MasterCard 2012 Annual Report Download - page 16

around the world, including financial institutions, retailers, travel agents and foreign exchange
bureaus. Combined with MasterCard’s processing assets (such as IPS) and other strategic alliances, these
services augment and support issuers of prepaid cards around the world, with a focus outside of the United
States. Access enables us to offer end-to-end prepaid solutions encompassing branded switching, issuer
processing and program management services, primarily focused on the travel sector.
Commercial. We offer 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. For the year ended December 31, 2012, our
commercial credit and charge programs generated $287 billion in GDV globally, representing 8% of our total
GDV for this period. As of December 31, 2012, the MasterCard brand mark appeared on 36 million commercial
credit and charge cards worldwide, representing an 8% increase from December 31, 2011. We offer various
commercial 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, among other things, manage travel and
entertainment expenses, streamline the procurement process and provide corporations with additional
transactional detail. Among the platforms we provide 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. Credit and debit programs targeted at the small-business segment offer business owners the
ability to gain access to working capital, to extend payments and to separate business expenses from personal
expenses.
Emerging Payments and Innovation. We focus on innovation to enhance our current programs and extend
our products and services to customers (including merchants, telecommunications companies and government
entities) and into new geographies. We have a global innovation group, MasterCard Labs, which is dedicated to
developing new and innovative products and solutions for our customers and our cardholders. This group
incubates new product concepts, builds prototypes, runs pilots and is designed for a rapid evaluation process.
We offer innovative platforms, services and technologies aligned around the following strategic areas:
•Digital Infrastructure. The continued adoption of connected devices (such as mobile smartphones,
PCs, and tablet devices) has resulted in the ongoing convergence of the physical and digital worlds,
where consumers are increasingly transacting across a range of connected devices in a variety of
contexts—in-store, online and on tablets and mobile devices. To support this convergence, we have
developed a digital platform that is designed to allow customers, merchants and others to provide a
consistent, fast and secure shopping experience for consumers, whether at a register, or on a PC, tablet
or mobile device. The platform is also focused on generating more value and increased sales for
merchants (including building preference and loyalty), and delivering new revenue streams and
competitive advantages for MasterCard and our customers. We also work with strategic partners to
enable consumers to securely use their smartphones to make contactless payments and obtain other
related services. We have worked with multiple customers globally to launch digital wallet solutions
powered by our mobile contactless technology. In addition, we are supporting the pilot launch of ISIS (a
joint venture formed in the United States by AT&T, Verizon and T-Mobile). Also, in December 2012,
we made a minority investment in C-SAM, a global mobile wallet software provider.
•Mobile Money Infrastructure. We provide a platform and various services to customers and other
parties to enable consumers to pay from any type of mobile phone (and in particular, feature phones).
These services include linking mobile accounts to virtual MasterCard account numbers, allowing
subscribers (many of whom do not have traditional payment cards) to shop online, enabling person-to-
person transfers (including our money transfer solution, MasterCard MoneySend®) on behalf of our
customers for consumers using mobile devices, and enabling mobile subscribers to send payments to
handsets of merchants who otherwise do not accept electronic payments. Mobile Money services are
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