MasterCard 2011 Annual Report Download - page 18

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for our customers. Recently, MasterCard entered into two joint ventures with Telefonica to provide
consumers with mobile payments services in Brazil and 12 Spanish-speaking countries in Latin
America where Telefonica operates. MasterCard also entered into a global agreement in 2011 with
Western Union to enable consumers using its money transfer services to send or receive funds from
or on to an eligible MasterCard card.
•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 and virtual card number capabilities 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 Expert Monitoring System®, a comprehensive suite of services designed to help its
customers detect and prevent fraudulent activity.
•EMV and Chip Development. MasterCard continues to pursue chip technology development in
accordance with the EMV (the international standard for chip technology). We continue 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-interaction functionality and
the ability to provide value-added services to the cardholder. We are focused on broad migration
towards chip-enabled technology as an opportunity to ensure the global interoperability of MasterCard
brands, reduce potential fraud and improve consumers’ experience in using electronic payments by
providing greater security and control in their payment choices. We intend to continue to take steps to
help realize these opportunities in the United States and around the world and maintain our competitive
position. These steps include solidifying EMV technology as the foundation of future payment products
and services and working with acquirers to develop the necessary infrastructure for a migration to EMV.
We are also involved in a number of organizations that facilitate the development and use of EMV and
chip-enabled cards globally. This includes participation with others in the industry in a “smart card”
standards organization that maintains standards and specifications designed to ensure interoperability
and acceptance of chip-based payment applications on a worldwide basis.
Acceptance Initiatives
Overview. We estimate that, as of December 31, 2011, cards carrying the MasterCard brand were accepted
at 33.3 million acceptance locations worldwide, including 1.9 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 or Cirrus brand marks 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:
• We seek to increase the categories of merchants that accept products 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.
• 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 products.
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