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Money is a very important character in today's world. But being cashless is a trend too. Before it was difficult for the people to roam around here and there without money. But now things are changing. People usually go here and there cashless making the most out of it.
Mastercard is a technology company. It is enabling people to enjoy financial freedom. It is empowering people everywhere. Secured and simple shopping's are always made with the help of Mastercard. Dreams are no more dreams now. It is changing into reality. Read the Mastercard Success Story below.
Mastercard - Company Highlights
- Startup Name-Mastercard
- Headquarters-Purchase, Harrison, New York, US
- Founder-Wells Fargo
- Founded-16 December 1966, US
- CEO-Michael Miebach (Jan 1 2021-Present)
Mastercard - Latest News
June 28, 2021 - Mastercard buys stake in Bangalore-based Fintech startup, Instamojo, aiming to help MSMEs and gig workers to set up their online stores equipped with online payment facilities.
June 24, 2021 - Mastercard appoints Nikhil Sahni as the company's Division President of South Asia. Sahni takes over the role from Porush Singh and joins with around 25 years of experience.
Mastercard - About
Mastercard is an American multinational financial services company. The job of the company is to help consumers make payments between the bankers and the purchasers. This is only applicable to the people who are having 'Mastercard' branded cards such as credit cards, debit cards and prepaid cards for the purchases. From the year 2006, it is a publicly-traded company.
Mastercard - History
Between 1960 to 1966, the United States only had 10 credit cards. But again from 1966 to 1968, the country saw around 440 credit cards. Those were introduced by both small and large banks. In the year 1966, Interbank brought a new brand. 'Master Charge' was the name. The same year Everything Card was merged with Master Charge. In 1979, 'Master Charge' was renamed as 'MasterCard'. Access card was taken over by Mastercard. After that, the brand retired. In 2002, Europay International got merged with MasterCard International. In the middle of 2006, MasterCard International was renamed as MasterCard Worldwide.
Mastercard - Founders and Team
Wells Fargo is a financial services company. It is an American multinational company headquartered in San Francisco, California.
Michael Miebach is currently the CEO of Mastercard and a member of the company's board of directors. He has taken over the position from Ajaypal Singh Banga (former CEO) on Jan 1, 2021.
Mastercard - Tagline, Slogan And Logo
The tagline of the company is, "There are some things money can't buy. For everything else, there's MasterCard."
Also the current advertising campaign tagline is, "Priceless".
Mastercard - Business Model
The company provides its service to over 210 countries and territories. It avails its service in more than 150 currencies. It has got a similar way of working like Visa. Transactions made by Mastercard have got 4 parties within it. A consumer, his/her bank issuer, a merchant and his/her acquirer bank. An account holder always owns a Mastercard to make the buy with a merchant. Once the transaction is over. The bank issuer pays the cost of the transaction to the acquirer bank. Interchange fees plays a major role here in providing value to the merchants whoever accepts Mastercard payment products.
Mastercard - Revenue Model
The company doesn't generate any revenue from its interchange fee mentioned above. It gains money from financial institutions like banks who issue cards. They also earn from the transaction fees. Consumers basically do not pay Mastercard directly. Those are paid to the financial institutions. Mastercard is making money by charging those banks. Connectivity fee and a switching fee is charged. Switching fee is charged whenever an approval for authentication is required. The processing fee of the company is increasing almost every day.
Mastercard - Funding And Investors
Mastercard has got no funding history.
It has made 66 investments till date.
Mastercard - Growth
The company is growing fast. In the year 2018, they collected revenue of around $15 billion. An increase was seen in the next year. In the year 2019, the revenue increased by 20% to 21% more. Whereas Visa saw a growth rate of 11.7%. In the year 2019, Mastercard's sales growth was 12.2% and Visa's sales growth was 11.5%. Mastercard is now in a partnership with Apple. More growth will be seen as the new card won't be having any numbers on it. Security is ensured here for its consumers.
Mastercard buys an equity stake in Instamojo, as of June 28, 2021. The latter is a Bengaluru-based startup that aims to bring a ready-made virtual platform to small and micro merchants with which they can set up their eCommerce website and accept payments online. With this investment, Mastercard discloses its future plan of helping legions of MSMEs to digitize their business and set up their online stores with smooth and easy digital payment options.
Mastercard - Competitors
The top competitors of the company are Visa, American Express and Discover.
Visa is the biggest rival of Mastercard. It was founded in the year 1958. It is headquartered in Foster City, California. The company collects more revenue than Mastercard.
American Express is one of the top competitors of Mastercard. It is headquartered in New York. The company was founded in the year 1850. It has got more employees than Mastercard and generates 245% of Mastercard's revenue.
Discover is also one of the top competitors of Mastercard. The company was founded in 1985. It is headquartered in Carol Stream, Illinois.
Mastercard - Future Plans
The company is aiming towards diving into cross border transactions as well. The stock of the company is up by 47% from 23rd March 2020. It has plans to own a banking company. It specializes in data aggregation worth $825 billion. Consumers are thinking about the cash to bring the concept back. But there are few people who want things to remain digitized. In a press release, Mastercard revealed that open banking is a new growing trend and it is super important for them. By acquiring Finicity, Mastercard will not have to update their own open banking strategy.
Mastercard - FAQ's
What Mastercard means?
MasterCard is a payment network processor. MasterCard partners with financial institutions that issue MasterCard payment cards that are processed exclusively on the MasterCard network. MasterCard's primary source of revenue comes from the fees it charges issuers based on each card's gross dollar volume.
Which banks use Mastercard?
- American Heritage FCU
- Bancorp South
- Bank of the West
- BMO Harris Bank
- Capital One
- Celtic Bank
Is Mastercard accepted everywhere?
Most of what you get with a card comes from the issuer. Visa and Mastercard are both accepted just about everywhere that takes credit cards. With only a handful of exceptions, any place that takes one will take the other.
Where can I withdraw money from my Mastercard?
You may withdraw cash against the balance on most Mastercard prepaid and gift cards at any ATM. However, not all prepaid and gift card issuers allow ATM or foreign transactions. Be sure to check with your card issuer to ensure that these types of transactions are permitted.
Why is Mastercard not accepted?
Mastercard isn't accepted everywhere that you may find yourself spending money. That's because Mastercard is a card network, not a card issuer. In other words, it dictates where your card will be accepted and what secondary benefits – rental car insurance, for example – you may receive.
Who is Mastercard owned by?
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.
Mastercard - Conclusion
Mastercard is into a more digital world where the continued application of new technologies will further enable payments to become more seamless in the overall purchasing experience while bolstering cyber services and data-powered insights.
Mastercard is a company that is more inclined and focused with a constant commitment and dedication to delivering value to consumers, businesses, and shareholders. The company is working to connect and power an inclusive digital economy that benefits everyone, everywhere by making transactions safe, simple, smart, and accessible. Using secure data and networks, partnerships, and passion, our innovations and solutions help individuals, financial institutions, governments, and businesses realize their greatest potential. The companies decency quotient, or DQ, drives the companies culture and everything they do inside and outside of the company.