Good morning. Thank you all for coming here to our 2024 Mastercard Investor Community Day. Very excited to have you all here in person. We have a full room here, and thank you for joining for those on the webcast. Those here in person, I hope you had some time to get to the product demos upstairs earlier. If not, don't worry. There'll be plenty of time later today. I'm just going to take a few minutes to talk through a bit of the agenda for the day before we switch over to the main presenters. We'll be here in the main room for presentations for about three hours. There will be a break in the middle. There'll be about 30 minutes of Q&A at the end. You'll hear from multiple leaders of Mastercard, both in person as well as Sachin joining us remotely.
We have handed out in this room books, as well as are posted on the website. Please note the presentations may not follow page by page, so just check where we are on the screens or online. For those of you flipping all the way ahead to Sachin's presentation now, I agree. It's exciting. Get it over with. I don't want you doing that when Michael gets up on stage in a few minutes. After the main session, the webcast will end, but for those of you here, please don't go home. We still have a lot in store. The demos, as I mentioned, will be open till 3:00 P.M. in Freedom Hall. Also, at 12:00 P.M., we'll have a lunch with multiple members of our board of directors. We have Merit Janow, Lance Uggla, and Richard Davis here today.
They'll be in the Hamilton room with an open table for you to sit down and have a dialogue around how does our board interact with Mastercard, how does our board think about our strategy, or anything else you want to ask them, as long as it relates to Mastercard. At 1:00 P.M., we'll have breakout sessions. There'll be four sessions. I'll talk more about those later, what they are. There'll be one run again at 1:45 P.M., and the day will end at 3:00 P.M. So please stick around. We have a lot for you. Now, the most exciting part of my presentation: forward-looking statements. Can we move the slide forward? Because these ones I have to read.
These forward-looking statements are based on current assumptions we may make forward-looking statements today, with expectations and projections about future events which reflect the best judgment of management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by our comments today. You should review and consider the information contained in our filings with the SEC regarding these risks and uncertainties. Please look online or in your books for any of our SEC filings, as well as for any of the non-GAAP and GAAP reconciliation about anything we talk about today. With that, let's get started. I'd like to welcome Michael Miebach to the stage after a short video. Thank you.
Mastercard doesn't look to tomorrow. We shape it. We've built an engine of growth for today's successes and tomorrow's opportunities, a limitless loop of promise and growth. We've redefined payments, transformed sectors, and revolutionized economies. Our strategy to grow, diversify, and build is powered by our engine of growth. We're supercharging the shift from cash to digital with technology that connects millions to the global economy and unleashes business potential everywhere.
We're revolutionizing business payments and simplifying how money moves, amplifying productivity for enterprise customers globally. We're delivering unrivaled value through our decades of expertise, our data, AI technology, and network capabilities, helping clients improve safety, drive better decisions, and optimize their businesses. Even in times of accelerating change, Mastercard's engine of growth puts us and our customers two steps ahead, and as much as we've accomplished, tomorrow's opportunities are greater still. Because when you're the ones writing the future, you know that the best is yet to come. And that is priceless.
Two people applauded. Two. I'm like, "Come on." So you saw it in the video, huh? We're leaning into the future, and we're shaping it. And when we do that, we create this virtuous cycle of growth. No end, no beginning, an infinite loop. What a clever trick of our marketing team. The loop. You're going to see it throughout the day. Keep that in the back of your mind. Virtuous circle of growth. That's the future, and that's Mastercard. And with that, I also want to welcome you to our 2024 Investor Community Meeting. And it's good to be back in person. It's been too long. I think it was 2019 that we were in this room. Also, those of you who are joining us online, thank you for doing that. Today, we will talk about our vision of the next era of growth for Mastercard.
But let's go back just for a moment and think about the last three years since we met. A lot of change. We have been dealing with geopolitical crises. We had to deal with the lingering effects of the pandemic and the rewiring of the global supply chain and everything else that led to evolving markets. And we are seeing a technology-driven, broad-based wave of innovation that's reshaping the global economy, which I think is a very exciting way. Now, through all of that, Mastercard never wavered. We agreed goals amongst ourselves. We shared them with you three years ago, and we delivered on them. We shared the numbers earlier on. We even delivered on them and some. Now, Sachin is going to talk you through our scorecard, our performance at the end of this morning's session.
But I have a few personal highlights that I just want to share with you. So over the last three years, we outperformed the S&P 500 by 18%. Over that same three-year period, we returned $31 billion to our shareholders, $31 billion in cash. Considering who we are, it should have been probably something different than cash. That's a German joke for you. All right? Okay. I will not attempt any more jokes then. It's not working with you. We gained share across all of our products. And over a 10-year period, we tripled acceptance. Over the last five years, we doubled acceptance to 150 million acceptance points in over 220 countries. And those now include China. And with that edge, we are positioned to be the most prevalent way to pay on the planet. And nobody else can say that.
People can say it, but for us, it's true. Now, we believe we deliver unmatched value. This morning, I want to talk about how do we do that. We focus on the fundamentals of running our business. It starts with having the right strategy. It's about anchoring the strategy in economic trends, and it's about executing with excellence. Keep those three in mind. I'll take them one by one and share with you how we're going about it. Having the right strategy. Let's start with that. You know what it is. We grow, diversify, and build across three strategic priority areas that are mutually reinforcing: consumer payments, commercial payments, and new payment flows and services. We have been very consistent about the strategy. The fact that we have delivered on our numbers for the last three years shows it's working. It's a winning strategy.
It also allows us to consistently sharpen our competitive edge. We believe these three areas are the right areas because they offer opportunity for outsized growth and give us an opportunity to shape them through our product innovation. They also position us to navigate an ever-changing world. Those changes that I talked about: geopolitics, macroeconomics, et cetera. The fact that our business is fairly predictable is because these priorities are strong on one hand, but also to give us room for flexibility to adjust along the way, which is exactly what we've done and needed to do over the last three years. Now, let's look at each and every one of them. Consumer payments. At Mastercard, this is like the heart of the business. It's been the source of the success for the longest time. All of us at Mastercard were seized by that.
We've got a ubiquitous network. I just talked about our acceptance. We have a brand that globally stands for trust and reliability. And we have digital-first technology. You're going to hear more about that from Jorn later on. Digital-first technology that allows us to participate in the underlying opportunity of shifting cash to digital payments. It also allows us to deliver more secure and more frictionless experiences, which is what consumers are expecting today. Now, I'm going to come back to that secular opportunity point. There are a few doubters here. There's speculation. How long is the runway? And I know that's top of mind. And we're here together to talk about the things that are top of mind for you. So I'm going to come back to that. Let's talk about commercial payments. Consumer is a huge opportunity. Commercial is another big opportunity.
We believe this space is at an inflection point. The people who touch commercial payments, they have an expectation that commercial payments should be as simple as consumer payments in their everyday life. But they are not. What we're seeing is more and more companies are digitizing more and more of their systems. Now, we're pushing that expectation forward. We're pushing that trend line, and we're doing it very specifically in three areas: commercial point of sale. We've been doing this for a long time. Now, invoice payments and disbursements and remittances. I'm looking at Raj here. Now, with this change or increased digitization in companies, this space is poised for growth, and then there's services, an unmatched differentiator for our payment solutions in consumer, in commercial. There's a services portfolio.
Our unique domain expertise, our unique data assets, and our wide range of distribution channels positions us not only to differentiate our payment solutions, but also to help our customers operate their business more effectively and efficiently. And we're doing this not just across. We're doing it not across the board. We really focus on common areas across sectors like customer engagement, like sharpening market insights, like securing their digital engagements in their digital ecosystem, like leveraging innovative technologies like open banking. It would have not gone unnoticed that these four areas are very much part of our services portfolio, carefully curated to match those common themes across our customers and help us differentiate our payment solution. Now, that's the strategy. But really, the real power of the strategy comes through taking you back to the infinite loop.
When it all comes together and it reinforces each other, you hear us talk about this regularly under the headline of the growth algorithm. So here we go. Our payments network helps us scale our services. Our services help us differentiate our payment solutions. That drives more payments, new payment flows for us to be participating in, which throws off more data to apply our services to and build new services. A powerful cycle. No end, no beginning, the infinite loop. That's the power of our strategy. This is all underpinned by our people, of course. You know, in every earnings call, I mention our people at the end. But it's also our technology. We have Ed right here, our CIO. In the last four quarters, we did 150 billion payment transactions in 220 countries. That's the power of our technology. There's our franchise, and there's, of course, our brand.
Now, this strategy is not new. It's winning. It's delivering for us. It shows in the numbers. You saw our projections. We firmly believe we need to double down on it. And that's exactly what we're going to do over the next couple of years: a winning strategy, doubling down. First takeaway on the three fundamentals I wanted to talk to you about: we have the right strategy. Second one, the right strategy is good. If you have the right strategy that is anchored in global economic trends, that is even better. And what is even better than that is turning those trends into tailwinds for our business. Our business model is positioned to capture the natural growth of the economies to start with. That's the base of everything. And we do that by driving acceptance, by giving people an opportunity to interact with our network and use our products.
But then we have expanded from there on. If you think about the digitization of the world, it's not just about moving cash to digital. It's about more data. It's about more data analytics. It's about cybersecurity. It's a whole host of trends covering a lot of other industries. This is our services portfolio. So we have an underlying economic trend, and we have broader structural changes of the economy that we're anchoring on and we are participating from and benefiting from. Now, then there's the secular growth opportunity. I promise you I will come back to it. I see the questions. Those of you who put notes out, how long is the runway? Transactions, PCE growth, U.S. consumer, and so forth. Now, you will appreciate that we have a preferred seat to see how long that runway actually is.
I'm not seeing a short runway from where I sit. What I'm seeing is when we drive into these fast-growing economies, massive amounts of cash. You heard us talk about Africa, Asia, and Latin America, 90% cash in Africa. You go into developed economies, still significant amounts of cash: Germany, Italy, Japan, 30%-40% of cash out there. That's a tremendous opportunity. And then across both types of economies, you see under-penetrated verticals like rent, healthcare, and so forth, where there's still significant opportunity for us to go after in terms of digitizing that. And then there's a whole world post-COVID of new business models that turn one purchase into multiple payment transactions, another opportunity for our secular, the secular opportunity that we can go after. Let's put some numbers to that. It took the industry multiple decades to digitize $23 trillion.
And what is out there is $11 trillion. That is not a short runway. $11 trillion translates to, probably not exact science, approximately 1.5 trillion transactions. That's a tremendous opportunity for a company like ours with the strategy and the solutions that we have to go after. And that's just consumer. I haven't even started to talk about commercial. Long runway from my perspective. Now, back to the powerful trends. Not every trend that is out there is, at first glance, a positive trend. You ask us in many investor conversations, what do you worry about? And we are very freely talking about what we worry about. We worry a lot. I'm looking at some of my colleagues here. We are worriers, also warriors, but also worriers. And take government. Government invariably comes up in our conversation. So we talk about government.
What I would like to say to you is the fact that government has more interest in payments than Mastercard is not a surprise. It's a function of our strategy. We want to be relevant across all payment solutions. We have been saying this for 10 years. We are now in 220 countries around the globe. People are coming to us and saying, "Hey, we need to understand how dependent we are on you." So there's more scrutiny. There's more regulation and so forth. Then we might be getting designated as systemically important. I tell you what, that's a badge of honor. That is a function of our strategy. We want to be in those flows for exactly the virtuous cycle to work. Now, what is different than 10 years ago? We have learned to navigate that.
We have learned to adjust our technology to make it more flexible so we can deliver against those expectations. Government. One example of we look at risks, we look at worries, and we look for the opportunity within that. I'll give you another one: competition. So I've got the whole team here. We constantly are paranoid about competitors. Yeah, there's nothing new here to tell you. That's always been the case. The one thing I do want to tell you, though, is on the competition point, what's really working well for us is the muscle that we built in understanding who's a competitor, but who can also be a partner.
Because that value chain is now so long, and that ecosystem is so complex, ISVs, PSPs, you name it, we have really developed the muscle and models to interact for people to say, "I'm going to compete head-on with you on this. Let's partner on cybersecurity," just to give you an example. Very important. And then, of course, there's macroeconomics. Like you all seem to think we are the macroeconomic oracle of the world. That feels good, but we're actually not. We do have the Mastercard Economics Institute. And we look a little bit further beyond our business. But fundamentally, if you look back over the last three years, we've seen pretty resilient consumer spending. And we also have seen a pretty resilient Mastercard because overall, we have a diversified, highly diversified business from a product perspective as well as from a geographic perspective.
So, macroeconomics. Yes, people will always spend in up-and-down cycles, make different decisions. At the same time, we have a business in payments. We have a business in services. All of this adds up to a highly resilient business that we keep investing in. So, yes, we are focused, and we monitor macroeconomics, but it's not a deciding factor overproportionally to our business. All right. That's the trends piece. So let me just recap. Right strategy. We're powered and linked and anchored on powerful trends that are out there to be turned into tailwinds for our business through our actions. All of this is great. But it's only great if we execute well against that. So execution with excellence is important. That starts with having the right assets. And I talked about our payment solutions and our services.
And then it really comes down to the point of putting the winning package in front of the customer. Now, many companies could say that. But what's true is the one-size-fits-all is not the answer. It's got to be a specific problem. There's a specific challenge, a specific opportunity. And imagine how that looks across 220 countries and how that looks across all the sectors that we cover, from retail banking to merchants, et cetera. So we have invested not only in driving global scale, for example, through our acceptance, but we've also invested in our local presence and expertise and our domain expertise in airlines and various other sectors that we deal with. So as the most globally diversified payments company that is out there, that's a really big differentiator for us. And it's an important part of how we execute and where we tune the engine.
