Ladies and gentlemen, please join me in welcoming Mastercard's Head of Investor Relations, Warren Kneeshaw.
Good morning, everyone. On behalf of the entire Mastercard team, I'd like to welcome you to our 2019 Investment Community Meeting. It's great to see you all again. I'd also like to welcome those of you on the webcast. We're very excited about the program we have for you today. It includes presentations from a number of the executives you can see here on the agenda. The slides actually that we'll be using are in your handouts if you wanna take notes. They're also posted to our website, mastercard.com. There'll be a break partway through the morning. We're gonna conclude with an executive Q&A session. That should take us to about 12:30 P.M., at which time the webcast will be complete.
After that time, those of you here will break. We'll go back upstairs, you can grab a boxed lunch, and then you have options to go to a number of different breakout sessions. We have six breakouts, and we'll do two rounds of those, so you'll have a chance to go see a couple of different breakout groups. In parallel, we're gonna have the product showcase. The product showcase is again upstairs just where you're having coffee in the doors that were closed. I encourage you to go and meet some of our product experts and see a number of demonstrations over a dozen. Let me give you a bit of a tip. There might be a bit of a Priceless Surprise in the product showcase if you go and have a look.
I encourage you to go see that. In addition to the presenters today, there's a number of other Mastercard executives with us. Their titles and pictures are on page five of the handouts, and they'll be in the breakout sessions and otherwise available. I encourage you to say hello and get their additional perspectives on the business. I'd also like to thank at this time the investor relations team and the many other people who helped put together today's program. Thanks very much. Appreciate it. Finally, what you all been waiting for. We may make forward-looking statements regarding our expectations and other future events that could differ materially from our actual results.
I'd like to refer you to our SEC filings for a description of our business and associated risks and other factors which could cause actual results to differ materially from these statements. In addition, for any non-GAAP financial measures that we use, you can find the required reconciliations to GAAP on our website and your handout. With no further ado, please join me in welcoming Ajay Banga.
Warren's becoming a showman, which is good. I've got a very serious thing to start with first, and that is that one of our presenters today and an executive of ours has his birthday, and that's a guy called Michael Miebach. Happy birthday to you. I don't know if any of you have a birthday too, but if you do, please say so. I will sing for you too. You may not want me to sing for you, but I will try. Onto what we're doing here. What I'm gonna try and do is to, over the next 10 minutes, set a context for everything you're gonna listen to over the next few hours and give you a sense of how I think about where we are and where we're going.
You've seen the idea of grow, diversify, build as our strategy now for some years, a decade more or less, and that hasn't changed. The idea is to keep growing the core of our business. Credit, debit, prepaid. Those are consumer. Of course, our commercial business, which over time is picking up more sort of visions and more points of view to add to its capabilities. The idea is grow our core businesses because that's what allows us to invest and reinvest in expanding the footprint of the company and to create new legs to our revenue stool. Growing our core is fundamental to who we are. That growing our core, but doing it in a way that is prepared for everything that people want to do, which is seamless between digital and physical.
They don't really care about whether you're interacting with them through a physical device or a digital device. They want to be able to choose and interact in the way they want. Our whole vision has been for some time, as Ed McLaughlin, who now runs our O&T said some years ago to me, he said, "Every device is a device of commerce." The idea is to allow people to interact with us through anything, through a car, through their sunglasses, through rubbing their forehead one day. If that's what they want to do, if that's how they choose to interact with what they're going to do. Our job is to not pick winners and losers in the manner in which they will interact.
Our job is to be with them when they want to interact in a simple, safe, secure, convenient way. You will find a lot of effort in our company behind backing standards, global standards, in this case EMVCo standards that support all the things that could make this idea a reality. That could be from security, 3-D Secure 2.0, or tokenization that you know about, or the very, sort of, you know, interesting term we've given in the industry to SRC, which is, sort of internal baseball for a simple easy way to check out online. You're gonna see as this day goes through, you will find Michael and Jess will actually talk about all these aspects in some depth. That's kind of the first thing I want to make sure you know we're very focused on.
Our commercial business started out some years ago principally as a card-driven business, and that's still a large part of the volume, and it's doing very well. That business is corporate T&E, fleet cards, purchasing cards, the stuff that you would expect, small business cards. There's a whole other opportunity in alternate payment flows, and that's B2B account payable spaces that you know we've begun to talk about for a few years. We're trying to put our money where our mouth is with the right acquisitions to enable not just our play at the infrastructure level, but also enable a play at applications and services level, so we can try and be there in whichever way the opportunity presents itself in a marketplace. That's the idea of what our commercial aspirations are.
You will hear a great deal of that from Michael, but also from Paul Stoddart as you go through the course of today. That's the grow pillar. That's what we're trying to do. Grow the core. Don't worry about physical and digital. It's the same thing. Think like that. Think of technology as a business, not technology as an enabler for business, you start getting this the right way. Design all products with APIs. You get the general idea of what I'm trying to say on growing the core. Diversifying. Many years back, we were principally devoted to the large banks. We have moved very far from there. We are also devoted to them. After all, they are the large banks, they control large segments of distribution access infrastructure. We've built out a good relationship with smaller and regional banks.
We've built out excellent relationships with merchants, with transit operators, with governments and others around the world, with technology firms, with digital players, and that really is the bottom part of that pillar. The idea of diversifying our clients and our geographies so that, again, we add more legs to our revenue stool and we reduce our dependence or our reliance on just one leg, and that's kind of the objective here. Again, when you hear Craig and Linda and Mark Barnett and Ron talk, they're gonna talk about a lot of how this is done in the markets they're in, both in North America and, in this case, Europe for Mark. You can hear the tonality of the international markets through that. In the Q&A, if you've got more questions on other markets, we'd be happy to go through them.
That's the part about getting to new markets with new clients. I'm going to come back to financial inclusion. Let's talk about build for a minute. That was the whole idea of getting into new areas of business that are not separate from what payments is, but build on what payments is. Payments gives us access to information and data. Today, we see 56%, 57% of our transactions that are conducted on these cards. It used to be 49% in 2012 and 42% the year I joined in 2009. The idea of making progress on that is that the more transactions we see, the more we can do in terms of offering value-added services that provide safety, security, convenience, loyalty, all that. That is what's built into the new areas.
I'm not launching businesses that are not connected to us. They are connected to payments and rooted in payments, but they build new revenue streams from what we see and do, and therefore give us yet more legs to our revenue stool. That's the idea. Those you will see today when Kevin Stanton and Ajay Bhalla are up here. That's the other Ajay. He's uglier and earns a little more money than I do, but he's also an AB. When he gets up here, you will get to hear That's an introduction, Bhalla. You, you should be careful what you want. You get the data analytics, consulting, marketing services and managed services, loyalty, cyber intelligence. You'll hear them talk about all this. The last item there, New Payment Flows, back to Paul Stoddart again.
That's where you get a chance to listen to all the work we've been doing to get ourselves into not just account payable B2B, but also things like Bill Pay, hence the work we're doing with Bill Pay Exchange or the acquisition of Transactis. You'll see all those getting referred to in building out new payment opportunities for us. All this is built on brand, data, technology, and most importantly, people. That is what we have spent most of our time on. I'm going to tell you a little about the people when I talk next slide. We cannot do all this without changing the way we approach our relationship on the ground with governments, with regulators, with opinion leaders, and change the way that people think about this company being there only for commerce.
We can actually do well by doing good. That is something we believe in. It's inbuilt in the way we've worked for many years. You've heard me talk about the idea of inclusive growth and financial inclusion. You will see Tim Murphy and Mike Froman when they talk about this, that they will stitch together for you our objective of being seen as a real partner for governments, but also a real problem solver for their biggest issues in inclusive growth. Over the last five, six years, and you could make the slide for longer if you'd like, but five, six years, I thought I'd bring out two or three things about us. I've touched a little bit on them. The first one, product diversification. You know, we've grown well with debit.
In fact, I think between debit and prepaid now it is larger than our GDV that comes out of credit. You can see that in the top chart. You can see a good contribution to our GDV. You can also see the growth in commercial, mostly carded in that number that came from the last few years. If you get down to thinking about how we've sort of have expanded the legs of our revenues tool, services is not one business. Don't sort of put it all together in one lump. It's comprised of different businesses. As I said in the prior slide, it had Cyber Services, Intelligence Services, Data Analytics, Managed Services, Loyalty, Processing. That's all inside what we call services. Services is today a quarter of our revenue.
Back in 2012, it was 16% of our revenue. Back 10 years ago, it was 6%, 7% of our revenue. It's headed in the right direction, and it's growing well and contributing well to our future. New payment flows, I just told you a little bit about the idea behind it. The objective that we have is we want to be able to offer choice. You've heard me say this in smaller investor meetings. Choice and solutions to customers, banks, merchants, governments, digital players. Choice would mean that we want to give them the opportunity to go card rails, non-card rails, blockchain, whatever you want to do. That's what that whole new payment flows is about.
That's where a lot of our energy and effort between Vocalink, Nets, Transfast, and Transactis, and all these things that you're hearing about come from there. People. The trends, finding trends and people are very intertwined. If we didn't have the right people and the right kind of people, we'd never find a way to stay ahead of the kind of trends that this industry has. The biggest transformation in our company has been the fact that the people in our company are different from what we used to have 10 years ago. We had many bankers and consultants 10 years ago, the overwhelming majority. That is still the case that we have a number of them because they are subject matter experts, and subject matter experts are what allow us to succeed.
The difference is we also now hire a lot of people from not just banks and consultants, but technology firms, consumer firms, governments, all forms, advertising agencies, because that's what gives us the opportunity to have a really diverse team. Diverse not in just what they look like, but diverse in their minds and what they bring to our conference tables and our meetings. They make us think about these trends. Similarly, between 2012 and 2018, while our workforce has more or less doubled, interestingly, the majority of our workforce, more than 60%, is now overseas. It used to be the other way around. Another little angle, that workforce, 1/3 of that workforce is now in tech hubs doing work to do with user-centric tech design. That is a much higher number than we had five years ago, let alone 10 years ago.
Not only have we doubled the workforce, we got one-third of them in tech hubs. We've got 60-odd% of them overseas. They come from different backgrounds, although we value our subject matter experts greatly. The way our sales force is aligned is that more and more of the sales force is not just aligned to issuers, but also to those diversified list of clients that you saw on the first page and building new businesses. That's the kind of people skills that allow us I'm not gonna spend a lot of time on this slide because you actually have asked me, and we've talked about these a lot over the years. It's the people that make it possible for us to try and stay ahead of some of the most interesting changes in this industry.
Of these, two that I consider to be risks, in fact, which we've always worked with, one being increasing government activism and regulatory activism. That's why the focus on inclusion and working with them as partners. Second, the whole aspect of cyber, not for us alone, but for the fact that the trust in the industry depends on people feeling safe and secure and private. You've seen us take some fairly leading positions on cyber, but also on GDPR, where we actively contributed in the development of GDPR's thinking, and we are committed to the fact that the consumer will own their data, have the right to be forgotten, and the right to have their information deleted, and know what is kept for them around the world, not just in Europe. That is our commitment to what we are doing with a lot of these trends.
A quick zip through the rest. You've seen this slide last Investor Day and probably the prior one. Martina was up here talking about how we've grown, the way we look at the opportunity in our business, not just past personal expenditure, but also the B2B space where accounts payable is a large part of the future. Most interestingly as well, in the P2P, B2C, G2C, where the business model for some of these is still unsure and unclear, although Mastercard Send is beginning to make interesting inroads in some of that last column. Someone outside asked me about this. You will see this come up in Michael's, Paul's, Craig's conversations. Do not believe that what we're trying to do in real-time payments or in other thinking is to always be the owner of the infrastructure. That will be possible in many countries.
The more it is, the better off we are. It won't be possible elsewhere. The objective is have the ability to offer the infrastructure capability across cards, real-time payments, ACH, blockchain. Where you can do them, great. Where you can't, there's still a lot of work to be done with services and interestingly, with applications that fall into the categories of PCE, B2B, and the P2P, and business-to-consumer payments. We don't have a single view of how to participate in this industry. We just know we want to be multi-rail, offer choice, offer solutions, and offer them sensibly based on what the operating environment of that country allows us to do. Last slide almost. Have to do one of these. This is kind of execution over the last decade.
Nice revenue, nice EPS growth, thanks to you guys, till the last three days. This is data from the last of August, but the last three days have been interesting in the market. That's the kind of TSR. If you'd invested $100 in our company, which a number of you have, a little more than $100, then, you know, it looks nice, and I feel good too in the process, and so do most of our employees. Today, 60%-70% of our employees have a chance to participate by owning our shares. That was not the case 10 years ago.
They feel the pleasure and the challenges of being employed by a company that cares deeply about how we deliver results, not just for shareholders, but for everybody who works in our company. I'm gonna end here by saying I believe that we've got a terrific opportunity for the next decade or two, not just the decade we've been through, because of the nature in which P2P, G2C, B2C, B2B, all those stupid acronyms, and PCE, which is the one we traditionally focused on. Basically, the payment systems in the world have still got a lot of space for penetration by electronic payments. I believe we're trying to anticipate some of those trends and cover the issues we could see. I believe our people are our core strength in that. I think we're differentiating with services while making sure we offer choice to the people we interact with.
We're determined to be seen as a company that cares about decency, that brings its decency quotient to work every single day, not just its IQ, not just its EQ, but its DQ to work. I think that's part of doing well and doing good, and I think if we can do that well, then we can have another terrific decade ahead of us. Thank you very much, and I'm gonna hand it over to the next speaker.
Our partnership with Mastercard is an opportunity to bring two leading brands together that are both focused on growth through innovative partnerships. Both Mastercard and Lyft are committed to providing our communities the tools they need to be thriving participants in our economy. We've partnered with Mastercard across a wide variety of programs, and most recently, we doubled down on our efforts to support our drivers, partnering with Mastercard to launch the Lyft Direct Mastercard debit card. It's a program that is designed specifically for our driver community to allow them to increase their income, to maximize their savings, and provide offers and rewards wherever they're driving. There's also a lot that we're doing for our rider community. Together with Mastercard, we're providing a benefit to World Elite cardholders as one example. Today, a cardholder receives $10 in statement credit for every five rides they take per month.
I've had an opportunity to work with all levels of the Mastercard leadership team, and I'd attribute our success to the shared values that we have. We've always appreciated that effort and felt it at every level of Lyft.
Please join me in welcoming Michael Miebach, Mastercard's Chief Product Officer, and Jess Turner, Executive Vice President of North America Products and Innovation.
I literally can't think of a better birthday setting. Just joking. That was powerful. That was Mastercard Send at work, and we'll talk about that a little bit later. I wanna lead off with the frame that we have around our product strategy. How do we think about product? Our products are designed to empower every single one of the three pillars of our corporate strategy: grow, diversify, and build. Not surprisingly, we start off with a deep understanding on who we're serving, which informs what we're delivering to them. We take a really close look on how to enable the users of our products. That sounds very straightforward, but let me bring this to life to you just a little bit more.
First, distinguishing that the who is really our customers on one side, our partners, and then it's their customers on the other side, businesses or consumers. We believe that in order to do best for our partners, we have to truly understand their customers as well as they do. Deep-diving into consumers and what are some of the changing trends there, what are they looking for. The headlines are digital first. It's convenience. It's safety, security, as we heard just before from Ajay. On the businesses side, very different focus. Safety matters to everybody, but in businesses, control, automation, payment certainty are very different things that we have to understand quite deeply if we wanna serve our customers well. Now, all of that informs what we're delivering, and the north star here is a best-in-class experience. How do we do that?
Well, we do that by first of all making it quite easy for our partners to integrate with our technology, APIs. We're also making it possible. We're enabling our partners for a best-in-class experience with flexible, modular, and easily scalable technology platforms. Finally, pushing the envelope over the last year or so to really put out there what I would describe as more consumer-ready solutions. We abstract some of the complexity away from our customers, internalize them, and make it a lot easier. Best-in-class experience. Now, one thing that matters to all the three who's over there, the diverse partners as well as end users, is the payment choice part. Everybody really wants to pay the way they wanna pay, assuming they want to pay to start with, everywhere, whenever, any channel. Payment choice, how do we deliver that?
How do we enable that? I would argue we've already done that to some large degree because we turned ourselves from a card company into a multi-rail company. That is the ability for us to deliver on choice and flexibility all the time. For a company that spans the globe, local relevance matters. That's another north star on how we think about our products. How do we do that? Some stats from Ajay earlier on. We have the majority of our people in-market. We're also developing products a lot closer to the market. The idea is leverage global scalable platforms, but really then have modular solutions on the ground so that our margin management is always kept in sight. Those three, best-in-class experience and payment choice and local relevance, you will find across our product roadmaps everywhere.
That's guiding what we do. What happens when we look beyond our product roadmaps? How do we experiment with some of the new trends that we just talked about? Well, Mastercard Labs is kind of leading the charge for the company there. What's happening in blockchain, what's happening in digital ID, that is always a focus for us to see what's around the corner. That's how we're pushing the envelope, and you find a few of those in the build pillar of our business. That isn't, you know, limited to experimentation with technology. It's experimentation with business models. Is there a whole different way on how value exchange can happen? We look at all of those at all the times. Now, a $235 trillion opportunity.
2017, I stood here, I showed you how we build products with the frame that we just discussed that are decked against you know, participating in those flows and enabling our partners who care about P2P flows or B2B flows or whatever it might be, we've been quite busy deploying those solutions. You see our graphic artist here put that in black. That's the stuff what we showed you last time. Then in orange shows you how busy we've been since. If I just look back at eight and a half months of this year, we've extended our capabilities in critical areas of our business dramatically. Just last out of the starting blocks, our Nets acquisition gives us a strong additional set of capabilities in the real-time payment infrastructure space.
It's also a real step up on the real-time payment application space. That dynamic of incumbency, of having a strong position in infrastructure and then leading into applications really is playing out, and we saw Nets prove that in the market. That's very good for us. Think about, you know, PCE, our historic playing field. There's large flows in PCE that we have not been participating in, and one example of that is Bill Pay. Here our Transactis acquisition was bolstering up what we already historically had in Bill Pay, and then you take Nets' Bill Pay capabilities, and here's a strong set that allows us to participate in this global opportunity going forward. I could go on and on about what we've been doing. You see all of this on this slide.
The starting point for all of this is our core business, the grow pillar of our business model. This is always a favorite slide. How are we doing? Market share on the core side. You see four green arrows. We are outpacing the market across our consumer portfolio and commercial. You see the reference earlier made by Ajay Banga, strong growth dynamics in commercial with 13% GDV. Then prepaid, obviously from a smaller base, with some stellar numbers. This is also the moment to point back to how we deliver this growth. We deliver it through partners. You see the diversity in partners here, the diversification pillar of our strategy. You see banks here, you see P2P companies, you see B2B companies, you see digital challenger banks, all that.
We'll spend a bit more time to bring light onto our partnerships with some of these newer types of customers. I just want to make one comment on our traditional banks. That's still a cornerstone and will be a cornerstone of our business. An example that I find very compelling is Santander. Broad relationship, global relationship, I would argue. In the U.K., we've just made a real step forward. We extended our relationship from credit into debit. If I take a step back from a product perspective, say, "What's in it?" Well, a debit card is a good user experience to start with, but we have our fraud analytics in there, we have our digital expertise in there, and we have a full set of our sponsorships integrated in that and presented as offers to Santander's customer.
