MasterCard 2012 Annual Report Download - page 17

Download and view the complete annual report

Please find page 17 of the 2012 MasterCard annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 144

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

provided through the MasterCard Mobile Payments Gateway, operated through our Mobile Payments
Solutions joint venture with Smart Hub. The gateway is a turnkey mobile payment processing platform
that facilitates transaction routing and prepaid processing for mobile-initiated transactions for our
customers. In addition, we continue to commercialize our two joint ventures with Telefonica to provide
consumers with mobile payments services in multiple countries across Latin America.
•Chip and Contactless Solutions. We continue to work with our customers around the world to help
them replace their traditional magnetic-stripe based cards and terminals with new chip-enabled products
that offer increased security and fraud protection as well as opportunities for new functions and value-
added services.
OEMV Chip Development and Solutions. Our chip solutions are developed in accordance with the
EMV standard (the international standard for chip technology); we play a leading role in the
evolution of the standard via our role as part owner of, and a key contributor to, EMVCo (the
industry governing body of the EMV specifications). As we broaden our chip technology
deployments into new markets, we remain focused on maintaining global interoperability (a key
feature of the MasterCard brand), reducing potential fraud and increasing security. Customers in all
regions are actively progressing chip programs with significant numbers of new cards and terminals
being deployed. In January 2012, we endorsed EMV as the payments platform technology for the
U.S. market and are now engaged at all levels in the industry to bring the benefits of this technology
to our U.S. customers and consumers.
OContactless Payment Solutions. We leverage the chip platform to drive new, scalable consumer
experiences and business opportunities for our customers. In particular, our chip technology
facilitates both contactless and mobile payments, which both enable consumers and merchants to
transact in new ways leveraging our chip-enabled acceptance and network infrastructure.
MasterCard PayPass®, our contactless payment solution, utilizes radio frequency, or near-field
communication (NFC) technology, to securely transmit payment details wirelessly from payment
devices to PayPass-branded contactless-enabled payment terminals for processing through the
MasterCard Worldwide Network. This technology enables consumers simply to tap their payment
card or other payment device, such as a key fob, wristband or tag that adheres to the back of a
mobile device, on a PayPass-enabled terminal to complete a transaction. Our mobile contactless
payment solution, MasterCard Mobile PayPass, has been designed to enable consumers to use their
mobile devices in a similar way by integrating the necessary hardware and software into the mobile
device itself. Our PayPass program primarily targets everyday purchases that rely on speed and
convenience (such as supermarkets, fast food restaurants, parking and transit). As of December 31,
2012, PayPass programs had rolled out in nearly 50 countries worldwide.
Value-Added Services and Solutions
We offer a variety of services and solutions across our business, designed to support and enhance our
programs and solutions:
MasterCard Advisors. MasterCard Advisors is our global professional services group which provides
proprietary analysis, data-driven consulting and marketing services solutions to help clients optimize, streamline
and grow their businesses. It differentiates us from our competitors by transforming data we collect into
actionable insights for our customers and other clients. We provide services based on this data through three
business lines: Information Services, Consulting Services, and Managed Services.
Information Services provides a suite of data analytics and products (including reports, benchmarks, models
and forecasts) to a diversified customer base, enabling them to make better business decisions. Consulting
Services combines professional problem-solving skills with payments expertise to provide solutions that address
the challenges and opportunities of customers with respect to their payments business, and help to maximize the
13