If you think about all the series of wins that we have talked about in the last quarters in the U.K., in Europe, here in the U.S., it's a function of leveraging that local expertise and that global scalability. First point I want to make on execution. The second point I want to make is when I started in 2010 out in the Middle East, I felt like I was in a position of being a vendor coming to a customer. It was all about cost. Where we are today, when I think about some of our largest customers, and you'll hear from them in customer testimonials a little later, when I hear from them is, or when we engage with them, we talk, let's say it's a bank. We talk to the card set, obviously. We've always done that.
But we're also talking to the retail bank head. We're talking to the CISO. We're talking to the Chief Marketing Officer. We're talking to the strategy head. We're talking to the Treasurer, the CFO, to the CEO, increasingly so in the boardroom. The number of boardroom conversations as we had, "Why don't you come on in and tell us what's next in cybersecurity?" It matters to every company. They don't even want to talk to us about payments. Well, hopefully, they do subsequently. But those are the kind of dialogues that we have. So turning Mastercard into a strategic partner, we've been on that journey for a number of years. But it's really coming together as we broaden the scope of our offering into something what truly powers digital commerce as a whole. And that takes us into a very different conversation.
I was talking to a very large retailer not too long ago. Linda and I were visiting that retailer. And the conversation said, "Well, you got to talk to us about the future of checkout, checkout in the store. How do you avoid queues?" I did not expect a conversation like that. But the dialogue around Mastercard and with Mastercard is changing. And then it's a really important differentiator. So right strategy, winning strategy, powerful tailwinds in which we are anchored, execution. We've demonstrated that. We will continue to do that. All of this comes together in creating a virtual circle for Mastercard. And I think that's priceless. I got to get the word priceless into it at the very end of it. So that's what I want to leave with you. Look for this as you hear Jorn talk about consumer payments. Look for secular opportunity. Look for acceptance.
Look for differentiation in services, unlocking new verticals. That's the powerful cycle for you. I'm incredibly excited about what's ahead of us. And you'll hear from my possibly even more excited colleagues in a moment. Thank you very much.
Good morning. Nothing like a loud beat and a thriving business to get the day started, so I'm here to talk about consumer payments. And consumer payments combined with our related services has been an incredibly growth driver for the company. And my simple message today is we firmly believe this will continue over the next number of years. Voilà. Let me expand a little bit on that. So I'll start with unpacking a little bit where the consumer flows are going to come from. We estimate our serviceable addressable markets to be $54 trillion.
These are the flows that we believe we can go after with our existing capability or those we're about to launch. Over the past 60 years, as Michael said, card companies have already digitized $23 trillion, and within that category, we continue to compete. We continue to successfully gain share against both domestic and international networks, as Ling Hai and Linda will talk a bit more about later on. But as Michael said, $11 trillion is still not digitized despite the incredible success of the last 60 years, and that is about half-half in developed markets and in emerging markets. Developed markets like indeed Germany, Italy, Japan, Spain, lots there to take. Even in the US, there's over $1 trillion of cash, which absolutely we can go after. Now, since last year, we obtained the license to operate domestically in China.
We have launched in May our domestic switch in China. And so China is now entirely part of our SAN. You hadn't seen that three years ago. That's now part of the SAN. And Ling Hai will talk about how we're getting into that and how we're starting to harness that opportunity. And lastly, the shift from slow ACH to fast ACH and changing consumer expectation gives us a real opportunity to go after the $10 trillion of account-to-account and bill pay. On the right-hand side of the page, you see transaction numbers. And that matters because as a network and a switch, we earn revenue both on the value and on the number of transactions. And as you can see, the cash displacement here is $1.5 trillion, which is three times what over the last 60 years we collectively have digitized.
With solutions like contactless, Tap on Phone, we absolutely can go after that. This is kind of our addressable opportunity. Now, let's kind of dive into some of the details here. I can't talk about everything in consumer payments, but I'll focus on how we capture the sector shift, how we win the hearts and the minds of our consumers. I'll provide some pointers on how we invest in the future and extend the reach and depth of the network. Secular shift obviously starts with cash displacement. The first call to action is acceptance. You've seen in the video that kind of curve, the tipping point on the curve that happened a couple of years ago. This is as much about new technology. Contactless, now 70% of all our in-store transactions are contactless.
Tap on Phone, QR, Soft POS, Smart POS, all that lowers barrier to entry for merchants and has triggered that increase. But it is just as much about a new breed of fintechs that we have enlisted in the ecosystems, players like PSPs, gateways, ISVs, payment facilitators that are often very specialized either geographically or by vertical or by sector. And that helps us get into that next generation of merchants. Now, we are investing in this space in a very focused way. For example, in Mexico, Colombia, Sub-Saharan Africa, the acceptance per capita is lower than average. And so we look at terminalization. In certain cities in ASEAN, we're seeing ATM over POS usage is too high. And so we're looking at going after that, specifically the travel hubs. In Germany and Japan, it's about consumer education. And so we're really focusing on its bearing fruit.
Now, it's not just about cash displacement, though. We've done a lot of work with opening up closed-loop networks, and many of you probably came here by tube or subway, you call it here, tapping away as you come to this. We have opened up hundreds of transit systems over the last couple of years. Just this year, we've opened up Beijing. We opened up Boston. We opened up Brasília. That's just cities with a B. It's lots and lots coming online, and it's not just the tube or the subway or the metros. We are on the Medellín cable car. We are on the Sydney Harbor ferries. The whole train system in the Netherlands has been opened up, and every time you open up a transit system, we see a halo effect. People tap to get into the tube.
They tap to get a coffee, a magazine, a taxi. That halo can be 20% uplift in spend whenever we do that. So big focus here and great outcomes. We are competing with domestic markets. They often have some trouble keeping up with the technology innovation. And that's why we've increased our switching share. And in emerging markets, you see a myriad of domestic closed-loop wallets that are servicing consumers that are not always well-served by the financial institutions. We're partnering with them both on the acceptance side, what we've done, for example, with LankaPay in Sri Lanka or Alipay in China, whereby a consumer can load the card into the wallet and suddenly pay at the tens of millions of acceptance points that they have.
But we're also partnering on the issuing side to give more utility to the consumers of that wallet by giving them a Mastercard credential and suddenly opening worldwide acceptance. We think it's a great way for us to get to consumers that we otherwise have a hard time getting to with our traditional distribution partners and therefore leaning into that secular shift and going after the cash. And then obviously, we cannot talk about the secular shift without talking about digital economy. Digital business models show very high growth. Digital content, for example, which is in-app purchases or gaming, super high growth and super high, about half of it is cross-border. So high growth, high cross-border. And it's often a multiplier effect of transactions or spend. If the subscription economy displaces a single purchase with suddenly 12 purchases. And as I mentioned, transactions matter to us.
Or a gig economy splices restaurant transactions into a transaction to the restaurant app or the food delivery app, a transaction to the restaurant, and a transaction to the driver. And it's not a coincidence. It's not a coincidence that these digital business models drop on our rails. This is the result of years of deliberate product development and deep engagement with the industry. And we're already preparing the next type of business models that are coming so that we're able to catch this on our rails and that we're empowering those business models. We're empowering those merchants to be successful. So feeling pretty good about the secular shift overall. But let's shift gears a little bit and talk about that $10 trillion account-to-account on bill pay. You may be forgiven to think that bill pay is a tough nut for somebody like Mastercard to crack.
But we think we can. We believe we need to do three things to crack bill pay. First, we need to make sure that we have the right economics. Throughout the world, we are adjusting our economics so that we are competitive with whatever alternative there is out there for the billers. Second, we need to make sure that the biller value proposition is right. And they are struggling with paper-based processes, with collections, with reconciliation. And we believe our payment guarantee combined with tokenization, combined with authorization optimization, is solving these deep pain points of collections and of reconciliation. And then finally, we need to get the consumer on board. And we're doing some very nifty things there. For example, with Fitbit, sorry, with FitBank and WhatsApp in the LAC, we are unleashing AI to bill payments.
What is happening here is that a consumer through the WhatsApp app can make a picture of the bill. The AI assistant will, through image recognition, translate this into a payment instruction that the consumer can then pay with their secure card on file tied to their profile in a very seamless and intuitive way. Now, this makes bill payment almost fun, at least a lot better than having to deal with papers and websites and email addresses and passwords and what have you. FitBank is connected with 12,000 billers in Latin America. We're launching this in December in Brazil and moving that to the rest of LAC after that. So I hope this gives you a sense that this is a space that we can go after, that we want to go after, and that we have credibility for. Now, moving on to account-to-account and APMs.
Unfortunately, my notes have disappeared, but that's okay, so account-to-account and APMs is a space that we are looking at, a space that's shaping that we need to kind of find our way through. The first thing I would like to say is that we remain very, very confident on the power of the card network to address the consumer and merchant needs. It is unparalleled reach. It is incredible functionality, and it has consumer protection, and we continue to invest and double down on that to make sure that that is the best solution for consumers to pay and merchants to be paid. At the same time, we believe that this presents opportunities for us to get into the flow. For example, we are partnering with APMs in multiple geographies to make sure that we bring their solution to more consumers and make it more useful.
We do that, for example, with Vipps and MobilePay in the Nordics, whereby their consumers are given a Mastercard credential for universal acceptance. Don't forget that all of these APMs are domestic only or debit only, and that leaves the consumer hanging as soon as they want to move to other places. Secondly, we're also investing in infrastructure. We are powering today the RTP systems of 12 countries running 45 billion transactions on our network. Now, this allows us in these countries to engage with governments to learn what the government's motivations and intentions are to service those governments, but also to learn how this business evolves. One of these learnings, for example, is that as fast ACH grows, so does fast fraud, and we're seeing a very rapidly rising authorized push payment fraud throughout the world on the back of social engineering and scammers.
That becomes a monumental challenge for account-to-account as that scales in these markets. Then, hence, an opportunity for our services. We have already deployed Scam Protect. We continue to invest in that and to be able to deploy this elsewhere. So while the space is shaping, we are putting our chips in all of these three areas in order to position ourselves to capture both carded and non-carded flows in that space. Now, I talked a lot about the secular shift, but you cannot talk about consumer payments without talking about the consumer. We are now, everybody here, and every consumer we have is now a digital consumer. They expect their financial lives to be literally at their fingertips.
This is why, from a functionality perspective, we have co-created with some of the world's most sophisticated digital banks, like a Nubank, like a Monzo, like a Kakao Bank, our digital-first product suite. What this does is it allows the consumer to engage with the banks throughout the lifecycle of their payments journey, from application to a card all the way to digital receipts and disputes. And that leads to higher engagement, that leads to higher spend, and that leads to lower fraud for these consumers. We've now deployed this with 450 issuers in the world and counting. But winning the minds of the consumer is not enough. We need to win the hearts.
Our consumers, especially our affluent consumers, who spend, by the way, twice as much as the average and who spend cross-border three times as much as the average, especially those affluent consumers care about experiences, not just things. They care about making memories. And that is why in Q1, we will be launching the Mastercard Collection. Dramatic pause. This is about offering consumers a priority access to the things that they really care about, like booking a table at a coveted restaurant for that special occasion, or like taking your daughter to her favorite performer at a concert with Live Nation, or like whizzing through airport security ahead of everybody else because you're always in a hurry. We're very proud to be launching this in Q1 globally with some incredible initial parties like Live Nation, like Netflix, like The Fork, like Michelin restaurants.
And we'll be building upon that as we go forward. So we truly believe that with the functionality, with that value proposition, and with our worldwide acceptance that not everybody else has, this is a product that consumers will want to carry. Now, all this only matters if you make the payment experience work exceptionally well all of the time. And that is why the boring stuff matters too. We are spending a lot of time making sure that we're securing the transaction with tokenization, with authentication. Tokenization now, for example, powers 30% of all our transactions. But that means there's still ways to go. We're doing a lot in order to streamline the checkout with Click to Pay and Secure Card on File. We're converting Maestro to Mastercard so consumers have more functionality. And we're seeing spend increases in a very significant way.
At the same time, we continue to optimize our business. We continue to make the network work harder. We're increasing, for example, our switching ratio. I think Michael mentioned that. But over the last five years, we have increased our switching ratio, which is the number of switch transactions over total Mastercard branded transactions by 12 percentage points. We're now at about 70%. We continue working on that because every switch transaction allows Craig to deliver services on that transaction. We're increasing approval rates because every declined transaction is a disappointed consumer and a frustrated merchant. We are unleashing our services and our data intelligence in order to do that. We're lifting spend and activation rates on our existing install base. We don't need to win another deal to get more of that revenue. So that drives real revenue and makes our network work harder.
But while we do this, we also need to look at ways to future-proof the network and branch into other areas. One such branch is tokenization, which we truly believe is another network lever. 10 years ago, we launched tokenization as a way to move and store credentials into billions of devices in a secure way. It took us three years to get to one billion transactions. Now we do a billion transactions every week. And the deep insight here is that as a trusted network, we are uniquely placed to connect thousands of market participants out there that don't know each other and propose a standard on how sensitive data is securely stored and shared with third parties and implement this as a service. That is what we have done with credentials on tokenization. That is what we're now doing with passkeys on identity.