That shows the breadth of we can do, and that is a motivation for somebody to make such a big step as to flip a debit portfolio. Understanding each of these partners and their needs and their depth and coming to understand what their customers are all about is the focus of our work and product. Hence, we're gonna now shift the focus and look at what are we doing in consumer and what are those customer end users looking for, and afterwards, shift the focus to look at what we're doing on the business side, on the commercial side. Okay? That was an overview. Consumer. These slides prevent you really from rushing through. There's a real lag here. You kind of keep. Just wanna press. Consumer experiences, the best-in-class consumer experiences. That's the North Star.
On the you know, consumer expectation side, think about all of our lives, your streaming service, everything is at the tip of your fingertips, digital first and so forth, and you expect a solution that's one for you and not the same for the next guy that's sitting next to you right now. Personalization. At the same time, you want control over your data. Design by privacy is a principle that we have across all of our product builds and then choice and flexibility. Again, I mentioned all of that before, but when it comes to our consumer products, particularly important. Now choice and flexibility, let's just pick that up for a moment. I presume many in the room are now thinking, "Well, he's gonna talk about cards." I wanna tee off and say our consumer solutions are not just cards.
You'll have Mark Barnett share a bit more later on what we're doing in enabling bank accounts delivered through a mobile banking app of a bank to be a payment tool. It's a very slick experience. Pay by Bank app is how we deliver on choice on the consumer side. Of course, we love cards. There's some really great examples on cards, best-in-class, Xuma experiences. The first one that has to come to mind, I paid with it this morning at the Starbucks down the road, the Apple Card. That is a very good user experience. It's digital first. It's a product construct that allows you to apply within minutes, literally, and have a card available for your use on your iPhone and Apple Pay.
That digital first product construct, though, comes to life across the world, not only in credit, in debit with different partners. It's a construct that we generally drive and engage on our partners with. The one example that I wanna spend a bit more time with is Nubank. Nubank is the world's largest digital bank. I'm not sure how many people knew that, but by number of customers, they are the largest. They're based out of Brazil. By number of customers, 6th-largest bank in Brazil per se. We have a strong relationship with them. At the core of what they do as a digital bank, everything managed through an app, is a combo card. It's a mix between credit and debit, and you can switch it on and off on your app.
That is a best-in-class user experience that the bank felt mattered in the Brazilian market. We co-created with them, that is best-in-class experience. Even, you know, at the cutting edge of new banks entering the market, we are there with them. I think the word I repeated most since I started this dialogue with you, actually it's more of a monologue, is digital. Is digital, huh? Digital seismic shift in shopping behavior from physical to digital. We see the growth rate's about 4x as much. Our digital capabilities and how do we use this opportunity of changing consumer behavior to capture more than our fair share and make those share numbers look even more attractive for us is critical. What are our digital capabilities?
For that, I'll get the real expert here, and that's Jess.
Thank you, Michael.
Come on up.
Thank you. As Michael said, digital transactions are rising at an unprecedented rate, and that's really because the physical and the digital world continue to merge together. If you think about it, really even in your everyday life, we've talked about Lyft quite a bit today, but you jump in a Lyft, you jump out, there's no friction, no payment friction whatsoever. That didn't exist before. Jumping on the subway and tapping your fitness tracker or your contactless card, no friction. These are just different ways that things were physical and digital before, but they've come together. What it's doing is it's allowing innovation in all industries. Dining, retail, really every industry you can think of. Mastercard, through proactive partnership and investing in our digital innovations, is really at the forefront of this. In fact, we're often first to do lots of things.
Behind me, I have a couple of the most recent things we're doing, 'cause we do so many. One example is our relationship with Sonic, which is a quick service restaurant in the U.S. We're working with them to use voice to make both ordering and paying easier. Another is a retailer called Goop that we're working with in Canada to make something that used to be a physical shopping experience purely digital. The other thing I would touch on is our global reach with partners like Adyen and Garmin. I could go on and on, but the point I'm making is that with partnership, innovation, infrastructure, we can allow payment choice, and we can do that through all types of user experiences.
When we were here two years ago, we talked about a lot of these trends. We talked about our digital strategy was pegged against that. We talked about being able to use multi-rail. We talked about how consumers wanting to pay and being able to enable that. The underpinning of that is something called tokenization. I'm gonna spend a minute on that next. Tokenization is really at the heart of all of the consumer choice we're talking about payment choice. It doesn't matter if it's a card or a real-time payment or a private label card or a mobile money account. It just doesn't matter. Tokenization sits at the center of that. A decade ago, when Mastercard created the framework for what is now tokenization, we understood that. We created the infrastructure and technology to scale with where the industry is going.
You can see the slide before me that touches on the fact that issuers are empowered through MDES to serve consumers what they want, regardless of how they wanna pay. Today, it's just a lot of it's about cards. If you think about yourself, you may leave your card with a merchant that you like to shop at, card on file. Maybe you think Microsoft or Xbox, if any of you are gamers or have children that are. Others may wanna use a digital wallet. With our partnerships with Google Pay and Apple Pay, we tokenize there too. There's even new places like marketplaces. Mercado Libre and LAC is a great example, where we also empower that tokenization situation so that other merchants can come into one digital place, and people can get where they want. MDES is at the heart of it.
Again, it doesn't matter what the payment choice is. We do that through best-in-class security, privacy, and lifecycle management. What that means is, in the digital world, if in fact you want to have a subscription or do something, leave your card on file or any account over time, and something happens to the physical account number, it just doesn't matter. You're not disturbed. Our tokenization solution is called MDES, Mastercard Digital Enablement Service. That is how we continue to be at the forefront of expanding all the different use cases and ways that we can, not only future-proof our own business, but future-proof our business for our customers and take advantage of the opportunity that's available to us. The one thing I will touch on is something called Express. I've talked a lot about the technology, and I've talked a lot about the infrastructure.
This idea that you get to plug in one time from a technical perspective and then reach every use case you want regardless of the payment flow globally is fantastic. Doing the same commercially is equally as important, and that's why we have this Express program. Leveraging our governance and our framework, we have a set of agreements that our issuing and bank community and our merchants and partners can connect to very easy and simply. With the combination, that is how we scale. In fact, we've doubled since we were here two years ago to 2,200 issuers on MDES, and we continue to announce strategic partnerships with the likes of Adyen, Worldpay, Stripe, not to mention huge merchants for card on file as a result of this. Think AT&T, Liberty Mutual, I mentioned Microsoft. Again, I could go on and on.
This is how you scale around the world, and this is how you enable the payment choice. There is one use case that I haven't touched on yet, and that's guest checkout. 50% of consumers still use guest checkout. That experience needs optimization. That's why in April of 2018, Mastercard made a call to the industry, everyone in the industry, acquirers, payment service providers, merchants, issuers, to support the secure remote commerce standard that Ajay just spoke about. What it is, it's standardizing where we should standardize, which is about the user experience for the actual payment, and it's allowing us to differentiate in other ways. The actual standard calls for no static password, easier merchant integration, and it allows us to interoperably work with tokenization around the world.
I'm gonna spend a second just talking about why that's important. With that standard, we can build on top of it and leverage differentiation that we have for our customers ultimately to benefit the consumer. The way we're doing that is to make sure that we know who you are. If you don't have a static password or you don't have a password, how can we make sure you are in fact who you are? We're leveraging our fraud tools like NuDetect and Mastercard Identity Check, which Ajay Bhalla will talk about later. I think you're an attractive guy, Ajay. We'll talk about that later. Another foundational piece, though, is our value-added services.
Being able to show content during the transaction for the consumer, or maybe showing Pay with Rewards, which is the way we allow consumers to use their points to pay at any merchant online through our customers. In fact, Citibank announced it recently, their Pay with Points program. Even beyond that, it's the experience for the consumer. We have a Mastercard API that allows you from your banking app to push provision, the credential, into SRC seamlessly and easily. Then actually have APIs that the consumer can go back to their banking app and see everywhere their card is stored and have control over that, called consumer controls. These are just subsets of ways we're gonna differentiate on this standard for the betterment of the consumer and for our customers. Rather than me keep explaining it to you, let me do a very quick demo.
This is your partner banking app. Feel free to imagine which bank that is. I'm gonna sign in, and then I see that I have been offered this option. "Hey, why don't you participate in Secure Remote Commerce?" I pick the cards I want. I quickly accept my terms and conditions, and because it's coming from my bank, they know everything about me that's needed. I hit continue, and that quickly, I've just added my card into the Secure Remote Commerce standard. Now I'm gonna go shopping. I decide I'm gonna go to kicks.com. I look around, and I decide I want this large blue sneaker. I add it to my cart, and I recognize the icon. I go ahead, I click through. It loads every card I have in the Secure Remote Commerce experience. This time, I wanna use my cashback Mastercard. I hit continue.
I confirm my order like you typically would, and it's done. Because of our differentiated assets, we're able to do that behind the scenes safely and securely. I decide, you know what? I'm gonna continue shopping, and I'm gonna get a matching hat. I pick my hat. I add it to the cart. I click again. Shows me my cards. This time now, I think I'll use my Pay with Rewards option. I think I'll use points for this. I turn it on. I hit continue, confirm my order. It's done, and I get an alert telling me how many points I used and what's left. It's that fast and that easy. That's what the standard allows us to do, and that's why we're able to differentiate.
What I'll leave you with is that the standard allows us to not only differentiate for consumers in a very different way, but it helps merchants all around the world. It specifically can help small business and independent merchants have access to best-in-class assets more than they ever have. Because of that, we announced the Mastercard Digital Wellness program. The focus of that is taking our assets and making it easy for the small business, you know, really unique merchants to have access to every tool we have that so they can build on top of this standard. That will go live later next year. With that, I'll hand it over to Michael. Thank you.
These digital capabilities, as you can see, tokenization, SRC, wellness programs, are all designed to empower a scale of our products. That's not the only way that we participate in digital commerce. One other example I want to give you is in the context of debit. Debit is the leading electronic payment tool for everyday spend. Interesting factoid is if people decide to use debit in the physical space, they generally opt to use debit in the online space as well. What we need to do is that essentially all of our debit products out there are enabled across all channels to really capture that trend. You can see the turnover is 2x .
Now, you know we have a strong position in Maestro, which is a deep-rooted product in many markets around the world and has been very successful for us. We also have a thriving business in Debit Mastercard. How do we bring the two together? We've been sharing with you our updates on the progress of Maestro conversion. I think it was 8 million cards, largely based out of Asia in the, in the last quarter. We continue to make progress. A recent example is our agreement with Bancolombia, committed to merge its Maestro portfolio onto a Debit Mastercard. You know, a consumer wants to transact today. If Mastercard and local banks decide we're going to convert over the next two years, that's good, but that doesn't help today.
What does help today is, here's track two of our strategy, and that is issuing instant virtual Debit Mastercard. Work as a companion card all along. Here we get to see good customer reaction from that. Our partnership with Nexi in Italy would be one example for that. Of course, I have to mention a German example, and that is Deutsche Bank. Deutsche Bank, believe it, out of Germany, is deciding that we should be going across all channel with the best possible user experience, which I'm very happy about. That's debit. Good story for us, thriving business and continuing to grow fast. Last time we spoke two years ago, we put a particular spotlight on credit and affluent credit.
Sometimes I feel prepaid could end up as the stepchild. We're going to spend a bit of time to talk about prepaid today. You remember the 19% GDV growth rate? Prepaid is really the tool that we employ very effectively at some of the edges of our business, diversifying customer segments, new geographies, new to system consumers in the financial inclusion space, gig workers, all of that. That is an exceptionally effective tool, and it's a particularly effective tool for us versus others because we are vertically integrated. We have the brand business, we have our product construct. We also have a strong program management capability and a processing capability. If somebody decides to get into payments and they don't really know how to do it, we have the card in a box, so to say, for them.
Some of the examples here, this is, you know, this might sound like it's some niche business. Well, it's not quite. I'll give you a couple of really powerful examples here. The first is Revolut, based out of U.K. Digital challenger bank, very high growth business from a customer perspective. 6 million customers, and they're adding around about 600,000 customers a month. That's significant growth. If you look at their proposition, it's all digital first and offered through the app. At the cornerstone is a Mastercard prepaid card, multi-currency functionality, alerts, auto reload, the whole works from Mastercard powering that business. I think that's a really powerful example to show where prepaid can go and what it can do for us. Now, somebody like Revolut is an interesting aspect.
It kind of leads on to a few other things for us then. Banks like that, growing fast, moving from country to country, are looking for different licensing processes for different engagement and for a really flexible partner. We've changed our and updated our processes accordingly to work with them, and today we enjoy a leadership position across these fintech challenger banks around the world. Now, it's not all about fintech and digital challenger. Prepaid is a perfect tool for people that hold their first ever financial instrument. Think financial inclusion. It's been exceptionally successful for us as a cornerstone of our government programs. More from Mike Froman a little later on, there he is on that. Here's an example for you that straddles both fintech and financial inclusion.
In Asia, we have a really strong partnership with Grab. Grab is a Singaporean-based tech company. They're in ride hailing, they're in food delivery, and they do a few other things. You know, what we're seeing here is that the virtual debit prepaid card, Mastercard, is most likely going to be the first financial tool for many Southeast Asians that historically have been financially excluded. It's a powerful business for us. We expect this business to double in the next five years for us. There was the lag again. All right. Bill Pay. Think back about the PCE $50 trillion opportunity in PCE. Bill Pay is a significant chunk of that. You know, with the north star of best-in-class experiences, while today, Bill Pay for most consumers isn't a best-in-class experience because it's fairly fragmented.
You know, you log on to different websites and all of that and pay your bills in different ways. It's also difficult for billers, and it is not great for banks because, you know, generally, there isn't much traffic on a bank's website that is related to billers. If we were to solve all of that, I can view all my bills in one app, you know, my customers are spending time on my banking app, et cetera, et cetera. We see this as a huge opportunity. This is ripe for disruption. You'll hear more from Craig and Ron later on to talk about how we're doing this. This is, powered by transactors. It's powered by our Nets acquisition. It's powered by our traditional assets.
We believe we have everything that we need to have to pursue this global opportunities. You should see us very active in bill pay. I said we will look to understand what's going on in the consumer space. I'll share with you some of the solutions that we have there and the progress that we've made. We're going to shift focus and look at the needs of commercial entities, businesses. What are they looking for and what kind of solutions do we have? Shift in focus. Please stay with me. We build an attractive business in commercial cards. Ajay teed it up earlier. Focus has been on physical cards, i.e., the ones that you use at a terminal. We have SME cards, we have T&E cards, we have purchasing cards. That's all well and good.
The first thing I would tell you from a product perspective that's been a late trend, a very obvious point if you think about it, and that is if you are an SME owner, you're a successful business person, and you hold a personal card, it gives you all sorts of perks. You use your business card, and it has nothing other than expense reporting. That feels odd. We're taking a book out of our consumer strategy, sorry, a page out of our consumer strategy, and we're premiumizing our SME cards and our travel cards. That's an important trend, and we start to see good customer traction and take up. We just refreshed our SME benefits in the U.S. More now onto the specific functions that business are looking for. What are businesses looking for?
On the SME side, they're looking to really run their business and not waste time with distractions. One of the distractions in the world of a small business owner is receipt capture. You go and buy something and you have a paper receipt, how will it ever find its way into whatever accounting tool you're using? We're partnering with Itemize here to automate receipt capture. It's an AI-powered data extraction tool, essentially. Launched in the U.S. in July. Good take-up. Very interesting proposition. Sticking with the point on AI, where else can we leverage AI? I'm looking here at an example out of our purchasing card space. In purchasing cards, what matters is control, and specifically fraud control. We have a partnership here with Oversight.
Again, AI-powered fraud control tools that ensure that these cards are only doing what they're supposed to do. That matters specifically to governments. U.S. federal agencies and some of our partners, like U.S. banks, are seeing great take-up on that solution that we've put out there in the market. That's physical cards for you. Commercial cards obviously isn't just physical cards, and it is not only at the POS. To the point about what businesses generally do most often is they pay invoices. They buy something. What is happening in that space? Our step into the world of buyers and suppliers and the world of accounts payable was really our first step was virtual cards. In the virtual card space, we have a thriving business.
In fact, we lead the market, we keep investing from a product capability to make virtual cards a preferred tool. Some of the recent changes that we've done there is making the acceptance of virtual cards payments very straightforward. Basically, no touch, straight through processing. So we build our organic capabilities there, but we also engage with another partner here, Versapay, who basically have an accounts receivable and reconciliation service. Now across the board, you can see we keep pushing the envelope, making our solutions better across POS and accounts payable. What else is there in commercial? There's a lot. Let's go back to the $235 trillion and look at those numbers here. $125 trillion is B2B. That is the size of the opportunity in B2B.
A 110 out of that 125 is in accounts payable. Only a very small fraction is in cards, virtual cards, which we're leading the market. The question that we had to ask ourself is, how do we go after the rest? If you then say, where is the rest? The rest is in account-based payments from one bank account to another bank account. Here we are back to Vocalink, we're back to Nets, we're back to all of our multi-rail capabilities that enable us to provide solutions for our banking partners, and other specialist partners in the space of B2B payments. What are some of these issues that people have with B2B payments? I mean, clearly trade is happening today, what is the actual problem? I'm gonna call out four things. The first is visibility.
How do you know as, you just bought something in your company and you have the supplier, how do you know how to pay this, the supplier? Most likely, somebody will pick up the phone and call and say, "How do I pay you? You want it ACH, you want it in check, whichever way you want? Or would you please take a virtual card?" There's a lot of phoning going on. Managing the cash flow, next piece. You don't know when your money comes. Depending on the size of your business, cash flow management can have very severe impact if it goes wrong. On the cash flow side, is your, is your buyer sticking to the 60-day payment terms? Or is the buyer deciding to wait another 30 days and pay you in 90 days? You don't know.
What are you gonna do? You will call. Back to the phone, which is a, you know, it's a heavy-duty process and it's not very automated. Remittance data. Your problems might actually start when the payment arrives. Those first two problems solved still doesn't get you a home run. When your money arrives, you might not know what you've been paid for. If you're lucky, you get an invoice number. Has it been for one invoice 100%? Was a discount taken, yes or no? That's another issue in this whole space. You will figure it out by calling and following up and say, "What have I just been paid?" All of that adds up to limited automation.
There is some challenges remaining to be addressed in the $110 trillion space. I wouldn't tee this up if I wouldn't have an answer for that, or at least a suggestion on what the answer might be. We went ahead and we said, there needs to be a solution for this and one that systematically tackles that, not across all the bilaterals that are happening between buyers and suppliers and their banks. What can be a systematic solution here that addresses the challenges associated with payments in this space, but also the associated issues with invoicing in this space? Following this, how we generally think about product has to be a global solution because, you know, it just works in one country. In a world of connected trade, that's gonna be challenging.
It has to be multi-rail because we just talked about that these payments happen across all sorts of rails. It has to be data rich enough so that the whole invoicing aspect and the automation aspect can be addressed and needs to be an ecosystem if it should ever get to scale, that scales through partners because we can't do this ourselves and banks can't do it either. Who all is in the ecosystem that has an interest in addressing these problems? We put all of that out there and there is an answer. That answer is called Mastercard Track. This morning, we went out, if you follow our newsroom, you would have seen a press release on launching Mastercard Track as our full business payment solution.
