully authenticate customers who are conducting a card transaction, and we leverage the Mastercard capability to do so. We like to think about the broader application of those capabilities and technologies beyond compliance. The ability for authentication to open up new card transaction scenarios is tangible for us. Microsoft and Mastercard have a long-established partnership around payments. We have deep engagement at both the executive level and also working teams across both engineering and business disciplines. We value the opportunity to continue to innovate and experiment around the ways in which we can put better payment solutions on the table for our customers, and we think about doing this on a global basis.
Hi, I'm Jess Turner, and I'm here today to speak with you about new networks and open banking, what they are and how they are transforming financial services. Payment-adjacent networks enable us to extend our brand across the commerce value chain pre, during, and post-transaction and broaden our services remit. Network plays are particularly attractive given their scalability, standalone potential, and synergies with our core payment capabilities. As market dynamics continue to fuel the growth of open data exchanges and identity markets, our participation now is pivotal to expanding into new network opportunities like open banking and digital identity, which we will be speaking about with you today. Let's jump in. What is open banking? Open banking is a consumer or small business giving third-party providers consent to access their bank accounts and data. This represents a tectonic shift in the consumer and small business data experience.
There are two major forces at play, a push for increased consumer rights to control their data in the form of access, consent, and privacy, and the evolving emerging technologies that enable this. Essentially, the open banking platforms that give consumers the ability to access, control, and benefit from the use of their data. In short, these forces are ushering in a consumer data revolution that is inspiring innovation with developers around the world. This largely starts with open banking and will continue to see that expand into an open finance world where consent is given to access data related to investments, mortgages, pensions, insurance, and a growing number of other use cases. Today, Mastercard is powering various open banking use cases with payment capabilities, personal financial management, opening a new account, or even securing a loan.
We are seeing new and improved apps and services coming to market as we continue to partner with fintechs and financial institutions to drive innovation and remove the traditional friction that occurs when sharing or linking financial data. Beyond facilitating the secure transfer of data, open banking is improving the payment experience for consumers and small businesses by providing choice for how they want to pay and get paid. This is pivotal to our multi-rail approach in extending our core payment capabilities, as I mentioned earlier. With responsible sharing and access to data, open banking not only allows us to expand into new network opportunities that support payments, but improves financial literacy and extends financial inclusion to the underserved. What role does Mastercard have to play in all this?
Well, we are in the middle of it all, playing a central role in creating the network that is driving this innovation around the globe and doing so in a way that empowers a consumer or small business with the ability to access, control, and give consented use of their data. Through this, Mastercard becomes the trust link across the ecosystem. From the data stewards to the data users, such as third-party providers, and especially with the consumers and small businesses, which is crucial as this is their data. This is simply an extension of our brand promise to consumers and small businesses. We are able to fulfill on this promise with high quality, clean data connections that align with our data principles, addressing topics such as data usage guardrails, consumer protection, and consent management.
We power this with best-in-class API technology and a developer-first approach in a trusted and ubiquitous way. Using that clean quality data and leveraging our connectivity, we have the ability to partner with our other services. You'll hear from Chris Reid in just a bit on how we are combining our digital identity and Finicity assets to transform the card application process as one example. Another great illustration is the recent launch of our buy now, pay later program, Mastercard Installments. Lenders with consumer consent can utilize account-level transaction histories as part of their underwriting process, allowing credit to be extended to a greater number of qualified shoppers. Our open banking technology also facilitates consumers' preferred method of repayment, checking, savings, a Mastercard debit card or another payment product, providing consumers with choice. One comprehensive experience enabling best-in-class user experience. With all of this, we are just getting started.
The open banking opportunity is massive, with rapid expansion into new markets and strong interest from banks and fintechs alike. The growth rates we are seeing in open banking continue to climb. For instance, successful API calls and payment initiations in the U.K. are growing 10%-15% per month. Given the central role Mastercard plays in powering open banking around the globe, it's easy to see the opportunity this presents for us and our partners. More than 60 markets worldwide are participating in open banking at various stages, and we continue to see growth in new markets and use cases. We're in different markets today based on the trends we're seeing. We have a strong presence in the two largest open banking markets, the U.S. and Europe, with continued expansion into new markets, including, in the near term, Australia, Canada, and Brazil.
As Raj mentioned, data and services will continue to be an important driver for open banking. For instance, our open banking engagement revenue grew by 50% between 2019 and 2020 in Europe and North America. Since then, we've seen our engagements expand globally with particularly strong growth in Asia-Pacific and the Middle East and Africa region. We will continue to capture this growth and drive revenue based on services expansion as well as transaction and API call volume, similar to our core payment revenue drivers. Let's take a look at how open banking is not only impacting broader markets, but right down to the individual level. Steve Smith is with us today to show open banking is improving credit decisioning.
Thanks, Jess. Hello, I'm Steve Smith, Chief Engagement Officer for Global Open Banking here at Mastercard. As the Co-Founder and prior CEO of Finicity, I would like to bring open banking to life for you today with an example that is live today with Finicity providing the data connectivity behind the scenes, powering a real experience. Experian is providing a solution that allows consumers to contribute new data into their credit score. It's called Experian Boost, which takes additional trade streams like monthly cell phone, popular streaming services, and other utility payments to instantly increase one's credit score. It only takes a few minutes for a user to easily find and connect their financial institution. From there, they can select the right accounts. Once permissioning is complete, it only takes a few moments to get the result back.
As you saw with the demo, this is actually a very simple and quick process. This is common across the open banking experience. Connecting accounts is easy for the consumer, but the power extracted from the data can be dramatic. As Jess mentioned, this isn't just about driving markets. It impacts individuals and families. I recently heard a great story about the Experian Boost solution. A friend had a life event which negatively impacted her credit score. She needed to buy a car to get to work, but her credit score put the payments out of reach. With Experian Boost and the use of her financial data, she was able to improve her score, get an affordable loan, and the much-needed car. Open banking is positively changing lives.
As in this example, open banking is rapidly becoming a valuable tool to help demonstrate creditworthiness, whether it's improving a score, verifying income, assets, and employment, or providing a view into cash flow so that lenders have access to data when assessing consumer and small and mid-sized business credit and making lending decisions. This also opens the door for those underbanked or thin file or no file to access and build credit. We are focused on extending our leadership in API data access. To date, we've signed data access agreements with most of the nation's largest financial institutions, credit card companies, and wealth management institutions. Another notable example of our progress is in the mortgage market, where we're enabling the digitization of the lending process with over 85% of digital lenders in the top 100 using Finicity data, including top lender Rocket Mortgage.
Our one-touch mortgage verification service assists in the mortgage origination and consumer permission data, allowing lenders, including Freddie Mac and Fannie Mae, to verify assets, income, and employment via a single interaction that takes seconds or minutes instead of days or weeks. Whether it's consumer and SME lending, financial management, payments, or other segments, we're seeing adoption of open banking to enable data-driven services. In our Finicity business, we're signing up dozens of new customers every month. Open banking ushers in a wide range of experiences that brings greater clarity to the finances of individuals, families, and organizations.