That's now a proven technology, and we're deploying with a vengeance. But that's not where it ends. As digital assets become mainstream, we similarly provide a network to tokenize assets and exchange them between counterparties. And ultimately, we're aiming to tokenize data through consent tokens, allowing consumers to take control on who gets to see and who gets to benefit from their data. My point is tokenization is another network effect. And it's one that, like our core switching, can drive new business models. And we're at the very early innings of what we believe is a very long journey. Sorry, I got carried away. I still have a minute. Now, we're also modernizing our card switch. We're living in a more and more complex world. And fortune favors the most adaptable.
Now, let's not forget, despite some of the regulatory challenges that we have to face, we have increased our switching ratio by 12 percentage points over the last five years. We have obtained the license in China. So there's trends in this countertrends, and we felt pretty good about that countertrend. At the same time, we are very convinced we need a superior tech stack in order to face the challenges of the future, which is why we have launched this year in South Africa our modernized card switch, which offers real-time clearing, which offers rapid settlement, and immediate payout, but very importantly, which is also deployable anywhere at full flexibility. To win, we need to be able to offer the best that's out there and bet on ourselves. Now, we don't know what new business models will emerge in the future.
But these are just some of the examples on how we get ready to enable these new businesses, stay ahead, extend the network, and let these flows drop on our rails. So with that, I would just leave with you that we are laser-focused on capturing and extending the secular shift and unlock the volume and transaction growth for us. We will win the hearts and the minds of the consumer with rich functionality, ubiquitous acceptance, and exciting value propositions. And we are leaning into market transformation and our poise for growth in these ever more complex markets. And so with that, I will hand over to Raj to talk about commercial and new payments flows. Thank you.
Every day, Mastercard provides businesses and people with faster, smarter, and more secure ways to pay, get paid, use capital effectively, and work more efficiently. B2B payments made by large corporations and small businesses, along with global money transfers, create a $100 trillion opportunity for our solutions. Businesses across the world see us address this opportunity when a shopkeeper pays for the delivery of much-needed inventory without the inconvenience and risks of using cash. An immigrant worker sends her hard-earned money home to her parents quickly and safely.
A procurement manager makes supplier payments via a virtual card easily and seamlessly within her own ERP platform. A business traveler confidently uses his corporate card with real-time expense policy checks and auto-generated expense reports. A small business owner gives her employees mobile virtual cards with tailored expense controls that can be conveniently used in their digital wallets. We're doing well by doing good, driving financial inclusion and modernizing commercial payment experiences.
We've connected 50 million businesses to the digital economy through card acceptance, reached 95% of the world's banked population with our money transfer solutions, and continue to expand our market-leading mobile virtual card capabilities into new use cases. Every day, we're proud to propel businesses by powering economies and empowering people.
Good morning. I'm delighted to be here with you this morning and to talk about commercial and new payments flows. Commercial and new payment flows represent a significant opportunity for Mastercard. This includes commercial as well as disbursements and remittances. So let's start with commercial. These are payments made by a business to another business. These businesses can be small or medium enterprises, SMEs for short, or they can be large corporations. And there are two types of payments here. The first is point-of-sale purchases.
This is when you tap your card, your T&E card, your purchasing card, your fleet card, your SME card. This is when you tap your commercial card at the point of sale. And the point of sale can be physical or it can be digital. And akin to consumer, the benefits come from global acceptance, ease of use, trust, security. But in addition to that, there are other features, for example, expense management. And then we have invoice payments. These are payments between a buyer and a supplier. So a buyer places an order, the supplier delivers goods or services, delivers an invoice, and then the buyer pays the invoice. So these are known counterparties. They're often contractually bound. And there's an opportunity here to track, to reconcile, and to optimize. Then disbursements and remittances.
These are money transfers, money transfers from a business, a government, or a person to another person. The sender and the receiver can be in the same country, or they can be in different countries. The transfer can be in one currency or can cut across currencies. We do this with Mastercard Move, which includes Mastercard Send that travels on our card rails. And then today, we have rails that go beyond cards. This comes from our acquisition of Transfast and HomeSend. The opportunity here is to track the money in its journey, know exactly where it is, provide certainty on when it might arrive at its destination, and then reduce the cost of the journey entirely. Now, across this area, there are five points to highlight. One, the total market is growing, which is great. It's always good to be in a growing market.
Two, the serviceable market is now $100 trillion. And the serviceable market is growing faster than the total market. Why is that? Because we're creatively deploying our products and services, things like virtual cards. And we're also building and buying new capabilities so we can go after more of the total market. Three, our market share is growing. From what we see externally, it's growing faster than our competitors, and it's growing faster than the market. Four, our market share, while it's growing fast, it's still only about 2% of the serviceable market. So we're nowhere near saturation. There's lots of runway ahead. And then finally, five, the economics are attractive. They're attractive for Mastercard, and they're attractive for our customers. This is because, for example, commercial has a higher mix of cross-border, or there's tons of opportunities to add services across all of these flows.
Very excited about this. Let's start with commercial. This is a $80 trillion serviceable market. It follows the same growth algorithm that you know so well: spend growth, secular shift, share growth, and services. Now, here, there's an enormous secular shift. There's $77 trillion. That is 95% of the opportunity. There's $3 trillion in cards. Then we have a growing suite of services for security, for controls, for loyalty, for insights to drive competitive differentiation and to increase yields. Now, let's look at each of those two types of transactions I mentioned earlier. Let's start with point-of-sale purchases. This is a $17 trillion market. There's $16 trillion in cash and check to unlock. Cards are perfectly suited for this. We know how to drive this unlock. We are already successfully driving it today. Invoice payments. This is a $63 trillion market.
There's about two trillion that's carded. There's $61 trillion more to go. Our ability to unlock these payments is growing for three reasons. First, there's a trend in corporates. There's a generational shift in the employees. They want consumer-like ease. They want digital workflows. The corporates themselves want efficiencies. They want streamlined processes. And now it's increasingly possible with advances in technology. Automation via enterprise platforms is moving very fast. But until recently, it stopped short of payments. That's the opportunity for Mastercard. The second reason related to this is that at Mastercard, we have a VCN engine, a virtual card engine that is industry-leading and competitively differentiated. We continue to enhance it, adding features and functionality. We're making it easier to access. We want the access to be ubiquitous. So, for example, we're embedding it in the enterprise platforms.
And the third reason is that we have an increasingly deeper knowledge of these fragmented commercial ecosystems. We're prioritizing attractive slices. We're going after verticals that are ready to change. We're addressing industry-specific idiosyncrasies. We're solving for all stakeholders, meeting the user where they are. We're providing flexible interchange so that the buyers, sellers, the two sides of the market can find the price that is right for a particular transaction. Now, we have a strong track record for growth here. Mastercard's share of the carded market is about a third today. But we're growing very fast. We have added over four percentage points of market share since 2019 in this market. And we're growing it simply by growing our slice of the pie, by winning versus competitors, and then growing the overall pie to our advantage. Now, how are we targeting point-of-sale payments?
Exactly as you've seen us do all along. We continue to innovate and scale our successes in T&E, in fleet, in purchasing, in SME, across debit, credit, and prepaid, across businesses of all sizes. Our success is driven by three factors. First, we're delivering differentiated value propositions. Take SME, for example. We now have cards for entrepreneurs. We have charge cards, which is a pathway to credit for an SME. We've developed mobile VCNs for all businesses of all sizes. This is to provision a virtual card into an employee's digital wallet. There's a demo upstairs I encourage you to take a look at. So you can use it, for example, to mop up petty cash. We're using services to differentiate these commercial payments. Let me use SME loyalty as an example. These are merchant discounts that are available to an SME that are automatically applied via the network.
In Brazil, we have Surpreenda Empresas. Here, users have a 120% lift in spend. In the U.S., in the Easy Savings Program, users use the card 4.5 times more often, and they spend almost three times as much money. We've developed business payment controls to set limits on spend, geography, merchants, time windows. So take an SME owner. Her credit card is tied to her personal credit. Her debit card is tied to a bank account. So it's risky for her to give that card in any form to her employees. But now she can use mobile VCNs to put the card into the employee's digital wallet and then use business payment controls to set limits tied to a specific purpose. Expense reimbursements. This is a very costly process. At one company, we discovered that a reimbursement transaction costs $50.
And then if there's a rejection and you resubmit your expense report, that's another $6. So one rejection, it's $56. Two, it goes up to $62. So knowing this, we integrated into expense management platforms. And today, we cover two-thirds of the global market. SMEs also don't have the resources of a large company. So we provide AI virtual assistants, provide platforms to digitize their operations, and there's a demo of this upstairs. We're also expanding distribution. We're growing our traditional sales forces that partner so well with our banks. We're adding new geographies. So take SME as an example. In China alone, we've already launched eight programs for SMEs. All these geographies that we enter represent a secular shift. We've also built new sales forces. We have a sales force now that targets corporate buyers like CFOs, treasurers, chief procurement officers. We're also targeting innovative fintechs.
Now, globally, there are many SMEs that are outside the financial ecosystem. We're using digital and virtual cards to replace cash. This drives financial inclusion, and it drives a secular shift, and of course, we're building acceptance. All of our point-of-sale efforts span both consumer and commercial, and take SME acceptance. We're driving this very hard. I'll give you a couple of examples. We're helping an SME make every device an acceptance device. We're bundling acceptance and issuance for smaller SMEs so they can start accepting cards all the way upfront, and with all of this, we are winning. We are winning flips. Wells Fargo is an example. We're winning renewals with expansions. For example, with FAB, we're going to be entering the Kingdom of Saudi Arabia. We're winning with corporates. 7-Eleven now uses our T&E purchasing and virtual cards.
You'll hear a lot about this from Linda and Ling Hai in a little bit. Invoice payments. We're systematically unlocking B2B transactions. It starts with ecosystem enablement. We're looking at account payables files, analyzing them, identifying suppliers that accept cards so that everyone can use a card there, identifying suppliers who don't accept cards, and working with them on acceptance. Straight-through processing. We're using virtual cards to eliminate manual entries. Card controls to capture preferences, limits, categories, and then automatically manage the terms of acceptance. Flexible interchange so that buyers and suppliers can meet at the right price for a transaction. Today, we have this globally for travel. We're introducing a new program. It's a broader program that will be available in Q2 of 2025 in 79 countries. We're making the network fit for purpose.
So, for example, we're refining our franchise rules for large transactions, for data enhancements. We're looking at our chargeback and dispute rules to reflect counterparty terms, to reflect industry norms. We're using real-time intelligence to flag acceptance drop-offs so that we can quickly address it. We're also working with buyers and suppliers on either side of this ecosystem, educating them on the value of cards and the value of virtual cards, driving efficiency and accuracy in accounts payable and in accounts receivable, both the process as well as reconciliation. With buyers, we focus on getting the card and the virtual card in the hands of all users for all use cases. We're also using card-to-account, where the buyer wants to pay by card, but the supplier wants to accept a bank deposit. With suppliers, we're also working with them in many ways. Let me give you an example.
We have a program for acquirers to help them innovate and scale B2B acceptance. We have about 30 global acquirers participating in this program today. Now, Mastercard is a corporate, which is great because it helps us monitor progress. Today, there are two times more suppliers accepting cards versus in 2019 because there's real economic value in it. It lowers the overall costs, it reduces errors, and it gives you a lot more financial flexibility. Now, we're extending our success in travel. We're looking at industry verticals. We've successfully unlocked travel. We used cards, virtual cards, flexible economics, and various features specific to travel. Today, we have a significant share of the carded travel market.
Now, we've focused on unlocking other attractive industry verticals, verticals that have high spend, ideally cross-border, verticals that have a lot of cash and check to digitize, and verticals that have points of aggregation to drive scale. Let me give you a couple of examples. Take trade and logistics. I'll give you the example of DP World. We use SME cards. We give cards to SMEs so that they can pay for their port services. This converts cash. It also provides access to working capital. Another example in healthcare is the Medical Tourism Association. This helps a consumer pay for medical services that they access abroad. So here, you have one transaction, but you have multiple payments. You have a P2M payment that the consumer makes, and then a multiple set of cross-border B2B payments to the hospitals, the doctors, and the clinics.
In all these verticals, we're driving a secular shift. We're creating value from lower-cost digital workflows, better access to and utilization of working capital, error-free data-driven reconciliation. And we're driving SME financial inclusion, which displaces cash. Embedded payments. We're also embedding payments into widely used platforms. Invoice payments link procure-to-pay at a buyer to order-to-cash at a supplier. The buyer sources suppliers, places orders, receives goods. Then they have to match the purchase order to the bill of goods, to the supplier's invoice, and then they trigger the payment. These suppliers sell to the buyers. They receive orders. Then they have to assess the buyer's credit because they're going to be exposed. They ship the goods. They invoice the buyer. And eventually, they get paid. And at that point, they need to reconcile that payment to the original sale.
These workflows cut across multiple departments at the buyer and at the supplier, and historically, they've been very complex and often very manual, so we're working with ERPs and procurement platforms. Efforts are already in flight to digitize and streamline these workflows. The opportunity for us is to embed payments, so we use our competitively differentiated industry-leading VCN engine. So buyers can generate a virtual card within the platform. The virtual card is embedded in all the approval workflows. It is safer. For example, you can assign limits to the virtual card. It's more flexible, so a buyer, for example, can pre-fund a supplier. It releases working capital for buyers and suppliers. And of course, you get easier reconciliation because you have richer data. We're already live with the leaders, and we're seeing green shoots. There's substantial interest from corporates and issuers alike.
