Profile: MasterCard Inc (MA.N)
19 Dec 2013
MasterCard Incorporated (MasterCard), incorporated in May 2001, is a global payments and technology company that connects consumers, financial institutions, merchants, Governments and businesses worldwide, enabling them to use electronic forms of payment instead of cash and checks. The Company offers a range of payment solutions that enable its customers and partners to develop and implement credit, debit, prepaid and related payment programs for their customers. Its customers and partners include financial institutions and other entities that act as issuers and acquirers, merchants, Government entities, telecommunications companies and other businesses. MasterCard manages a family of payment brands, including MasterCard, Maestro and Cirrus, which the Company license to its customers for use in their payment programs and solutions. MasterCard generates revenue by charging fees to its customers for providing transaction processing and other payment-related services. On April 15, 2011, MasterCard acquired the prepaid card program management operations of Travelex Holdings Ltd., since renamed Access Prepaid Worldwide.
Payment Services and Solutions
MasterCard provides transaction processing and other payment-related services, as well as a range of payment solutions to enable its customers to design, package and implement products and programs targeted to the needs of their customers. The Company works with customers to provide customized solutions, as well as general solutions. It operates the MasterCard Worldwide Network, its global payments network that links issuers and acquirers worldwide to facilitate the processing of transactions and, through them, permits MasterCard cardholders to use their cards and other payment devices at a number of merchants worldwide. The Company process transactions through its network for financial institutions and other entities that are its customers, in more than 150 currencies in more than 210 countries and territories. The MasterCard Worldwide Network provides its customers with a structure that enables them to support processing across regions and for domestic markets. The network processes transactions throughout the world on its products where the merchant country and cardholder country are different (cross-border transactions).
MasterCard processes transactions denominated in more than 150 currencies through its global system, providing cardholders with the ability to utilize, and merchants to accept, MasterCard cards and other payment devices across multiple country borders. MasterCard also provides domestic (or intra-country) transaction processing services to customers in every region of the world, which allow customers to facilitate payment transactions between cardholders and merchants throughout a particular country. The Company processes most of the cross-border transactions using MasterCard, Maestro and Cirrus-branded cards and process the majority of MasterCard-branded domestic transactions in the United States, United Kingdom, Canada, Brazil and a select number of other smaller countries. Outside of these countries, most intra-country (as opposed to cross-border) transaction activity conducted with the Company’s payment products is authorized, cleared and/or settled by its customers or other processors without the involvement of the MasterCard Worldwide Network.
MasterCard Integrated Processing Solutions (IPS) is a debit and prepaid issuer processing platform designed to provide medium to large global issuing customers with a processing solution to allow deployment of payments portfolios across banking channels. Through a single processing platform, IPS can, among other things, authorize debit and prepaid transactions, assist issuers in managing risk using fraud detection tools, manage an issuer’s card base, and manage and monitor an issuer’s automated teller machines (ATMs). MasterCard provides e-Commerce processing solutions through Internet payment gateways, which are interfaces between the merchant and its acquirer as a transaction moves to a payments network. The Company’s gateways include its MasterCard Internet Gateway Service (MiGS), which provides gateway infrastructure in Asia Pacific, and DataCash, a payment service provider with operations in Europe and Brazil. DataCash offers a single interface that provides e-Commerce merchants with the ability to process secure payments worldwide, and develops and provides outsourced electronic payments solutions, fraud prevention, alternative payment options, and other solutions. It has invested, such as Prepay Solutions, a joint venture with Edenred (previously named Accor Services), which supports prepaid processing in Europe; Strategic Payment Services, which provides acquirer processing in Asia Pacific; ElectraCard Services, which provides third-party processing services and software, as well as switching solutions, in Asia Pacific, the Middle East and Africa; Trevica, which provides third-party issuer processing services in Poland and other central and eastern European markets, and Mobile Payment Solutions (MPS), which provides processing solutions for mobile payments worldwide.