Through the simple process of connecting permissioned data, personal and business financial management becomes more robust and yet simple to consume. Payment experiences are seamlessly set up and facilitated. Opening and funding a new financial account is faster and easier than ever, and the use cases go on and on. Now that you have seen the transformational nature of open banking, I'll hand it back over to Jess to share more about our global progress.
Outside of the U.S., we continue to scale globally. We recently announced we've entered into an agreement to acquire Aiia, a leading European open banking technology provider, offering a direct connection to banks through a single API, keeping a developer-first approach at the forefront of everything we do. When we look at the payment-specific use case, we've partnered with Tesco Bank, the first major U.K. bank to introduce new open banking technology, enabling credit card customers to make payments directly from their current account. Lloyds Banking Group uses our merchant payment solution to unlock benefits for merchants, including instant settlement. As I mentioned before, we're also bringing our solutions to new markets, including Australia, Canada, and Brazil next year. What's next? Mastercard is uniquely positioned to continue to lead building out an open banking network with trust at its core.
Our global footprint, combined with our technology platforms and unique set of value-added services, both organic and acquired, is what sets us apart. We will continue to expand and scale globally with ever-increasing data connectivity and data sources through best-in-class technologies. We will leverage synergies across the organization to deliver integrated products and payment solutions with a developer-first approach that resonates with our fintech partners. We will continue to innovate with financial service providers, banks, fintechs, and more as we drive growth for Mastercard and expand into new network opportunities around the world. I'm now going to hand it over to Chris Reid, who will speak to you about digital identity and how Mastercard is prioritizing security and experience. Thank you.
Thanks, Jess. That was a great introduction to how we're embracing new networks and expanding our capabilities to help establish ourselves as leaders in this space. Good morning, everyone. I'm Chris Reid, and it's my pleasure to now talk to you about another big new networks focus area for us, digital identity. Now, this has been a transformational year for our digital identity efforts. We've scaled our solutions into new markets, formed new partnerships, and we recently acquired Ekata, one of the world's leading identity verification providers. Before I talk about our capabilities, let me tell you first about the opportunity as we see it. Creating trust is critical to anything and everything that happens in our increasingly digital world.
As you heard Ajay mention earlier, a key component to establish and deliver that trust is clearly and reliably proving your identity, who you are, whether you're interacting in person, online, or in-app. Current systems create needless friction that is, at the least, inconvenient and at its worst, it's costly. Last year, Javelin stated that the scale of identity theft losses globally reached over $50 billion, with 50% of consumers saying they would switch to a competitor after just one bad experience online. With the world today relying on a greater use of digital services, there is a clear need for a verified digital identity that is accepted globally and across multiple touch points. This is something we hear constantly across the full breadth of our partners, from financial institutions and merchants through to crypto and commerce platforms.
This is why we see digital identity as a great opportunity for our business and intend to play a leading role in addressing these challenges and enhancing digital interactions well beyond Mastercard's own transactions and card-based payments. Over the last two years, we've expanded our portfolio to include healthcare, education, travel, telecoms, government, as well as large buy now, pay later providers and cryptocurrency platforms. We believe there is a better approach to identity that prioritizes experience and security, and that allows us to compete effectively in the market today. An important point to add here, you've heard us say this before, we believe there should be no trade-off between convenience and privacy. Mastercard's model embodies privacy by design and ensures people are the guardians of their identity data with a consent-centric approach.
We already have a differentiated set of assets in our network to compete and win as this market develops. These capabilities offer a flexible, secure, and consumer-centric approach to identity. We refer to this as the identity of people, devices, and transactions. Within our network, we have a 360-degree view or set of consent-driven insights on consumers and businesses. Through device intelligence and behavioral biometrics, such as the way you type or hold your phone, we can determine if it's a genuine user or a fraudulent device.
We're able to conduct further real-time risk analysis and validation of key identity data to ensure that each user has no patterns of recent risky behavior, such as a significant volume of new account applications. Finally, we have insights derived from our enhanced payment transaction data through our authentication environment that we use to significantly improve our transaction success rate globally. We believe these are the necessary assets to compete, but it is our scale of these identity insights contained within our network that truly differentiates us. We have 650 billion device behavioral events, 16 billion consumer permissioned personal data elements, and 5.5 billion enriched transaction data scores. These are growing every day, and this is what allows our artificial intelligence teams to develop world-class scores and consistently improve their accuracy and effectiveness.
This continues to reduce fraud in the digital economy and improve customer experience. Our global network reach is also a strategic advantage. With our simple APIs and existing network platforms, we're already connected to over 10 million merchants and commerce partners and 5,500 financial institutions around the world. We are proud to be offering our identity services around the world to fantastic partners such as Goldman Sachs, Stripe, Jack Henry, Adyen, Singapore Airlines, Kount, Wells Fargo, the Singapore Government, and Experian. In short, the same knowledge and networks that safely move billions of dollars around the world in moments can be leveraged to create digital identification that's simple, smart, and secure. With these assets and network reach, we're offering a uniquely complete solution for customers and are confident that we have a significant opportunity for growth.
Similar to our payment network, we receive a fee every time one of our services is used. I'd like to finish by bringing all of this to life for you. As you heard Ajay say earlier, we have combined seamless experience and security and enabled our customers to better serve their consumers and businesses. I'd like to share a video that helps to show you the broad range of technologies and capabilities that not only make us an industry leader in the digital identity and open banking space, but also demonstrates our role as a key enabler of security and trust in the digital ecosystem. Thank you.
As consumers use more digital services, the need to prove their identity in the digital and physical worlds continues to grow. But how do you trust someone you don't know and can't see? At Mastercard, our goal is to advance trust in digital interactions and enable more people and businesses to participate in the digital economy. We've developed a suite of capabilities that offer a flexible, secure, and consumer-centric approach to identity, helping people to prove they are who they say they are across a range of use cases while protecting businesses from a growing range of threats. Let's see how a card application works. From the moment the consumer starts to fill in the card application, our behavioral biometrics technology assesses their physical interactions with the device to determine if it's a genuine user or fraudulent actor.
When the application is submitted, a real-time risk analysis is performed on the identity data to determine if the identity is authentic. For additional assurance, an identity document can be validated and biometrically matched against a live selfie. To complete a financial check, the service provider uses open banking to check income and account status. Success. The card is added to the consumer's wallet using Mastercard tokenization service. Now let's do some online shopping. As the consumer begins checkout, the merchant conducts a series of checks in real time, all while giving the consumer peace of mind that their data is secure and their transaction is being processed quickly. As the payment is made, Mastercard authenticates the consumer and shares intelligence with the issuer, avoiding unnecessary declines.
Mastercard is leading the effort to support our partners with the latest identity solutions to enable convenience while building a trusted and inclusive digital environment. Together, we can create a better digital world.
My name is Billy Alvarado. As Stripe's Chief Business Officer, I play a lead role in developing Stripe's most strategic partnerships and shaping ecosystem strategies to enable our global growth. Stripe's mission is to build software tools, APIs, and infrastructure to grow the internet economy. Many of the most innovative businesses on the internet are building on top of Stripe's software platform and our global payments and treasury network. Mastercard is a critical partner for our global payments and treasury network, and we share the goal of enabling economic growth for millions of businesses across the globe. Through our partnership, we are able to offer many products and services that help internet businesses more efficiently move money around the globe. We're excited about the direction of our partnership with Mastercard. We have new launches coming up, including cross-border services and the issuance of Mastercard cards with Stripe Issuing.