We first introduced the name in 2018 with Mastercard Track Trade Directory. That was our first step into the space of B2B payments beyond VCN, where we said, "Okay, we addressed the visibility point. Here are the people that wanna be paid, and this is how they wanna be paid." That was the broad idea of the directory, including some risk management aspects around compliance and so forth. Now, a full service. The full service beyond even what we have done with the Mastercard Track B2B Hub, which was an outsourcing solution mainly focused on accounts payable. Now it's looking accounts payable and accounts receivable. We will continue to see success in these two solutions, but now a broader solution, the Mastercard Track Business Payment Service. I'm sure we will end up with an acronym eventually on that.
That is the name that we're using. It's the Mastercard Track product family as we build out our solutions in this space. How does it look? How does it work? This is it. Let me walk you through. We talked about the world of buyers and suppliers. You see the suppliers on the left, and you see the suppliers on the right, and in the middle you see the service that we're offering. Picture a cloud that hosts these services. The first is the directory, addresses the visibility. Who's out there? Are they the people they claim to be? Are they in good standing? Is the compliance sorted, et cetera? A rules engine that says, "I am the supplier. I wanna be paid in ACH at 30 days and in checks for 90 days," or whatever your rules are.
Very flexible for different types of payments that you receive for different buyers that you engage with. There's a data connection that regardless of your payment choice, you will always get the right amount of data to automate your accounts payable and your accounts receivable respective on either side you are. All of that with a single API link into the world of our multi-rail network world, so you can choose which way you pay. That is the Mastercard Track Business Payment Service, launched this morning, 8:00 A.M. Pure coincidence that it happened to be that way. We've been working on this for a while. Enough of the theory. Here's an example.
If you have driven here this morning and you went through one of those crosstown streets, there might have been a truck standing on the side of the road and somebody just rolling some liquor into a restaurant or some bar on the side. That wholesale liquor business, that sounds very niche, what I'm saying, but, you know, stay with me for a moment. That wholesale liquor business resides on, you know, people will deliver physical goods and a driver will wait for a payment to be made, and it will be in the form of a check that needs to be cut. Very inefficient. Manual process on both sides, involves waiting time, and it also blocks the road. Payment on delivery will be our first use case of BPS with the wholesale liquor industry.
A few more details a little later on from Ron. You can actually see it in the product showcase. No more wait time, and all data in one place. Think about the world's global supply chains. Where all you have such scenarios of physical delivery, that is a very powerful use case that isn't just niche in the world of liquor. From B2B, back to the $235 trillion. Put the picture in your mind. That column that is B2B and P2C, P2P and B2C, $48 trillion out of the $60 are in corporate disbursements. We love Send. Send powers our B2B solutions, but it is the cornerstone of our B2C business. Examples, we have been addressing very specific customer problems here. Examples are in the insurance space.
We had a partnership, I think with Allstate recently with Esurance, but also back to the gig worker example that we saw early on in the Lyft video. That's a strong partnership. Mastercard Send a thriving tool for us that we are able to use for many different use cases, but it is our path to participate in to some significant degree in the over $40 trillion in B2C flows. Now, sticking with choice, B2C and Send isn't the only answer. Obviously, there's a lot of disbursement payments that are happening over account to account payments. The choice point matters significantly. I wanna take a step back now and say, well, we talked about consumer solutions. We talked about commercial solutions. What are we doing in truly enabling ourselves to be that multi-rail network? What is the progress?
For that, I wanna call up Paul, who's leading that activity for us. Paul Stoddart, please come up.
Thank you, Michael. It's a pleasure to be here. I've spoken to a number of you before. It's a very exciting topic, and the $235 trillion, as you can all see, a large portion of that flow, moves over the real-time payments and ACH rails today. There's an ACH platform in every country, and there's almost always only one in every country. It provides a critical role at the heart of the national economy. Let me talk to you a little bit about the opportunity, and then we'll go into the layers, infrastructure, applications, and services in a little more detail. It's very true that cards have been driving a lot of innovation in retail payment space and will certainly continue to do that.
Over the last decade, central banks around the world have started to intervene a little more and drive quite often they describe it as a payment modernization agenda. We're seeing this in multiple markets. You can see from the map just an illustration of some activity. Why are they doing this? They're doing this firstly because quite often that financial services infrastructure has not seen investment for a significant period of time. More importantly, they're looking to achieve a number of economic objectives. They're trying to remove cash, they're trying to reduce risk, and of course, increase financial inclusion. There's a lot of people in a lot of markets that don't have bank accounts.
Real-time payments, this recent modernization of ACH really transforms that legacy ACH capability and creates a new platform for innovation, and Mastercard is well positioned to benefit from that. What are the real benefits? Richer data, you've heard a lot about that. Greater certainty, enhanced messaging, and what we're seeing in a number of markets as well is that regulation is driving further investment and adoption of these technologies. PSD2 in Europe, open banking, as I'm sure you've heard the term, is increasingly a global trend. The real, the real-time ACH opportunity, as you've seen, is roughly 5x larger than the current carded space. There's a lot of flow for us to go after. Mastercard took a bold step a few years ago with the acquisition of Vocalink to really start to differentiate itself, multi-rail, card, real-time payments, ACH, and blockchain.
I'll talk a little more about the blockchain piece as well. From the map, you can see in green, since that Vocalink acquisition, we've made some real progress. I'll talk more about the markets and the customers that have joined the family recently. What's also interesting is all the markets that are thinking about implementing or indeed implementing currently, and we're playing a role in a number of those. I expect this global trend to move to full global market adoption over the next decade. How are we going to structure our approach to tackle the opportunity? As Ajay introduced at the start, infrastructure, applications, and services.
By bringing together the card rail, the ACH real-time payments rail, and the blockchain rail, we're really positioned to offer choice to our customers, to banks, to governments, to corporates where they can participate directly in the payment system. That enables us to capture all payment flows. The three layers, infrastructure, the underlying rail, clearing and settlement, you'll often hear it referred to as such, allows banks to connect into that central infrastructure, and then the central infrastructure connects to the central bank. All banks are connected to these platforms in the market. In addition to the core clearing and settlement, you'll often see a directory capability.
You might not know it's there, but if you want to send money to each other in a number of markets around the world, you want to use a mobile phone number or an email address or a national ID as a proxy, which a lot of governments are using, then these sort of credentials sit in a directory, and that forms very much a core part of the infrastructure. In the application layer, this is important as we've described because it drives transactions to the infrastructure. You'll see applications and use cases developed across all those flows.
Finally, from services perspective, Mastercard's strong heritage in services, we've adapted a number of those capabilities and leveraged that intellectual property in order to develop a service proposition for customers, advisory, consulting, data analytics, fraud solutions, all leveraging the powerful data that sits in the ACH real-time payments platform. Of course, we want to participate in all layers. We don't want to create too many dependencies between the layers, ultimately, there is real synergy between that participation across all three layers, driving incremental revenue streams, both individually and most importantly, combined. That's how we optimize the revenue opportunity. With that in mind, I want to just give you a little more information around the Nets transaction. We announced this four weeks ago, five weeks ago. Both Ajay and Michael have talked about it already.
Nets Corporate Services brings some great complementarity to our proposition. Yes, they have capability in the infrastructure layer. They're the market leader in Continental Europe in real-time payments. Most importantly, they really bring capability, skills, intellectual property, talent in particular, into the application space. Michael talked about Bill Pay. Michael talked about Mastercard Send. You know, all of this capability in the application layer ultimately gives us more control over our ability to drive transactions to our infrastructure. So in Europe, in particular, they have the largest bill payment solution provider in Denmark and in Norway. They've developed a number of new open banking and bill payment platforms that we'll be exporting around Europe and to the rest of the world.
From a services proposition perspective, Mastercard's strong heritage here from our Data & Services and Cyber & Intelligence businesses, in particular, gives us the capability to take that new suite of services propositions to the next customer base across all four of the Nordic markets. Let's dive into just infrastructure, applications, and services separately for a little while. We really have, as you saw from the map, come a long way since even the Vocalink transaction two years ago. We're growing across all regions and across all three of those layers. In the last 12 months, in particular, we've won a number of key contracts around the world to advance our strategy in the space. In Latin America, Peru is our country anchor tenant for our new Latin American regional real-time payments ACH hub.
We're replacing Peru's entire national payment system, batch, check, and of course, new real-time, and a number of application and services capabilities. In Asia-Pacific, Philippines will be our anchor tenant for our Asia-Pacific hub. Exciting to complement our existing customers in the region, Singapore and Thailand. I'll talk a little bit more about PromptPay in Thailand later. The Philippines becomes the anchor for our Asia-Pacific hub, and we can support a number of markets in the region across all three layers. Moving to the Middle East, slightly warmer time of year at the moment. And Saudi Arabia, we announced a few months ago, will be our anchor tenant in the Middle East region. Massive national payments agenda from the Saudi Arabian Monetary Authority. Exciting project, again, replacing large parts of their existing national payment infrastructure.
Very close to my heart for a number of different reasons is our recent win with P27. P27, by the way, P27 stands for the population of the Nordic region, basically 27 million people. P27 is a real first. This is a group of leading banks, largest banks across the region. Quite often, those of you that are familiar with the region will know that they're heavily integrated. Population businesses move between the markets on a regular basis. Those banks have come together and decided to procure and implement a new real-time payment system for the region, operating in all four currencies plus euro, and enabling customers and businesses across all those markets. Again, both batch, ACH, and of course, real-time payments. They're very much at the heart of innovation in payments in that region.
You'll hear a little more from Javier and Mark later, when we talk about Europe. That-- it's a world first. That is not happening anywhere else in the world, that regional multi-currency, multi-country solution. I think it's an exciting development, and I think you'll see a number of other regions or groups of countries around the world start thinking about doing something very similar. That growth basically means we've got live or have signed, 11 markets, out of the top 50 in GDP terms, and often a number of the largest as well. I think that's real progress over in just over two years. I'm gonna move into applications now. On the theme, infrastructure application services, absolutely critical role, driving transactions to the infrastructure, but also touching the customer.
If you follow through the different use cases that Michael went through, there are hundreds of use cases, there's a sample here, we'll talk a little bit about them. In the U.K., we've launched Pay by Account. Basically, from the Vocalink heritage, Pay by Account sits on top of the Faster Payments infrastructure and drives transactions to that infrastructure by bringing together banks, merchants, consumers and businesses in that end-to-end proposition. Our partners in that initiative, HSBC and Barclays, on the consumer side, bring over 10 million consumers into that network. On the merchant acceptance side, Worldpay and Barclays global payment acceptance give us coverage of over 75% of merchants in the U.K. We'll roll that solution out under the Pay by Account brand on a global basis.
There'll be a number of markets you'll hear more from us about next year. On the bill payment side, Michael already touched on the Nets Corporate Services piece here, but it's Betalingsservice, which is the prime billing solution in the Danish market, provided by Nets Corporate Services. Direct Debit, of course, in the U.K., the largest bill payment solution in Europe. Bill Pay Exchange, Michael referred to, you'll hear more from Craig and Ron later. This provides our capability or enables our capability in the biller space. Michael's talked about BPS. I won't touch on that. Mastercard Send and Transfast in particular give us increased capability in the distribution and disbursement of funds from governments, but also from corporates.
Transfast, another acquisition we made earlier this year in the cross-border space, they're going to get a little deep dive for you in just a few minutes. The partnership layer I think is worth just touching on, because I strongly believe that we're in a world where agility, uncertainty, and confidence often requires the formation of strong partnerships with complementary capabilities being brought to bear for customers. I think those strong partnerships gives us that agility and gives us the ability to differentiate in our propositions to customers. The last point on the application layer is really PromptPay. As I mentioned, I would give you a little more insight into the solution in Thailand. Skip back three, four years.
I was sat in a meeting with the governor of the Bank of Thailand, he laid out a very bold vision for payments modernization in Thailand. Seeing limited investment over the previous years, both the central bank governor and the politicians really wanted to make a difference and invest in a range of infrastructure for citizens in Thailand. You know, their objectives, as I mentioned before, remove cash, reduce fraud and risk in the system, increase financial inclusion. Still a large portion of citizens in Thailand without bank accounts, but they do have a mobile phone. How do we bring together a payment system, a modernization agenda for the country that is fully participative? That's how PromptPay was created. All the banks participate in PromptPay. It is the new real-time payments infrastructure for the market.
It's been live for just over two years. It has over 40 million registered consumers, which is the large part of the adult population in Thailand. It also will process nearly 800 million transactions this year after just two and a half years of start. It's a very exciting proposition, and I expect to see success like that in a number of other markets. What's more exciting is that the participation is across all three layers. We have the base transaction infrastructure layer, ISO 20022 messaging connecting all the banks in the market, but their e-wallets have been brought into the banking system for those citizens that don't have bank accounts. If you have a wallet or a mobile phone, you can fully interoperate with a banking system without the need for your bank account.
It also provides government disbursements. The government uses the National ID from the directory to route transactions to all citizens, tax rebates, agricultural subsidies. In doing so, they've been able to significantly reduce their operational expense and increase the speed and certainty of providing funds to those that need it. I'm really excited about it because of its full layer, three-layer participation stack as an example. I told you I'd give you a little more on cross-border. Here it is. I think we are operating now in the cross-border space almost entirely driven by our customer base. We're all more mobile. Our customers are certainly more mobile, both businesses and consumers.
Our proposition supports banks primarily to enable them to compete more effectively, typically in a space where, as you all know, has seen quite a lot of new entrant activity over the last 10 years. Quite often, our customers, banks and corporates are asking for a single technology and contractual relationship with us. A single connection, a single API through which they can reach a global payment network. Transfast brings real high-quality business model, strong AML, KYC capability. Not only that, real reach. Over 125 countries, that's connecting into 125 country domestic ACH and real-time payment systems. As some of you have probably realized, they're some of our infrastructure and domestic ACH systems. Not only are we supporting the domestic flow, we're bringing transactions from other markets to our domestic real-time and ACH infrastructure.
Over 150 currencies, over 300 banks and non-bank financial institutions connected to the network. Those transactions will flow, as I've said, over real-time payments and ACH primarily, but also we have the card option, and increasingly, we'll be developing a blockchain option. If you take a blockchain network and a cryptocurrency, then together you're basically recreating a bank account and an ACH or card payment network. We want to offer that choice to our customers. You'll see us experiment with these technologies increasingly in a range of markets. Lastly, but certainly not least, the services component. Deriving incremental value, enhanced customer traction, stickiness, for want of a better word, through the addition of a services proposition, often accompanying both our applications and infrastructure layer. Mastercard's heritage in this space was strong.
Taking our subject matter expertise, our technology, our products in the ACH real-time payment space, and application space, combining those capabilities together, we've developed three propositions for customers in this space. Consulting, helping banks, governments, think about real-time payments, or if the market's implementing it, helping them build the business case to develop products and service that use it. Most importantly, once it's live, how do I make and develop and design new products and services for my customers that ultimately can leverage this new infrastructure? It's been a really strong and successful proposition in the market. Reporting and analytics, this is MI, around real-time performance and participation in the payments network in the market, critical to everyday operational performance and resilience in particular. Then financial crime solutions, some of you may have seen our Money Mules Solution.
It is a really interesting proposition developed by our data science team using AI to track and trace the movement of illicit funds between bank accounts in an entire network. If you're the operator of the network running the central hub, you're the only participant that can see the money move between all accounts in the system. This gives us a unique proposition to be able to identify the movement of fraud and risk, and reduce risk overall in the payment system. In the last few years, in fact, since around the end of 2015, 2016, we've signed over 100 incremental services contracts to the proposition. It just goes to show how participation across the three layers really allows us to optimize the opportunity in the market and develop stronger and more compelling propositions for our customers.
I'm hoping that you'll agree with me that when I have said a couple of times in the last few minutes that we've come a long way, we really have come a long way. I'm gonna hand back to Michael. Thank you.
All right. You know, we've come a really long way. Back in 2016, he was sitting on the other table when we were negotiating, buying Vocalink. As you can see, now he's on stage leading that business, so that is a long way. For those of you who are wondering, Paul is not related to a leading U.K. politician. Okay? What's next? We talked about the $235 trillion, how we're expanding our product capabilities and where are we going. $235 trillion is payments volume, obviously related to that is data transactions that are taking place. How are we thinking about pushing the envelope in our products and solutions beyond what we're doing? We've come a long way. We've opened a series of new frontiers that you're very familiar with.
We were deep in card, which is still driving the share on the core side, as we just talked about, differentiated by our services. Then we said, okay, to be a relevant partner, we're gonna expand into non-card payments because that's what really matters to our customers, that's how the payments are actually happening out there. Then of course, as you just heard last from Paul, we're extending our services muscles into non-card payments. All very logical. The logical answer on where next is right here, because the core competencies on expanding these frontiers are all safety, security, network, reach, and standards. Where do you need all of those four components? In a world, in an adjacent world that is just emerging around us, and that is open banking. The world of open banking, you'll hear more about from Mark a little later.
Basically breaking up the traditional relationship between a bank and a bank customer and allowing a third party to come in and use the data and create a whole new set of propositions out of that. In some markets, regulatory-driven, in others, driven by market forces. We see that world emerging right now, and we believe there's an opportunity for us to sit in the middle, take a few books, a few pages out of our strategy book and say, that's a space that needs to be organized. It should not be starting off in a series of bilateral that actually cause more friction rather than anything else. This is designed to drive innovation and competition and growth, and I think we can help with our experience. It's one of the new frontiers that we're exploring right now.
We launched our first set of solutions in Europe last year. Another one that we are exploring is digital ID, that is also leveraging those same capabilities and it is stepping into the world of data transactions versus payment transactions. Let me sum it up. We've 30 seconds to go. Think about the first slide, the frame of our product. We have different sets of partners to consider. It's our customers, it's their customers, we are building hopefully fit for purpose products recognizing these individual needs. We're scaling them through digital solutions, we're always supporting all forms of payment through our multi-rail network.
All of that in the end, lives up to Mastercard's claim, we stand for choice and obviously for convenient solutions and also for security, which is not exactly by coincidence, a perfect segue to ask Ajay Bhalla to come up here and talk about safety and security. Thank you.
Worldpay is the largest acquirer in the world. The system we had in Worldpay prior to Brighterion was, I think the best way to put it, would be clunky. It was massively ineffective, and we had vendors come in and Brighterion was telling us that we wouldn't need to have rules. We could manage on models and artificial intelligence. That was a whole new concept for Worldpay. I think one of the moments for us was when the output from the models became more effective than the output from the walls. It goes much deeper than just looking at a transaction, and it will look at things such as the geographic location, the time the transaction's done, the type of transaction, the type of card.
It was dynamic, so we could actually make changes really quickly, very easily, which meant we could be proactive as well as reactive, which is exactly where we needed to be. That's when the power of the system could really be seen to us. We have a fantastic relationship. Brighterion's always been really great at being able to say, "Let's find a solution. Let's find a way we can do that." Another strength of the system is real-time. The world is moving to real-time, Faster Payments. Whilst AI may be elite in terms of businesses that have never used it works exceptionally well for Worldpay. It really does. The payments industry is changing, and it's changing rapidly, and we need someone like Brighterion who's dynamic enough to be able to adapt as quickly as we need to adapt to those changes.
We're rolling Brighterion out across Worldpay globally, so hopefully that speaks for itself.