There's a potential to unlock enormous volumes for cards. We're very excited about the secular shift in the many years ahead. Now, let's talk about disbursements and remittances. This is the market Mastercard Move targets, which is about $20 trillion in size. We're growing fast, but we only have a 2% share. There are many, many use cases to go after with attractive, accretive yields for Mastercard. So in this business, we move money from a sender who can be a business or a government or a consumer to a receiving consumer. The opportunity is exciting in two particular ways. The first is the bottom row. This is three-quarters of the flows. These are flows that originate from a business or a government. So they're easier to target.
So examples here are when you pay wages to a host or a driver, or in gaming, when you pay in for a game or you take your winnings out. The other thing that's exciting is the right column. It's cross-border. It's more profitable. So examples here are support that you might send a parent or a child living in another country, or wages for coders or content developers that are working from anywhere. We have remarkable scale in this business that continues to grow. We reach about 95% of banked consumers globally in real-time or near real-time. We have 10 billion endpoints. These are wallets, accounts, cards, and also cash-out locations for underbanked consumers. And we're driving our capabilities forward. We're differentiating our propositions. We're enhancing digital journeys. There's a great contactless transfer demo upstairs you should look at. We're simplifying cross-border experiences.
There's an alias-based remittance demo upstairs you should look at. We're adding security. We're adding insights. We're also creating use-case-specific features, so take payroll as an example. We have tools to calculate wages, view activities, access tax statements, and we're expanding our network on both sides. On the origination side, we're embedding Mastercard Move into platforms. We're integrating into core banking to reach smaller banks and credit unions. On the receiving side, we're expanding to more countries, more geographies, more wallets, more cash pickup locations, and on both sides, we're enabling our banks to send and to receive. We're also becoming a direct participant in domestic and regional payment schemes. To grow this business, we're innovating to find new use cases, and we're quickly scaling the use cases that work, so in summary, we're very focused on capturing this $100 trillion market.
We're focused on growing the overall market by driving Secular Shift, and we're growing our market share by differentiating and by competing well. To do this, we will continue to drive point-of-sale purchases, innovate further in invoice payments, scale Mastercard Move for disbursements and remittances. I'm personally very excited about this opportunity for all of us in commercial and new payment flows. Now, next, you'll hear from Craig on services.
For over half a century, we've connected businesses and consumers through a trusted global payments network. As the landscape shifts, so do the changing needs of our customers. Across industries and platforms, we're scaling our services to drive safer, smarter, and more valuable commerce. We're expanding beyond payments, extending to new markets, and enabling connections that improve business outcomes and drive commerce forward.
We prevented $20 billion in fraud in 2023, and our cybersecurity and identity services continue to assess over 32 million risk events every day. We're powering how people pay more securely by enabling over 4 billion tokenized transactions each month, more choices with 8 billion transactions supported on our gateway each year. We're serving 371 billion personalized impressions and managing 1.8 trillion loyalty points to drive consumer engagement every year. Our unique business insights and advisory services are helping customers make smarter, faster decisions. And it's all powered by one of the largest data sets in the world. We're harnessing the capabilities of AI. We're leveraging our breadth and depth of expertise from data scientists, economists, and product innovators, turning insights into actions that fuel long-term growth. As our service offerings grow, so do payments. That virtuous cycle continues, and our revenue streams diversify. Because in our connected world, when businesses succeed, we all succeed.
Hi. All right. Good morning. Good morning. Jazz and music to welcome the services segment of our morning. Let's talk services. I'm going to spend a little bit of time talking about where we are and, importantly, where we're going with our services business. I'm going to start just with level setting a little bit about what is in our value-added services and solutions portfolio. There's a wide range of capabilities, as you can see represented here, comprised of our data technology platforms that are serving our business in payments and beyond. As you'll recall, value-added services and solutions for us includes the revenues include other solutions, the things that are listed on the right-hand side of this page. We've touched on a few of those things already.
The six panels in the center are our value-added services, all of which are important to our business, all of which we're investing in, all of which are growing, many of which play a critical role in supporting our payments propositions with gateway processing, digital authentication critical to delivering the consumer experience that we seek to deliver. I'm going to focus today primarily on the top three: security solutions, consumer acquisition engagement, and business and market insights for a couple of reasons. One, they represent the majority of our services revenue. And two, they represent significant opportunities for ongoing growth. You'll note that this is a slightly different categorization than we've shared with you in the past. And that's really driven by anchoring these services around the buyer groups that we're targeting and the addressable markets that they represent.
And I'll spend a few minutes on that as we go through the conversation. I also want to highlight, while it's not listed here as a product area per se, that all of these areas are supported by a global team of more than 3,000 consultants providing wraparound expertise from strategy to execution to help our partners maximize the value of these services and their overall payments businesses. We are among the largest payments-focused consulting organizations in the world. We've conducted more than 8,000 client engagements over the course of the last 12 months. So with that, let me turn to the strategy that we're focusing on to deliver ongoing growth. Very simply, we're focused on three strategic priorities.
These align very tightly with our corporate strategy and our corporate growth algorithm, differentiating our consumer payments activities that Jorn just discussed so we can continue to benefit from the secular shift and win share in the market, accelerating growth in commercial and new payment flows, ensuring that our services propositions are fit for purpose to help support the payments products that Raj just discussed, and then, importantly, diversifying our revenue streams through adjacencies that we're targeting where we think we have a clear right to win. We're leveraging three areas for competitive differentiation, investing in proprietary data from both our payments business and beyond, and then leveraging synergies with both our payments products and our services portfolio, each of which we think are unsurpassed in their breadth.
And then executing against three growth drivers, coupling services with payments to benefit from ongoing growth in payments volume, expanding our addressable markets by increasing the range of capabilities that we have, and deepening penetration of our market opportunity by scaling distribution across rails, platforms, channels, including B2B partnerships. I'm going to touch on each of these in turn, starting with our differentiating payments. We're often asked, actually often asked by many of you in this room, "What is behind your wins? What's driving your wins in the marketplace?" Linda and Ling Hai are going to share some detail on that a little bit later this morning. But part of that answer lies in our value-added services capabilities, and in particular, the way in which we are combining those services in different configurations to meet the needs and priorities of our partners.
That's true across each of the product areas that you see listed here on the page, but it's also true within them. So, for example, a debit proposition for Citizens Bank might highlight a few specific areas: open banking, innovation, marketing services, consulting services, whereas a debit proposition with Capitec will focus on other things: fraud tools, data analytics, innovation, also consulting services. Based on the specific needs and priorities that they have, their strategic objectives that we are aligning with them to help them execute against. That's true across each of these product areas. A co-brand proposition for Expedia is different from a co-brand proposition for Carrefour. The same applies to our credit products, the small business, and commercial products that Raj just talked about. Our partners value this. They tell us they value it.
They tell us they value it with their words, and they tell us they value it with their actions by awarding us more business and engaging with these services to help drive growth in their portfolios. And this is really where a lot of that magic happens that Michael alluded to earlier this morning, where our teams are on the ground working with our customers, our partners, to listen, to collaborate, to partner, to bring the best solutions to bear to meet their needs. Our services are also enabling us to expand into adjacencies and with that, new revenue pools. And this is an important part of where the role services plays in our business. And it's not just any adjacency, but adjacencies that are closely connected to our core consumer payments capabilities.
We place a premium on services that help differentiate payments to continue to build on that virtuous cycle and reinforce it as we win market share, increase volume, and continue to drive the business. As our payments activities have expanded, so too have our services, and we've done that by extending them from our core customer types, issuers and acquirers, who we've worked with for many years, to increasingly working with fintechs, merchants, governments, and then expanding the range of capabilities that we have available to meet a broad range of needs across disciplines within those customers, helping them make more informed decisions, targeting new buying centers to expand into new areas with those partners who have a need for those services and continue to build on that.
For example, moving from working with a bank's cards issuing team to working with their information security team to help reduce the risk of cybersecurity attacks, moving from working with a retailer's treasury team on payments to working with their merchandising team on things related to store layouts, on merchandise selections, on promotions, or with their digital channels team to help optimize and personalize landing pages in the online shopping journey, or moving from working with a fintech's co-brand team to working with their fraud team to help reduce the risk of fraudulent logins to loyalty accounts. These are all things that help us expand the addressable market that we're able to work with, capture more of the wallet that these customers are already expending on similar services, and with that, increase the value that Mastercard brings to them as a partner.
Moving on to differentiation, where and how we're differentiating our services business, that conversation has to start with data. The data element of this is incredibly exciting. We are, at our core, a data company. We've been moving data safely and securely around the world for decades to facilitate safe and secure payments. That data is absolutely at the heart of our services business, and the volume and scope of data that we continue to aggregate as an organization is staggering. You saw on the video 15 petabytes of data. That's just in card transaction data alone from the more than 150 billion transactions a year that we're processing. What I think is even more interesting than the volume of data is the breadth of data. So, in addition to card transaction data, identity data, device data, real-time payments data, open banking data, gateway transaction data, the list goes on.
With that breadth, the investment that we've made in enabling us to maximize its use and maximize its value, investing in the infrastructure we need to cleanse, structure, and use the data to train analytical models, something we've been doing for years and is really at the foundation of being able to extract value from that data and deliver that value back to our partners, to leverage insights across data sets, for example, to be able to combine device data and identity data to make an open banking transaction more secure, all while responsibly managing data usage, privacy, sovereignty considerations, the important things that are foundational to be a trusted service provider in a data-driven business.
On top of that, we've been deploying AI at scale for more than a decade with machine learning, predictive AI, now generative AI, and focusing our AI on three specific areas: making payments safer, for example, using AI to enhance fraud detection. Making payments smarter to enable us to deliver insights to our partners at the right time to improve decision-making on their part. And making commerce more personal, delivering the right offer to the right person at the right time in the right place. All of these things are examples of where AI is deeply ingrained in our business and will continue to be. The proliferation and the importance of AI really just reinforces the value and the criticality of the data itself as an asset because, as we all know, in an AI-oriented future, AI can only be as good as the data that it's trained on.
And so continuing to cultivate that rich asset is an absolutely critical part of our strategy. And then finally, insights are only valuable if they can be acted upon. And we've invested significantly in technology infrastructure to enable us to do that, enabling thousands, literally thousands of decisioning parameters to be incorporated into a transaction in real time in 100 milliseconds. That's less time than it takes to blink your eye. And to do that with more than 140 billion transactions a year in real time as part of transaction approval, making our insights accessible through APIs. We've had more than 15 billion API calls into our services in the month of October alone.
These services are being used by our partners, incorporated into their business and their business processes, and deploying these through SaaS platforms that we've acquired through the years to enable ongoing integration and engagement with our partners. So data's point of differentiation, number one. The second is around synergies, both with our payments products and across services. And I'll address this with an example. I think it's easiest to kind of walk through this, in this case, looking at consumer credit as an example. And you see here kind of a simplified version of an end-to-end activity chain in consumer credit of launching a product, targeting customers, soliciting customers, evaluating customers, onboarding customers, and engaging customers. Everything that you would do end-to-end in acquiring new credit card accounts, something that every one of our issuing partners around the world does all the time.
And with each one of those activities along that activity chain, you see underneath services that align very specifically to those steps in the activity chain that enable us to provide that end-to-end support with a very measurable, actionable outcome, in this case, benefiting from the fact that it's linked to a payments product that we and our partner have a mutual economic interest in that is also a measurable outcome to target. And we can support that end-to-end if that's what our partner desires, or we can support that in specific components or portions of the overall activity chain if that's where the need lies. But the combination of these things to be able to work with our partners in this way, we think, is quite unique, differentiated from other competitors, both in the payment space and single-point solution providers.
That's applicable across different payments products and flows, and it's delivered through in-house proprietary resources, data, and technology. That's where we're focusing on and how we're differentiating. Let me turn to where we're investing to drive growth, starting with addressable revenue pools. I'll emphasize these are revenue pools, not payments volumes. Our target addressable market in total for our services activities is nearly a $500 billion revenue pool, with $450 billion of that represented in the three key verticals that I highlighted at the start: security solutions, business and market insights, and consumer acquisition and engagement. What's maybe more interesting than the total addressable market is the serviceable addressable market. The portion of that market for which we have products in market today or in late stages of development, that's at least $165 billion.
With $11 billion in services revenue today, we're less than 7% penetrated in that serviceable opportunity, which leaves ample runway for growth, and we have a clear path in terms of how we will execute against that growth, benefiting from overall market growth driven by secular migration, digitization, B2B modernization, etc., focused investments to continue migrating the total addressable market into our serviceable and therefore immediately addressable opportunity and continuing to deepen penetration of our serviceable market. I will touch on those as well just to highlight each, with respect to overall market growth, each of those verticals that I highlighted is growing in its own right, which provides a tailwind for demand and usage. One very important aspect of that market growth is the connection to payments.
With that, the services that we deliver by virtue of being linked to our network, again, reinforcing that virtuous cycle. There's a number of examples listed here on the left-hand side of the page, which you can see. In the aggregate, these network-linked services are roughly 60% of our total services revenue, and they grew at a three-year compound annual growth rate of 17% since 2022. Just for clarity, a network-linked service in this case is the combination of a service that is delivered and embedded in the transaction, a fraud score as an example, as well as services that are correlated to payments network transactions, things like chargebacks, disputes, stand-in services that we provide that don't accompany every transaction but are connected to transactions. A second key driver of growth is the migration of the overall addressable market into our serviceable market.
This is something we've been doing in a targeted, methodical way for years through both our product development efforts organically and through our M&A activities. And I'm going to walk through an example. I'm going to ask you to focus on the screens because there's some dramatic animation here to help emphasize the point. You've heard us talk many times about, with respect to security solutions, how we've extended our role in the value chain to not just be providing value during the transaction, but doing it before and after. What you see here is that security solutions value chain, starting with the kinds of services we offered before 2016, not surprisingly, mostly connected to a transaction. That's where our roots are. That's where we grew up delivering value.