We're excited to start issuing cards on the Mastercard network as part of our banking as a service business. We have invested heavily in Stripe Issuing this year, and we see Mastercard as a key partner for continued growth in 2022 and beyond.
Hi, everyone. I'm Sachin Mehra, CFO at Mastercard. Thanks for staying with us over the last couple of hours to hear about our strategy and execution plans. We've covered a lot of ground today, so what I thought I would do is try to pull it all together. Over the next few minutes, I plan to cover the following three areas: Mastercard's compelling growth story
Our investment and capital planning priorities and thoughts around our performance objectives over the 2022-2024 period, as well as Mastercard's longer-term revenue growth potential. Before I jump into discussing these three areas, given that we often focus our discussions on the financial performance in any given quarter or year, I thought it would be good to level set on our financial performance over the last five years. As you can see, other than in 2020, when the entire globe was impacted by the pandemic, we have consistently delivered strong net revenue growth each year. In fact, we delivered a net revenue compound annual growth rate of approximately 17% over the 2017-2019 period on a currency-neutral basis and including acquisitions, reflecting the fundamentals of our business and the strong execution of our strategy.
The resiliency of our business is further demonstrated in the strong revenue recovery that we have seen in 2021 as we have started to exit the pandemic. Now, with that as background, let's discuss why Mastercard continues to be a compelling growth story. Put simply, our future growth is predicated on the following four growth vectors. First, there remains a sizable, untapped, and fast-growing consumer payments opportunity that we have been successfully growing our share in. Second, we see significant opportunity to grow revenues by targeting new flows and use cases.
Third, we have a services portfolio that is growing at a pace that is faster than the overall growth rate of the company, that diversifies our revenue streams, making us more resilient through up and down cycles, and last but not the least, helps us differentiate ourselves with our customers, thereby helping us grow our share of payments globally. Finally, we are growing and building a set of new networks in the promising digital identity and open banking spaces. We believe that each of these four areas present a tremendous opportunity and complement each other, thereby resulting in strong long-term growth potential for Mastercard. Now, let's dig into some of these growth areas in more detail. As Craig discussed, consumer payments, including bill payments, which remain the cornerstone of our franchise, represents an opportunity of approximately $45 trillion.
Not only is this a sizable opportunity, but it is also fast-growing, as we expect that over the long term, carded market volumes will grow at a CAGR of 9%-10%. Specifically, of this $45 trillion, roughly $20 trillion is carded, with the remaining $25 trillion representing a meaningful secular shift opportunity. We are specifically targeting the shift to carded payments in both digital and physical commerce by investing in digital technologies to make the fast-growing e-commerce space frictionless and secure, electronifying cash-heavy small-ticket payments by increasing adoption of contactless payments and investing in the growth of our acceptance footprint. In addition to the sizable and fast-growing consumer payments opportunity, another potential driver of meaningful growth is the recovery of cross-border volumes. As you all know, cross-border volumes were severely impacted in 2020 due to COVID.
In fact, in Q3 2020, Mastercard cross-border spend levels were about 35% below the levels in the pre-COVID comparable period in 2019 on a currency-neutral basis. While we have seen some recovery through the third quarter of this year, with levels very close to the pre-COVID spend levels, there remains significant growth opportunity in this area. For perspective, in the pre-COVID environment in 2018 and 2019, we grew cross-border volumes approximately 17% annually on a currency-neutral basis. Our confidence in the growth potential of overall cross-border is driven by the opportunity in cross-border travel, given the increasing proliferation of vaccinations and the associated opening of borders. Let me share a few data points with you.
In Q3 2019, the top 20 inbound travel corridors represented more than 70% of total cross-border travel volumes and as of Q3 2021, these corridors are only at about 70% of 2019 levels. If you take a subset of these, the inbound corridors into the U.S., Canada, and the U.K., which represented approximately 20% of total cross-border inbound travel volumes in Q3 2019, are at only 50% of 2019 levels as of Q3 2021. Given the recent announcements about opening of these important corridors, we expect to see further improvement. In the meantime, we have positioned ourselves very well to capitalize on this recovery through further strengthening our position in travel.
While we are positive on the potential for the recovery of cross-border volumes, the entire Mastercard team remains focused on meeting the needs of our customers and consumers, and thereby earning the right to grow our share of the consumer payments opportunity. This focus of our team has yielded tremendous results. Specifically, over the last three years, we have not only delivered market share growth across the franchise, but also grown share in 16 of the top 20 markets globally. In addition, as of year-end 2020, we had share leadership in approximately 50% of the top 20 global markets. This momentum is continuing with marquee recent wins across Gap Inc. brands and Santander, amongst others, which help us keep the share momentum going.
Now, in addition to the significant consumer payments opportunity, as Craig laid out, there are specific new flows and use cases that we are targeting. We have chosen these areas because of their potential and our ability to bring real solutions to the needs of these segments. We are well-positioned and laser-focused on realizing the sizable revenue opportunity across new flows and use cases. Across the four areas of disbursements and remittances, commercial point of sale, B2B accounts payable, and consumer bill payments, not only are we targeting a meaningful addressable market, but we are well on our way with market-leading competitive assets. Specifically, based on our Q3 2021 net revenue, these four areas contribute approximately 13% of Mastercard net revenue and are growing at a strong rate as Craig discussed. Important to note that this does not include account to card infrastructure revenue.
Net-net, we are on our way to realizing this sizable opportunity. Now, moving on to the third growth vector, our services portfolio. You have heard from Raj and Ajay about the strategy we are pursuing to continue to grow our services lines. I did want to level set on the tremendous progress that we have already made in this area by consistently delivering strong growth in revenues, while also leveraging these assets to drive the growth of our payment volumes and winning market share. Specifically, over the 2018 to 2021 period, pandemic notwithstanding, we are forecasting services revenue to grow at a compound annual growth rate of 21%, and at 24% in 2021, all on a currency neutral basis and including acquisitions.
This will result in services representing approximately 35% of 2020-2021 forecasted net revenues. We have heard from many of you on your desire to get more color on what comprises our services revenues. Here goes. Services revenues are forecasted at more than $6.5 billion in 2021 with our cyber and intelligence, data insights, consulting, and loyalty capabilities contributing approximately 90% of those revenues. It is important to note that roughly 50% of these revenues are driven by transaction growth, which benefits from the underlying payments growth opportunity. Further, a meaningful portion of these revenues are recurring in nature. These are important attributes, as this revenue profile gives us confidence in the sustainability of these revenue streams. Now switching gears to our investment priorities.
Our business has tremendous growth potential, and it is critical to make the right investments to deliver on this long-term growth opportunity. It all starts with our strategy. What do we want to accomplish, and what is the best way to achieve that objective? As we make investments in these focus areas across payments, services, new networks, and the foundational enablers, we will do so through a combination of organic investments, acquisitions, and partnerships. Also, we will continue our disciplined approach towards expense management by investing in a balanced manner to drive short, medium, and long-term top and bottom line growth. As it relates to our capital planning priorities, they remain unchanged from what we have previously shared with you and continue to serve us well.
