fbpx

Mastercard

Mastercard is a global financial services corporation

Summary

Mastercard Incorporated is an American multinational technology company in the global payments business, which main areas of operations are related to financial services. The company has two main headquarters: the Mastercard International Global Headquarters in Purchase, New York, United States; and the Global Operations Headquarters located in O’Fallon, Missouri, United States, a municipality of St. Charles County, Missouri.

As a worldwide multinational, Mastercard main business is in the payments sector. Mastercard, through their technology, processes payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the “Mastercard” brand debit, credit and prepaid cards to make purchases. Mastercard Worldwide has been a publicly traded company since 2006. Prior to its initial public offering, Mastercard Worldwide was a cooperative owned by the more than 25,000 financial institutions that issue its branded cards.

History

The origins of Mastercard date back to the late 1940s when the customers of several U.S. banks were issued “special paper” that could be used at local stores in similar ways as cash. This practice evolved over the next decade as a franchise. Under this system, a single bank would issue a card for making payments at certain merchants who were collaborating with the bank.

However, it was in 1966 that one such working group formed the Interbank Card Association (ICA). This later turned into MasterCard International. Member committees were appointed to carry out its smooth functioning. Various roles of this committee included establishing authorization, settlement and clearing rules; marketing, security and handling legal issues.

ICA began its expansion in 1968 when it formed associations with Banco Nacional in Mexico, Eurocard in Europe, and their first Japanese members. This continued till the late 1970s as far as Australia and Africa. Owing to its global growth, ICA changed its name to MasterCard International. By 1988, it had expanded successfully in Asia, Latin America, the People’s Republic of China and the Soviet Union.

For the subsequent years, it made a series of acquisitions that were focused on innovation. This included Cirrus ATM network to launch Maestro, Orbiscom (turned into MasterCard Labs and incubator for new ideas), DataCash (the prepaid program management business of Travelex, now called Access Prepaid), Trevica, Truaxis, and Provus (a Turkish processor).

MasterCard was traded on the New York Stock Exchange in 2006 after its initial public offering. It was valued at around 30 billion dollars. The name “mastercard” was dropped from the iconic Brand Mark for many uses in January 2019. However, the Mastercard symbol prevails in its original form.

Services and solutions

Mastercard facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company offers integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial credit and debit payment products and solutions.

It also provides value-added products and services comprising cyber and intelligence products, information and analytics services, consulting services, loyalty and reward programs, processing and open banking services, and issuer and acquirer processing services. The company offers payment solutions and services under MasterCard, Maestro, and Cirrus.

With Mastercard’s Data and Services, the company offers solutions beyond the transactions. It provides a tailored portfolio of solutions to customers and businesses’ issues across the span of geographical boundaries and industries like retail, telecommunications, travel, and finance.

Besides catering to the cardholder services, Mastercard deals proficiently with advanced investment management, cyber quant, intelligent targeting, market trend analyzing and advising, and network optimization.

In other words, it empowers its customers to unlatch consumer behavior consistency and to harness its full potential to make intelligent data-driven decisions. This is made possible because of the power of its affluent and competent transaction database, robust software platforms, and proficiency acumen.

Its latest plans to support the initiatives like transactions involving digital assets and crypto assets, promise to be a stable spending platform. It will start this support to selected cryptocurrencies, directly on its network.

Vision and Mission

The company lives by its trademark vision “A world beyond cash”. With a global reach, extending beyond 210 countries and territories around the world, about 85% of retail transactions are still made in cash and checks.
It strives to connect the world beyond just cash. It aims, basically, to bring each individual’s priceless possibilities to reality.

Its mission is to connect and empower the economy by enforcing a digitally inclusive economy. This should benefit everyone globally by making transactions that are secure, simple, smart and, of course, accessible.

Team

Key executives of the team include:

Michael Miebach – CEO

Michael Miebach is chief executive officer at Mastercard and is also a member of the company’s board of directors. He leads the company into technologizing the payments for a seamless experience, while taking care of the data-powered insights and cyber services.

Ajay Banga – Executive Chairman of the Board of Directors

Ajay Banga is the executive chairman of the board of directors of Mastercard. He ushered into the role following 11 years as the company’s president and chief executive officer.

Andrea Scerch – Mastercard’s Global Consumer Products and Processing Team

Andrea Scerch leads Mastercard’s global Consumer Products and Processing team. In this role, he oversees the services and products to clients, delivering an easier, more secure and more efficient way to make everyday transactions to the customers.

Craig Vosburg – Chief Product Officer

Craig Vosburg is chief product officer for Mastercard. He is also a member of the company’s management committee. He is leading an integrated product management and engineering organization. He strategically designs processes to maximize the approach to customer-centric delivery.His team innovates and scales the products and services that solve real-world problems. This shapes the global economy in its true modern fabric.

Dimitrios Dosis – President, Advisors Consulting & Information Services

Dimitrios Dosis is President, Advisors Consulting & Information Services at Mastercard. He is also a member of the company’s management committee. He leads a global team that is focused on helping retail and banking customers solve business issues with data-driven solutions. His team is a combination of result-oriented approach, leading-edge technologies and strong data assets. This promises to deliver value to customers and create polarity for the company.

Gilberto Caldart – International President for Mastercard

Gilberto Caldart is president, International, for Mastercard. In this role, he is responsible for the management of all the markets and customer-related activities outside North America and Canada region. He is also a member of the company’s management committee.

Mike Froman – Vice Chairman and President, Strategic Growth

Mike Froman is the vice chairman and president, Strategic Growth for Mastercard. In that role, he is responsible for growing strategic partnerships. Here he looks after scaling new business opportunities and strengthening to partner with governments and other institutions, especially to address major societal and economic issues. He is also the chairman of the Mastercard Center for Inclusive Growth and a member of the company’s management committee.

References

https://www.mastercard.com/global/en.html
https://en.wikipedia.org/wiki/Mastercard
https://mastercardfdn.org/
https://www.linkedin.com/company/mastercard
Mastercard Newsroom | Executive Bios and Leadership Team
Mastercard Brand History | Logo Evolution
About Mastercard | Who We Are | Who We Serve