Please join me in welcoming the President of Cyber and Intelligence Solutions, Ajay Bhalla.
Thank you, Michael. Good morning, everybody. I already got a lot of compliments from my boss at the time of introduction. Here I am. You can see me in real life now. You heard Michael and my other colleagues talk about how Mastercard is transforming itself for the future. The world indeed is changing at a very, very fast pace. Technological developments in the fields of artificial intelligence, robotics, Internet of Things, is changing the way we live and will make our lives richer and more convenient. In this new changing world, what you really need is trust to do business. Without trust, business cannot happen. I'm gonna share with you how we are advancing trust to ensure that commerce can happen. Let me start by sharing a few key trends that are shaping this new world and present new opportunities for us.
The physical and the digital worlds are converging. You heard that earlier. Add to that the Internet of Things. All the devices that we carry, that we have, our homes, our phones, our watches, are all getting connected to each other. It is estimated that more than 50 billion devices will be connected to the IoT by 2025, which creates a huge opportunity for payments. However, many of these devices are coming with very weak built-in security, as we recently saw when a number of cameras were hacked on televisions, and that exposed the vulnerability of the Internet of Things. The second key big trend we are seeing is the exponential growth in data. The Internet of Things, all these devices are creating huge amounts of data. 90% of the data that we see in the world today is estimated was created in the last two years.
With the advent of 5G, this data collection and the data that we see globally is only going to accelerate further. It gives us huge opportunities to personalize, customize, and will offer huge amounts of convenience to all of us. What it is also raising is concerns and questions with consumers on how this data is collected, how this data is stored, and how this data is protected. The third key big trend we see is the digitally native generation. This is something I relate to very well, and for all of you who have young children will relate to very well, too. This generation carries multiple devices, carry multiple equipment, use multiple applications at the same time, and want to be connected all the time. They desire nothing else but an internet connection, as we all know.
They are so hungry to consume all these digital services and experiences that they leave a lot of information on the internet, their photographs, their location details, their reviews. That's because this generation actually expects that security comes as part of experiences. That, in recent times, has been challenged by a number of incidents, and that is going to be more challenging in the future with the Internet of Things. Finally, artificial intelligence is a revolutionary technology which is going to transform the way we live. With all the data that we see and the processing power that the machines have today, this will power driverless cars, robots, and will power a lot of technologies in payments as well. However, it's also giving hackers the tools to look for vulnerabilities in the systems and conduct robotic attacks.
With the changing world, the cybersecurity needs for our stakeholders are evolving too. Consumers have been impacted in a big way by all the data breaches that have been happening. Many big brands have been impacted, and consumers are looking for companies and brands that they can trust, and they're looking for solutions that give them control over their data. Merchants, businesses, financial institutions have all been impacted by massive breaches in the recent past. They are investing heavily in cybersecurity. They are looking for solutions that can secure their businesses and can also offer experiences to their customers. Governments have been taking cybersecurity very seriously now. We are seeing cybersecurity laws being enacted in all parts of the world. Governments are also enforcing them and actually levying penalties when these laws are breached.
Governments are also looking for a number of solutions in the cybersecurity space which help them secure the critical infrastructure in their countries. We have a multiple-layered strategy to advance trust in this changing world. Think about it in terms of your own homes, like you use multi-protection technologies to protect your own homes. You build boundary walls, you put gates, you put locks, you put cameras, you put alarms. Similarly, we've got a multiple-layered strategy to protect the entire ecosystem. Our strategy is underpinned by artificial intelligence, which plays a key role in all the layers that we have. The strategy is also designed to protect all our stakeholders, governments, banks, merchants, consumers.
The strategy also looks at all the rails that we have, the card rails and the non-card rails, which is the real-time payments that Paul spoke to you about, and also is designed to look at as we go beyond payments. In the prevention layer, we look at securing our infrastructure, devices, and data. We use advanced EMV cryptography technology and tokenization to protect us from attacks. In the identify layer, we look for identifying genuine consumers and devices. This layer is extremely important as business is going increasingly digital. We know that in spite of all the technologies that we will put in, there are people out there who will still try and intrude, we have a detection layer which helps us catch cyberattacks and reduce fraud. Finally, we have an experience layer, which creates good and intuitive best-class experience for our customers.
We've been very focused on this particular layer because historically, security has added more layers, which has created friction. This layer is ensuring that we can create a frictionless payment world. Let me now share with you how we are executing on this strategy and how we are looking at the future opportunities. In the prevention space, we have 2.2 billion EMV chip cards which cannot be counterfeited unlike magnetic stripe cards which could be counterfeited. 88% of our transactions globally are now done on EMV chip, which is very secure. In the U.S., we've made huge progress in rolling out chip cards, and U.S. is now the largest chip market for us in the world. Our future focus is on securing the Internet of Things, so you can pay securely from your refrigerators, printers, cars, and anything else you want to use.
In the identity space, SecureCode did 3.5 billion transactions in the last 12 months. SecureCode is used to identify you when you do transactions on the internet. We recently launched Identity Check, which uses advanced new technology and passes almost 200 data elements from the transaction to the issuing bank, versus SecureCode, which has historically been used, which only passes eight data elements. That enables our issuing banks to actually judge the risk of the transaction in a much better way. What that means is more approvals for our consumer, more business for our stakeholders. In live implementations that we've done, we've seen a 13% uplift in approval rates in transactions. Our future focus is on launching consumer digital identity. Identity is a big pain point for consumers, for all of us.
When we need to open a new account or a new mortgage or any of these new services, we need to identify ourselves, show documentation. Many times that needs to be certified. We want to change this. We do not want consumers to remember these dozens of passwords to store their identities. We are launching a consumer digital identity which gives consumers the control of their identity on their devices and gives consumers the control of their data. We recently introduced a vision paper which outlined and laid out how we see our digital identity system working. We are collaborating with Microsoft and Samsung in rolling this identity solution out in the markets globally. In the detection space, our flagship cyber detection solution is SafetyNet, which detects cyberattacks with our stakeholders, stops them.
We have, in the last 12 months, stopped $10 billion of cyberattacks with our stakeholders. In the last four years, we've stopped almost $55 billion of cyberattacks with our stakeholders. We know that these attacks happen because of vulnerabilities in our stakeholder systems. We are now rolling out new technologies so we can scan and identify these vulnerabilities from the systems before an attack happens. Finally, our experience layer, we've been focused on contactless and biometrics technologies. Contactless is best-in-class experience for consumers. 22% of our transactions in the physical world now are on contactless. In fact, in recent months, we are seeing that number almost touch 28%. We have been busy optimizing contactless technology, and now the contactless transaction times have been lowered to almost 0.4 seconds.
When you are using transit systems in any of these cities in Singapore, London, New York, you can see how queues quickly move because of contactless. That's opening completely new category of payment solutions for us because it's demonstrating that card payments is much faster than cash. Passwords has been a huge problem for consumers. They are insecure. They are hard to remember. Consumers keep very dumb and simple passwords, which leads to attacks. We've been very focused on introducing biometric technologies to payments. These technologies have been really embraced by consumers, and we are working on now introducing new technologies like palm, iris, veins, heartbeat to further ensure and create a best-in-class consumer experience. We also are bringing the biometrics technology to physical cards, where a biometric scanner is there on the card itself.
We recently launched a biometric card with the Mexican government for Social Security payments. I'm going to now share with you a quick video which demonstrates how all these layers actually come together to create the best-in-class experience that you heard Michael talk about earlier. Video, please.
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I hope it brings to life how we are working behind the scenes and using multiple technologies to ensure a smooth consumer experience. We've been enhancing our capabilities and building them organically and by doing acquisitions. We've done three acquisitions in the cyber and intelligence space. We acquired NuData in 2017. NuData is a company which specializes in doing behavioral biometrics, like how you hold your phone, how you press your phone, how you look at your phone. They have further expanded into looking at how you identify devices in the Internet of Things, which is what is going to secure the commerce as commerce happens in the IoT space. We acquired Brighterion in 2017 too. You just saw a video on how our customers are appreciating the technology that Brighterion brought to us.
We also launched a fraud scoring solution, Decision Intelligence, using Brighterion's technology. That solution now scores transactions globally for us. It detects fraud. Many of the customers that we have spoken to tell us that the Brighterion Decision Intelligence solution detects fraud 40% more than competing solutions. Finally, we acquired Ethoca earlier this year. We are really pleased with this acquisition. Ethoca is a collaboration platform between merchants and issuers, which helps them detect digital fraud very, very quickly and helps them stop the digital fraud. It also helps them if there are disputes, and resolves disputes very, very quickly without going into a lengthy chargeback process. Finally, in conclusion, the world is changing at a very, very fast pace. We have a multi-layered strategy that is working and ensuring ecosystem security.
The innovation that we are doing in the areas of artificial intelligence, biometrics, Internet of Things, and cyber is creating competitive advantage for us. Our strategy is delivering new sources of growth for us and for our stakeholders. Thank you.
Please join me in welcoming Mastercard's Chief Services Officer, Kevin Stanton.
Good morning, everyone. Thank you, voice of God. Sometimes I feel like a clam that owns a Ferrari. That's why I think it's really a privilege to be able to speak to you today about something I'm very, very passionate about, Mastercard Data & Services. Everyone's laughing up here. Mastercard Data & Services and the Mastercard services portfolio more broadly. You've just heard from Ajay Bhalla about how Mastercard Cyber Intelligence uses a unique set of assets to make the network safer and more secure. He went light on another fact, that he does that while generating incremental revenue. Data & Services operates in much the same way. For us, the focus is on advancing Mastercard's core growth and other priorities outside of security, but we too do this while generating incremental revenue.
The goal of this presentation is to convince you that that ability, the ability to support core growth while being paid by customers to do so, makes Data and Services a unique force multiplier for the company. Ajay Bhalla, you took the switch, man. This was gonna be smooth, like a Ferrari being driven by a clam. Let me start with a quick overview of Data and Services. At the highest level, we provide end-to-end services that span from advice to execution. At a more granular level, our services range from data management, which is built off of Mastercard's trusted status in the area, to analytics, to consulting, to a unique form of Test & Learn that came in through the APT acquisition, to loyalty, which drives the right consumer behavior at the right time.
To underscore the scale of our loyalty program, you should know that Mastercard Loyalty operates one of the largest points management systems in the world. Thank you, Francis Hondal. We also provide marketing services, where we act on our customer's behalf to acquire consumers, drive activation, usage, and otherwise optimize portfolio performance. Finally, one of my favorites, labs as a service, where we bring Mastercard's innovation prowess directly to our customers. Beyond that, we're always looking for new ways to deliver value by leveraging Mastercard's unique assets to partner with our customers to make better decisions, drive better performance, manage change, and deliver great consumer experiences. When we're able to do that, consumers benefit, our banks and merchants benefit, and Mastercard benefits. Five things to remember about this suite of services. One, they're fully plugged into and incorporate other Mastercard offerings.
For example, we offer consulting with cybersecurity to drive better customer strategies and outcomes. We use analytics and marketing service, Mr. Miebach knows this, to drive digital adoption and usage programs for debit, for credit, for cross-border, for card on file, you name it. Two, we are focused on recurring revenues delivered through automation, platform delivery, and configuration. Three, our services are enabled by Mastercard's excellent, thank you, Ajay Bhalla, AI capabilities. Just to give you some idea that in consulting alone, nearly half of our engagements are delivered through AI. Four, very much related, we are keenly focused on maintaining and improving our best-in-class delivery quality and efficiency. Finally, Five, our services are underpinned and differentiated by Mastercard's brand, our network, and our anonymized GDPR-compliant transaction data. Well, if this is all a little new to you are forgiven. Always wanna make sure the slide's there.
If you've never seen this, frankly, I don't know why. Let me take you back to Mastercard's Grow, Diversify, and Build framework. You've seen these services time and time again, along with other services firmly embedded in that last column, Build New Areas. That's just part of the story. To understand the larger services advantage, I want to take Grow, Diversify, Build in reverse, if you allow me. It didn't. I'll spend some time on Build, but I wanna spend a little more time on Diversify and Grow and follow up with some case studies in those areas. We'll start with Build. There are three important characteristics about data and services in this regard. The revenues we're talking about are incremental. The revenues are fast-growing. As we've said in the past, these businesses are scaling, which is very important.
A couple of other things to keep in mind about Mastercard services. Access to Mastercard's anonymized transaction data provides strong differentiation, which in turn supports value pricing. Access to the brand and network opens doors and speeds acceleration to market in new and established areas. It also reduces cost of sales. Adding AI, automation, configuration, platform delivery, et cetera, to the mix, all enabled by Mastercard technology, has additional benefits. I think this list underscores something Ajay Banga said earlier in the day, and that's how much services, the services portfolio is inextricably linked and to, and part and parcel of every other asset, infrastructure, and business line at Mastercard. I'll assume it's nothing I said. I want to go back.
As smart as and interesting as it is to build new fast-growing revenue streams, that alone is not what defines the Mastercard services strategy. In fact, the central aim I am sorry, they disabled the re-reverse. In fact, the central aim of the services strategy is to advance Mastercard's diversify and grow agendas. From a diversification standpoint, the ability to efficiently direct innovative services capabilities to fresh field opportunities has accelerated Mastercard's growth in new geographies and with new customer types. As well, services have been effective at advancing Mastercard's core growth by differentiating Mastercard in deals, by helping improve the performance of existing portfolios, and by embedding Mastercard services in the day-to-day operations of our customers, which, as you know, fosters stickiness. Let's turn to the case studies you saw a little while ago. We'll start with diversify.
In this case, we'll start with diversification from a geographic standpoint, and we're gonna be talking about Latin America. Where's Carlo? I saw that handsome face over there. There it is. I will say one thing before I continue. Like any other service provider, sometimes our customers don't like to be identified, so in these particular cases, I can't divulge the logos. Back to Latin America. Getting to the mass market opportunity in this region with its burgeoning middle class in stable and stabilizing economies is important to our customers, to the consumers they serve, and to Mastercard. This case involves a large multi-market retailer/fintech that had a large portfolio of debit and credit cards. The strength of the combined Mastercard value proposition won us a conversion of 3 million cards from a competitor, that is a good story in and out of itself.
The conversion to Mastercard gave this customer access to a suite of services that turned that conversion into something more, a growth opportunity. Here, we're now deploying marketing services, consulting, analytics, Labs as a service, and Test & Learn to help this very sophisticated customer get the right value proposition into the hands of the right consumers in the most cost-effective way, all to drive incremental growth. As a result, we believe Mastercard will achieve a 90% credit and a 75% debit share with this customer. This portfolio will perform better for the customer and Mastercard under the Mastercard banner than it did with a competitor. The Latin America region will have established a mass market footprint sooner than it would have otherwise. Now, let's look at another diversification example, this time with a new industry vertical.
Healthcare has been identified as an area Mastercard's interested in for expansion. Here, we were able to tap into the opportunity that represents with a large U.S.-based healthcare network, and this is about one of about 600 of these animals in the United States. In this case, we were able to apply an industry-specific veneer to our unique and very flexible Test & Learn platform. To address pain points as wide-ranging as revenue management and clinical care quality, as well as marketing. On top of that, we now have a beachhead for other services and for core payments, like commercial payments. Most importantly, this service now represents the opportunity to go after a desirable new customer type and large revenue pools. Okay, let's look at how we use services against the Grow agenda. Here, I promise you will see some logos.
I said earlier that services help Mastercard achieve its growth ambitions in three ways, and I always think this is worth repeating. By differentiating Mastercard in deals, by enhancing the performance of existing portfolios, and by embedding Mastercard services in the day-to-day operations of our customers, all the while enhancing stickiness. In the first case with Westpac, we can show how services differentiated Mastercard in a deal. Because of Mastercard Data & Services' excellent track record with conversion services, we were able to credibly convince this customer that converting to the Mastercard brand represented an opportunity to improve spend and consumer engagement. Two things very important to this customer. We offered an holistic solution, as you can see, incorporating several of our capabilities, and this was being built on top of our already existing footprint with Mastercard Loyalty and Westpac.
In the end, our services capabilities did set Mastercard apart, and were key to flipping this portfolio of 2 million cards. With ING Italy, we were able to use our services to drive existing portfolio performance. Yes, this happens to be also a converted card portfolio, but one that was operating at something below benchmark expectations. By using analytics, consulting, and marketing services, all underpinned by Mastercard's unique anonymized GDPR-compliant transaction data, Mastercard was able to take that sub-performance to a 95% activation rate, a full 19 percentage points better than benchmark. I'll end with HSBC U.K. as an example of the benefits of embedding Mastercard services with customers. HSBC is, and will continue to be, a very important client for Mastercard. Embedded in their day-to-day operations are loyalty, Pay with Rewards, LoungeKey security, and several other services platforms.
They're also extensive users of our consulting and marketing services. Our goal is to be nothing less than HSBC's go-to service provider and to be part and parcel of HSBC's ability to deliver the best consumer experience. This all enhances the likelihood of Mastercard being a long-term partner in a growing relationship with HSBC U.K. Before I get off this particular jag, I want to bring a point, final point on Grow. Take a look at our, one of our newer platforms in the product showcase, our Mastercard Intelligence Center. This is an easy-to-use portfolio performance dashboard that's relevant in all three areas I talked about: winning new deals, enhancing existing portfolio performance, and embedding our tools with our customers.
I'll wrap up by saying, I hope I achieved my goal in the time I had of demonstrating that Mastercard's data and services solution, here's the punchline, are fast-growing and support shareholder value, are key to accelerating Mastercard's progress in new geographies and winning new customer types, and are an important force multiplier for the core business. Thank you very much. Enjoy the rest of your session.
Ladies and gentlemen, we'll now take a short break, and we will resume promptly at 10:43 A.M. If you are participating by webcast, there is no need to reconnect. Just stay on the line. Ladies and gentlemen, we are ready to resume today's program. At this time, we'd like to ask everyone to take your seats. Please take your seats and we will begin the remainder of today's program.
Switching to Mastercard from another brand after 20 years was a decision that we did not take lightly. We love their knowledge of the overall retail industry, and then obviously, the retail co-brand card space was really fantastic. In regard to data and innovation and marketing with Mastercard, all incredibly important to us. I'd start from a marketing perspective. We love the Priceless campaign. It's a great way for us to engage with our customers through experiences. We've already executed a number of different programs around Priceless, and we continue to see that as a great opportunity for our card member benefits. Incredible knowledge about how you can use data and to help us grow our business and not just the card business, but our core business.
On an innovation perspective, for us as an omni-channel retailer, what's really important is a secure and seamless transaction and customer experience. We get that through Mastercard and that security in transaction, critically important. The Mastercard team, in partnership with the L.L.Bean team, the chemistry is absolutely fantastic. In our business has been really important. We've dragged them through the woods, dragged them through the water. We've had them camping. We've had them sleeping in tents. It all just shows their incredible commitment to our team and our brand and our business. It's been a really important building block as we're learning how to work together and how to grow our businesses together.
Ladies and gentlemen, please join me in welcoming Craig Vosburg, President, North America; Linda Kirkpatrick, Executive Vice President, Merchant and Acceptance; and Ron Shultz, Executive Vice President, New Payments Flows.