As you may recall, our capital planning priorities are, one, to maintain a strong balance sheet, and we believe this is an imperative for the role we play in the payments ecosystem. Two, invest for the long-term growth of the business through organic and inorganic means given the significant growth opportunity. Three, return excess capital to our shareholders through a combination of share buybacks and dividends with the bias towards share buybacks. Note that we have now returned approximately $50 billion to shareholders through buybacks and dividends over the last 10 years and have grown our dividends every year. Number four, migrate our capital structure towards a more normalized mix of debt and equity over time.
Now to the information you have all been waiting for, our three-year performance objectives, all of which we are establishing on a currency neutral basis, excluding the impact of special items, gains and losses on equity investments, and future acquisitions. While we recognize we are not completely out of the pandemic in several parts of the world, we feel that significant progress is being made with the rollout of vaccines globally and the progressive opening of borders, thereby resulting in improving domestic and cross-border spending trends in all regions. Using 2021 as our base, over the 2022 to 2024 period, we expect to deliver a net revenue compound annual growth rate in the high teens on a currency neutral basis and excluding the impact of future acquisitions.
This assumes an annual carded market volume growth rate of 10%-11%, cross-border travel returning to 2019 levels by the end of 2022, and growing our services revenues at a 20%+ CAGR. In terms of cadence of growth over the next three years, we expect the first year growth rate to be the highest of the three years as we lap the effects of the pandemic. We are confident in our ability to deliver high teens net revenue growth given the strong fundamentals of our business and our multiple growth levers, namely the underlying carded market growth, the cross-border opportunity, our continued market share wins, and our strong services portfolio that is in high demand. All of this is further complemented by growth in revenues from new flows and use cases and growth from our new networks opportunities.
From an operating margin perspective, we will continue to operate with the philosophy of delivering a minimum annual operating margin of 50%. Now you all are very aware that we have historically operated at an operating margin higher than 50%. We have set this floor at a minimum of 50% to provide enough flexibility to continue to invest in the long-term growth potential of the business through both up and down cycles. One thing I would like to emphasize is that we continue to believe that it is important for us to invest for the long-term growth while delivering positive operating leverage, and we will continue to execute with this philosophy in mind.
Finally, we expect to deliver an EPS CAGR in the low 20s range on a currency-neutral basis, excluding the impact of special items, gains and losses on equity investments, and future acquisitions. Now a few words on Mastercard's long-term revenue growth potential. We believe that we can deliver an annual net revenue growth rate on a currency-neutral basis in the low- to mid-teens over the long term through the execution of the strategy you have heard us discuss. The bottom line is that there remains a sizable addressable market across both P2M and new flows and use cases that we are well-positioned to target.
When you take that, along with our continued focus to grow market share, the excellent opportunity across services and new networks, we believe that we can deliver low to mid-teens revenue growth over the long term through the execution of the strategy that you have heard about today. To wrap all of this up, we remain very optimistic about the future of Mastercard and that we have a strong financial outlook given our multipronged growth factors, our targeted strategies to capitalize on each of these, our competitive position, and our demonstrated ability to deliver top and bottom-line growth. Thanks, everyone. That's it for the formal presentations, and we will now move to Q&A after a short video.
Thank you, everybody, for staying with us. Now we're keen on your questions. Over to our moderator today, the very familiar Warren Kneeshaw.
Thanks, Michael. We've established a call-in bridge for the sell side to ask questions, so let's get right to it. Our first question is from Tien-tsin Huang at JP Morgan. Please go ahead.
Hey, thank you, Warren. Enjoyed the presentation. It was great to see everyone's faces virtually here. I wanted to ask about consumer choice, just thinking about that topic. You know, Mastercard, I know, has a lot of scale. You've talked about that, a lot of trust and acceptance, but it doesn't have that direct consumer relationship, right, to influence choice when many fintechs do, and some of those fintechs have closed-loop ambition. I'm curious, how do you ensure consumers choose Mastercard products and partners and your tech in this traditional fourth-party model? I know you talked about a lot of the themes, but just at a high level, how do you think about that piece of it?
Hi, Tien-tsin . Let me start on that. The partnerships with fintechs, you know, we talked about our leadership position throughout the morning here. That's been an integral part of how we grow our business. Always, you know, for everybody to keep in mind, we're a B to B to C business, so fintechs help growing to get the scale that you just referred. As you also know, we do believe in choice, we believe in consumer choice, and we wanna offer all of that. I think it's I wanna level set us to just remember that not all choices are created equal. If you think about the choice as it relates to card payments.
Fintechs extend the power of card payments into more spaces, more acceptance points on the acceptance side as well as on the issuing side. We love that. Now we partner with fintechs quite effectively. We do it at least, you know, I think so. We're doing it on the issuing side, where we can clearly create the preference. On the acceptance side, you know, you could argue that a business model that enables small business wants to have all forms of payment, and that is very much our multi-rail strategy. We support that. We try to create that preference and build a tighter relationship with these fintechs through our services. Think CNI, what we heard from Ajay Bhalla, are fraud solutions that just make it the easier experience.
You could argue that Click to Pay is a good experience, but Click to Pay by Mastercard is differentiated. Buy now, pay later. New data. Pay with rewards. I think there's ways for us to take all the benefit of the scale, but at the same time drive differentiation. I find we're living up to the promise of choice, but we're using our partners as effectively as possible.
Yeah. No, that makes sense. Can I ask a second question, Warren? Happy to drop off.
Just keep going. You're on a roll.
All right, I'll be quick. Just on the services side, I, you know, a lot of scale there compounding at a high rate. What is the margin profile now? What do incremental margins look like? I heard that 50% is transaction-based. Can we infer that some of the rest is gonna be more people-driven? Just sense on the margins there. Thank you.
Yeah. You heard Sachin in his final piece talk a little bit about the nature of recurring revenues versus, you know, people-delivered revenues that are not so recurring. We've been pushing the revenue yield over the years on every one of the services that we have added as we inject it into our network. The general direction is get a capability, put it in, and drive it up. Now, I'm sure you have a view on margins very specifically.
Yeah, no, absolutely. Tien-tsin, here's what I'd say. First, I think we need to think about services on a holistic basis. They are a key element of what drives our payments and in the future will drive the new network side of what we're doing. We need to think about it holistically. That's the way we think about it. On a direct margin basis, or what I would call on an incremental cost basis, what you'll see is there's a range. For example, our CNI solutions come with lower amounts of incremental cost per $1 of revenue, which we generate there. Then we've got the consulting and managed services piece, which comes in with slightly higher, on a relative basis, incremental cost. Then you've got data insights and analytics, which again has got lower incremental cost.
There's a range in terms of what the margin profile looks like for the different services capabilities which are there. Suffice it to say, the way we've been scaling our services revenue has been accretive to the bottom line, and we've been actually driving towards doing a better job in terms of driving towards a lower incremental cost basis as we've been scaling up.
