MasterCard 2011 Annual Report Download - page 14

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chain by seeking to provide our customers with an expanded suite of payment processing solutions that
meet the unique processing needs of their markets. Examples include:
OMasterCard Integrated Processing Solutions®(IPS). MasterCard Integrated Processing Solutions
(“IPS”) is a debit and prepaid issuer processing platform designed to provide medium to large global
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 View™
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 payment
service provider with operations in Europe and Brazil. 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, (4) Trevica, which provides third-party issuer processing services in Poland and other
central and eastern European markets and (5) Mobile Payment Solutions (“MPS”), which provides
complete processing solutions for mobile payments around the globe.
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 and other products issued under our
programs, including interest rates and fees. We determine other aspects of our programs—such as required
services and the marketing strategy—in order to help 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, 2011, our consumer credit and
charge programs generated approximately $1.8 trillion in GDV globally, representing 56% of our total GDV for
this period. As of December 31, 2011, the MasterCard brand mark appeared on approximately 672 million
consumer credit and charge cards worldwide, representing a 3.7% increase from December 31, 2010.
•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).
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