MasterCard 2011 Annual Report Download - page 16

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programs such as general purpose reloadable, gift, employee benefit, payroll, travel, incentive and government
disbursement programs. In particular, we focus on three categories:
• government, which includes programs targeted to achieve cost savings and efficiencies by moving
traditional paper disbursement methods to electronic solutions in government programs such as Social
Security payments, unemployment benefits and others;
• corporate, which includes programs targeted to achieve cost savings and efficiencies by moving
traditional paper disbursement methods to electronic solutions in business applications such as payroll,
health savings accounts and others; and
• 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 segment funds for security or convenience purposes, such as travel.
MasterCard also provides prepaid card program management services through Access Prepaid Worldwide
(“Access”). Access was formed as a result of MasterCard acquiring the prepaid card program management
operations of Travelex Holding Ltd. in April 2011. Through Access, MasterCard manages and delivers consumer
and corporate prepaid travel cards to business partners around the world, including financial institutions,
retailers, travel agents and foreign exchange bureaus. Combined with MasterCard’s existing processing assets
(such as IPS) and other strategic alliances, these services augment and support partners and issuers of prepaid
cards around the world, with a focus outside of the United States. Access enables MasterCard to offer end-to-end
prepaid solutions encompassing branded switching, issuer processing and program management services,
primarily focused on the travel sector.
Commercial Payment Solutions. MasterCard offers commercial payment solutions that help large
corporations, mid-sized companies, small businesses and government entities to streamline their procurement and
payment processes, manage information and expenses and reduce administrative costs. In the year ended
December 31, 2011, our commercial credit and charge programs generated approximately $251 billion in GDV
globally, representing approximately 8% of our total GDV for this period. As of December 31, 2011, the
MasterCard brand mark appeared on approximately 33 million commercial credit and charge cards worldwide,
representing a 10.8% increase from December 31, 2010. 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. Among the platforms MasterCard provides is SmartData, a MasterCard-powered
tool which provides information reporting and expense management capabilities. We also offer government
entities a variety of payment programs that are similar to the procurement, 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 and Innovation. MasterCard focuses on innovation to enhance our current
programs and extend our products and services to new customers (including merchants, telecommunications
companies and government entities) and into new geographies. Supporting this innovation is MasterCard Labs, a
global innovation group dedicated to developing new and 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 development process or are quickly disregarded.
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