MasterCard 2006 Annual Report Download - page 7

5
2005 2006
Net Revenue
($ million)
2004
$2,593
$2,938
$3,326
$3,500
2,800
2,100
1,400
700
0
2005 2006
Processed Transactions
(million)
2004
12,152
13,733
16,137
16,500
13,200
9,900
6,600
3,300
0
2005 2006
Gross Dollar Volume
($ billion)
2004
$1,478
$1,690
$1,956
$2,000
1,600
1,200
800
400
0
Accomplishments and Initiatives
The year 2006 saw many signifi cant accomplishments and initiatives, such
as the launch of our new corporate positioning. The name MasterCard
Worldwide embraces what MasterCard represents, from our world-renowned
brands and advanced network, to our unifi ed global structure and our
talented, multinational workforce. Importantly, the name underscores our
commitment to meeting the unique needs of customers worldwide.
To that end, we substantially advanced our strategy by deepening relationships
with target customers around the world. Throughout the year, we shared
industry insights, delivered custom-tailored solutions and provided innovative
payments options, such as MasterCard PayPass® contactless technology and
the World Elite MasterCard.
™ We will continue to demonstrate the value we
bring by leveraging our assets to the advantage of our customers.
In 2006, we also continued to build upon major upgrades to our core
technologies, enabling our customers to connect to a single, unifi ed network
with unsurpassed speed, fl exibility and scale. Through our leading-edge
technology and applications, our customers have the ability to expand
operations worldwide, deliver customized value to partners and cardholders,
and introduce breakthrough technologies without making major changes
to their own infrastructures.
We also strengthened ties with major merchants and launched a number
of signifi cant co-branding programs. To give merchants a stronger voice on
strategic business initiatives that can benefi t them and their customers, we
held Merchant Advisory Group meetings in Australia, Canada, Mexico, South
Africa, the United Kingdom and the United States. In addition, MasterCard
endeavored to meet a key merchant demand to bring greater transparency
to the way we conduct business. Thus in 2006, we became the fi rst payments
company to announce that we would publish our interchange rates that apply
to merchants in the United States, along with comprehensive information
that merchants need to better understand these rates.
At the same time, we continued to address mutually critical security issues.
We co-hosted Payment Card Industry Security Forums in Australia, Japan and
New Zealand; piloted advanced counterfeit card detection systems with retailer
Best Denki in Singapore; and advanced MasterCard SecureCode® as a superior
e-commerce security solution for customers and online merchants. We also
hosted four Global Risk Management Symposia, bringing together bank and
security experts from around the world.
Meanwhile, fi nancial institutions in Europe continue to accommodate the
requirements of the Single Euro Payments Area (SEPA) initiative. In 2006, we
established SEPA fall-back interchange rates for Maestro® that are necessary
for a competitive, transparent payment system across the euro zone. We
believe that Maestro is fi rmly positioned as the solution that will best enable
a smooth transition from national-use-only debit payment schemes to global
and pan-European solutions.
2005 2006
Net Income1
($ million)
2004
$252
$317
$457
$500
400
300
200
100
0