Yeah. No, it's impressive. Grateful for the thoughts. Thank you.
Thanks, Tien-tsin.
I don't wanna let that comment pass that Tien-tsin made. It would actually be nice to see everybody in person. You said, "Yeah, it's nice to see you guys," but we can only just hear you yet again. Hopefully next time we do this, it is actually in person. Second question. Warren, what do we have?
Great. Our next question is from Harshita Rawat at Bernstein.
Thanks for the presentation today. Great color and disclosure. Michael, taking a step back, Mastercard enjoys very deep, attractive competitive moat in its core consumer payments. As you diversify into services, new flows and new networks, can you know, on a high level, can you talk about what's Mastercard's right to win in some of these new areas which are fragmented competitively? Just to follow up with Sachin here, Sachin, how should we think about the ROI characteristics here compared to your base business as you build these new networks? Thank you.
Thank you, Harshita. Strategic moat is an interesting word. You know, the way I like to think about it, here's the value that we bring to consumers, to governments, to businesses. The better that value is, you know, the more significant our differentiation is. Now, on the payment side, there's clearly the scale part. There's the technology part. You know, we spend the whole morning talking about how we have differentiated solutions. I think, you know, what is the third and very critical element here is the business model around it, our franchise. The franchise rules that we put together that our customers love.
Then if you take that and say in consumer payments and P2M, that is the model that's been successful, and it has so much more runway, as we just talked about today, why would we not pursue the same kind of touch, you know, trusted and tested model when it comes to the flows that Craig talked about, very specific, your remittances and, you know, cross-border services, B2B and so forth. The intention very much is to create, you know, to extend that strategic differentiation by creating a franchise model around what we have done with B2B payments. Mastercard Track Business Payment Service is in essence a franchise model. It defines different roles. We talked about agents, supply agents, buy agents and so forth. It is. We don't want to be just another technology company.
We partner with a lot of technology companies who push our value proposition out there, but it is really taking the combination of trust, our reach and the power of the franchise into these new flows. I think we have enough examples where we're doing that. Bill pay is another one. It's an ecosystem. Pay by account is another ecosystem, and we're right now very busy doing that in open banking as well.
Yeah, Harshita, as it relates to your question on ROI, I think just to level set again, what I'd say is Mastercard is in the business of delivering innovation at scale. When we talk about scale, we talk about the ROI profile at the end of the day over the longer term being quite similar to what you've seen us do over the last 50 years as it relates to our payments capabilities and then over the last decade as we've done in services. I would see new networks being not too different than that. You will make investments up front. You will generate scale as part of making those investments. As that scale comes to fruition, the benefits will come through from an ROI standpoint.
Great. Thanks, Harshita. Our next question is from Darrin Peller at Wolfe Research.
Thanks, guys. Nice job on all this today. The slide 64, Sachin, you gave us I thought was extremely helpful to break down the percentage of revenue from some of these new flows and new areas that I know we've all been wondering about for a long time. Just, can you just touch on a little more detail around what you're incorporating from some of those new areas over the next few years when thinking about your growth profile and potential? And even as much granularity as you can, because I know there's some real excitement over what B2B can be, not to mention some of the other key categories you guys incorporated in that slide and some other areas.
Yeah, sure, Darrin, I'm happy to take that. So look, I mean, I think you heard Craig talk about the tremendous traction we're having in disbursements and remittances. He talked about a growth rate in volumes of about 45% in the third quarter of this year. And it contributes about 2% of our revenues at this point in time. Then when you break that down further, you go into the commercial flows, you go into what we call the B2B accounts payable flows and bill payments, all of which overall comprise about 13% of our revenues. I would tell you on a forward basis, the best way to think about this is what is the state of maturity of each one of these solutions?
I would tell you in disbursements and in remittances, we're getting to a place where we're seeing very good traction. The growth rates are reflective of that. We are factoring in, you know, a decent amount of growth coming through in what we've shared with you as it relates to our three-year objectives. On commercial, it's something we've been doing for some time now, Darrin, and you know, the reality is we are very prominent in that space. We're growing at a healthy clip. That too is very much factored into what we've got. In the accounts payable space, I would say that there's probably more work to be done in terms of truly delivering innovation at scale. We've started to do that.
You can see that from the numbers which are there, particularly on the VCN side, we've been doing it for some time, and you're gonna see growth come through in the next few years on that. There's work we have to do further in terms of scaling up Mastercard Track BPS, which is still assumed to be, you know, in ramp phase over the next few years. Bill payments, again, is a relatively new space for us. It contributes about 2% of our revenues, but we're very focused. I would tell you, largely speaking, we do have elements of growth factored in across all of these four new use cases, in what we've got built in for our three-year performance objectives.
Darrin, I wanna use the opportunity. You're looking at us, but actually the rest of the team is here as well. You'll recall in the presentation earlier, Craig talked about four specific aspects of how we will actually go about these use cases, and I wanna invite Craig just to add to this point and how he's thinking about the layering up. Craig, if you could just join us here.
Thanks, Michael. These are all areas that we are counting on for important growth. The addressable opportunities that we described as part of the presentation, the applications that we have in market today are each at a stage of deployment and growth and in the process of being scaled across our business globally. The areas that we talked about with disbursements and remittances, we've seen significant growth already, and we anticipate substantial opportunities through ongoing addition of use cases, extension into new geographies, extension into new customer segments and partner relationships to continue driving that growth. The same is true in the B2B space. Obviously, the carded space has been impacted to some extent by some of the travel restrictions we've seen as a result of COVID. Those are gonna come back. We certainly anticipate them coming back.
In parallel, we've continued to see that really nice growth with small business, with some of our other commercial carded products. As Sachin said, with Track BPS, we're still in relatively early stages, but having good progress in lining up partners, getting the distribution capabilities built out so that we can continue to see volumes grow and revenues come with that associated with virtual card use, supply chain financing, and other value-added services that we'll overlay.
Bill payments is gonna be a little bit more of a market by market opportunity. As I mentioned in the earlier remarks, we're really focused on the Nordics. Strong presence in Denmark and Norway, expanding into additional Nordics markets and building out the presence in the U.S. with other markets on the roadmap to be launching in the years ahead. As Sachin said, we're certainly counting on each of these to continue contributing to revenue growth for us in the years ahead.
Thanks, Darrin. Our next question is from Lisa Ellis at MoffettNathanson.
Hi. Good morning. Thanks, guys, and thanks for the discussion this morning. It's great. I had a question on digital identity. You know, so many alternative payment services use two-factor authentication to validate identity. Can you address how Mastercard's digital identity services are differentiated compared to using two-factor authentication? Would you consider these services to be potential customers, or is this a competitive challenge to you? Thank you.
Right. Thank you, Lisa. You know, this whole space of transaction authentication, I'm even thinking about the third quarter call. I think one of you asked a similar question there, where we said, "Well, what do we do on strong customer authentication in Europe, and how does it impact?" I think, you know, the point is it adds additional complexity. It adds actually additional friction into the transaction process. Nobody is really keen to wait for an SMS or a one-time password and then key that in again and so forth. What we're trying to do, and that's where differentiation comes in, and I think that's what consumers are looking for. They don't wanna trade off ease and simplicity with security.