Starting in 2017, we began to extend in both directions, adding cyber vulnerability assessment, behavioral biometrics, chargeback prevention, and identity theft protection capabilities. In 2020, we expanded that further in the account opening space with financial data aggregation and identity verification. And then in the last couple of years, DDoS and web application protection, passkey, most recently subscription management and threat intelligence. You can see how we're methodically building this out in areas that add value to payments transactions and create complementarity between the services capabilities themselves so that they're worth more to us than they would be on a standalone basis. With that, we've expanded our serviceable addressable market and security solutions alone by $30 billion since 2019. And this is the final dramatic animation.
You'll recognize here a lot of the companies that we've acquired in that timeframe and specifically where they fit in to this methodical approach in expanding our capabilities, which, again, we're doing not just through acquisitions, but through organic product development as well, too, the ones that are not highlighted, and I'll mention the most recent two, Minna and Digital Experience Subscription Management. We closed on two weeks ago and, of course, Recorded Future in threat intelligence, which we intend to close on in Q1 of 2025. Finally, deepening penetration of our serviceable addressable market. We're doing that by targeting distribution at scale through three channels. One is leveraging our technology platforms, all of our platforms, our network rails, all of the rails that we operate, the platforms, the gateways within our four walls to enable us to touch more transactions and deliver more services per transaction.
A data point around that, our processed transactions increased at a compound annual growth rate of 13% from 2021 to 2023. The services that are triggered as part of a transaction process, as part of transaction processing, increased from an average of three to five in that same time period, with many of our customers using significantly more. Second channel is direct selling to customers. We're doing that through a dedicated services sales force and our global account teams working to increase the number of customers and the number of services per customer. We're selling across the full scope of customers that we can reach. As one example of our progress there, looking just at our licensed network customers, we've grown the number of customers by 10% and the services per customer by 13% since 2021.
And then finally, leveraging one-to-many distribution partnerships with tech platforms, system integrators, processors, other networks, other partners with whom we can embed services as part of their value proposition to deliver at scale through their channels and to their customer base. Here, we're building off a relatively smaller base, but growing in both terms of the number of partnerships, which we're aiming to increase, and the services revenues per partner, which we're also targeting to increase. One example of this that we shared recently on an earnings call is our partnership with Salesforce, where we've integrated our dispute resolution services into their Financial Services Cloud to make that available to their customers. And so that's a quick tour through our services strategy, our key takeaways.
This remains a large, important, growing revenue opportunity for us, underpinned by differentiated data products and distribution, with a very focused approach to continuing to grow at scale, and with that, an area that we see as having significant runway for ongoing growth. I know many of you have questions about this area, and we'll have a breakout session later today and look forward to addressing them in more detail. At this point, though, we're going to go to a break. You deserve a break after the first hour and a half, and so it's about a 15-minute break. We're going to get a message on exactly what time to be back. Thank you.
Please enjoy your networking break. Join us back here promptly at 10:50 A.M. Thank you. Much better. Thank you. Cool. Please take your seats. Please take your seats. Our program will begin very shortly. Please take your seats. Our program is about to begin. We stop the clock, embrace the silence. Like minds of heat, the few is timeless. We gotta live, live, live now. Give what you give, give, give now. Live love. Been holding back, so safe in this time. Since I heard the call, the choice is here now. We gotta live, live, live now. One of those dreams we talked about, seeing what if, but it's never right. Are we doing it now?
We are here in South Africa, and Mastercard was the first card scheme to support the local regulators' requirement to bring on-switched processing. We've been able to get the strong capabilities of Mastercard with a new technology stack, modern technology stack that's real-time, to operate within South Africa, which is very exciting for us. It unlocks a significant amount of potential. Mastercard is so much more than a payments company.
[Foreign Language] Uno de los proyectos que más impacta a la sociedad costarricense es el que hicimos con Mastercard en cuanto a tratar de eliminar el efectivo en el transporte público. Hemos incrementado casi el 50% de validadores en los autobuses, y esto ayuda muchísimo en la calidad de los costarricenses. Les da seguridad y les permite pagar con una tarjeta el acceso al transporte público.
Last year, we worked together to enable Mastercard as a payment channel to allow foreign visitors to use China Alipay and Mastercard as a payment channel to visit China and enjoy all the QR payment benefits. That opened up 18 million merchant acceptance to all the Mastercard global users. Mastercard is very open-minded and also very local market oriented.
We've launched together the first wallet on the market to work with the central bank initiatives for a cashless society. We introduced the Touch Card for the visually impaired. We were the first to launch the risk tools, the NFC, that helps in monitoring fraud.
Mastercard has been our exclusive cards provider. Since Nubank was founded, we have become one of the largest credit card issuers in Brazil. We have expanded our operations into Mexico and Colombia, and we have become one of the largest digital banks in the world. We simply could not have done this without Mastercard. This is only day one. We are extremely excited with the days ahead and continue with our partnership with Mastercard.
Hello everyone. You've heard about our robust product and services strategy. We're so pleased to be able to talk about how those strategies come to life with our customers in our markets around the world. The globality of our business and the diversification of our business is our superpower. 210 countries and territories, 150 million merchant locations. We have a significant percentage of our volumes generated outside of North America in the markets where cash is still the majority of payments, and in those markets, we have outstanding teams of people that allow us to think globally and act locally, and those teams have developed meaningful relationships with our customers, some of whom you saw in the opening video, who consistently reference Mastercard as their preferred partner to support them in their payments business, as well as their overall growth agenda.
Yes, you're absolutely right. Our teams are executing across all markets in terms of our strategy. And
what's so funny? Okay.
I love the affirmation.
Oh yeah, absolutely. We always affirm each other. Now we think about our growth opportunity really in three ways: secular shift, market share, and services. Let me start with secular shift, which actually exists both in emerging but also mature markets. Across the globe, we are actually executing on the secular shift by expanding in digital, scaling commercial, and driving financial inclusion. Next, our market share. You heard Michael talk about this. We have grown our market share across all products. Now you're going to hear Linda and me talk about how we compete for share increases in countries such as Brazil and China. I also would like to add, we win share via our people.
Our people listen to the customer's needs and wants and pain points and then craft the right solutions to meet those needs. Our people really are the reason why we win the hearts and minds of our customers. Let me finally also touch on services very quickly. You heard Craig talk about services. Our success is indeed further strengthened by our services. We have many services, and Craig listed them all, so I'm not going to go into the details, but I just want to say that in the markets, what we see is services really diversify our revenue base, but more importantly, they create very strong differentiation for Mastercard. Now, I know secular shift is a topic that's very high on your mind. So Linda, what do you think? Let's give them some examples in your world. Sounds great.
If it's one thing that we hope you leave today with, it's the secular shift opportunity is huge. It's huge across the globe. 11 trillion in consumer cash and check, 80 trillion in B2B. We wanted to provide you with a couple of country examples. Now, within the country of Mexico, it's a top 15 GDP market, 130 million consumers in the market, a third of which are under the age of 19, so a very young and digitally savvy country. That being said, 80% of the transactions taking place in that market are still in cash. That secular runway for growth is just absolutely tremendous. In the market of Mexico, we're very well positioned.
A couple of years ago, we launched our switch in the market, which has allowed us to bring the power of the global network locally to banks and to fintechs in that market and connect them to services in that market. We're switching 22% of our transactions in the market today, and the growth is strong. So the runway there is very, very long. Now, elsewhere in the market, we are also working with customers across all segments to capture that circular growth. With the largest government-owned bank, Bienestar , we have brought 30 million underserved consumers into the financial mainstream. With one of the largest banks, Banorte, we launched the country's first fully digital bank in Mexico. And with one of the largest merchants in the market, Walmart, we launched their co-brand debit product. So a lot going on in Mexico, a lot going on in the U.S.
The circular opportunity here is equally large, both in our core business as well as in emerging verticals like rent and insurance, utilities, and healthcare, and then, of course, in B2B. So what are we doing in the U.S.? Well, we're partnered in the rent space with a company, Yardi, who is helping to digitize rent payments and put them on cards. We are in the bill pay space, working with platforms like Adobe to help streamline bill payments and reconcile collections. And we are working in the VCN space. You heard Raj talk about the fact that we are the global leader in VCN. And thanks to partnerships like the one we have with WEX, that business is continuing to grow.
Let me now also give two examples in my world. First, South Africa. Now, this is a very interesting country because South Africa is a country with this dichotomy of a formal but also informal economy. In the formal economy, they have this well-established payment ecosystem, and card penetration is very high. But the country still has a very large informal economy. One third of the population remains underbanked and relies heavily on cash, so the informal economy, especially the SMEs, provide our secular shift opportunity in that country, so what have we done? One, you heard about this already. We have deployed an onshore switch recently with fast settlement. What's the significance of this? When you work with SMEs or smaller merchants, what is the major pain point for them? It is really working capital, so with this real-time settlement capability, smaller merchants can receive same-day settlement, therefore tremendously reduce the need for cash flow and improve their cash flow positions.
We have also nearly doubled acceptance in the last two years. Again, here the focus is to work with fintech companies like Yoco to serve and expand the SME segment. We are also working with this fintech bank, but it's actually also the largest bank in South Africa, the Capitec. We're working with them on debit cards and QR codes. Again, the intent is to provide low-cost ways for SMEs to pay for goods and services. Let me also end with one more secular shift opportunity for South Africa, which is e-commerce. Huge growth, +30%, and this is where our gateway is a very relevant solution in the space. Amazon uses our gateway, and many PSP providers enable our gateway services in South Africa. Let me also come to Spain. Yes, secular shift exists in Europe as well, and Spain is a great example.
Nearly 50% of all transactions are still done in cash. So for us to capture the secular shift, we are doing several things. We are entering new verticals such as EV charging, transit, and vending. We're converting closed-loop retail cards into open-loop with the biggest retailer in Spain called El Corte Inglés. There's something like 11 million cards that we have done. We're lowering the cost of acceptance with SMEs via Tap on Phone. And lastly, we're also partnering with Spain's post office, Correos, to digitize social disbursements and public aids for youth and vulnerable families. Now, I have given you examples. We have given you examples on secular shift. Let me also continue with market share. With that, I think I have to start with China. I wish my colleagues hadn't stolen my thunder on China. But yes, we went live with our domestic license in May. Yeah.
I'm sorry, I got carried away. I don't want to make anybody jealous. And Michael did tell me not to get too excited about this. But it really is a very unique opportunity now for us to access this market. Second largest economy, SAM is $10 trillion in consumer payments. And another thing I want to say is our domestic license not only benefits our domestic business, it's also beneficial to our cross-border business. For those of you who are in the payments business, you will know this. Domestic and cross-border are intrinsically linked onto one card. So that's very important to keep in mind. And what are we doing? We're doing a lot of work on the issuance side and the acceptance side.
Since May, we have launched a significant number of new credit, debit, and commercial programs with partners like ICBC, Agricultural Bank of China, and China Merchants Bank. Also, we're very focused on driving millions, let me say this again, millions of new acceptance locations positioning Mastercard to be the world's most accepted payment network. Some of you who go to China often may also think of China as a market with digital wallets and QR codes. But guess what? The country now is on a journey to transform itself to multi-form factors, digital wallets and cards, QR code and NFC, and Mastercard is very much playing a very important role to support this journey. One example, I think again, Jorn or somebody already used it, but I want to use it again. Recently, the entire subway system in Beijing has opened up to tap and pay for foreign visitors.
Very, very significant. We're going to see more coming, and the other thing I want to say is with this domestic relevance, it really just gives us the right to play with more digital players in China. We have already done many things with Alipay, WeChat Pay, for example. You heard about PayLocal with Alipay and WeChat Pay, where foreign players, foreign tourists can load their cards and leverage the QR acceptance points in China. We have launched the cross-border services with Alipay to enable inbound remittances, but we will continue to do more with these digital players. Let me also talk about Japan. Japan actually is a huge secular shift opportunity as well, but put that aside, I do want to talk about how this is a market where we still have significant room for share gain.
Right now, the Japanese government is driving a much greater level of digitization, and Mastercard recently launched our domestic switching thanks to Ed and his team, of course, the local team as well, in September 2022. When you put the two pieces together, timing is perfect. Without domestic switching, my own view is we can drive further upside in Japan in our share position. We will continue to grow acceptance to support inbound tourism, but also the Japanese government has this stated goal about more financial inclusion in terms of SMEs. And with this domestic relevance, we can deepen our collaborations with existing players such as Rakuten and MUN. Without domestic switch, debit and commercial become in play. We launched digital debit with SBI, and we're now working on government T&E cards. And we can deliver more value-added services given we see more transactions now. I'll give you some examples.
Fraud detection with DTS, including new data RiskRecon, and we're supporting Rakuten with personalization using our Dynamic Yield. All right, I'm going to stop here, take a breath, and let Linda talk about her examples.
All right, thanks, Ling Hai. So across the Americas, we are equally driving share significantly across all our markets and all our products. I wanted to start with an example in Brazil. Another top 10 GDP market. Despite fierce competition in the market, including a government-owned DPI, we are the market share leader in Brazil, and we're continuing to take share away from the competition. How are we doing this? With partnerships with large customers in the market, with the likes of Bradesco, a competitive bastion in the market. We recently launched commercial products with Bradesco.