MasterCard Programs and Solutions
The Company’s principal payment programs and solutions, which are facilitated through its brands, include consumer credit and charge, debit and prepaid programs, commercial payment solutions and emerging payments solutions. MasterCard offers a number of consumer credit and charge programs. The Company offers a number of consumer credit and charge programs. Its consumer credit programs include Standard (general purpose cards targeted to consumers with basic credit card needs), Gold and Platinum (cards featuring higher credit lines and spending limits and a varying level of services) and World and World Elite MasterCard (cards offered to affluent consumers, which features a range of services). MasterCard makes available to customers outside of the United States a variety of consumer card programs in selected markets worldwide. All MasterCard credit cards include services, such as lost/stolen card reporting, emergency card replacement and emergency cash advance, which are generally arranged by MasterCard and are provided through third-party service providers. MasterCard supports a range of payment solutions that allow its customers to provide consumers with access to funds on deposit in demand deposit and other accounts. Its debit and deposit access programs may be branded with the MasterCard, Maestro and/or Cirrus logos, and can be used to obtain cash in bank branches or at ATMs. In addition, MasterCard and Maestro-branded debit cards may be used to make purchases or obtain cash back at the point of sale. Debit programs it offers include Maestro and Gold Maestro, as well as Standard, Gold, Platinum, Premium and World Debit MasterCard programs.
MasterCard-branded debit programs issue cards, which include functionality for signature authenticated transactions, as well as personal identification number (PIN)-based functionality. Maestro is its global PIN-based debit program and operates globally. Some Maestro cards also feature signature functionality. As of December 31, 2011, the Maestro brand mark appeared on approximately 752 million cards worldwide. As of December 31, 2011, Maestro was accepted for purchases at more than 14.1 million merchant locations worldwide. MasterCard also provides prepaid card program management services through Access Prepaid Worldwide (Access). Through Access, MasterCard manages and delivers consumer and corporate prepaid travel cards to business partners worldwide, including financial institutions, retailers, travel agents and foreign exchange bureaus.
As of December 31, 2011, the MasterCard brand mark appeared on approximately 33 million commercial credit and charge cards worldwide. It offers various corporate payment programs and value-added services, including corporate cards, corporate premium cards, corporate purchasing cards and fleet cards (as well as the MasterCard Corporate Multi Card, which combines the functionality of one or more of these cards) that allow companies to manage travel and entertainment expenses and provide corporations with additional transactional detail. Among the platforms MasterCard provides is SmartData, a MasterCard-powered tool which provides information reporting and expense management capabilities. It also offers Government entities a variety of payment programs that are similar to the procurement, travel, purchasing, fleet and Multi Card programs offered to corporations. The MasterCard BusinessCard, the Debit MasterCard BusinessCard, the World MasterCard for Business, the World Elite MasterCard for Business, Small Business Controller and Professional Debit and Credit Cards are targeted at the small-business segment. MasterCard PayPass, is the Company’s contactless payment solution, which utilizes radio frequency, or near-field communication (NFC) technology, to transmit payment details wirelessly through payment devices to PayPass-branded contactless-enabled payment terminals for processing through the MasterCard Worldwide Network. This technology enables consumers to tap their payment card or other payment device, such as a key fob, wristband or PayPass tag that adheres to the back of a mobile device on a PayPass-enabled terminal to complete a transaction. Its mobile contactless payment solution, MasterCard Mobile PayPass, is used to enable consumers to use their mobile devices in a similar way through integrated payment solutions. As of December 31, 2011, PayPass programs had been rolled out in 37 countries worldwide.
The Company competes with Visa Inc., American Express, Discover, JCB, UnionPay, First Data Corporation, FIS, Interac, EFTPOS, Total System Services, Inc, Bankserv and eBay.
2000 Purchase Street
PURCHASE NY 10577
Company Web Links
- U.S. judge approves retail credit card fee settlement
- CORRECTED-UPDATE 1-MasterCard to split shares; raises dividend by 83 pct
- CORRECTED-MasterCard raises dividend by 83 pct, shares rise
- BRIEF-MasterCard up 4.1 percent premarket; to split shares, boost dividend and repurchase stock
- MasterCard to split shares; raises dividend by 83 percent