What we're doing is try to move the friction behind the scenes, so it is not friction in the face of the consumer. Use additional data points. You know, you heard us talk about new data many times. We have, like, hundreds of billions of, you know, data events around how behavioral kind of data points work when you type on a screen of your phone. If you take that and you move the whole authentication behind the scenes so that new data technology will tell you, "actually it's Michael typing," then that is a truly differentiated solution. There are many other examples in our technology that can do that. You know, the recent Ekata acquisition helps us with even more insights on making this so much easier.
Now to your question about is there therefore an opportunity for partnership with authentication providers? Absolutely, there is. We're looking again at a whole new set of entrants into the commerce ecosystem who are coming and trying to pick particular parts of the value chain, and we try to power them with our data insights and, you know, our solutions. I think it's the same thing here. In the end, when you think about the big vision that we have is a reasonably reusable identity that you, a lot of the transaction verification can move in the past because you've been authenticated as a person to start with, and you don't have to do this every single time thereafter. That's, I think, the journey where things are gonna go.
I see it as an additional growth opportunity for us, but it's early days. This stuff has to work out. The good thing is we have capabilities on transaction authentication, on people authentication and device authentication. Whatever the journey is, I think we have enough IP in the play to figure this out.
Great. Our next question is from Sanjay Sakhrani at KBW.
Thanks. I guess my question rolls up some of those that were asked previously. I guess when we think about the long-term growth targets, maybe past 2023, how much of the growth comes from newer revenue sources versus the older ones?
Yeah, Sanjay, why don't I go ahead and take that? I think when you think about the longer term growth opportunity, it goes back to what I mentioned in my presentation. We continue to believe that there's a sizable long-term growth opportunity which remains in the core consumer area of payments, which we've been involved in for many, many decades and will continue to be involved in for some time to come. There's still a significant amount of untapped opportunity there. In fact, I've kind of shared there that we expect that over the longer term, that annual carded market volume growth rate will be in the 9%-10% range. That should give you a little bit of an indication as to what we think about as a contributing factor to what we're thinking about from a long-term growth standpoint.
When you add on top of that the potential growth opportunity which comes from new use cases, and some of the new areas which Craig just spoke about, you know, that just creates that much more of an accelerant from a growth standpoint, as we think about it. There are puts and takes thereafter, right? I mean, the puts and takes are when we think about what we can do from driving greater growth from services, right?
Driving greater growth from share. There'll be some offsets which will take place potentially from a, you know, overall kinda as we're growing share, what the implications are as it relates to our yield. Overall, net-net-net, I would tell you that payments continues to be the cornerstone of the franchise. New use cases, new networks will be accretive to that above and beyond.
You know, I've been excited about our multi-rail strategy, the opportunity that we see in new flows. As we're preparing for today, you know, over the last month or so, you start to see return out of COVID. You pull all of this together. I am so energized about the growth opportunity in consumer payments. That accelerated secular trend, it was always there before. It was powering our business. Yeah, you could ask the question, because we're now having better technology to go after cash, is that reducing the growth opportunity? I take a very different view. I think there's so much cash out there's so much opportunity. Just look at, you know, we grew our acceptance network throughout the crisis, you know, over the last year by 14%. That is so powerful.
I'm very energized on the consumer piece. The additional flow piece, as you know, we've been very serious about it. You know, I really don't mind, is it one or the other? I think they're all very real, but consumer is there right now, and it is a golden opportunity.
Our next question is from Jason Kupferberg at Bank of America.
Hey, thanks, guys. Appreciate all the detail today. I know pre-pandemic, when you guys had three-year guidance in place, I think the general assumption underpinning the net revenue growth was that rebates and incentives would climb, you know, maybe 50-100 basis points a year as a percent of gross revenue, and there was a little bit in there in terms of positive impact from pricing. Just wanted to see if those assumptions hold as you look forward over the next three years, recognizing that mix may move things around on the R&I side, especially with cross-border coming back more so next year. Thanks.
The word assumption is always a cue for Sachin. There you go.
Jason, usually I tell you, we're assuming minimal net pricing as it relates to our three-year performance objectives. As you're well aware, right? Rebates and incentives is gonna be a function of multiple things, and we're not assuming anything out of the ordinary from a rebates and incentives standpoint when we're putting out our three-year performance objectives.
By that, I mean, we would expect that we would continue to compete in the marketplace. We're also building in the recovery of cross-border, which, as you know, is less indexed from a rebates and incentives standpoint. All of that's kind of factored into what we're sharing from a three-year performance objective standpoint. Of course, there's the impact of new and renewed deals, which is kind of something which we factored in as well as we thought about what the next three years looks like.
Deal momentum continues. You saw us very active in the market. We had a lot of wins over the last 1.5 years. I expect that to continue. We'll see timing of deals and how that looks. As Sachin put it, nothing out of the ordinary on R&I.
Great. Our next question is from Bryan Keane at Deutsche Bank.
Hi, guys. Thanks for today. Really informative. Wanna ask about Mastercard Installments. I know that's unique to Mastercard. Just wanna understand the economics of a transaction. Maybe you can walk us through it. In particular, if the consumer decides to fund the transaction through a checking or savings account, are you guys still getting paid on those transactions? Thanks.
All right. I want to point that question to Linda, to start off, and then, Sachin, you can chime in.
Sure.
Buy now, pay later, you know, ahead out of the block in our U.S. business. Linda, over to you.
Well, as you heard earlier, our buy now, pay later installments program is a terrific new program that connects our merchants with lenders at scale. It's really an opportunity to benefit from the ubiquity of our network and the scale of our acceptance. With respect to economics, what you're gonna see with our program is competitively advantaged economics relative to what's currently out there in the market.
Think about it as the average of core interchange plus a fee, an installment fee that sits on top of that's shared and apportioned by the participants and stakeholders in the installments ecosystem. It'll drive value for all parties. It'll be incremental to the business that we have today. Mastercard will benefit not only from the initial transaction, but also if the consumer decides to repay the loan with their Debit Mastercard. Two opportunities to drive revenue for Mastercard.
Yeah, I have nothing further to add. That was pretty clear. All right, thanks. Okay, next one.
Great. Our next question is from David Togut at Evercore.
Thank you. Good morning. Appreciate all the helpful detail, especially on the services business. When you look at the intersection of your services business, you know, with your European payments business, which historically has been your biggest area of differentiated growth, what are the three biggest growth opportunities in services in Europe? You know, especially as we see kind of the development of open banking and the rollout of account-to-account payments.
Right, David. Let me start, but I want Raj to get ready to kind of chime in here. You know, open banking is clearly a very in-focus area in Europe. You know, we've been in the market since 2019 on that. Where conversations are going and where interest is going when it comes to services around open banking is clearly underwriting. You go and use a broader set of data to facilitate credit access for SMEs, for example. Here, we see an opportunity for us to take some of the strengths that Finicity has and some of our footprint and our connectivity in Europe and bring that together. Just one example. Raj, I'm sure you have a few more.