With the likes of PicPay, we had our consumer business with them and announced this year that we were going to plus that up with commercial payments. And then, of course, with Nubank, who we all know is one of the largest digital banks in the globe. We have been their exclusive partner for over a decade, and they recently announced that they've reached 100 million consumers in the market of Brazil, more than half the adult population of Brazil. We have benefited meaningfully from their growth as well. Now, these competitive takeaways and these new product launches, they are driving our share. Importantly, they are also driving our financial growth, not just share for share's sake. Many of you often ask us, when financials are the same, why does Mastercard win? And the answer is very simple.
We're winning because our account teams have a solutions-oriented approach to solving customer pain points. We're also winning because of our services. Now, we have many examples of where services come to life with our customers. With existing customers, we optimize their portfolios and layer services on top. When we go after new customers, we demonstrate how services can help them well beyond cards. Almost every one of our contracts has at least one or more services components in those contracts. And so just a few examples here to make it come to life. We have Walmart and Sam's Club, with whom we've been their co-brand partner for many, many years. Well, they are also using our Test & Learn capabilities to measure the effectiveness of their retail business. With Citizens, who you heard us talk about, they flipped their entire debit business to us this year, a flawless conversion.
They appreciated the Mastercard brand because they liked our open banking capabilities. They leverage our commercial SmartPay platform. They're leveraging fraud insights and our labs as a service and innovation assets. And then the Central American bottling company, CBC, in Central America, one of the largest distributors of beverages, including with Pepsi. They are launching a platform for the millions of small businesses that they serve. That platform needs cards, and it needs marketing, loyalty, and personalization services. They're working with us to help service those millions of small businesses.
Great examples. Let me also add Monzo and Commonwealth Bank of Australia. So Monzo is this fintech bank in the U.K., and Commonwealth Bank of Australia, also known as CommBank, is a leading global bank in Australia. So what do these two have in common with Mastercard? Two things.
One is both have really broad and deep payment business with us. With Monzo, we actually started with prepaid, and today we service more than 10 million of their customers with debit, credit, Flex, and SME debit cards. CommBank, we've partnered for over 40 years. We support all their consumer card portfolios, including debit, credit, StepPay, which is their version of Buy Now, Pay Later, and all their commercial credit. But two, what's in common is we don't stop there. We don't just stop at the payment switching business. We support both with lots and lots of services. For example, with Monzo, we actually do fraud solution on account to account. I think you hear us talk about this. Our fraud solutions isn't just for the card rail. It's for account to account.
With a digital bank, that's very relevant because the ability to pull funds and access other bank accounts is very critical to grow their business. So we actually address their fraud. And we also support their marketing campaigns to drive their customer acquisitions. We provide marketing sites and consultancy to drive their innovation. CommBank, a very strong set of services partnership, gateway. We power their merchant offers. We just piloted open banking with them, and we also do consulting services. So very robust set of services capabilities. That really is what created differentiation in our partnerships. Now, I know Linda and I come across as very excited. We can tell you about our customers all day long, but I think it's important for you to hear from them directly how we add value to their innovation and to their services. Let's cue the video.
Mastercard has been a trusted partner throughout the various phases of the rollout and provided their support from product inception to product launch and now into our business as usual operations. We value Mastercard's commitment to technology and innovation. We leveraged Mastercard's data and services capabilities to help stimulate acquisition and the growth of our portfolio. Mastercard has always been willing to lean in and make new capabilities available to us. That partnership was fundamental to developing the product that we call Monzo Flex. Together, what we brought was the best of fintech design and product thinking paired with the extraordinary Mastercard rails and created a product that is truly accepted anywhere. We just completed a full conversion of 3 million customers over to our debit platform that went flawlessly. The assets that Mastercard had, we believed, were truly differentiated, particularly Finicity, to name one of many.
In fact, we've launched new innovation projects using Mastercard's Launchpad and, of course, exposing many of our clients to the priceless marketing experiences that they offer. That's added tremendous value to the bank and to our clients, and we're pleased to consider Mastercard our exclusive provider into the future. On the B2C side, Mastercard provided us customer insight and loyalty consulting that enables us to sharpen the value prop to the customers through our recently launched EG co-branded credit card. On the B2B side, for supply payments, we leverage a Mastercard-branded payout solution that's highly scalable, secure, and fast. What Mastercard really stands out is its very collaborative approach. They listen to our needs. They're flexible in their thinking. They're highly collaborative in how they work with us.
Mastercard's subject matter experience, innovation solutions, and support in areas like analytics, emerging technologies, and fraud management have driven significant value for SMBs and its customers.
We're so proud of the customer relationships that we've built, of the secular shift that we're driving, the market share that we're winning, and, of course, the services that differentiate us, and I'll tell you, the best is yet to come. The pipeline is rich, and we're very excited about our future. With that, I'm delighted to turn it over to our fearless CFO, Sachin Mehra, to take us through the financial perspective.
Hi everyone. It's great to be here with you today. I appreciate you staying with us over the last couple of hours to hear about our strategy and our execution plans. We've covered a lot of ground, so what I thought I would try to do is pull it all together by covering the following four areas: Mastercard's recent financial performance, our compelling growth and diversification story, our investment and capital planning priorities, and our thoughts around our performance objectives over the 2025 to 2027 period. Let's start by level setting on our recent financial performance. As you can see, we have consistently delivered strong net revenue growth over the past few years. You will recall that during this time period, we were impacted by the effects of the pandemic, and we suspended our business operations in Russia. Yet we still delivered, and we delivered strongly. In fact, when factoring in our latest guidance, we expect to deliver a net revenue compound annual growth rate of approximately 12% over the five-year period on a currency-neutral basis and including acquisitions.
Moving to the next slide, let's dive further into the last few years and talk about our 2022 to 2024 performance objectives. These objectives were set out on a currency-neutral basis, excluding special items, gains and losses on equity investments, and acquisitions made after 2021. As a reminder, we shared these objectives on November 10th, 2021, at our investment community meeting and before we seized our operations in Russia. Based on our Q4 guidance that we shared with you two weeks ago, the headline here is that we expect to deliver very strong results in line or above our objectives given the parameters we laid out at the time. Overall, net revenue is forecasted to grow at a compound annual growth rate of approximately 17% or 19% when excluding Russia.
We remained above our annual operating margin commitment, and we expect to deliver compound annual EPS growth over the period of approximately 25% or 27% when excluding Russia, which is well above target. It is a very strong story that demonstrates the resiliency of Mastercard and our ability to execute even through volatile geopolitical and macro environments. Let's talk a little bit about what brings this resiliency to Mastercard. We have intentionally invested over time to diversify and strengthen our business. Here are a few examples of how we have continued to evolve and grow the profile of the company since 2020.
Starting with our diverse geographic footprint, with approximately 70% of the net revenues of Mastercard generated outside of the U.S., we are competitively differentiated, giving us greater flexibility to navigate through various macro and geopolitical environments and also providing us the opportunity to realize the massive digitization opportunity across these international markets. We have also evolved over time from a product perspective, offering a diverse range of credit, debit, prepaid, and commercial solutions. Commercial now represents approximately 13% of total GDV, with significantly more opportunity to grow. It's also incredible to see the progress we have made with value-added services and solutions, which now represent nearly 40% of total net revenues. As a reminder, our value-added services and solutions provide us several benefits, which include diversification, an engine for faster growth, and importantly, differentiation to help us continue to win in payments.
These services and solutions are fueled by our data. The more the transactions we switch, the more the data we see. And we now switch nearly 70% of total Mastercard transactions. This is a targeted effort. For example, over the past few years, we have begun switching Mastercard-branded transactions in Japan and in Mexico. As Yvonne said, this is a key driver and metric for us, with an opportunity to further increase switching penetration. So hopefully, this gives you a good sense of how our business has evolved and how our continued diversification makes us a stronger Mastercard. Now, with our recent financial performance and compelling diversification story as background, let's dive into the Mastercard growth algorithm and the different pillars that work together to help us realize this opportunity. First, it's about being in the flow to capture the natural growth of economies around the world.
And while the growth of economies is not in our control, we can show up locally across the globe and be present in geographies with significant growth opportunities. Second, there remains a sizable opportunity to capture growth from the secular shift to digital payments across both volume and transactions in consumer payments. There is so much opportunity left to displace cash and check, and the addressable market keeps expanding with new business models and with new markets like China. This isn't just happening. We are actively driving it by growing acceptance and by delivering best-in-class technology like Tap on Phone, Passkeys, and tokens. You saw on the previous slide that we now have approximately 150 million acceptance locations worldwide, and we continue to grow this acceptance footprint at a rapid pace. The secular opportunity is not limited to consumer.
There is significant opportunity to penetrate cash and check in commercial and new payment flows. Part of this is expanding commercial point-of-sale purchases, where we size the opportunity at approximately 16 trillion in cash and check. Just to put this in perspective, this opportunity is primarily targeted through card payments, where we are the experts. Think about this relative to consumer payments, where around 23 trillion in flows ex-China are carded, and that has taken us almost 60 years to do and driven strong sustainable growth along the way. Fourth is around winning more market share of the already carded flows. As you heard from Linda and Ling Hai, we have had a constant drumbeat of wins across the globe in both consumer and commercial due to our local presence, our partnership approach, and our differentiated capabilities.
Over the last three years, we've grown our share across all products on a global basis. There is no plan to let up. Other factors such as portfolio optimization, pricing, mix of business, and level of rebates and incentives also play a factor in our growth. And of course, it's also about driving growth in our value-added services and solutions. We have been and continue to invest in here. Our suite of solutions complements and strengthens our payment network while also driving sustainable revenue growth. We have carefully chosen where we play and always look to add in areas that have large and fast-growing addressable markets. It is all underpinned by the competitive advantages we have, such as our payments expertise, our network distribution, and rich data inputs.
Putting it all together, our growth algorithm is composed of several unique growth vectors that collectively enable strong long-term growth potential for Mastercard. Now that we've talked about the growth algorithm, let's double-click into the market opportunity. Starting with payments, the targeted opportunity continues to grow and stands at approximately $154 trillion in 2024. With $54 trillion in consumer payments, there remains a substantial growth opportunity to continue to convert cash and check to digital forms of payment around the globe. Excluding China, 50% of the addressable market is non-carded today. That opportunity is large in both emerging markets as well as in developed ones like the US, Japan, and Germany. Add on to that the China opportunity, which Mastercard is well positioned to capture, given that we have recently started switching domestically.
Beyond volumes, there is an even greater opportunity when you look at transactions, where approximately 70% of transactions for consumer payments remain uncarded. The commercial and new payment flow addressable market is almost twice the size of consumer payments at $100 trillion. Specifically, in commercial, approximately 95% of the flows are uncarded today. In addition to that, there remains a $20 trillion opportunity of untapped payment flows in disbursements and remittances that we can target via our Mastercard Move capabilities. Moving next to value-added services and solutions, you heard Craig discuss the strategy in place to drive sustained growth, but I did want to level set on the tremendous progress that we have made in this area. We've consistently delivered strong revenue growth while also building upon these assets to drive the growth of our payment volumes and to win market share.
Specifically, over the 2022 to 2024 period, we expect our value-added services and solutions net revenue to grow at a compound annual growth rate of approximately 18% on a currency-neutral basis. And in 2024, we estimate that the total VAS net revenues will be approximately $11 billion. Our total targeted opportunity is approximately $490 billion in addressable revenue. And let me emphasize, this is potential revenue, which is different from what we talk about in payments, where we size the addressable market in terms of volumes. When we look at our key areas of focus, where we have solutions in market today, our serviceable addressable market is at least $165 billion in aggregate revenue. Growth in value-added services and solutions is driven across several vectors. First, our value-added services and solutions benefit from market growth that is fueled by structural tailwinds like digitization, AI, B2B modernization, and growing cyber threats.
We drive growth beyond those structural tailwinds. So let me spend a few minutes talking about that. A portion of our services revenue is driven by our payments network. In 2024, we estimate that roughly 60% of our VAS revenues will be linked to network growth, a good proxy for which is processed transactions. The opportunity for continued growth in payments creates a natural tailwind for value-added services and solutions. Another element of how we drive growth is by increasing penetration of our existing solutions to both new and existing customers. Finally, we are building and buying new capabilities to convert more of the target addressable market of $490 billion to serviceable addressable market. Our planned acquisition of leading threat intelligence company Recorded Future, as well as the recent acquisition of the subscription management company Minna Technologies, do just that.
I just mentioned that approximately 60% of VAS revenues are linked to the payment network. The vast majority of the remaining VAS revenues are primarily platform or engagement-based. Combined with our network-linked revenues, these platform-based solutions offer a nice stream of recurring revenue. We estimate that approximately 85% of VAS net revenues are recurring in nature, providing multi-year reliability in our VAS revenue growth. Within VAS, there are also other solutions, which include products like cross-border services and open banking, as well as bill pay and real-time payments infrastructure. They offer significant strategic benefit to us and bring payment choice to our customers. 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 short, medium, and long-term growth. It all starts with our strategy.
What do we want to accomplish, and what is the best way to achieve our objectives? As we make investments in these focus areas you have heard about today, across consumer payments, commercial and new payment flows, and value-added services and solutions, we will do so through a combination of organic investments, acquisitions, and partnerships. Also, remember, none of this happens without investment in our strategic enablers. Our people and our technology underpin the success of our strategic priorities. For example, we have been investing in AI for over a decade, and that has helped us and our products be more efficient. There is further opportunity there. And of course, the trust derived from the resiliency of our technology and the recognition of our brand both remain key. We will continue our disciplined approach toward expense management by investing in a balanced manner.
