MasterCard 2010 Annual Report Download - page 23

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Omobile payments gateways (such as the MasterCard Mobile Payments Gateway introduced by
MasterCard in Brazil in 2009), which are turnkey mobile payment processing platforms that
facilitate transaction routing and prepaid processing for mobile-initiated transactions, and
Operson-to-person transfers (including MasterCard’s money transfer solution, MasterCard
MoneySend®) on behalf of MasterCard’s customers using various channels, including mobile
devices.
•Value-Added Services. MasterCard develops services designed to support and enhance its products and
solutions. MasterCard inControl®is an innovative platform featuring an array of advanced
authorization, transaction routing and alert controls that uses the functionality of the MasterCard
Worldwide Network and is designed to assist financial institutions in creating new and enhanced
payment offerings. MasterCard offers several fraud detection and prevention solutions, including
MasterCard Expert Monitoring System™ (“EMS”), a comprehensive suite of services designed to help
its customers detect and prevent fraudulent activity.
•MasterCard Labs. MasterCard Labs is a global innovation group created in 2010 and dedicated to
developing new innovative products and solutions for MasterCard, our customers and our cardholders.
MasterCard Labs enables us to take a portfolio approach to research and development by incubating
new product concepts, building prototypes and running pilots. MasterCard Labs is designed for a rapid
evaluation process, through which innovations either rapidly advance into MasterCard’s new product
process or are quickly disregarded.
•Smart Card and Other Development. MasterCard continues to pursue smart card development, which
enables MasterCard to work with our customers to help them replace traditional payment cards relying
solely on magnetic stripe technology with chip-enabled payment cards that offer additional point-of-sale
functionality and the ability to provide value-added services to the cardholder. We are also involved in a
number of organizations that facilitate the development and use of smart cards globally. This includes a
smart cards standards organization with other participants in the industry that maintains standards and
specifications designed to ensure interoperability and acceptance of chip-based payment applications on
a worldwide basis. MasterCard is also working to develop standards and programs that will allow
consumers to conduct their financial transactions using a variety of new point-of-interaction devices.
Acceptance Initiatives
Overview. We estimate that, as of December 31, 2010, cards carrying the MasterCard brand were accepted
at 31.7 million acceptance locations worldwide, including 1.8 million ATMs and 0.6 million other locations
where cash may be obtained. Information on ATM and manual cash access locations is reported by our
customers and is partly based on publicly-available reports of payment industry associations, government
agencies and independent market analysts. Cards bearing the Maestro brand mark are accepted at many of these
same locations.
Initiatives. We seek to maintain unsurpassed acceptance of MasterCard-branded programs by focusing on
three core initiatives. First, we seek to increase the categories of merchants that accept cards carrying our brands.
In addition to our focus on expanding acceptance in e-Commerce and mobile commerce environments, we are
also focused on using the functionality of the MasterCard Worldwide Network to expand acceptance in quick
service businesses (such as fast food restaurants), transportation (such as commuter train systems, buses and
taxis), and public sector payments (such as those involving taxes, fees, fines and tolls), among other categories.
Second, we seek to increase the number of payment channels in which MasterCard programs are accepted, such
as by introducing MasterCard acceptance in connection with bill payment applications. We are working with
customers to encourage consumers to make bill payments in a variety of categories—including rent, utilities and
insurance—with their MasterCard-branded cards. Third, we seek to increase usage of our programs at selected
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