Yeah. It's, you know, our services business, just going back to what I said before, it's about supporting payments. It's about driving incremental revenue, you know, on top of that, as well as new networks like open banking. When you think about Europe, it's no different from other parts of the world in that we will continue to drive all kinds of consumer payments, cards of course, but also other types of payments, including, you know, installments, including open banking. We'll also make sure that we continue to make these transactions very secure no matter where they are, no matter what rail they go on, increase sort of value propositions and consumer engagement and drive usage and all of that will play into it. I look at this as a tremendous opportunity across all the European markets.
Right. Maybe just one point to add. If you think about some of the recent significant wins that we had in Europe, remind you of some of the debit wins in the U.K., NatWest, for example, or the Deutsche Bank, you know, deal back in Germany. You start to look at that and peel the onion and say, what are the reasons that we won these deals? Oftentimes, services has been the differentiator or a very important component in the eyes of the customer on why they would go with us versus somebody else.
Great. Our next question is from Ramsey El Assal at Barclays. Please go ahead.
Hi. Thanks for taking my question. Michael, I wanted to ask you a higher level question about interchange. How do you see this sort of interchange-centric economic model evolving over time as you pursue new flows, open banking, crypto, CBDCs? You know, it seems like a myriad of different, you know, new modalities. Do you see the primary economic model changing as your mix changes? And what risks or opportunities might that bring?
Hi, Ramsey. Let me start off with just a general perspective on how we, how I look at interchange as a balancing mechanism. It's trying to really, you know, get the power of the open loop system to go by giving enough incentive to all participants. You all know that. You're very familiar with that. You know, I don't see that changing. That kind of a balancing mechanism in an open loop network will always be helpful. It's gotta be done in the right way, that the incentives manage value that is created. It's fluid. Of course, you have regulators taking keen interest in that and so forth.
You know, as we talk about our new flows proposition, I talked about the power of our franchise and how the business rules work. That might be a similar balancing mechanism, might be fee-based. There's all sorts of models that I think we're open to and that we're innovating around with customers as we think about pay by account, as we think about payments through open banking connections and so forth. I think it's gonna be fluid. We believe there's a lot of value in the interchange system as it exists today. I think it provides predictability in the right kind of level of interchange if you look here in the United States, if you look over in Europe. Other markets, you see, you know, different developments.
We've been navigating this, I think, very successfully over the years, and we'll continue to navigate it. I'm not ready to declare it's gonna go one way or another because I don't see that right now. We have an opportunity to create the right kind of economic models in the new flows, and we're busy with that, and I think we're actually a leading voice in the ecosystem. You know, through our public policy engagements, we engage with regulators as well to say, "Here's the value that we are creating, that the ecosystem is bringing to consumers, merchants, and so forth in a given market." Watch this space. It's an interesting journey for us, but I think there's a lot of value in the business models.
Great. Our next question is from Dave Koning at Baird. Please go ahead.
Yeah. Hey, guys. Thanks. I guess my question is, when we look at your three-year guidance high teens revenue, and then look at long-term low to mid-teens, there's that 3%-5% gap, let's say. How much of that is just cross-border returning to normal, and how much is that we're just at a point in history where things are better, the development stuff is better at driving more growth than usual?
Yeah. Dave, a couple of thoughts to you on that. One is when we talk about long term, we talk about truly long term. We're not talking about the next three years, we're not talking about the next five years. We're talking about long-term revenue growth potential, 5+ years and out. What you're seeing in the nature of three-year performance objectives is a couple of things. One, you're coming off of a lower base year in 2021, so you're seeing the impact of that come through in what we're sharing with you in terms of high teens. Number two, like you said, there is the recovery of cross-border travel, which is built into that performance objective, which we laid out as well.
Suffice it to say that the reality is, over the longer term, when we talk about this low to mid-teens revenue growth potential, there is a large part of that still coming from our consumer payments opportunity. On top of that, we'll keep building out the revenue contributions which come from services, the new networks, and all of the things we've talked about during the course of today.
Great. Our next question is from George Mihalos at Cowen.
Hey, guys. Thanks for doing this. Really appreciate all the color. I had a question as it relates to crypto. You guys laid out a very sort of comprehensive offering. You're talking about stablecoin, CBDC, and then obviously, you know, more traditional Bitcoin or more, you know, non-centralized coins. I'm just curious, Michael, do you think one has sort of a leg up or an advantage in terms of sort of being able to permeate the payment system longer term? By the same token, can you envision something like a central bank digital currency, you know, potentially being a competition or a negative for your traditional debit business? Appreciate it.
Right. George, you know, fascinating space for you, for a lot of people out there right now. As you said, compelling program. We want to play a strong role in the crypto ecosystem. There's a whole ecosystem to serve. You know, crypto as an investment class, CBDC, stablecoins. I don't think we need to make a call today where we say, "This is gonna be a winner, and that's gonna be a loser," and all that. I don't think that's needed. We will enable choices and the choices that are there, so that's generally our strategy. Ready, invest, and then make sure that we find our added value that we bring to this ecosystem. You know, it starts off with having a lot of IP and, you know, fundamental technology here.
You could start to think about smart contracts and so many other things. I wanna call on the person that is best positioned to give you some more color on that, and that is Jorn Lambert, who is actually here with us in New York. Jorn, why don't you share a few thoughts on crypto?
Yes. Thank you, Michael. First and foremost, I think it's important if you look at the crypto world now, right now, the crypto economy, it's actually all net incremental for a company like Mastercard. When you think about the commerce in that, NFTs and collectibles and all that's net new volume. If we move into that space, that just comes on top of what we do every day already. If you think about the new flows around remittances, around trade finance, around DeFi, that's essentially net new for us. We see this first and foremost as a gigantic opportunity that we need to lean into. Ultimately, some of that may come into the traditional commerce. We don't really see demand for that today, but it may come.
That's also a reason why we're investing. In terms of the currencies itself, we're working with different governments to understand how they're looking at CBDCs. They will, over time, implement those things. They will need interoperability cross-border. They will need interoperability with traditional commerce. You know, people will wanna buy online, in store, and that is what we do for a living. These conversations are evolving, I think, very positively. I think we increasingly see people reaching out to us to say, "Okay, how can we actually, as this progresses, work together to make this safe, secure, responsible, compliant, and actually solve real world problems?" That's kind of how we looking at it. That's how we're leaning in and investing.
One more aspect to what Jorn just said. Other than that, I do actually wanna reiterate the safe and compliant part. That's always been our approach, so we're not just wandering into a space because it's exciting technology. We take a pretty principled view about this. Regulatory compliance goes first, level playing field, all of that. None of that is changing. There's so much you can do in this space. One thing that I wanna reiterate from our earlier discussion over the course of the morning is the services opportunity in crypto. We say there's a whole ecosystem to serve. There's a whole ecosystem to serve on exactly that point of compliance. Who knows, you know, what the regulation is in a particular market on how AML and KYC should be looking around crypto transactions?
Well, CipherTrace does. 900 digital currencies in CipherTrace. That is a very specific opportunity and a very important role for us to serve as this ecosystem grows. Two more thoughts. Our partnership with Paxos and with Bakkt, both are regulated entities. Crypto as a service delivered through Mastercard, through these partnerships by people that are actually regulated in this space. Very important.