As it relates to our capital planning priorities, they remain consistent with what we previously shared with you and continue to serve us well. As you may recall, our capital planning priorities are, number one, maintain a strong balance sheet, and we believe this is an imperative for the role we play in the payments ecosystem. Number two, invest for the long-term growth of our 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 a bias towards share buybacks. Note that we've now returned over $80 billion to U.S. shareholders through buybacks and dividends since the 2006 IPO, and number four, we will continue to optimize the mix of debt and equity.
Now moving on to 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 any further acquisitions. Using the 2024 forecast as our base, over the 2025 to 2027 period, we expect to deliver a net revenue compound annual growth rate in the high end of low double digits range on a currency-neutral basis, including the impact of the acquisition of Minna and the planned acquisition of Recorded Future. This assumes an annual carded market volume growth rate of 9% and growing our value-added services and solutions net revenues at a high teens net revenue compound annual growth rate. We're confident in our ability to deliver high end of low double digits net revenue growth, given the current macro environment, the strong fundamentals of our business, and our multiple growth levers.
From an operating margin perspective, we will continue to operate with the philosophy of delivering positive operating leverage over the medium to long term while continuing to invest for growth. We have shared a minimum annual operating margin target in the past. We are increasing that minimum to 55% over the period, while still providing us flexibility to continue to invest in the long-term growth potential of the business. And finally, we expect to deliver an EPS compound annual growth rate in the mid-teens range on a currency-neutral basis, excluding the impact of special items, gains and losses on equity investments, and any further acquisitions. So let's wrap it all up. We remain optimistic about the future of Mastercard. We have tremendous runway in all facets of our business across payments and across services.
We have a proven growth algorithm and a strong track record of delivering top and bottom line growth. We prioritize opportunities aided by structural market tailwinds and those that reinforce the virtuous cycle across payments and across services. And that's where we invest. These differentiated solutions, powered by our vast data and our network expertise, position us to win. Our strategy is strong, and our execution is even stronger. We remain committed to delivering value to our customers and the markets in which we operate, and in doing so, we'll deliver results to you, our shareholders. With that, I will hand it over to start the Q&A session.
You're in the middle. You're in the middle. You don't want to be in the middle?
No, I'm sitting next to you. I think that's too obvious.
Fine with that. Okay. Hello? Hello?
Hello.
Can you hear me?
No.
All right. Oh, y'all are really loud. So we're open for the Q&A session now. Please, there will be mics running around. We'll have Sachin joining remotely, hopefully. Please wait for the mic. State your name and state your affiliation before you do ask your question. The team will be running around with mics now. Please put your hands up.
Wow.
Do we have Sachin?
Sachin's supposed to be up there.
Maybe start and then we sort out Sachin.
Exactly.
We got him. Okay, perfect. Joe, do you want to come up here? Mr. Ramsey? Thank you.
We can hear you. I'm not sure the rest can hear you.
I'm not sure the mic is on.
It's not on.
Could you turn the mic on?
Testing, testing.
No.
Anyway, he is in your mic.
Hello, hello?
Oh, yeah.
Yeah, okay, all right. That's half the battle right there. Ramsey El-Assal, analyst from Barclays, thank you so much. Fascinating day as usual. We greatly appreciate it. I wanted to ask Craig a question about the 60% of the VAS that was network-linked services. Is that a, can we consider that sort of almost a euphemism for non-discretionary? In other words, to what degree do your customers, when they buy or when they issue a Mastercard, are they kind of, it's in their best interest in a pretty significant way for them to then go a little bit further and sign up for those services. And I guess also, given 60% are kind of network-linked and grow with your core business, is it safe to assume that the incremental growth in value-added services is coming from the non-network-linked part of that business? A double-header there. Thanks.
I would expect nothing less from you, Ramsey, than a double-headed question. Let me hit both those. One, to your first question, is it in their best interest to use the network-linked products? We think yes, because all of the products, frankly, whether it's network-linked or not, are delivering value. They're created with a specific need or issue in mind to address, to provide value to a customer. Are they non-discretionary? No. These are still products or services that customers will choose to avail themselves of in many cases. Now, there are some that are sort of embedded in this is how we protect the integrity of the system, and we need all of our stakeholders within the network to use those products to make sure that everyone who's connected to the network is benefiting from the same safety checks and security and overall integrity.
But a significant portion of those, like take an example of one of the ones I referenced, Stand-In. Stand-In is not required for a customer to use, but it absolutely delivers a much better experience for a consumer in the event an issuer is unable to or goes down or loses the ability to process transactions in real time, which we see regularly across our network of partners. So it's an example of something that's in our customer's best interest to use, to either continue to provide overall integrity, safety, and security, to reduce their own risk associated with fraud, and that's certainly in their interest and everybody's interest, and to deliver a really high-quality consumer experience.
As it relates to future growth, it's an important part of growth, and we expect, as you've heard, that with the virtuous cycle, we expect transaction volume to continue to grow as we continue to take advantage of the secular migration, as we continue to increase the percentage of our transactions that we switch, as we continue to expand, win market share, and bring more partners onto the system. That lifts the overall transaction volume. And so, as Sachin said, processed transactions are a good proxy for network-linked. And so those will lift. But there's then 40% of the other services that we're selling that are not linked to the network.
These are things like the cybersecurity solutions that there is a clear need in the marketplace that our customers have, and we have world-leading capabilities in, for example, with threat intelligence, post-close on Recorded Future that we'll sell into those opportunities alongside of, but not explicitly linked to the network.
Ramsey, if I can make one additional comment. So discretionary, slightly different spin to it. While it's discretionary not to invest in cybersecurity, most customers decide to anyway. So it comes back to the point about being anchored on things that really matter across the board. That's number one. And number two is there is an advantage here. Customers will make the choices they make, and they have options out in the market, but there is a beneficial situation of being a payments partner and being really close to the transaction vis-à-vis somebody else who comes with a security solution that isn't so close. So therefore, the network-linked, there's a different whole range of dynamics at work that give us a preferential position.
Perfect. Switch over here. Maybe Brian.
Hi, it's Brian Keane. Sachin, good to see you. Thanks for zooming in here. I guess I was hoping you could just walk us from the high teens previously from 22%-24% to the low end or the high end, sorry, of low double digits and then the low 20s EPS to the mid-teens EPS. Maybe just walk us high level the differences from that period to this period that gets you to those growth rates.
So sure, Brian. Hopefully you can hear me.
You can hear you.
Yes, very clearly.
Well, I mean, what you're comparing is a little bit of a different environment from when we last had an investor community meeting. As you remember, we were just exiting COVID, and we had the impact of coming off of a low base at that point in time. And our guidance in our last Investor Day was predicated on the fact that you were going to have this natural recovery, which took place in the first year of the guidance period, which was 2022. And you saw fairly robust growth take place from a net revenue standpoint from Mastercard at that point in time, order of magnitude slightly north of 20%.
Then when you think about what happened in 2023 and what we're talking about in terms of guidance for 2024, it's very much in line with what we're talking about for the next three years, which is the high end of the low double digits range. So I would attribute the differential of what you saw in the last Investor Community Day and what you're seeing today as primarily the impact of coming off a low base from COVID. And that's true for net revenue, and that's true for EPS. The other difference on EPS is obviously we were operating in a lower tax environment in the 2022 to 2024 period. Now, sitting in, as we do with the global minimum tax coming into play, we're incorporating a slightly higher tax rate, which we've talked about previously. So those are two big fundamental differences.
Perfect. Maybe Sanjay.
Thank you. Sanjay Sakhrani from KBW. It's clear international is a critical part of the story. I'm just curious, Michael, you talked about your steady discussions with governments. Ling Hai discussed the launch of China, which is amazing. I'm just curious, given those markets aren't growing up like the developed ones did, how you guys see the revenue TAM there? Has it changed over time, or is it the same difference there? And then maybe just broadly, if you look, including the United States, what's the most significant competitive threat of achieving these amazing expectations? Thanks.
All right, so maybe I kick off and then invite Linda and Ling Hai to comment on that, and forgive me if I talk about China for a moment.
No, no, it's completely fine.
Sanjay, to your point, China grew up differently. It was in a protected environment. It was an orchestrated economy to a large degree. And things that are relatively unusual in the world, like QR code, were a big part of the Chinese ecosystem. And the whole idea of the super wallet really only exists in China. So there's a few things that are really special. But now the Chinese government is interested with economic challenges they need to work through to really connect the Chinese economy a lot closer to the rest of the world. And you've heard Ling Hai talk about this, opening up straightforward acceptance, having people who go there give them the ability to just pay any way they would pay anywhere else in the world.
You start to see that ecosystems that are very unique in the end come to a point as more and more people use it, that you want flexibility, interoperability, and so forth, and that's what we stand for, so fundamentally, we don't see this as locked in, but it's an opportunity for us to come in and prove the value of our proposition and take it on from there. You see it in Africa. Things start in an entirely different way. It's mobile-based financial services, so that grows up in a different way, but here, contrary, because it's an open market, we're participating from day one with our investments in MTN and Airtel and so forth, so we're in the market growing mobile-based financial services. To the revenue dynamics, they're obviously different there, country by country, case by case.
If you think about Africa, obviously it's lower transaction size, it's lower revenue per transaction, otherwise the revenue can't carry it. That's a tremendous potential overall, and we're anyway linking in with services across the board beyond the payment solution. So maybe one of you.
So maybe just very quickly, markets outside the U.S., in general, my view is, one, when we grow our domestic volume and business and we do more switching, we see more transactions. That's not only good for the core, it's also good for services. There's plenty of evidence. So that actually changes the revenue dynamics. But the other thing I think I mentioned in a China discussion about home and away, these things are linked together. Can you imagine somebody uses a card for only home and another card for away? No, you use one card for both. So as we, for example, see more acceptance, as Michael said, in China or more acceptance in Japan, that's going to help American tourists going to Japan or European tourists going to Japan. So it's a great boost for our cross-border business in terms of the interlinking of the world.
Another great example I think about is my world and Linda's world. In the U.S., for example, we have this wholesale program for travel where hotels and airlines are getting paid by the OTAs like Expedia and Ctrip. Well, a lot of the acquiring is actually happening in the U.S. So issuing maybe in Asia, acquiring is in the U.S. So again, that is a big boost for our overall revenue profile. But in the emerging markets, my view is back to the basics. Sometimes you have to focus on the issuance and acceptance, and then you grow things that are on top of that.
Let's go to the next question. We give you a very long answer, Sanjay, so next one.
All right, great. Thank you, Tim Chiodo from UBS. I want to talk a little bit about Mastercard Move, specifically the cross-border portion. So this service, you're distributing it through banks and fintechs. And I wanted to see if you could talk a little bit about what is it replacing? Is it removing traditional wires? And then how much faster, cheaper, more transparent is it? So what are the advantages that basically those distribution partners are getting?
Sure, happy to answer that. Mastercard Move, I think you're talking about the current. I'm also happy to talk about the commercial payments pilot that we just launched. But the Move product, yes, sometimes it does replace existing means of payment. Sometimes it replaces checks or cash. Or, for example, if it's an insurance disbursement or if it's a refund or if it's a cross-border payroll, it sometimes actually replaces cash and check. So it depends on what the use case is that we're going after in terms of exactly how it works today versus how more efficiently and more low cost, more digitally it works in a different context. And then in commercial payments, we announced at Sibos that we're putting a scheme on top of the correspondent banking network to bring we know a lot about schemes.
This is to bring in sort of a clearing transaction that is much needed. What it does is basically when a sender wants to send money through a sending bank to a receiver at a receiving bank, before anything happens, we just make sure that we authenticate the receiver, the information is correct before you do anything. What that does is that you are able to save liquidity. You don't have to earmark the funds on one side. You save liquidity on the other side because you know when the money's coming. And then you also don't have any fallout on data. You're actually able to transmit the data. Usually, this falloff on data, the rejection rates, the liquidity issues, it solves for a lot of that in the current system. So it really depends on the use case that you're talking about, and the answer is very different depending on the use case.
Hi, Harshita.
Hi, good morning. Harshita Rawat with Bernstein. As you expand into account-to-account, bill payments, and commercial opportunities, how important is the flexibility around interchange? I know you talked about flexible interchange already. And is that kind of still a big sticking point, or is the bigger challenge kind of to kind of do the use case by use case build to kind of grow this opportunity? Thank you.
Yes, thanks, Harshita. So it's a great point. I think for any new vertical, any new segment we go after, we need to figure out how we can win both on the economic side as well as on the value proposition, and you called out bill pay. This is typically whereby in some markets, the alternative or the competition for bill pay is a very low cost ACH transaction, and so you have to be able to compete. Now, that doesn't mean you have to get par because I think with our reach, with our propositions, with our value, we can probably command a higher price than what is currently account-to-account. But we have to adapt. As you know, our economics to the merchant is a combination of our own fees and the interchange, but our own fees is a very small bit of the total.
And so as we go into new segments, that's transit, that's bill pay, that's commercial, that's SME, we are very active in looking at how do we meet that and make sure that we can compete. But the other leg, as you mentioned, it's the value proposition. We want to win on the merits of the solution that we put out there. And I think we've been able to prove time and again that as we set our minds to it, we find that. And we are in the process of doing that with bill pay.
I think Andrew had his hand up here.