Thank you. Thank you, good morning, and welcome back from the break. For those of you who didn't quite get Kevin's joke about clams and Ferraris, which I'm pretty much guessing is everyone in the room. Don't feel bad 'cause we didn't either. We've known Kevin for a long time. Kevin has a lot of jokes that we don't really get, but he enjoys them. We've spent the morning talking about our products and services strategy, things that we're developing at the global level to help drive our company forward. We're gonna pivot now for the next couple of sessions and talk about how we're bringing those to market in a couple of key geographies. We're gonna talk about the U.S.
I'm joined on stage by Linda Kirkpatrick, who leads our activities with merchants and acquirers, and Ron Shultz, who is helping us execute on what for us are new payments flows. And then Mark Barnett's gonna talk about Europe to follow. With that, let me start by just providing a little bit of context on the U.S. market. The U.S. continues to be the largest payments market in the world and the largest market for Mastercard in the world. Represents roughly a third of our volume and revenue. But it's also a market that continues to represent a real growth opportunity for us. For that reason, we remain very excited about the U.S.
Each of the things that are propelling the growth in our core business are present for us in the U.S. and will contribute to it continuing to be a growth market for us. We have continued macroeconomic expansion. That's a driver of PCE growth. We see PCE growing in the U.S. at roughly 5%, roughly in line with what we see with our global average. We have ongoing opportunities to capitalize on the secular migration from cash and checks to digital forms of payment, with, as you can see there, still a lot of room for additional penetration of what we do in each of those major categories.
Even in our core area that we have focused on for much of our existence, purchases that consumers make for goods and services from merchants, we're still roughly 50%-55% penetrated in the U.S., there's room to grow there. Clearly, as we've talked about in the B2B, B2C, P2P spaces, the penetration rates are significantly lower. That represents a real growth opportunity for us. I'm pleased to report that we're successfully doing that. We'll get into that in a bit more in a couple of minutes. Let me elaborate a little bit on the strategy that we are executing against to help us capitalize on the opportunity this market represents.
You see here five pillars, that are, that, reflective of the things we're prioritizing in the U.S. market. These are the same five that I've discussed in previous meetings with this group, and the same five I expect we'll continue to discuss for many years to come in as much as each plays an important role and each represents an area where there's still a lot more to be done to help us capitalize on that growth opportunity. Touching on them quickly, we continue to focus on getting our product into the market through our channel partners, principally banks. We're winning share in each of our core product areas, increasing our market share in each of our core product areas in the U.S.
We're continuing to focus on expanding acceptance by targeting new verticals and market segments and upgrading the quality of the acceptance infrastructure by introducing things like EMV and contactless capabilities. Linda will talk about that in a bit more detail. We continue to focus on winning in digital and ensuring that we're delivering a great consumer experience with the right level of security and partnering with the players who are really shaping the digital payments ecosystem.
As Ajay and Kevin just talked about, we're continuing to deliver our services into the marketplace in the U.S. as a means of not only driving growth in our core business, but generating incremental revenue streams. We're heavily focused on addressing those new payments flows, some of those white space areas, particularly the ACH components of that bar chart that was on the previous page, which for us represent new areas of payments, particularly in B2B. Ron will get into those in a little bit more detail in a few minutes. With the first of those, increasing our product distribution, there's really three things that we're focusing on here. As I mentioned, we're successfully increasing our market share across each of our core product areas of consumer credit, consumer debit, prepaid and commercial.
We're doing that by focusing on three things. First is making sure we have compelling product propositions that resonate with consumers and therefore are appealing to our bank partners who distribute those on our behalf. We've strengthened our product propositions in large part by partnering with third parties to incorporate them into that value proposition. Things like what you heard about from Lyft in the video earlier with an always-on offer and always-on benefit that accompanies our World Elite product, as well as other partners who resonate with consumers like Boxed and Fandango and Postmates. You'll also notice there's a digital angle to a lot of these partners, and we're looking to incorporate elements of our value proposition that resonate with the way consumers are living their lives.
That's increasingly digital, increasingly wanting an always-on, simply delivered and simply realizable benefit. We're doing that in the consumer space. We've taken a similar approach, for example, with enhancing our small business products with partners like Intuit and Salesforce. That's the first. The second links directly back to what Kevin just talked about and leveraging the full breadth of our services capabilities to optimize the performance of these portfolios to drive growth that hopefully will outpace the market, which obviously would contribute to us increasing our market share. We're leveraging those capabilities across consulting, data and analytics, loyalty, our fraud solutions, the full breadth to maximize the value of each of our partners' cards across the full life cycle of that account. Thirdly, continuing to focus on wins.
Our job in the marketplace is to engage with our partners and our customers to make sure we're driving the growth of our business, expanding our share of business with those customers and bringing portfolios onto the Mastercard network. You see a sampling of some of the wins that we've recently announced, that includes important wins with big issuers in the market, big banks that play obviously a very important role in distributing our products. You also see a number of merchant logos there, and that's reflective of the success we've had in the co-brand space, introducing programs like the Apple co-brand, the Lyft program you heard about in the video earlier, as well as the one you just heard Stephen Smith talking about with L.L.Bean.
To talk a little bit more about what's been driving our success in the co-brand space, which is really an important underpinning of our growth, I'm gonna turn things over to Linda.
Thank you. Thanks, Craig. Co-brand has really been a point of pride for us, and it has driven significant market share improvements in the region. Having won more than 65 co-brand programs over the past five years, I'm often asked, "What does Mastercard do to differentiate in this space, and how is it that we keep winning?" You heard the perspectives of Stephen Smith, CEO of L.L.Bean. We really have found the formula for success that works with our partners, and it starts with our partnership approach. We have experts in the verticals where we have co-brands that deeply understand the dynamics of those verticals, the challenges of those verticals, and what it takes to be successful.
Importantly, those folks are working with merchant partners on the entirety of their business, not just the co-brand, but well beyond the co-brand to partner on their loyalty programs, on new acquisitions, and on anything they need to really differentiate in the marketplace. How is it that they're doing that? Well, it starts with data and analytics. Data, as you heard Kevin talk about earlier, is the foundation of everything that we do. It's the way in which we help our partners, delivering them insights to help them with everything from identifying how their investments can go stronger and longer with our APT Test & Learn capability, deciding whether to open up a new real estate location in a particular city, deciding when the best time of year is to conduct a promotion or a marketing sponsorship.
These are all ways in which we're empowering our customers and delivering insights so that they can differentiate with their customers. Of course, on the product and innovation front, we're helping merchants reimagine their point of sale, think about how the future of retail is affecting their business, and we're embedding our products and capabilities into their value propositions to make them richer and more attractive. From a marketing perspective, we take our assets in Priceless, and we complement our merchant marketing assets to deliver customized and unique experiences that they couldn't otherwise get by themselves. Whether you're American Airlines or you're Walmart or you're L.L.Bean, who doesn't love a little Priceless in their lives? One of the great things about our co-brand products is there's just so many places to use them.
Our acceptance network is one of our most valuable assets. When I think about acceptance, I think about three things. One is the number of places that our products can be accepted. Two is the types of products and solutions that can be accepted at the point of sale. The third is the quality of that acceptance experience. With respect to number one, the number of places, you all know that our network is highly scalable, which means we can add incremental volume and transactions without significant cost. We're doing just that day in and day out. We're partnering with merchants in emerging verticals, which are under-penetrated for electronic payments to help them understand the value of unlocking acceptance for their vertical.
In spaces like rent, insurance, utilities, consumer loans, we're working with aggregators, like Curb for the taxi space or USA Technologies for the vending space or Zillow, YapStone, and Yardi for rent to explain to them the value of acceptance and to demonstrate to their cardholders the value of the use case. It's really working. We're growing acceptance, growing the acceptance pie, even in mature markets like the U.S., where we have 11 million acceptance locations. Globally, that translates to 61 million acceptance locations. If you actually think about acceptance in a non-traditional way, where you include connected devices, Internet of Things, gig workers, even people that accept electronic payments for professional services, that number actually expands to 48 million acceptance points in the U.S. and hundreds of millions of acceptance points all over the globe.
You can see the runway for growth here is significant. Again, because of the scalability of our market, this gets us really excited. With respect to number two, the types of products that can be accepted at the point of sale in both a digital and physical context. You heard us talk earlier about SRC and M4M in a digital environment. In the physical environment, we have EMV. In the U.S., we're four years into our EMV liability shift. We now have some good traction with 65% of our volume in the U.S. happening in a chip-on-chip way. Of course, now we have contactless, which is emerging. In the U.S., we're taking a page from other markets like the U.K. and Poland, Australia, and Canada, where contactless has been really ubiquitously accepted for many, many years.
We believe we are at an inflection point in the U.S. with respect to contactless right now. On the acceptance front, we have 60% of our volume happening at contactlessly enabled merchants. On the issuing front, we have commitments from issuers representing 3/4 of our volume to reissue their products as contactless cards over the next 12-24 months. Of course, from a consumer use case perspective, we have the catalyst of transit. You know, Mastercard's working with 20 cities across the U.S. to either embed our technology into mobile ticketing apps or to actually launch contactless at the point of sale in transit systems. A few weeks ago, I was in Miami-Dade for the launch of their transit system, contactless in their transit system.
Right here in New York on May 31st, the MTA launched their OMNY program at the four, five, and six subways between Grand Central and Union Square, and it's already exceeded expectations. Within two m onths of launching, the MTA saw 1 million tappers come across their turnstile. This is just a demonstration of how we think transit is gonna kickstart the contactless use case in the U.S. Why is this important? It's important because contactless leads to greater top-of-wallet behavior, increased average ticket, increased use and frequency. We know this because we see the case studies from the other markets where contactless has really taken hold. We're very excited about this, and we expect that the next 12-24 months will really energize the consumers around the use case.
For those of you who haven't yet used a contactless card at a merchant or in the transit system, you're in luck because today in our product showcase, you will be receiving your very own preloaded, prepaid, compliance-friendly contactless card that you can use anywhere contactless is accepted, like Walgreens and Target and lots of other great merchants, as well as in the subway system. That brings me to the third point of acceptance, which is the quality of that experience. We are laser-focused on making sure every time one of our products is dipped, swiped, tapped, that it is absolutely a friction-free experience for our cardholders. We know the easier we make it for them, the more we make the payment process sit in the background, the more we can unlock electronic payments in different use cases.
That's something that we continue to remain very, very focused on with our partners. Speaking of our partners, we actually have spent the past couple of years through our M&A activity more than ever before. We are working with merchants and acquirers on delivering value-added services to their customers so that they can enrich those experiences. This is very consistent with our grow, diversify, and build strategy to provide those products and services in a way that their end users see that value and deliver it right back to our customers.
Whether it's point-of-sale financing through Vyze, or enabling new flows through Transactis or enabling next-gen security through Brighterion, or new data, as we heard Ajay talk about earlier, these are all the ways in which we're complementing our customers' existing services and making them differentiate for their customers. Again, 100% consistent with our B2B2 C strategy in the marketplace. Speaking about digital, I will turn it back over to Craig to talk more about our great partnerships in the digital ecosystem.
All right. Thanks, Linda. Earlier, Jess spoke about our digital strategy and some of the things that we're focusing on globally. Just to give you a sense for what our priorities are in the U.S. and how we're bringing those to market, we're really laser-focused on making sure that we are delivering into the market the capabilities that enable consumers to have a great experience complemented by the right level of safety and security without introducing friction. It sort of blends together what Jess and Ajay Bhalla were talking about, and we're focusing on the three primary, really the three only ways in which you can initiate a digital transaction. Through the guest checkout experience, which we all know, can be improved in terms of the consumer experience and security.
Our focus there is on launching the SRC standard that will enable a one-click checkout experience that Jess showed the demo on. We'll be putting that into the marketplace in the U.S. in October, with a limited sort of trial period with a number of partners with a broader market launch in 2020. That's something we've been working very closely with a number of merchant partners, merchant service providers, our banks to make sure we've got a lot of feedback and make sure that that's gonna be the right kind of proposition for them to embrace and integrate with the intention of scaling that very quickly, starting in October and moving into next year. The card on file environment. Card on file is a good consumer experience.
There's opportunities to enhance the security of that, and the goal there is to bring the same level of security we now have on physical cards with the chip into the digital environment by getting those 16-digit card numbers out of the card on file environment, replacing them with tokens. We're working now with a number of partners to do that. Big merchant partners like Microsoft and PayPal, big merchant service providers like Worldpay and Stripe and Square and Adyen and others to get that moving quickly, and that's gonna be a really important area of focus for us over the coming year. Of course, we continue to work closely with those who have digital wallets available to consumers like Apple Pay, Samsung Pay, Google Pay, et cetera. Turning quickly to value-added services.
Ajay and Kevin did a great job explaining the breadth of our capabilities here. I wanna just give you a sense for the depth of engagement we have across our customer base in the U.S. for the kinds of things Kevin and Ajay spoke about. Obviously, we utilize deploy these all over the world, but we have a very deep level of engagement with our customers across these areas in the U.S.
So as a couple of by example, our Data & Services capabilities used by more than 700 of our customers, including most of our top co-brand issuers who are leveraging what Linda Kirkpatrick just described to bring a Test & Learn capability not only into helping to drive performance of a co-brand portfolio, but the overall retail operation or travel operation, whatever that particular partner's core business is, to help inform decision-making and increase the value of that business. Our Mastercard Loyalty capabilities, the points management platform, Mastercard Rewards System, as we call it, that Kevin Stanton alluded to, powers over 70 million accounts in the U.S., enabling our partners to power their loyalty and rewards programs. We're introducing new capabilities on the back of that.
Our Pay with Rewards functionality was recently introduced by Citi as Pay with Points, where Citi cardholders who are members of the ThankYou Rewards network can redeem those points for everyday purchases anytime, anywhere in the world Mastercard is accepted. With safety and security, the area Ajay talked about, virtually every transaction in the U.S. benefits from some kind of enhanced safety and security and fraud detection capability. Whether that's at the network level with a capability like Safety Net that's looking for potential breaches within our customers' portfolios or at the transaction level, where we're injecting additional insight into the transaction flow to help our partners make better decisions about the validity of any individual transaction, all with the aim of helping them serve their customers better while reducing the cost of fraud.
That's really driving some great results for us in terms of helping to grow the core business through differentiation and generate incremental revenue. For the final area for us to talk about, with respect to New Payments Flows, a really important focal point for us going forward, I'm gonna hand things over to Ron.
Thank you, Craig. You know what? Despite not getting the clam and the Ferrari joke, I think we've got a bright group here, which means you've noticed that new payment flows and B2B are big focuses for the company. That's absolutely the case here in the U.S. In B2B, we have a terrific focus on growing that business. In fact, Core Commercial has grown in double digits across T&E purchasing card and our best-in-class virtual card solution. Looking at disbursements, you heard from Paul about the Transfast acquisition. That gives us terrific capabilities to drive cross-border payments and fuel the growth of Mastercard Send. Moving to the bottom of the chart, payment on delivery, part of Mastercard Track and Bill Pay Exchange are great examples of us creating new businesses and capturing new flows.
The great thing about these new solutions is that they leverage existing assets like our RPPS biller directory and newly acquired assets like real-time payments from Vocalink and bill payment capabilities from Transactis. You also heard from Michael earlier about our bill pay strategy globally. What I wanna do now is take you a little deeper into bill pay in the U.S. and share a demo of Bill Pay Exchange. Before I do that and share the bill pay experience of the future, let's talk about the bill pay market right here, right now in the U.S. We, as U.S. consumers, pay 15 billion bills annually, representing $4 trillion in spend. What's the consumer experience like? Well, picture this. Head of household is sitting at her kitchen table. She's got a stack of paper bills here.
She's got her laptop open to her online bank site, + 10 other biller websites. Oh, and she has her checkbook out and a book of stamps. She's paying 15 bills 10 different ways. It's not a great experience for her. What that means is only half of our bills are paid electronically. The rest via check and over the phone. Of those electronic bills, most of them have migrated from bank bill pay to biller websites. Why? Because bank bill pay hasn't been modernized. It hasn't kept up with the times. What do consumers want, though? They want one aggregated digital place to view and pay their bills. Now, powered by Mastercard Bill Pay Exchange, banks can offer that to them. With that, we're gonna bring a few things to the bank bill pay that doesn't exist today.
One is easier automated biller setup. Adding a payee today is very difficult on the consumer. Second thing is broad electronic bill visibility, so you can see all your bills in one place. Third thing is payment choice. Today, you only have one choice from your checking account. Tomorrow, there'll be more. Last is around enhanced messaging or transparency. When I make a bill payment today, I call it click and pray. I know the payment left my account, I just don't know if it got there. Let's take a look at the bill pay experience of the future. Let's move to the demo. You open up your mobile app from your bank. First thing you do, of course, is authenticate. You enter the bill pay module.
Cynthia, the consumer here, asks her bank to find some billers for her based on her email, her phone, her address that she has on file with her bank. Let's search for some billers. What comes back? Well, we got one biller that she's been paying out of old bank bill pay, Acme Wireless, and 10 new billers that we found in the biller directory. She decides to add these billers and move ahead. The next step, she's gonna verify her information for each biller and link her account to the biller and also opt into their terms and conditions, and in most cases, move to electronic bills. The next phase, you get to configure your payment options. In this case, she has a choice of her checking account, or she can pay with a credit card out of her online bank account.
She can choose to pay the full balance and select her payment timing. In this case, for Wanda Automobile, she knows the payment's gonna be constant. She elects RecurPay. Let's pay in full on the due date. Let's assume we've done that for the other 10 billers, and let's move forward to our biller dashboard. We take a look. All our billers are loaded, but we notice I'm missing my utility. Let's add that one. In this case, fortunately, based on her ZIP code, her bank has recommended her utility to her, Atlantic Gas and Electric. We'll pick that one. We'll enter her account details. Again, agree to terms and conditions. Let's enroll in eBills as well. Verify the account and link it to the biller. Again, you get to choose your payment choices and payment timing.
In this case, this is a bill she wants to review each time before she pays it. She's gonna opt out of RecurPay, confirm that she'll make a one-time payment each time. Now we're done. We've added all our billers. Now let's assume a few days go by. On our phone, we receive alerts from our bank. One tells us that your recurring payment was made to Wanda Automobile. The next one is that you have a new bill ready from Atlantic Gas and Electric. Let's take a look. Again, we'll authenticate. The first is a confirmation from my recurring payment to Wanda Automobile. This includes a confirmation number sourced from the biller, giving me the confidence that my payment has been made, received at the biller, and my account has been updated. Let's move ahead to Atlantic.
Again, I like to review this bill before I pay it. Now we can do it right within the bank's mobile app. I'll review this month's charges, confirm everything's okay, and move ahead to make a one-time payment. Here again, we have choices on what payment vehicle would I like to use. Is it checking? Is it savings? Is it card? We also have an opportunity here to configure our payment timing. One thing you'll notice here is a Pay It Now option. That's gonna be a real-time payment, which means the consumer bank and the biller bank are both connected to the real-time payments network here in the U.S., and the Bill Pay Exchange can enable a real-time payment. This consumer decides, "I need to select a custom date for this bill." She chooses October 29th, probably syncing it up with her paycheck, right?
She moves forward, confirms that she has asked her bank to schedule a payment on the 29th, gets her confirmation, which says, "On the 29th, you'll receive another confirmation with that confirmation number from the biller, giving you the peace of mind that your account's been updated, and your payment has been received." That moves us forward to our dashboard. It shows us the two payments we just made and two upcoming bills, so she can do some financial management for the month. There you saw pieces of the Bill Pay system of the future available very shortly, launching in the fourth quarter. It's now a digital and efficient Bill Pay system that helps not only consumers, but also banks increase digital engagement, helps processors, helps billers. What do billers want? They wanna get paid on time, electronically with automated reconciliation.
