MasterCard 2010 Annual Report Download - page 20

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issuing customers with a complete processing solution to help create differentiated products and
services and allow quick 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 ATMs. The proprietary MasterCard Total Portfolio Viewer™
provides a user-friendly customer interface to IPS, delivering aggregate cardholder intelligence
across accounts and product lines to provide our customers with a view of information that can help
them customize their products and programs. We continue to develop opportunities to further
enhance our IPS offerings and global presence.
OInternet Payment Gateways. 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. Our gateways include our MasterCard Internet Gateway
Service (MiGS), which provides gateway infrastructure in Asia Pacific, and DataCash, a European
payment service provider which MasterCard acquired in October 2010. DataCash offers a single
interface that provides e-Commerce merchants with the ability to process secure payments across
the world, and develops and provides outsourced electronic payments solutions, fraud prevention,
alternative payment options, and other solutions.
OStrategic Alliances. We have invested in strategic alliances to pursue opportunities in prepaid and
acquirer and third-party processing both through joint ventures and minority investments. These
alliances include: (1) Prepay Solutions, a joint venture with Edenred (previously named Accor
Services) which supports prepaid processing in Europe, (2) Strategic Payment Services, which
provides acquirer processing in Asia Pacific, (3) ElectraCard Services, which provides third-party
processing services and software, as well as switching solutions, in Asia Pacific, the Middle East
and Africa and (4) Trevica, which provides third-party issuer processing services in Poland and
other central and eastern European markets.
MasterCard Programs and Solutions
Our principal payment programs and solutions, which are facilitated through our brands, include consumer
credit and charge, debit and prepaid programs, commercial payment solutions and emerging payments solutions.
Our issuer customers determine the competitive features for the cards issued under our programs, including
interest rates and fees. We determine other aspects of our card programs—such as required services and the
marketing strategy—in order to ensure consistency in connection with these programs.
Consumer Credit and Charge. MasterCard offers a number of consumer credit and charge programs that
are designed to meet the needs of our customers. For the year ended December 31, 2010, our consumer credit and
charge programs generated approximately $1.6 trillion in GDV globally, representing 57% of our total GDV for
this period. As of December 31, 2010, the MasterCard brand mark appeared on approximately 648 million
consumer credit and charge cards worldwide, representing a 2.4% decline from December 31, 2009.
•United States. We offer customized programs to customers in the United States to address specific
consumer segments. Our 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 enhanced services) and World and World Elite MasterCard®
(cards offered to affluent consumers which feature a wider range of enhanced services).
•Regions Outside of the United States. MasterCard makes available to customers outside of the United
States a variety of consumer card programs in selected markets throughout the world. Examples of such
programs include MasterCard Electronic™ cards (which offer additional control and risk management
features designed to curb fraud and control exposure in high risk markets) and cards targeted to affluent
consumers (such as Platinum MasterCard®and MasterCard Black™ cards in Latin America, World and
World Signia MasterCard®cards in Europe, World and World Elite MasterCard®cards in Canada and
Platinum and World MasterCard®cards in Asia/Pacific, Middle East and Africa (“APMEA”)).
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