Hi, Andrew Schmidt from Citi. Thanks so much for all the content today. Great presentations. Actually, this is a related question. I wanted to dig into the $63 trillion opportunity in commercial payments. Could you talk about just the biggest unlocks there? Obviously, there's some sticky higher ticket flows in that category. I think flexible interchange is a part of the strategy to attack those flows. But what are the other levers you can use to unlock that seem closer to unlocking that opportunity? But I'm just curious on that front. Thank you very much.
Yeah, no, appreciate the question. Yes, we're closer to unlocking the opportunity, which is why we increased our serviceable market versus, let's say, three years ago. The biggest unlocks come from actually understanding the industry in a lot more detail, understanding that the enterprise platforms now that are being embedded to solve some of these problems, and understanding that we have one of the best, if not the best, virtual card engine in the market. And so what we're able to do, a lot of this is about the ability to free up working capital, the ability to embed payment terms in the virtual card, the ability to streamline the workflows, put controls on the payments to be able to use data for reconciliation more efficiently. Those all come together to drive the unlock. And so that's why the pilots are going very well. We've announced a couple of them.
And there are lots of other things going on in the background to drive more volume in some of these new ways of doing things. And then, by the way, the other unlock comes from what I talked about in terms of verticals. We're also going after verticals because there are specific verticals where we can go after invoice payments the way we did in travel so that we can actually move those even without the enterprise platforms, we can move those with virtual cards in creative ways using points of aggregation where if you make it happen, it scales. It's kind of like the OTAs that Ling Hai was talking about.
Sorry, Darrin, jumping around over there.
Thanks, guys. It's Darrin Peller from Wolfe Research. I want to ask actually one financial question and then one quick one on tokenization. And on the financial side first, I know back in 2021, you guys had long-term targets of low to mid-teens. And that was beyond your CAGR. And now we have your value-added services at such a higher mix and growing. So help us frame, A, how we should think about the cadence for the next few years first as we get more and more mix coming out of VAS. And if there's any conservatism, just given what we're seeing in terms of average transaction sizes, FX vol. And I guess my quick follow-up on tokenization, just where are we in terms of number of tokens out there for you guys per card? And what kind of pricing, what kind of value-add pricing opportunities does that give you over time? Thanks again, guys.
Sachin, you want to go first?
Sure, happy to. Hey, Darren. So to your question around cadence, look, I mean, we'll get into what our outlook for 2025 is as the year begins next year. But broadly speaking, I think you should assume that the range we've given you, which is the high end of the low double digits range for net revenue, is generally the range in which we would see each of those three years come around, which is 2025, 2026, and 2027. So there'll be some variability year over year, but broadly speaking, it's in that range. And then to your question around the longer-term outlook, which we had historically shared with you, which is beyond the three-year period, the reality is the prospects for the business are equal, if not better, than what they were historically. We just thought it appropriate to focus on what the next three years looks like.
We've kind of walked you through what our strategy is. We've walked you through what the addressable market is. We've talked through what our assets are to address the opportunity at hand. And we feel very good across both payments and services to deliver on that long-term growth prospect we've historically spoken about. So that's broadly what I would share with you in terms of both cadence as well as the long-term outlook.
So thanks for the question on tokenization. I'm really grateful because I'm very excited about that. So what's more important as a metric on tokenization is not so much the number of tokens that has been issued, but the percentage of transactions that are tokenized. And today, we are over 30% of all transactions are tokenized. That's a very substantial one, growing very fast. Now, we're so excited about this because whenever a transaction is tokenized, we see approval rates domestically three to four percentage points higher than a non-tokenized transaction. And cross-border, that goes to 6%-7%. So really substantial value that we bring back to the merchants who can do sales, to the issuers who can do the transactions. And obviously, we like that too.
So much so that we're now on a path to phase out PAN entry in e-commerce by the end of the decade, phase out static passwords and OTPs by the end of the decade. Like a real important structural ecosystem shift that we're making, analogous to the magstripe to EMV chip back in the day that we're now doing with tokenization. Now, as we're bringing so much value into the ecosystem, obviously, we want to price for that as well. And that's what we have started doing, that we'll continue to do because we need to continue to invest. We need to make sure that this stays ahead of the markets. And the bad guys are out there. They're well-funded too. So we need to make sure we stay ahead of that. And that's what we're doing.
Importantly, from a customer perspective, what we've been hearing on approval rates is that implementing Tokenization has allowed them to increase their approvals between three and five percentage points. The value that our merchants, our customers are receiving through implementation of Tokenization is not just protecting them from fraud. It's actually driving good volume through the system. A win-win.
Darren, and I want to quickly link your question to Sanjay's earlier question. So one thing how markets grow up is they grow up in the time that they grow up. So you have some emerging markets that are now starting to really accelerate. And they want to start with tokenization on day one. They just don't know how to do it. So we might not be the only choice in the market, but we have a really powerful tool here to deliver value from day one. So this is a real effective way to be part of how markets grow up going forward. So it drives value for us in many different ways.
Perfect. We'll go to James.
Thank you very much. James Faucette from Morgan Stanley. I wanted to go back to China and Japan and some of these other new markets, or not new markets, but markets that are still developing. How should we think about the opportunity for domestic in those markets, especially with the new licensing in China and what's happening in Japan versus international? And maybe I'll dovetail it to a question of Sachin. When you think about those markets in your new midterm outlook, do you expect them to contribute more or less or similar on a go-forward basis to the growth rates? Thanks.
I think the way to think about these markets is in the near term. China definitely is a long-term opportunity. In the near term, there will be investments that are needed. There are near-term actions that need to take place that require resources and investment to support the long-term growth that we will be seeing. I think that's a similar story with Japan as well. Acceptance costs resources. The technology itself costs resources. I think overall, on the cross-border side, some of the benefits can be quite imminent and immediate, especially, for example, Japan this year. You clearly see a huge surge of inbound because the Japanese yen is relatively cheap. A lot of tourists are going there. That's how I think about cross-border versus domestic. Yes, there will be some near-term investment that's going to be required.
To the second part of your question, we factored exactly what Ling Hai said, right? I think he said it well. We factored in exactly what you said into our medium-term guidance in terms of both the investment side of the equation as well as the revenue opportunity. The only point I'll make is going into the next three years for Japan, recognize now that we will have three years of switching capabilities, which is included in our guidance as well, which is different than what we had in the last three-year period when for the first year, we really did not have switching. And then switching started towards the tail end of 2022. That's the only other thing I'll add.
Tien-tsin
Hey, thanks, Devin. This is Tien-tsin Huang from JP Morgan. Just want to ask on services margin, 60% of the business is network-linked. So I'm curious, does the incremental margin on that look like a network margin? And what do the margins look like on the 40% that's not network-linked? And if you don't mind, if I ask a business question, the card growth, you talked about 9% growth. I think it's a little bit lower than the 10%-11% you've called out in the past. I know there's still penetration potential with switch transactions. You just talked about network tokens as well. I was a little surprised you didn't talk more about processing and gateway. I think, Craig, you mentioned a little bit, but just with issuer processing and the opportunity there, is that something we could expect Mastercard to do more of or not necessarily? Thank you.
And Sachin, you want to start? And then Yaren, on the gateway side.
Tien-tsin, which one of the six questions should I take first? All right, let's go a little longer. So you asked about what the profile of the cost is. You called it margin. We've oftentimes said as it relates to value-added services and solutions, we kind of think about it as the following, which is, what is the incremental cost of delivering that incremental dollar of revenue for value-added services and solutions? And you can see that across the portfolio, we have a diversified set of solutions. So you've got those which are network-based. And then particularly in the cybersecurity space and in the security solution space, as Craig called it, those tend to come with very little incremental cost as it relates to the incremental revenue which is being delivered.
I'm not going to give you specifics as it relates to whether it's network-like economics, but the reality is the incremental cost of delivering the incremental revenue on those services is fairly small. Then when you start getting into things like marketing services and consulting, by definition, the nature of those services are such that you need to put people to work out there to actually deliver the value we deliver to our customers to generate the revenue we do. We think it's incredibly important to have this wide portfolio because the reality is our customers value what we deliver from a consulting standpoint and a marketing services standpoint, which in turn differentiates us on the payment side. So it's all about the portfolio effect.
If you're trying to think about the overall profitability of what we call value-added services and solutions, the best way to think about the levers we've got are, number one, what is the mix which we've got in these network-linked services and how we can grow that mix? But recognize we're not looking to get to 100% on network-based services because we like the diversification effect, which comes from platform and engagement-based services as well. So hopefully that answers your question on the value-added services and solutions. The second question you asked, Tien-tsin, was around the 10%-11% carded market volume growth. Recognize that 10%-11%, which we kind of shared with you, was, again, exiting COVID, and you had the tailwinds of higher growth for the first year, which was coming through.
I think we had talked about over the longer term of 9%-10% carded market volume growth in our last investor day. We're talking about 9% carded market volume growth. The reality is our business has been incredibly successful. We've been executing on that business. And remember, this is a combination of what our outlook for PCE is over the next three years, as well as what the outlook for secular shift is. I think we've hit upon the secular shift piece quite some detail. So you've got to take both those factors into consideration, which is what we do when we give you that 9% carded market volume growth rate.
Perfect. That's your own process.
Yeah, perhaps very briefly on processing and gateways. So in terms of the processing side, we are at our heart a network. The network works best if you have a whole series of players around us, industry players, processors, technology players who build their business on our network and make us thrive. So our intent on the processing side is not to compete with the merchants of this world, but to enable them. I believe that we've been very successful given how fragmented that market is. In certain specific areas, like for fintech in Europe or for prepaid, we have a processing business. We like it. We nurture it because it's very specific. But that doesn't take away the fact that our main thrust in that is to enable others to make the network bigger and more powerful. Gateway is slightly different.
You could argue gateway is a similar concept because more gateways is a great thing. But our gateway allows us, in a number of geographies, to touch more transactions, more than just Mastercard transactions, and then deliver services to these transactions, and hence expanding our TAM. It also allows us to occupy or to touch transactions in geographies where we're not allowed to switch, which in the current environment with a more complex context is actually an important asset to stay relevant in those markets where switching is more difficult. So it's a much more strategic asset for us than perhaps processing, whereby we're more opportunistic.
Take your time for one more. We have Craig up front here.
Hi, thanks. I'm Craig Maurer from FT Partners. So one question for Sachin, which is, VAS, it looks like it's going to be about 38% or so of net revenue with the 2024 guide and going to roughly 44% with the new three-year guide. Thinking about the long term, at what point do we cross over where Mastercard is more of a services business necessarily than a payment processing business? And follow-up for Ling, which is since co-brand cards were outlawed in China, you've seen all those cards split, like you said, one domestic, one for cross-border. What's the pace at which you can convert that back to a single card that can be used globally, but also obviously drive domestic usage? Thanks.
Should we do that one first? Do the China one first and come to that question?
Sure. I don't know if I have an exact timeline for you. As quickly as possible. That really is the goal. So look, what I know is the real litmus test is this: when we got our license, our issuers and acquirers are all very excited in China, right? That's the real litmus test. Because there's always this question: is it too late? Is it difficult to do? Why are they excited? Because they want choice. They want innovation. And I feel with the quantum that I'm looking at, people like players like ICBC, for example, very huge. And it's a very major partner. ABC, Agricultural Bank of China, similarly. So I think we want more as soon as possible. But some of the constraints will be around acceptance, consumer awareness. So those are where we are spending our investment and resources to build out, but also to communicate to the consumers on the domestic side.
Sachin.
Craig, I'm happy to take the second part of your question. Let me just level set here. I think it's really important that even though we disaggregate our revenues into payment network and value-added services and solutions, that we shouldn't lose perspective about the fact that this is a virtuous cycle. By being in the flow, we get the data. By getting the data, we deliver value-added services. Those value-added services, in turn, help us win more share and drive greater payments growth. So I wouldn't think about this as necessarily a Mastercard of services company or as Mastercard of payments company. It's actually very tightly integrated. I mean, the point that Craig made is that approximately 60% of the revenues on value-added services and solutions is tied to the network.
And so it's really important for us not to lose sight of the fact that we need to be in the flow. We need to drive those volumes, which in turn helps us deliver those value-added services and solutions. And while the disaggregation of revenue might get you to the numbers you're talking about, the reality is what we as a management team look to do is drive overall net revenue yield and overall net revenue growth for the company, which is a combination of the revenues we generate from payments as well as value-added services and solutions.
Awesome. Thank you, Sachin. Any closing comments, Michael?
First of all, well said. Sachin is sharp as ever, even on Zoom for us. Thank you for staying with us the whole day. Thank you for joining us all together. You heard the story, doubling down on the strategy. There's powerful tailwinds that push us forward, and we're executing with excellence. That's what's throughout everything that we've heard, plenty of opportunity. You told us before what you wanted to hear about, what's in services, what's the target market, all that. We've never really talked about that because we didn't really need to.
There was a big opportunity right in front of us that we understood. We are growing, and we're looking for the next opportunity. We shared it with you today. I hope you find that insightful. I'm sure we'll get more questions from you over time, and we're happy to engage on that. But fundamentally, we're excited. This is an excited team to push this forward and deliver value to you and our shareholders. Thank you very much. Take care.
Thank you, Michael. Thank all of you for your support of Mastercard. Big thank you to all the teams who worked so hard to put all this together. This is the end of the webcast. But as a reminder for all of you here, there are a couple more hours and activities to do. The board members will be up in the Hamilton room right after this for an open dialogue on lunch to talk to them. Product demos will be open for three more hours till 3 o'clock. And we have breakouts starting at 1 o'clock, all listed up on the screen, where you can go in and have an open dialogue to deep dive further into these topics. I hope you enjoy the rest of the afternoon. Thank you very much.