They love more e-bills too. That's what Bill Pay Exchange offers. It's a one-stop shop for electronic presentment and payment. Automates those manual processes that exist today with checks and other defects in the system. It gives the gift of time back to the American consumer. With that, I'll give this presentation back to Craig.
All right. Good stuff. Thanks, Ron. The Bill Pay Exchange is something we're really excited about. I think it's a great example of the kind of application that Michael and Paul talked about that we're bringing to market that will be, it will incorporate a real-time payments capability. It's not entirely dependent upon it, but it incorporates it in a way that's consistent with our strategy of enabling choice for consumers. In this case, choice in terms of how they pay, but through an easily centralized capability provided by their bank. In closing, let me just summarize a couple of key points. We continue to see the U.S. as being a market that offers significant opportunity for growth. $55 trillion in total flows in this market.
Penetration rates across all of the different payment types are low enough to give us runway for growth for many years to come. In particular, that more than $25 trillion that are ACH payments today that we can now go after, particularly in the B2B space. The strategy we've been executing against is delivering in terms of increasing our market share and helping us drive revenue growth. We're continuing to expand, incorporating the capabilities that Ajay and Kevin and Michael and others are developing across the company. Expanding our value-added services capabilities consistent with the grow, diversify, build strategy to grow new revenues, drive the core business, and capture those new payment flows opportunities. With that, we will close, and we will turn our attention to Europe. Thank you.
Here at Monzo, we're trying to solve everyday money for people. We started out four or five years ago. The banking industry isn't traditionally particularly fast-moving or agile. We wanted to get something off the ground really quickly. Mastercard were really the only partner that we spoke to that was willing to move at the speeds that we needed. They were really responsive and agile to the kinds of needs we had. Mastercard provides us a great solution that we and our customers can trust just works. It's frictionless. It gets out of the way. It enables you to do the things that you care about in your life without having to worry too much about the payment. It's this time for us to start thinking about international expansion.
Mastercard have been great, really helping us understand different target markets and customer demographics and needs. We've chosen to go to the U.S., so we're starting with a debit card program, obviously a Mastercard, which we're excited to roll out to more and more customers over the coming months. I think the future of payments is really interesting. It's really interesting to see Mastercard moving beyond simply a card, a plastic card payment instrument, to all forms of seamless payments throughout a customer's life.
Please join me in welcoming Division President, U.K., Ireland, Nordics, and Baltics, Mark Barnett.
Good morning everybody. So nice to hear from Tom there. I remember in 2015 he came to see us looking to launch a small Mastercard prepaid program with grand ambitions. They're now a fully-fledged bank. They have 3 million customers, every one of whom has a Mastercard debit card. They're doing incredible things, and we're really proud to be their partner. I'm here today to give you an update on our European go-to-market strategy. I wanna cover four things. First of all, talk a little bit about the European payments market, and the potential for growth we see there. Secondly, talk about some of the market forces acting on our business. Regulation, especially open banking, digitization, and also competition.
I wanna talk about our, the go-to-market strategy and how the multi-rail strategy is helping us touch more payment flows, but also build out applications and services on top of those payment flows. Finally, I'm gonna use the U.K., a market where we've had the two rails for a couple of years now, to tell you how this multi-rail strategy hits the ground at a market level. A little bit about the European payments landscape. Obviously, it's a very large, very diverse region, where payment behaviors differ enormously from country to country. Overall, it represents just a little under 30% of Mastercard's GDV, and that GDV has been growing just under 20% year-on-year. Over the past three years, we've grown our market share in every product category: consumer credit, consumer debit, commercial, and prepaid.
If there's two messages I'd really like you to take from this slide, the first is the bar to the left, which shows you our current CoreCards business across Europe. We're not even halfway through the journey of displacing cash. We have enormous headroom for growth of our core business. The second message is the other rails, because now in Europe, we have the capability to address all $60 trillion of these payment flows. Not just address those payment flows, but as I said, build out applications and services on top of them as we have done with our cards business. Looking at those market forces, I'll start with regulation. It's clear that Europe is a highly regulated market, but what we find is wherever there's regulation, there's also opportunity as well as challenges. I'll give you a quick example.
The interchange fee regulation that we saw a few years ago brought with it the removal of surcharging. If people aren't charged to use their cards, they tend to use their cards more, which is exactly what we saw, an increase in card spend, a good thing. The biggest piece of regulation we face at the moment is the second Payment Services Directive, or PSD2. PSD2 has two parts to it. It has open banking, which I'm gonna cover on the next slide, and it has secure customer authentication. Secure customer authentication is effectively chip and PIN for the e-commerce world. It's due to launch. It'll be a good thing for the industry as it tackles online fraud head-on. It's due to launch on Saturday, the 14th of September, this coming Saturday.
We fully expect business as usual on Saturday because the authorities across Europe have recognized the need for an implementation period of 18 months or so to avoid disruption. Moving on to digitalization. You heard from Jess Turner earlier that we have the right products and the right roadmap in place to remain at the heart of payments in a digital world. I think the other big trend in digitalization is the rise of fintechs and the digital banks, as you heard from Tom there. Our first mover advantage in Europe in the fintech space means that the vast majority of fintechs are exclusively with us, and we intend to maintain that position. Finally, competition. That falls into three parts: cash, our traditional competitors, and new and emerging payment platforms.
I think it goes without saying, or I hope it does, that cash is still our biggest competitor and still our biggest opportunity, and we are relentlessly focused on the cash opportunity. I said also we've grown our market share across all product categories, which means we're doing well against our traditional competitors, the international and domestic schemes. One point that's fairly specific to Europe is the presence of a number of domestic schemes right across the continent. If you think how much we, Mastercard, have invested in our business over the years, A, to make it secure, as Ajay Bhalla has been telling us, and A, to add a whole load of additional services that Kevin Stanton's been telling us about, then I think it becomes pretty clear that our value proposition relative to the domestic schemes is very strong.
I think that's only gonna increase over time, which is another reason why we have tremendous room for growth in our core business in Europe. I said I'd cover open banking a few minutes ago. Here we are. I want to answer three questions for you. What is it? What have we seen so far in Europe? What solutions are we bringing to address the opportunity? What is it? It's a regulation designed to increase competition in the financial services sector. Simply put, it enables third-party processes, you can see on the left-hand side of this chart, to access the account information and initiate payments out of consumers' accounts, given they have the right permission, held with the financial services institutions that you see on the right-hand side of this chart. That raises a number of concerns.
How do all the endpoints connect up? How does the financial institution know that the third party has the permission to access that account? What happens when something goes wrong, as inevitably it will? The second question, what have we seen so far? We've seen a lot of activity in the account aggregation space. That's big banks or fintechs allowing you to view all your banking relationships through a single app. In payments, we've seen very little. Very little indeed. We don't have a crystal ball. We don't know the extent to which this is gonna take off in payments. I'll give you one example, though, that we have seen. You can Royal Dutch Airlines, KLM, you can buy a ticket on their website by pushing a button called open banking.
The same concerns I raised earlier still exist. What happens if my flight's canceled? How do I get a refund? Who do I call? The bank? The airline? The third-party processor? The team at Vocalink have developed a suite of solutions to directly address those three concerns I mentioned. Open Banking Connect, Open Banking Protect, and Open Banking Resolve, you can see them on the chart behind me, to directly address those concerns. As I said, we don't know the extent to which payments will take off, but if open banking payments does take off, we intend to be at the heart of it. These are just the first set of solutions. Our launch markets are the U.K. and Poland. We're seeing strong interest for them across the whole of the continent.
Let's move on to our global multi-rail strategy and how that comes together in Europe. To grow, clearly, we've got to drive everyday spend, especially through contactless, cross-border and e-commerce, acceptance, and implement our digital roadmap that Jess was talking about. Incidentally, acceptance in Europe has increased 10 percentage points year-over-year for the last three years, again, largely as a result of lower acceptance costs for merchants as a result of the interchange fee regulation. Regulation as an opportunity again. Diversification means diversifying our customer base, but also diversifying the services we offer that customer base. Michael talked about deeper relationships with governments and with merchants, we obviously have to continue our leadership with fintech.
Also, our services strategy over the years has led to a level of differentiation that's meant we've won market share and big wins like BNP and BNP Paribas in France, Santander in the U.K., HSBC, are part of that strategy. Our focus in fintech means banks like N26 or Monzo issue exclusively with us across Europe. It's the build pillar where I think Mastercard is at the forefront, or Mastercard in Europe is at the forefront of our efforts in terms of multi-rail and open banking.
That started, as Paul said, two, three years ago when we acquired Vocalink, but the recent win of P27 in the Nordics, and the pending acquisition of Nets Corporate Services as a hub for Europe take that strategy to a whole new level, and I'll talk about that in a minute. I said I'd use the case of the U.K. as a case study for how all this comes together at the ground level. Michael put up a chart very, very similar to this at the beginning of the day. The first three rows on this chart talk about our traditional cards business. There in the U.K. we've had a fantastic run. We've increased our market share leadership in credit. We've increased our market share leadership in fintech and prepaid.
We've gone from second to first place in commercial, we've become the brand of choice for debit for the challenger banks, which is Virgin, Metro, Starling, Monzo, more recently Santander, and more recently still, Nationwide, business debit. The next three lines, though, are all about our multi-rail strategy. They're all about real-time payments. There we've launched a number of applications and services, as well as we have a number in the pipeline. I thought I'd quickly take you through those. Earlier this year, we launched a product called Send to Bank Account. That enables us to push a payment to every bank account in the U.K. from our Mastercard Send platform. It's the first time ever anywhere in the world that we brought ACH and card rails together in a single product. Our first customer's live. It's a payroll company.
The opportunities here in social media, the opportunities here in the gig economy are, we think, are impressive. Secondly, Pay by Bank app. Paul's already talked about it. We've got the consumer side scaling now. We need to focus on getting the merchant side scaling, which we're doing through partnerships with the acquirers. Building a new ecosystem is an iterative chicken and egg process, but I'm confident in 2020 we're gonna start to see that flywheel start to spin. Other products, if you were here two years ago, you would have seen a demonstration, and it was just a demo, of our money mule detection product. It's called MITS on the chart here under real-time payments. 11 banks in the U.K. are live with that product. All day, every day, it is blocking fraud and preventing money laundering. 1 other product live, Paym.
Paym is the U.K.'s P2P solution, which was built by Vocalink, runs on Vocalink rails, and we're looking at ways to scale that further. Products we've got in the pipeline. I told you about open banking, so I won't mention those again. A couple of others. The first is bill pay and request to pay. We're building that capability in the U.K., as they are here in the U.S., as an overlay service. That should be going live back end of this year or beginning of next year.
One we're particularly excited about, which again brings those two rails together, is a new B2B product, which enables small and medium-sized businesses to pay suppliers using a Mastercard commercial card, so they get the benefit of the working capital, but they can pay that supplier even if that supplier doesn't accept cards. In the B2B space, a lot of suppliers don't accept cards. How? It's that second rail again. It's bringing the two rails together. B2B is such a big opportunity for us that we're very excited about that.
I hope that case study for the U.K. brought together how our global strategy not only enables us to capture more payment flows, which it does, because we now have all the account to account payment flows in the U.K., but also build out applications and services on top, but thirdly, make us much deeper with our customers because we're a one-stop shop for all their payments needs. I'll leave you just with four thoughts. Europe has very strong growth potential for its core business. No doubt about it. Our digital and open banking solutions will keep us at the center of payments in a digital and an open banking world. Three , our multi-rail solutions allow us to capture those new payment flows and build out value-adding services and applications on top of them.
Finally, we've got the focus strategy, we've got the team, we've got the technology, we've got the products to drive long-term growth in Europe. Thank you very much.
Please join me in welcoming Vice Chairman and President, Strategic Growth, Mike Froman, and Mastercard's General Counsel, Tim Murphy.
I'm going to stand. Tim and I are keenly aware that we're the only thing that stands between you and having Sachin for lunch. We appreciate the opportunity to talk a little bit about government engagement. Why do we focus on government engagement? It's really for two sets of reasons. One, governments represent a substantial revenue opportunity. In many markets, governments are the number one source of the flow of funds, whether it's from government to individuals in the form of payroll and pensions and social benefits, or government to business in terms of procurement and T&E. Governments do represent a very significant revenue opportunity, and much of the current flow of funds is still based in cash and check. It's also a source of indirect payment opportunity and revenue opportunity.
By digitalizing the consumer payments, for example, through government-run infrastructure like transit, as we've heard about, we're not only reducing the use of cash, but we're helping to accelerate the adoption of contactless. The second major reason we engage with governments is to partner and become a partner and a problem solver with governments as they try and address their major societal and economic issues. In doing so, in becoming that partner of governments and treating them as a commercial partner, as an infrastructure partner, we help supplement the work that Tim will talk about in a minute around public policy to address nationalism and other issues. We're not new to this field. Mastercard has been dealing with governments all over the world for years.
What is new is that we're bringing a more concerted focus, strategy, and organization to this effort. We're really focusing on three buckets of activity. One is helping governments be more efficient in their delivery of services to their citizens and residents. Things like digitalizing social benefits and payroll, digitalizing, creating open-loop interoperable systems for transit. Secondly, helping them promote inclusive growth by addressing a number of their economic and societal problems. Reaching the unbanked or the underbanked. Focusing on particular populations that have been marginalized, whether it's farmers or micro merchants or women who are underrepresented in the financial system, and coming up with solutions that help them address their issues. Then helping them on their journey towards digitalizing government services.
Engaging in deep consulting arrangements to help them develop digital strategies, implementation plans, develop a digital infrastructure, and integrate with digital platforms into their ecosystem. Let me talk about some specific examples under each of this. On government disbursements, we are already deeply involved in the U.S., the U.K., Italy, and Mexico in a number of areas. Direct Express, for example, here in the U.S., one of the largest programs of social disbursements, social security, and other benefits for people who don't have bank accounts or who prefer not to give their bank account information to the government. Mexico, recently, we got a mandate there to help with Bansefi, a program that's intended to reach 20 million Mexican citizens over the next few years.
In 2014, we worked with the Transport for London to help upgrade their infrastructure and create an open interoperable contactless system. That ended up saving the Transport for London GBP 100 million a year in operating expense. As Linda referred to, we're now working with 180 cities around the world to develop that kind of program. That transit program has formed the foundation now of our larger City Possible business. This is a business that brings together mayors and city managers from around the world to work on shared concerns and to share their solutions. It's allowed us to develop products like City Key, which is a combination of ID and payments and access control with multiple use cases from one city to another.
Of course, as Paul talked about, we're deeply involved in working with governments on developing their own payments infrastructure, whether that's in the Nordics or Saudi Arabia or the Philippines, or Peru. In all of these areas, what we're doing is treating governments like customers and as infrastructure providers. Partnering them, with them to be a problem solver, with them, so they see us, both as a, being relevant and instrumental in their broader economic and social agenda. That helps supplement the work of our public policy on nationalism, which I'm happy to hand over to Tim.
Thank you, Mike. Mike, thank you. I'll just talk briefly about some of the nationalism issue that we are dealing with on the public policy side. I think the main message I wanna leave you with is that the kind of focus work that Mike has talked about, delivering value to governments, whether that's in the digital space or financial inclusion, is incredibly helpful as we navigate our policy agendas around the world to make sure that we're heard and that we're treated fairly, and that we're welcome.
The combination of the two is intentional, and we work them very closely together at the company, across Mike's team, across my team, across our regional partners, because we see an opportunity to take some of these regulatory headwinds, and they clearly are headwinds, I don't wanna suggest otherwise, but turn them into commercial opportunities for the company. Just very quickly on nationalism. Nationalism is something that's in the air we breathe these days. It's in our politics, it's in our trade policy. For Mastercard, what we mean by nationalism is any effort by a local government to tip the level playing field of competition, either away from us or in favor of a local competitor. That's how we define it and that's how we act as we manage it.
I think there's only really three things you need to know about nationalism. One is, while it is in the air today, and it's a challenge, it is not new. It has been with us for 40 years, and we are confident based on our experience, that we've got the capacity and the creativity we need to address it and to help manage it. That shows up in a variety of different ways. Ajay Banga talked to you about how, early on, we're now switching 56% of our transactions, up several percentage points over the last few years. We're seeing more of our transactions even as the environment gets more nationalistic. Mark Barnett talked about some of our share gains in Europe.
We are winning against local incumbents, whether that's PIN in the Netherlands, Bancomat in Italy, other places, because we have better solutions. There's a variety of other examples as well, but we feel good with our capacity and the capabilities you've heard today to continue to navigate the trends of nationalism. That said, there are some important new things we're grappling with. We're looking carefully and watching carefully the so-called weaponization of finance, the use of sanctions. We're engaged very deeply on trade policy as that evolves. There's some upside in current trade policy first, particularly with the USMCA, we're strongly supportive. That would be the best cross-border trade protection and services that we would have, and we'd like to see that done.
I think for us, the major new challenge that we're grappling with are things like data localization. This is when governments say, "We want all the data in, of our citizenry to be located only in our country." That is a challenge for any cross-border, you know, service business. We've got the capacity to address it, and we're doing a whole variety of things to make sure that's the case. One thing we're doing very clearly is using our voice to say, "We believe data localization is bad policy wherever it is." Europe is not data localization, by the way. Europe strongly supports in GDPR the cross-border flow of data. Why? Because in our business, it makes us less secure. If we cannot score fraud against cross-border or global fraud and data trends, we will have a less secure ecosystem.
Part of our job is to use our voice to make those perspectives clear. A third point is just to say we are responding proactively. Again, the work that Mike Froman and his team do that gives us the space on the ground to have conversation with governments is enormously helpful. Just this last year, for example, a number of African countries were looking at privacy regulation. Some of them had data localization embedded in them. Kenya was an example. We were able to get that pulled out based on our advocacy, in part because we're talking not abstractly about what we're doing for governments from New York, but on the ground, delivering social services with our Community Pass and other. That just changes the game. Policy is part of our efforts to engage on nationalism.
Technology is another element of it. My friend Ed McLaughlin is working on making our technology stack more flexible, so we can put it in more places as we need to. The great work that Paul Stoddart and his team are doing on new payments initiatives and Faster Payments, incredibly powerful for us, 'cause he's literally inventing and building new governments, new payment schemes with governments. That also helps us. We've got an extraordinary set of assets to deal with this complicated challenge. I ultimately am optimistic that we'll be able to navigate through it. I don't think anyone is better positioned than we are to do that, and it's part because of the great work that you and your teams are doing, Mike.
Thanks, Tim. Our government engagement effort is really part of our broader theme that Ajay cited upfront about doing well by doing good. I want to spend the last few minutes talking about some of our social impact efforts and begin with our sustainability efforts. I commend to you our sustainability report, which was just issued last month. Please don't print it out. That would be bad for the environment, but enjoy it. Enjoy it online. In that sustainability report, we focus on four major areas. One, being the environment. Two, our inclusive growth efforts. Three, what we're doing with our own employees and our workforce. Four, our ethical and responsibility standards.