Great. Our next question is from Bob Napoli at William Blair. Go ahead, Bob.
Thank you and good morning. Interested to dig a little bit more into cross-border. On the commentary, I thought I heard that U.S.-U.K., about 20% of that business was only back to around 50% of 2019, but the overall is at 97% of 2019. Not sure if I got that right. Just thoughts on the long-term growth of cross-border, both physical and digital. Is that gonna be one of the higher growth portions of Mastercard?
I am so surprised that no cross-border question came up before. I'm happy you actually teed up the topic, and you did get the numbers right. Sachin, you can
Sure
Share even more numbers.
Yes. Absolutely. Bob, a couple of things. First, just to kinda get the numbers out once more. In Q3 of 2019, in terms of cross-border travel, we've gotta be careful about not mixing up cross-border travel with total cross-border. In terms of cross-border travel, the top 20 corridors of inbound cross-border travel represented 70% of total cross-border inbound volume. As of Q3 of this year, we're running at about 70% of the 2019 levels on that top 20 corridor piece. The subset of that is that the U.S., the U.K., and Canada represented 20% of that the Q3 2019 number, which I told you. That is currently running at about.
in Q3 of 2021, was running at about 50%. There's significant opportunity to go in terms of what the recovery path would be there from the inbound cross-border travel to the U.S., U.K., and Canada
Also broadly across the top 20 corridors which I was talking to you about. The reason we're kind of giving you these data points is it's important to keep an eye on how borders are opening. As you are very well aware, on Monday of this week, the U.S. opened its borders to inbound travel from the U.K. and actually several other countries from across the globe. That's an important consideration in terms of how we are thinking about what the recovery potential is. Even beyond that, what you're starting to see is, you know, elements of border openings taking place in other parts of the globe, such as Asia-Pacific, et cetera.
One other piece I'll share with you is, and I'm sure this is on people's mind, is what have we seen recently given the fact that, you know, borders are opening, so on and so forth. Here's what I would share with you. We've got approximately two weeks worth of data since the last earnings call, which we had with you.
My overall comment for you, both in terms of domestic spending and cross-border, is they are showing improvements relative to 2019 spend levels, very much in line with our expectations. Just to dig a little bit deeper, cross-border travel is showing improvements relative to 2019 across all regions. As it relates to cross-border card not present, excluding travel, that continues to show good strength. That's kind of the color I'd like to share with you as to what's going on holistically on cross-border, but also what we've been seeing in the last couple of weeks.
My wife is on a flight from Paris right now, and the flight is full. That is the last bit of information I can add to this question.
Great. Our next question is from Moshe Orenbuch at Credit Suisse.
Great. Thanks. I was hoping to kind of come back to the topic of kind of account-to-account payments, and you've spent a fair amount of time on that this morning. Could you just elaborate, you know, as to exactly how you're going to leverage the two acquisitions, Finicity and Aiia, and what we'll be able to see, you know, from the outside as, you know, as those services are developing? Because I think there's been, you know, we get a lot of incoming from investors on the topic as there's been, you know, press releases from some, you know, products that could be competitive. Could you just kind of elaborate on that a bit?
Yes. Love to. Thanks, Moshe. You know, when you look at account-to-account and payment initiation use cases, I think the first thing I just want to level set on is it is not a natural consumer reaction just to take any announcement and go ahead and say, "Let me try that out." Yeah, that's probably stating the obvious, but there is a lot of value in card payments. There's a lot of value in debit and credit and all tools that are there today and that work and that consumers are actually really very familiar with. That is good. We believe that. You know, as we also laid out this morning, we're very busy in promoting that.
Nevertheless, there will be opportunities where there are use cases where, you know, account open banking account-to-account payment use cases are a relevant alternative. I think there's use cases where this is a net new addition, you know, following the logic that Jorn just talked about earlier when it comes to crypto payments. You think about invoice pay, for example. You think about, you know, credit card repayments. There's a whole set of use cases that are have been traditionally on account to account, and they can be facilitated through open banking technology in a better way. That is the type of use case that we will focus on and that we will want to enable.
Now, the good thing is, with Finicity, we have a set of capabilities that this acquisition has brought to the company in addition to what we had already live in Europe to basically, you know, create such, you know, payment flows, for example, by starting off with account verification, account owner verification, and just getting ready to initiate a payment like that. We have these capabilities. You look into Aiia, which we hope to close as a transaction this side of the year. They have a whole range of payment initiation capabilities. So both of that together, I think will give us an opportunity to go after these net new use cases, while at the same time we promote debit and credit as we continue to do.
In the end, wherever the market is going in terms of choices, you know, it's oftentimes not an aggregator, a technology company that will decide where things go. It will be, in the end, the consumer preferences. We'll stand ready with any solutions to support whatever happens.
Thanks. I think we have time for one last question, and that goes to James Faucette at Morgan Stanley.
Thank you very much, and thanks to the whole team for putting all this together. Sachin, I wanted to go back to one of the things that you talked about. You guys have addressed a lot of the top line and revenue driver questions that I had. On this question of margins, one of the things that we hear a lot from investors is concern that the overall amount of activity in this space could lead to higher investment by players like yourselves. I think you were pretty explicit that you thought that 50% operating margin was a good floor to put in as far as you know, trying to take into account future investment, et cetera.
Can you talk a little bit about under what conditions or timeframe that you think we could see operating margins at that level and how long they might last? And is that something that you're actively planning for in kind of the current medium-term forecast, or would this be more of a eventuality if things were to change and modify? So just a little color on how you're thinking about that as a floor and when and where, under what conditions we might end up there. Thanks.
Sure. James, happy to do that. Like I said, we consider the 50% operating margin as a minimum. I think you all know we operate at an operating margin higher than that. The reason we've done what we've done in terms of setting the floor at 50% operating margins is to provide us, you know, room to actually be able to continue to invest in the business through both up and down cycles. That's important because at the end of the day, what we're focused on doing is delivering revenue growth and bottom line growth in the near, medium, and long term. We've got to make sure that we continue to invest in the business to enable all three of those returns to come through, which is near, medium, and long term.
One important principle, which I did talk about but I'll reemphasize right now, is that our philosophy around continuing to deliver positive operating leverage remains unchanged. We will continue to operate on that philosophy on a going forward basis.
Unchanged. Nothing new there. I want to reiterate that point on positive operating leverage. That's the discipline we have demonstrated, and that we will continue to demonstrate. But I'm excited about the growth opportunities. We don't necessarily want to box ourselves in not being able to invest in our business. We do want to invest in the growth opportunity.
Thank you. Michael, any final closing comments?
All right. It's been three hours, so thank you for staying with us for three hours. As you can see, in the Q&A, we have, I think, four cameras around us right now. As you can see, I'm looking left, right, and center. We try to juggle this as best as we can for you. Thank you for staying with us. Thank you for your support all along. I hope you found this helpful. We try to give you additional color and insight and share the excitement that we have around the growth opportunity. I do hope that we can see you in person at some point soon. Thank you very much. Thank you for your support.
Thank you.