MasterCard 2013 Annual Report Download - page 13

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9
Prepaid. Prepaid programs involve a balance that is funded with monetary value prior to use. Cardholders access funds
via a traditional magnetic stripe or chip-enabled payment card or other device (such as mobile) that may leverage our
contactless functionality. MasterCard customers may implement prepaid payment programs using any of our brands,
and we support these programs with processing services. We provide and customize programs to meet unique
commercial and consumer needs in all prepaid segments, with a focus on:
• Government, which includes programs targeted to achieve financial inclusion, cost savings and efficiencies
by moving traditional paper disbursement methods to electronic solutions in programs such as Social Security
payments, unemployment benefits and others;
• Commercial, 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, employee benefits 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 devices or individuals
who want to segment funds for security or convenience purposes, such as travel.
We also provide prepaid card program management services through Access Prepaid Worldwide (“Access”). Through
Access, we manage and deliver consumer and commercial prepaid travel cards to business partners around the world,
including financial institutions, retailers, telecommunications companies, travel agents, foreign exchange bureaus,
colleges and universities, airlines and governments. 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 streamline their procurement and payment processes, manage information and
expenses and reduce administrative costs. Our offerings and platforms include:
• Corporate cards (including premium, purchasing and fleet cards, as well as cards that combine these
functionalities) that allow corporations to manage travel and entertainment expenses, streamline the
procurement process and provide corporations with additional transactional detail.
• SmartData, a MasterCard-powered tool that provides information reporting and expense management
capabilities.
• Procurement, travel, purchasing, fleet and other payment programs for government entities.
• Credit and debit programs targeted at the small-business segment that offer the ability to gain access to working
capital, to extend payments and to separate business expenses from personal expenses.
Payment Innovations. The continued adoption of mobile devices (such as smartphones and tablets) has resulted in the
ongoing convergence of the physical and digital worlds, where consumers are increasingly choosing to pay remotely.
Leveraging our global innovations capability, we are developing new and innovative platforms, products, and solutions
that take advantage of this convergence and give us the opportunity to lead the transition to digital payments. We do
this in a number of ways, including:
• Creating Better Shopping and Selling Experiences. We are focused on offering platforms and products to
make shopping and selling experiences simpler, faster, and safer for both consumers and merchants. Through
MasterPass™, a globally interactive platform, we provide a digital wallet service to make online shopping
safe and easy for all types of transactions - in-store, online and via mobile devices - by storing payment and
shipping information in one convenient and secure place. We launch innovations that make it easier for
merchants to accept payments and expand their customer base. As an example, Simplify Commerce allows
merchants to quickly accept mobile and e-commerce payments, regardless of brand. We are also developing
products and practices to facilitate the growth of acceptance through mobile point-of-sale. In these cases,
mobile devices are used as point-of-sale terminals.