On the environment, we look at how we manage our real estate, our use of energy, our contribution to landfill in an environmentally responsible way. We're the first payment company to have a validation of our scientifically based greenhouse gas emissions reduction goals. We are 100% reliant on renewable energy for our operations. Inclusive growth, I'll talk about a little bit more in detail. On inspired workforce, we're focused on building, as Ajay said upfront, a culture that is based in decency, inclusion, and diversity. We have a very active, highly motivated workforce.
They give out 7,200 hours of volunteer hours a year to 2,200 charities, including to our flagship program, Girls4Tech, which has made STEM education available now to more than 400,000 girls. As Ajay referred to earlier, we're committed to applying the consumer protections of GDPR, not just in Europe, but around the world. Let me spend a few minutes on inclusive growth itself, because our focus has been historically on financial inclusion. Four years ago, we set out the goal of bringing 500 million new individuals into the financial system.
We are on the cusp of achieving that goal and are now focused on building on that, both to continue our work on financial inclusion, but also to focus on financial security, inclusive economic development, the future of workers, and data for good. Some of this is done through philanthropy. You're all familiar with the Mastercard Foundation, our number one shareholder that was created at the time of the IPO. That's now a $25 billion foundation, one of the largest foundations in the world, focused on Africa, education, and creation of jobs for youth. With the 2017 tax bill in the United States, the company decided to take $500 million of the tax benefit and put it towards inclusive growth.
We created the Mastercard Impact Fund, which, working under the Center for Inclusive Growth, which has been a thought leader in this whole area of financial inclusion and inclusive growth, are now funding programs in these various areas. What's important is that this isn't just about philanthropy or corporate social responsibility. I think from our perspective, the problems are too big in the world to solve through philanthropy or official finance. We're only gonna solve these problems or achieve the SD, the sustainable development goals or other goals ones might have if we're able to mobilize the resources, the motivation, the ingenuity of the private sector.
That's why we're focused on demonstrating the possibility of creating commercially sustainable social impact, mobilizing all of our businesses, all the people who are sitting here to focus as part of their business on social impact. As Tim referred to, in Kenya, we're working with Unilever to digitize the relationship between a micro merchant, their Unilever supplier, and a local financial institution. What used to be a cash transaction between that merchant is now visible to the bank, and the bank can now offer a credit so that merchant can buy more from Unilever, sell more to their customers, pay back the bank, and we're the organizer of the ecosystem. We're working with garment companies to put their factory workers on payroll so they can be paid everything they've earned and deserve safely and securely.
We're working with Neumann's, which is a global coffee trading company, to begin to put their farmers in Mexico, for example, on digital payrolls, so they can be paid more for their product without having to go through middlemen, that they can get their inputs for their production, their seeds, their fertilizer, their other implements, more efficiently. We're focused very much on digitizing the base of the pyramid. Looking at people who are completely excluded from the financial system and excluded from the digital economy and finding ways to give them an on-ramp to the digital economy. In Africa, for example, we're working with the Global Alliance on Vaccine Innovation to help track the vaccination of children. Parents bring their child in for vaccination, and they now have a digital record of that.
We're working with UNICEF in places like Uganda to help families manage the payment of school fees to keep their kids in school so they can graduate and so that the governments have visibility into the economics of their education system. We're working with farmers' organizations to link farmers to global markets, so they can get better prices for their products and get subsidies more efficiently, from their government. It's called Community Pass.
This is a platform with a single ID and an information layer so that however an individual comes into the digital economy, whether it's as a parent of a kid being vaccinated or being sent to school or as a farmer, as a micro merchant, as a refugee, as somebody who's completely off the grid but still wants to have a digital capacity to save and to borrow, that they can do so on this platform and the Community Pass you can see in the product showcase as well. You know, doing good is the right thing to do, but doing good is good for business. Our focus is on demonstrating that we thrive where there are thriving economies. Sustainable economic growth, in terms of growth that was sustained over time, is only possible when it's inclusive.
Bringing 500 million more individuals into the financial system is good for business. Same with 40 million new micro merchants. It's that doing well by doing good is not just a tagline, it's part and parcel of our business strategy. Thank you.
Ladies and gentlemen, please join me in welcoming Mastercard's Chief Financial Officer, Sachin Mehra.
Well, good morning, everyone. It's my pleasure to see all of you here today, some of who I've had a chance to meet before, others I hope to meet in the not too distant future. Mike, lunch was here, and it looks pretty damn good right now. You know, as the final presenter before the Q&A session, what I wanted to do was just cover off on a few financial items to try and bring the entire story you've heard today together and what that translates into in terms of.
The financial outlook for this company, how we're doing, what we expect the company to look like on a going-forward basis, over the longer term. To kick it off, what I thought I'd do is just share with you. Yep, there it is. Just share with you again how we've changed the profile of this company over the last six years. You've heard a lot about this today already. You've heard from Ajay about how we've diversified our products. You also heard about how we've grown our services revenue over the last six years. In addition to that, what we've done as a company is also diversified our geographical footprint. As you can see right here, about 67% of our revenue is now come from markets outside of the U.S.
We've increased the amount of transactions we switch as a company. Last but not the least, you can see that the amount of transactions which we've got in place right now going over contactless methodologies has increased fairly significantly over the last six years. Why is this all important? This is all important because this kind of diversification, we believe, makes us a much stronger and resilient company, which is well-positioned to operate through different macroeconomic environments. That's really important. This is not by chance, this is by design. I think that's one of the things which I wanna leave you with, which is as this company has grown and evolved, we really, by design, gone down the path of creating a much more diversified portfolio, which will help us deliver long-term sustainable returns for our shareholders.
With that, let's jump into the business drivers. You can see right here that we've had a solid first half, and we continue to grow our business, both in terms of new and renewed deals, as well as our service offerings. All of our business drivers through August quarter to date are growing at a strong pace. These growth rates are very similar to the growth rates we've had in Q2, as well as those metrics we shared with you for the July 21 metrics as of the second quarter earnings call. Also, we continue to expect that our cross-border growth rates for the full year 2019 will grow in the mid-teens rate. From an overall financial outlook standpoint, in 2019, the year is developing very much as expected.
We continue to see healthy consumer spending with some moderation versus a year ago. This is as expected. In terms of our full year 2019 outlook, we are reiterating our expectations. Specifically, for net revenue, we continue to expect to grow at a low teens rate for the year on a currency-neutral basis and excluding acquisitions. We expect FX to be a 2 PPT headwind to revenue for the year. That acquisitions will add between 0 and 1 PPT to growth for the year. This is unchanged from our prior expectations. For operating expenses, we continue to expect to grow at the high end of high single digits for the year. This is also on a currency-neutral basis. This excludes acquisitions and the impact of special items.
For the year, FX will be a tailwind to OPEX of 1 PPT. Acquisitions will add about 3 PPT to OPEX growth. On a currency-neutral basis, excluding acquisitions and special items, we expect to deliver positive operating leverage for the full year. The acquisitions we announced and closed this year are still forecasted to be $0.07-$0.08 dilutive in 2019, primarily due to purchase accounting and integration-related costs. As it relates to taxes, we still expect a tax rate of approximately 19% for the year. Let's switch gears and share a little bit about how we think about our investment priorities. This is top of mind for a lot of you.
I've heard questions in the past around this, and I thought it'd be good to share some insights as to how we think about our investments, so on and so forth. Before I jump into what we're investing in, I thought it would be important to share with you as to how we go about investing. More specifically, let me first share with you the philosophy that guides how we make our investment decisions. We are fortunate as a company to have many opportunities that have the potential to deliver solid financial returns over the longer term. When deciding on what we should invest in, whether it be organic or inorganic, the overriding consideration is to make investments that are on point with the strategy you have heard today. And this is really critical.
We stay focused on that. While we're doing that, we're balancing investments in a manner so as to deliver returns over the short, medium, and long term to our shareholders. Another thing we do is we establish interim milestones for these investment decisions we're making. This is to track progress. This enables us to accelerate those investments which are on track. It helps us course correct on those investments which are running behind plan. In those instances where things are not working out, it allows us to stop those things. The reality is, as we make investments, there will be things which will not work out. The important thing from our perspective is to stop them and stop them in a timely manner, and then redirect those resources on things which are working out to accelerate them and make them come to life.
We believe that this kind of fiscal discipline is important to continue to deliver long-term financial returns for our company. Let's talk a little bit about what we're investing in. We are investing in very much in line with our strategy. This is along the grow, diversify, build pillars. It's the imperatives which come under that. You can see that on the slide right here. Specifically, we're investing in growth in our core business. This includes building out our acceptance footprint, you've heard a lot about that today, as well as our digital capabilities such as tokenization, SRC, contactless. In addition to that, we're investing in diversifying our business across different geographies and different customers. Specifically, we're making investments in markets like India, China, Latin America, Middle East, and Africa, but we're also gaining more business with new kinds of customers.
These might be digital players, including new and emerging fintech players who you've heard about through the course of today. As you just heard from Mike Froman, we are focused on generating revenues by delivering solutions to governments to help them achieve greater efficiencies. We continue to invest in building new areas, such as our services capabilities, which includes the cyber and data analytics spaces, and new network plays to support our strategy in B2B and real-time payments. These include investments in Mastercard Track, open banking, cross-border account-to-account payments, to name a few. Over the course of my six-ish months as the CFO, I've heard on several occasions about how people are interested in understanding a little bit about for all these new investments we're making, how should they be thinking about the revenue model?
One of the things we thought we'd do is share with you as to how we think the economic models for some of these new applications would play out. As we build out these new areas, it, you know, it's needless to say that in some cases, it's early days, and we will adapt the revenue model, and revenue models will change over time. As of right now, you can see right up here examples of various new applications which we've been talking about today and what the revenue model looks like. In some instances, you'll see we make revenues on a per-transaction basis. In other instances, you'll see we make revenues on an ad valorem basis. In some cases, it's a combination of the two.
Depending on the application in question, you might also generate revenues from the card-based volumes which come as part of what we're rolling out into the market. Let's take a few examples maybe to help bring this to life. Starting with bill payments. You've heard from Michael and Ron about the work we are doing in the bill payment space. We believe this to be a global opportunity. It's a fast-growing opportunity and has significant potential. From a revenue model standpoint, a bill payment application like Bill Pay Exchange will enable us to earn revenues on a per-transaction basis. Specifically, this is the fee we will charge for each bill that is presented through Bill Pay Exchange, as well as the fee we will charge for each payment that's made over ACH payment rails.
As consumers increasingly use our digitized bill payment solutions, some consumers may elect to pay the bills through Bill Pay Exchange using cards instead of ACH rails. In such a case, we will earn regular card-based economics. That's in addition to the per-transaction fee we would get by virtue of the bill being presented through Bill Pay Exchange, just to clarify there. Another application is our account-to-account cross-border capabilities. Here, the revenue model is a per-transaction fee as well as an FX fee, which relates to the foreign exchange conversion services that we'll provide as part of this application. That's, by its very nature, ad valorem. As it relates to Mastercard Track, you heard from Michael today, we're bringing multiple B2B value propositions to market under the Mastercard Track umbrella. The revenue models here will depend on the use case in question.
It could be a per-transaction fee. It could be an ad valorem fee. This will vary based on the use case in question. In some cases, there will be card-based economics which will come along with this, such as in things like the Mastercard B2B Hub, which has a combination of payments made over ACH rails as well as card rails, in which case you'll generate card-based economics. Finally, let's discuss the revenue model for Ethoca. Ajay Bhalla mentioned earlier today that Ethoca is a platform that connects merchants with issuers to enable early detection and resolution of fraud before it occurs, thereby reducing the costs associated with the chargeback process. The revenue model for Ethoca is intended to be a fee which we will charge on the basis of the alerts which Ethoca generates, so on a per-alert basis.
In addition to that, there will be a revenue stream which will arise by virtue of a percentage of the fraud cost, which we save for our clients in question there. Hopefully this gives you some context as to how the economic models work for these various applications. Overall, we're very excited about the prospects for entering into these new areas and expect that these will be important growth contributors to this company over the longer term. I'll switch gears and talk a little bit about our capital planning priorities. The bottom line here is that our capital planning priorities remain unchanged. We want to maintain a strong balance sheet, liquidity, and credit ratings given the network role we play and the settlement guarantee that we provide to our customers.
At the same time, we will continue to invest in the long-term growth of our business, both through organic and inorganic means wherever as appropriate. Thereafter, we will return excess cash to our shareholders through a combination of dividends and share buybacks with a bias towards share buybacks, as that provides us more flexibility over the longer term. As we invest in the long-term growth of our business and return excess cash to shareholders, we perfectly well expect that we will move to a more normalized mix of debt and equity, and we will keep in mind our imperative around maintaining a strong credit rating for the company as we do that.
On the topic of returning capital to shareholders, I thought it would be good to just give you a little bit of a historical perspective as to what we've done thus far in terms of capital returns. Since our IPO, we have returned roughly $36 billion to our shareholders through a combination of dividends and share buybacks. As you can see in the slide, over the past several years, we've significantly increased capital returns, in fact, to the level of $6 billion in 2018. We continued that strong trajectory this year, where we returned roughly $6 billion through the end of August. This includes the 32% dividend increase that we announced back in December. That's our eight consecutive year of dividend increases.
We had about $1.8 billion remaining under our current share repurchase authorization as of the end of August. In terms of the long-term revenue-generating capabilities of our company, you heard during the course of today about how we're driving the strategy of our company to position us in a way so as to grow at a healthy pace over the longer term. What this chart does is it lays out for you the various pieces of how we think about our long-term revenue growth potential. Starting from the left, we have the traditional person to merchant opportunity. For our addressable markets, we continue to expect annual PCE growth to be about 4%-5%. This obviously differs by country and can be impacted by macroeconomic cycles, but this is the longer-term average.
While we cannot directly influence PCE, we have been and we continue to do a lot of work to drive secular shift, which is the shift from cash and check to electronic forms of payment. We believe the growth opportunity there is also in the 4%-5% range. This is adjusted for the available market. You've heard through the course of the day the various examples, which my colleagues have shared as it relates to how we're driving secular shift, and these include things like expanding into new verticals, improving experiences through our point of sale innovations such as contactless, enhancing the ease and safety of e-commerce transactions, all of which is helping us drive the secular growth. In addition to these two factors, we're focused on capturing new flows.
It's all the work we're doing in the real-time ACH space, at the infrastructure level and the application level, and we believe these will be enablers of growth over the medium to longer term. These examples of these include the recent infrastructure wins we've had in Latin America, in Asia-Pacific, in Europe, to name a few, and the rollout of applications like Bill Pay Exchange and others like Pay on Delivery, which I would encourage you to go into the product showcase and take a look at because it's kind of interesting there. On top of this volume and transaction opportunity, there are a number of other factors that impact our revenue opportunity, including services growth. It's the mix, it's pricing, and of course, market share.
Putting all of these together, we believe that the long-term revenue growth opportunity for our business is in the low double digits to mid-teens range. With that as backdrop, I want to give you an update on where we stand near-term. I want to close out with a reiteration of our three-year performance objectives, which are on a currency-neutral basis and exclude acquisitions made after the start of 2019, exclude special items, and gains or losses on equity investments. Our underlying business fundamentals remain strong, and we believe we are well-positioned to continue to, one, grow our core consumer and commercial business through new solutions, grow our overall acceptance footprint and our market share. Two, further expand our capabilities and services, such as Cyber & Intelligence, data analytics, loyalty, processing, which together we expect to grow faster than the core.
Finally, advance our B2B capabilities with new solutions like Mastercard Track and Bill Pay Exchange. At the same time, we will continue to lay the groundwork for future growth in real-time payments, by investing in the infrastructure layer, the application layer, and the value-added services layer that you've heard about through the course of today. As a result, we believe that we can deliver a low teens compound annual net revenue growth rate over the 2019-2021 window. This is based on annual PCE growth of approximately 4%-5% globally, and therefore does not assume a significant economic downturn. These objectives also exclude progress on our goal of entering the domestic payments market in China. We will continue to manage our business to deliver operating margins above a minimum of 50% each year.
Consistent with this revenue outlook, and based on the 2018 non-GAAP EPS of $6.49, which excludes special charges, we expect that our business can deliver an EPS CAGR in the high teens over the 2019-2021 period. This assumes a tax rate of 19%-20% and includes the impact of continued share repurchases. Just to sum it all up, as you heard today, we're well-positioned to deliver value to our customers, our consumers, merchants, businesses, and governments as the only global multi-rail payment network. We have a significant opportunity ahead of us, and we are investing in key growth areas that are on point with our strategy of offering a broad set of applications, services, and infrastructure to meet the evolving market requirements.
We will continue to return excess cash to shareholders, and overall, we believe we are well-positioned for long-term growth. Thank you, and that concludes my formal presentation. With that, we'd like to start the Q&A session with for which Ajay and Warren will join me on stage. Thanks.
This is great. I know not everyone got in their seats at 10:43, so we're a little long. We're gonna allow a few extra minutes for Q&A, but it's gonna be a little shorter. I know some people have obligations to go out. You know, please feel free to do so. Let's get started. Please state your name and affiliation, and we'll start here with Lisa.
Sure. Lisa Ellis from MoffettNathanson. My question's about the investments in Fast ACH and Faster Payments. The biggest incremental investment area over the last couple of years. It feels like whether that's interesting and big versus truly transformational for Mastercard has a lot to do with the degree to which governments or banking systems are willing to allow Mastercard to operate those networks versus simply providing a layer of applications and services on top. I believe you're operating maybe a handful of them around the world today. Maybe fewer than you were hoping for three years ago when you bought Vocalink. Can you just talk a bit about what your aspirations are and expectations are around operating the infrastructure around Fast ACH and how important that is to your long-term growth strategy? Thank you.
Let me give it a crack, and then I'll pass it on to Paul since Paul kind of looks like Boris Johnson and talks about this stuff. I have a funny story about Paul for a separate conversation. I don't actually agree that we've got less number of places we're operating the infrastructure on than what we thought when we got Vocalink. My whole ambition around getting to infrastructure is that it'll take time. These are long sales cycles. Typically, there's a government at the other end with an entrenched player providing some form of infrastructure. There's RFPs, there's processes that nothing moves quickly in that process. I actually think we've made more progress than I thought because we've ended up with hubs conveniently positioned in each of the major continental areas.
We can use those hubs to go further into other markets without rebuilding the same expense base for every single more new market that we may win over the next few years. That's kind of the first part about that. The second part to me is that I don't yet know enough about this business' dynamics over the next 10 years to tell you whether we'll make more money from applications and services or we'll make more money from infrastructure. I do know that if we're lucky enough to have all of them in markets, we will have a really strong, impregnable position over many years to come. To the extent we've done only one or two or three of those, we could make money quicker, probably, but I'm not sure it's the best thing for us over the next decade.
I'm really fixated on real-time payments as being our opportunity, along with the blockchain, to expand who we are, get past card rails to being this true multi-rail company that has the next 20, 30 years directly fixed in our sights as compared to what we had 10 years ago, when I think we were basically a credit and debit card processing player. That has changed completely, and I think we're on a journey that's got another long runway to go with. Paul.
You know, just to.
You can stand up, Paul, just to make him remember who you are. The Boris Johnson look, as I said. My driver in London Paul, I gotta tell you a story. Paul was at the wrong hotel, pretending to know his way around London. Considering he's a Brit, he doesn't know anything about London. I call him and say, "You're in the wrong hotel, and I'm willing to guess I know which one it is." He said, "Absolutely." We drive up in this car driven by a driver who says, "Oh, my God, Boris Johnson is standing there on the roadside." That's a British driver.
