MasterCard 2010 Annual Report Download - page 22

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• consumer reloadable, which includes programs to address the payment needs of individuals without
formal banking relationships, individuals who are not traditional users of credit or debit cards or
individuals who want to compartmentalize funds for security or convenience purposes, such as travel.
On December 9, 2010, MasterCard announced its intention to acquire the prepaid card program management
operations of Travelex Holdings Ltd. during the first half of 2011. MasterCard will acquire the Travelex
operations that manage and deliver consumer and corporate prepaid travel cards to business partners around the
world, including financial institutions, retailers, travel agents and foreign exchange bureaus. The acquisition of
these operations from Travelex is an expansion for MasterCard into program management services. Combined
with MasterCard’s existing processing assets (such as IPS) and other strategic alliances, the asset will augment
and support partners and issuers of prepaid cards around the world, with a focus outside of the United States. The
acquisition is intended to enable MasterCard to offer end-to-end prepaid solutions encompassing branded
switching, issuing processing and program management services, initially focused on the travel sector.
Commercial Payment Solutions. MasterCard offers commercial payment solutions that help large
corporations, mid-sized companies, small businesses and public sector organizations to streamline their payment
processes, manage information and reduce administrative costs. In the year ended December 31, 2010, our
commercial credit and charge programs generated approximately $211 billion in GDV globally, representing
approximately 8% of our total GDV for this period. As of December 31, 2010, the MasterCard brand mark
appeared on approximately 30 million commercial credit and charge cards worldwide, representing a 5.0%
increase from December 31, 2009. We offer 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
corporations to manage travel and entertainment expenses and provide corporations with additional transactional
detail. We also offer public sector entities a variety of payment programs that are similar to the 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,
offering business owners the ability to gain access to working capital, to extend payments and to separate
business expenses from personal expenses.
Emerging Payments Solutions. MasterCard focuses on innovation to enhance our current programs and
extend our products and services to new customers and into new geographies. Our focus includes:
•E-Commerce. E-Commerce involves the secure purchase and sale of goods over the Internet. Our
initiatives focus on:
Othe development of e-Commerce capability through internet payment gateways (including
DataCash, which was acquired in October 2010, and MiGS) to support growth in the e-Commerce
area,
Othe development of programs and services intended to drive GDV and improve the consumer
experience (such as MasterCard Marketplace™, an internet-based program which provides eligible
MasterCard cardholders with individually tailored discount offers), and
Othe development of tools to help customers prevent fraud over the Internet.
•Mobile. MasterCard works with customers and leading technology companies to develop products and
solutions in the area of mobile commerce and wireless payments. These initiatives generally focus on:
Ocontactless payment solutions (including MasterCard PayPass), which utilize radio frequency
technology to securely transmit payment details wirelessly through payment devices (including
Mobile PayPass tags that adhere to the back of a mobile device, as well as other devices described
below under “Acceptance Initiatives”) to contactless-enabled payment card terminals for processing
through the MasterCard Worldwide Network,
12