MasterCard 2010 Annual Report Download - page 7

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Moving to electronic payments is just plain smart. The benefits of electronic payments far outweigh those of
cash. Beyond the obvious advantages of speed, convenience and guaranteed payment, electronic payments offer
a host of advantages that cash can’t touch, including security and transparency for everyone.
The MasterCard Advantage: A Range of Payment Solutions
In all markets, we’re aggressively seizing opportunities to curtail the use of cash and checks and meet consumers’
unique needs.
One way we’re doing this is through our portfolio of debit products, including Maestro. Our debit solutions are
aimed at meeting payment needs based on local market requirements. And, they can be used with some of our
most innovative payment methods, including Tap & Go, reloadable prepaid and payroll cards.
We’re also well positioned in the commercial space, an area that is fast-growing. By 2015, the commercial segment
is expected to equate to $1.7 trillion globally. And, this segment is not very developed outside of the United States
and parts of Europe.(3)
We’re poised to seize that opportunity. We already have one of the largest commercial payroll programs in place
with Walmart, and we currently capture approximately 60 percent of U.S. public-sector volume. Our commercial
prepaid cards include everything from payroll to employee benefits to government social benefit programs. These
programs are benefiting people in numerous countries, including Italy, Peru, Russia, China and the U.S.
I believe the benefits of prepaid will continue to drive demand, as total global volume on open-loop prepaid cards
is predicted to reach nearly $840 billion by 2017, according to a study we commissioned last year.
We’re also seeing significant opportunities in e-commerce and mobile. That’s why we’re forging strategic
partnerships in this space and developing the infrastructure needed to drive the migration to e-commerce and
mobile payments. Global e-commerce sales are projected to reach more than $1 trillion in 2011.
(4) And, since cash
is useless when shopping online, consumers really appreciate the convenience of electronic payments.
MasterCard cardholders in some of the world’s busiest
cities are benefiting from our innovative Tap & Go™
PayPass contactless technology. With MasterCard PayPass,
riders always have the exact fare, whether traveling by
subway, bus or taxi.
In the last year alone, we’ve expanded our global footprint, making
it easier for consumers to use public transportation in cities from
New York to Seoul.
•InNewYorkandNewJersey,MasterCardPayPasshelped
commuters get where they wanted to go faster — above ground
andbelow.InJune2010,wesuccessfullypilotedourcontactless
payments system linking multiple agencies: New York City Transit,
an operating agency of the New York Metropolitan Transportation
Authority (MTA), Port Authority of NY, NJ/PATHandNJTRANSIT.
With MasterCard PayPass, riders can Tap & Go quickly and easily,
paying fares directly at turnstiles and transferring seamlessly
between transit systems using credit, debit or prepaid-enabled
MasterCard PayPass cards.
•InRomania,ultrafastaccessto10subwaystationsinBucharest
is now possible through the BRD Groupe Société Générale
Speeding
up transit
card, Instant Pay. Based on contactless MasterCard PayPass
technology, the Instant Pay card eliminates the need for
travelers to purchase a separate card for transportation.
•InPoland,MasterCardPayPassisacceptedintransitstations,
taxis and at bus stops within the Warsaw vicinity, allowing
quick,non-cashpayments.Inaddition,Poland’sCitiHandlowy
isnowissuingCitiHandlowyMasterCardPayPasscontactless
debit cards with an application that allows travelers to reload
their transport tickets at unattended machines.
•InSingapore,thePostOfceSavingsBank(POSB)Everyday
MasterCard card features MasterCard PayPass and local
contactless e-Purse Application functionality. This allows
cardholders to use the card for everyday purchases as well
as throughout the public transport network, which includes
trains, buses and taxis.
•InKorea,aco-brandMasterCardcardwithPayPasstechnology
and a local transit application offers MasterCard PayPass
cardholders greater convenience when riding the transit system.
MasterCard PayPass means no waiting in line. No fumbling for
cash and coins. No watching your train leave the station while
you try to buy a fare card or token from a vending machine or
clerk. You just Tap & Go with your card, mobile phone or key fob,
and you’re on your way.
In cities around the world, “smart” consumers are benefiting
from the MasterCard Advantage.