He's let his hair grow now, Boris, as you may see. I cut mine. Really just to support what Ajay said, I think when we started the journey, we weren't sure how many countries were gonna support an operating model. Certainly as Vocalink prior, it had been primarily licensing. With Thailand, that was our first On the cusp of the acquisition, it was our first hybrid deal where it's licensing and some transaction fees. Of the recent wins I announced, only one of those is a license deal. All the rest are operate deals. Peru, Philippines, the P27, they're all full operate. We're actually running the services in the regions, and only Saudi Arabia is a licensing deal.
I think I, like you, wasn't sure what it was gonna be like when we got out there under the Mastercard brand with the distribution capability. I've obviously been delighted. I think the other part to that is to note that all of those wins include multiple layers rather than just one layer in the infrastructure, which was typically the software licensing prior. Again, I think we set out with a mission to deliver across all three layers, and I've been pleasantly surprised to be able to say that all of those include multiple layers. We've even gone back to some of our software customers and said, "We've now got capability in other layers. Are you interested?" You'll hear more about that probably in the next 12 months.
David?
David Togut, Evercore ISI. As you build out your B2B business, especially with the capability of Mastercard Track, how will you build out the distribution? For example, in traditional C2B, you work through the merchant acquirers. A number of them are building out capability in B2B. How does the distribution model differ in B2B versus traditional C2B business?
Mr. Anderson. Go for it.
Okay, thanks, Ajay.
Another Brit, unfortunately, but what the hell?
We're doubly blessed today. I think our approach to distribution in B2B is to actually cast a very wide net because we think B2B is complex along multiple dimensions. We're obviously gonna have a global proposition, so there's always a multi-country dimension to it. But there's also, size of enterprise. Big enterprises deal with different types of vendors and look for different types of solutions. You might have seen on the slide, we've got this layer which we call the suppliers payment agent and the buyer's payment agent. We're definitely gonna work with our banks. We're gonna work with our acquirers. We're also gonna work with FinTechs, and we're also seeing lots of opportunity with sort of pure software and services providers.
We're deliberately casting a very wide net because we think that the range of solution providers is gonna be large. Our whole strategy is to embed our value proposition into their value proposition. We want a lot of diversity there.
Great. Tien-tsin Huang?
Thank you, Warren. It's Tien-tsin Huang from JP Morgan. I wanted to ask if we could see Mastercard run more applications where you control the customer experience like a Transfast, like Bill Pay Exchange, right? Those were, you know, remittance and EBPP. Those aren't new markets. You're touching the customer. I'm curious why own that and why do you think you can run that better than the incumbents? Then my second question, if you don't mind, for Sachin Mehra. I get this question a lot. Just services and the margins. Can you give us an update on maybe where you are with the margins of that business that's now 26% of revenue? Thanks.
Tien-tsin Huang, I think the first question actually has been evolving over time in the company. In the beginning, 10 years back, 12 years back, that I can recall 10 years ago, even our current card products, even our World Elite card product, had been rolled out in such a way that the commonality of feature functionality varied in a marketplace across each bank. That used to create a very difficult task for us to get consumers to get a singular experience out of a Mastercard product. You roll that forward into the digital space and into these new payment areas. I think if you were to just build a rail and let everyone do things with it as they wanted, you'd again have a very, I would think, uneven rollout.
In some of these, where we think that we can actually produce a more thoughtful, full experience and give it packaged to a bank, in the case of Bill Pay, we're trying to do that. I suspect a number of institutions will add features onto it still over and beyond that. We're trying to make sure that the building block we're giving them is adequate quality and adequate experience to make it pretty cool. That we're trying to do much more than we used to do in the past. Even in the traditional card products, in the case of the World Elite, for example, in Europe, Javier has done incredible work in the region on getting a much more unified World Elite set of benefits across European markets, not just in our country.
That enables us to do much better advertising, much better communication to merchants, much clearer communication to regulators about the value of the product. We're trying to change that over some time without becoming a direct-to-consumer company, without trying to interfere in what the merchant, bank, government wants to do with its consumer. That's kind of where we're going. Yes, you will see some of that in our, in our build as we go along, not just in the couple of examples you saw. You'll probably see that coming along in a number of other ideas.
Tien-tsin Huang, on your question around margins, I'm not gonna share with you specific margins for various services capabilities. What I will tell you is, as you heard from Kevin and Ajay, what we're focused on is driving recurring revenue streams out of the various capabilities we're building on the services side. We're platformizing that business more, and all of this is lending towards helping to cause for an accretion of margins as we go and go down rolling out those capabilities from a services perspective. The one other thought I'm gonna leave you with is you've got to remember that a lot of what we're doing on the services side is around powering the core. When we think about margins, we think about margins for the services capabilities, but also the impact it has in terms of powering the core.
We think about that more holistically then.
I'm gonna go a little further than Sachin does. I would tell you that inside this thing of called services, which is all these different businesses, there are some that have actually got better margins than our total company, others that are lower. In general, if you were to put a hat on about checking out all of those, we're probably making enough progress in the positive direction on services. Two, three, four years ago, when Martina and I were standing up here and talking to you about services, we were much lower in services margins than the core. That gap has narrowed, and it's a good thing.
I've no way to tell you whether it'll become the same or change, because each of these new services starts being more bespoke and lower margin and tends to improve that profile over the course of the next two to three, four years. It's got a lead lag in it. There are only a few magicians like Ajay Bhalla who sometimes produces better products to start with right at the beginning. He's the ugly guy. Yeah.
Great.
I don't know.
Andrew?
Thanks. Andrew Jeffrey, SunTrust Robinson Humphrey. Question, Ajay, about contactless, particularly in the U.S. The U.S. payments market is, with regard to debit, further advanced than a lot of other markets. As contactless rolls out, do you see that as potentially cannibalizing existing debit volume, or do you think it's actually additive? If it's the latter, why and how quickly do you think that can be the case?
Mr. Vosburg?
I would say a couple of things. First of all, it's important to recognize contactless is just the means through which the transaction's initiated. It's still pulling funds from a debit account, a credit account that underlies it might be through the card, it might be through a phone. It doesn't really necessarily change the mix in terms of the products that underlie the contactless technology. What we do see, though, not just in the U.S., but in markets all around the world, is as contactless gains momentum with consumers really like contactless. It's a great experience. The product that they're using to initiate contactless transactions enjoys the benefit of greater usage.
We've seen in the U.S., just in the limited experience we have to date, increases in spend on the order of 50% once consumers begin using the card contactlessly. It's a great means of sort of changing the attractiveness and the appeal. It also reduces the rates of attrition for those cards. These are very important things for our bank partners to recognize, and it's why they're getting behind contactless and getting cards out in the marketplace now quickly in the millions in the U.S. into an environment where, as Linda said, we've got 60% of our transaction volume being initiated at merchants that already have contactless terminals.
Think of it as the form factor that drives engagement, not something, or the initiation technique, I should say, that drives engagement, not something that changes the underlying mix of how a transaction is funded.
In a number of markets, it tends to go at small ticket sizes are the ones that get the most attracted to contactless, coffee and newspaper, a train ticket, a bus ticket. If those markets were cash in those markets, you'd actually find incredibly improved penetration of electronic payments in those markets. As some of the European markets went through a very quick cycle of moving into contactless in Central and Eastern Europe, that was all aimed at displacing cash for small ticket transactions. Right?
Can I ask Bryan over here on the left?
Hi, it's Bryan Keane, Deutsche Bank. Just thinking about the ACH market as you guys, $139 trillion market, as you push more to get into that space, does that accelerate volumes? Can you guys even accelerate the speed of ACH? What I'm thinking about is could there be a negative mix shift in yields as maybe you push some other volumes that might have gone to more higher yield products into over to ACH? Does that potentially lower yields and lower the mix on that?
I think the only case where that last case could come through, Bryan, is if ACH and real-time payments become very large at a point of sale, physical in particular or even digital, where they start replacing what could be high-yield products in the form of credit and debit cards that are today being used. The challenge with getting real-time payments to point of sale is actually quite interesting. We're doing it in a number of markets. We're getting it going in the U.K. It's not easy, and the reason for that is, in a number of these markets, actually, debit interchange haven't been regulated.
It has reduced the attractiveness and the oil in the engine, if you so sort of go towards that common way of thinking, to enable the investment that's required to expand acceptance of the point of sale for a pay by account feature. In a funny kind of way, what could have been one of the use cases for real-time payments is actually handicapped by lack of economic momentum behind it for all the players in the ecosystem to drive even harder towards it. That's an interesting circumstance. Because it's not as though a debit card doesn't work perfectly well. It kind of works. If it's attached to a phone and it's contactless, it works fine too, although I still think the card works better. If you were to look at the bigger picture there, that's the issue.
I think there'll be some markets where real-time payments will do better at a point of sale over the next five, seven, eight years. There'll be others where they won't. I would just say, I'm not fussed about that right now. I think the opportunity for growth, both where cards can grow as well as where ACH and real-time payments can grow are so large and so incredibly opportunistic that I just don't see this as an issue for this company. You know, I've had this question about yield challenges in our company for years, and over the last 10 years, we've grown our yield every year. That's because it's a question of mix, geography, services, product. There's enough cards to play, with no pun intended, in that game for you to keep a healthy yield mix in our company.
It's a mathematical business, our company, and if you understand some math, then you're in pretty good shape as a manager.
I'm gonna go to Darrin here in the front.
Thanks, guys. It's Darrin Peller from Wolfe Research. You know, I just really wanna ask about what we get asked often around wallets around the world. You know, obviously, you've touched on it in partnership with some of the fintech companies, but how should we really think about, you know, your ability to have opportunity in emerging markets where growth of Paytm and Alipay and others are proliferating? Do you see enough opportunity for you guys to either partner with them or really just grow in other ways in those markets to offset that?
Cool. I'm gonna give it to Jorn and Mr. Ling Hai, since you've got our digital head and our Mr. Asia. Go ahead.
Yes. Good. Hello. Jorn Lambert. Look, yes, we look at these digital wallets all over the world in broadly similar terms, which is we kinda know that they offer great experiences to consumers, and they'll continue to do so. We know that as they wanna grow, they will need to access more consumer funding sources and more merchants.
That happens to be a very difficult thing to do if you want to go cross-border in multiple markets, because all markets have different regulatory regimes, all markets have different infrastructure on the merchant side. The third thing that we know about them is that essentially, payments is not a zero-sum game. It's not because they gain traction that we lose. In general, the payments that they displace are not necessarily card payments, it's other payments. You put these things together, and actually there is a very obvious place for us to partner. I have yet to come across a player whereby we haven't found any common grounds to partner. I believe strongly, whether it's on the consumer side, enabling funding accounts for them, or on the acceptance side or on the services side around it, we always find areas to partner.
That has been so with the West Coast players. I am convinced that will be so with Asian players, with telcos in Africa. I think we're only seeing the beginning of this right now. Ling Hai, you wanna add to that?
Thank you. Yes. So in the region, in Asia, we see definitely a stronger shift from closed-loop to open-loop, right? A closed-loop may work well within a specific segment or in the domestic setting. When these digital players are becoming regional in nature or even global, and they're going overseas, you know, especially for cross-border, open-loop is the way to go. I have a strong belief as we talk to these players, they see the benefits of open-loop. We have clear examples in Asia, whether it's Grab, whether it's Paytm, there's partnerships. That's the name of the game. I think the partnerships can take different forms. We have the acceptance side, collaboration we can do with them. There's also clearly the issuing of debit and prepaid as a way to go open-loop.
We have our Send, which is very compelling for credit card bill payment, which these players like. More importantly, I think, this whole thing about us looking at co-branding is a great way to go. Apple Card in the U.S. sets a great example for these players as to how they should think about form factors. I see tremendous opportunities, actually. It's only when we don't partner with them, they potentially go with somebody else or they become more competitive, but that is not what we're seeing right now.
Great. Ramsey?
Hi, Ramsey El-Assal from Barclays. I wanted to ask about SRC and tell us about the distribution and rollout process of that product. Is it a question of having to go out and sign up individual merchants or can you leverage distribution partners there? Then just really quickly, a little bit more color on that 19% prepaid growth, that was above my expectations, and any additional commentary on that would be appreciated.
Okay. On the prepaid, I'm gonna pass that on to Michael, and on to SRC, Madam Jess Turner.
Sure. The foundation of SRC, which is an EMVCo standard, is in fact about distributing through partners. The success of it is about the whole ecosystem coming together. It's really not different than what we've been doing in the physical world today. The reason it will distribute quickly is because we're working with payment service providers and acquirers to distribute it like we do today with physical terminals, but just in the digital world. We're also working on migrating acceptance we have now to the secure remote commerce experience. The scale will be at a different pace than we've seen before, but I think we need to think about it like we have operated in the physical world for many, many years. It's about having one way to pay digitally as you have one terminal in the physical world.
On prepaid to add, it is a still a relatively concentrated geographical distribution, but we're expanding market after market as we're pushing this product around the world. That would be the one thing to say. The second is when I think about segments, there's a good chunk that is in government-related, financial subsidiary type of payments, and there's a significant chunk that is in general prepaid reloadable for multipurpose. You see this in markets like Italy and so forth. It's, it's quite a mix. There's not a particular concentration. Think about this is also a business that is growing very fast from a relatively smaller base compared to what Ajay was referring to as our historic focus on credit, for example, and debit.
As I told you before, we see this doubling and continuing at the same place, at the same space in the next five years.
Sanjay?
Sanjay Sakhrani from KBW. I guess there's been a lot of chatter about global economic slowdown, economic downturn. I guess, Sachin, you mentioned the business has been crafted to sort of be more defensive, but maybe you can elaborate on sort of what you're seeing. Obviously, the volume numbers don't suggest there's a lot of weakness, but how you guys are thinking about it if we were to go into something like that. Specifically, I wanna drill down on the Data & Services business, which has grown quite dramatically. How will that behave in a downturn? 'Cause we've seen how the payments business does.
Yeah. Like I said earlier, from a consumer spending standpoint, we see, we still see pretty solid spending taking place on the consumer side. It's with some level of moderation relative to last year, but that's very much in line with what we expected. You know, the trade uncertainties which we're seeing take place, whether it's the U.S.-China stuff or other parts of the globe, that is bearing a little bit on business sentiment. It hasn't quite kinda translated over on the consumer side as far as we're seeing right now. To your specific question around how we would address different macroeconomic environments and how diversification of our business has gotten us to a place which allows us to be more resilient, here's what I would say.
First, from a planning standpoint, we always spend a lot of time thinking about how we would react in a mild downturn scenario and in a more severe downturn scenario. We've got our contingency plans in place, not only in theory. I will tell you from a business owner standpoint, everybody's kinda identified what would be the action steps they would be taking in order to make sure that we are being prudent as it relates to how we're managing our expense side of the equation to still provide good financial returns, but not in any way really impinge on the long-term growth prospects of this company. Super important for us to actually remain focused on that. Again, depending on the severity of cycle, you'll pull different levers.
Specifically as it relates to services, I think it's a little bit of a mixed bag as it relates to how an economic environment might translate for different service capabilities. I'll give you an example. If you take something like our safety and security capabilities, which are or take contactless, for example. With low-value payments coming into play, what we observed in prior economic downturns is, while the total volume, as in the dollar value of spend which is taking place on cards, might decline, the number of transactions will actually or has shown a propensity to increase. The reason is consumer behavior is such that if they're gonna go to a gas station, they're not gonna fill up the tank once. They're gonna go and put in $20, another $20, so on and so forth.
You see there are puts and takes as it relates to how that might play out, and that translates on the services side as well because our services capabilities, for example, safety and security, in some instances are embedded in the network, and it's a function of the number of transactions which go across the network. If you think about our revenue model more holistically, the fact that we have a combination of a per transaction fee and an ad valorem fee in and of itself helps us get a certain level of insulation as it relates to different economic environments.
On the big picture, Ajay, if you start from where our revenue comes, today from credit, debit, and prepaid processing-related fees, they're probably just a little over half of our revenue, some number a little bit of north of half. The rest comprises commercial ACH and real-time payments and all these services, that's what I meant about building multiple legs to our revenue stool. We've done it very systematically, and we've had a lot of luck along the way. Luck is about 50% of success, I think luck's come our way. We've done this with an idea that if you go through a situation where consumer spending gets compressed, one, do different features of our revenue model help us through it and consumer behavior?
Two, are there other levers that we could press harder on in an effort to keep the company headed in the right direction even before all the good things we will do with expenses in that situation? Some of our expenses are relatively flexible, some of them are not. Flexible has enough flexibility to play some game in that as well. That's the idea.
Great. I think we have time for one last question. I'm sorry. James, I'll ask you at the back.
Great. Thank you very much. James Faucette from Morgan Stanley. I'll go back to kinda where we started with Lisa's question, Ajay. When you look at the services and applications you'd like to layer on top of infrastructures that are being put in place around the world, I guess, do you anticipate the same kind of political environment and questions around those services and applications and similar types of evaluation periods, et cetera? Then I can also appreciate your comment that it's hard to tell whether those services and applications will represent a greater or a better or worse revenue opportunity versus running the infrastructure itself. What are the things that you're looking for, and in what timeframe are you looking to be able to address that question, can services and applications represent a bigger opportunity? Thank you.
The effort on services and applications is begun right from the day the Vocalink acquisition happened. For example, the anti-money laundering tools, what's called Money Mule now, actually developed between Kevin Stanton's team and Paul Stoddart's old job when he was still the CEO of Vocalink, and they started rolling that out, what is it, Kevin, about a few months after the deal? To me, that we have seen a number of markets where we don't run the infrastructure. They're actually interested in that tool because they could run it at a central bank level across all their banks and essentially try and find money launderers who are multiple cycling through 12 account movements to hide movement.
Take in Australia, for example, where we don't run the infrastructure there, but there is real interest in having such a service applied for them. I can see that one having very little political ramifications. It's more a question of, does the central bank in that country feel like this is important enough? Do they understand how to use it? How will they apply it? Is there a central bank that can do it, or is there a bank-owned clearing house that is a better repository of that tool? How do you navigate through those two? How do you create a revenue model? The central bank would love us to give everything away free, blah. Right? That's the idea there.
On the application side, the Pay by Bank app one is the one I'm most interested in today, just because I feel that that's something we should see if we can make a difference to in certain kinds of markets. In a market like the U.K., where we have got a position in debit, where our position in debit is with challenger banks, but some of the older, larger banks are mostly Visa concentrated, I would love to be able to go in and kick a little bit of butt, right? That's interesting. There, debit is already a regulated interchange market, and therefore, the economics don't change very much. Market share could change if consumers choose to pay with a bank account as compared to a debit card. There's a role to be tried out over there. That's what I mean.
I'm not sure yet where that'll go. I don't know how to answer the question for you any better. I'm not baking in expectations into my revenue growth that I've told you for this three-year period that say I'm gonna really knock the ball out of the park on applications and services in real-time payments. If we do, that'll be wonderful. I'll count that in the 50% of luck that comes our way. If we don't, well, then it'll take longer than two, three years. My going in assumption is this is a four, five, six-year play. It's not a one, two-year play, and I might be wrong, in which case I'll be delighted.
Great. All right. Well, thank you everyone. We appreciate you coming. That's it for the webcast. If you're listening on the webcast, this is the end of the program.