MasterCard 2013 Annual Report Download - page 15

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11
Value-Added Services 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. With analyses based on billions of anonymous transactions processed globally, we leverage aggregated
information and a consultative approach to help financial institutions, merchants, media companies, governments and
other organizations grow their businesses or otherwise achieve efficiencies.
Our information services provide a suite of data analytics and products (including reports, benchmarks, models and
insights) that enable customers to make better business decisions. Our consulting services group combines professional
problem-solving skills with payments expertise to provide solutions that address the challenges and opportunities of
clients with respect to payments. The managed services group provides solutions via data-driven acquisition of accounts,
activation of portfolios, conversion of cards, marketing promotions activities and other customer management services.
Loyalty and Rewards Solutions. We focus on providing value for consumers on MasterCard payment cards and devices
through a combination of benefits and services, both paid for and arranged by MasterCard on behalf of our customers.
Our services for issuers include a scalable rewards platform that enables issuers to provide their consumers with
personalized offers and rewards, access to a global airline lounge network, global and local concierge services, a wide
range of individual insurance coverages, emergency card replacement, emergency cash advance services and a 24-hour
cardholder service center to provide information related to benefits and rewards programs. Our suite of services for
merchants include a targeted offers and rewards campaign management service for publishing offers, as well as
opportunities for holders of a co-brand or a merchant's loyalty card or a member of a third-party-managed rewards
program to obtain reward points faster. We support these services with program management capabilities.
Marketing
We manage and promote our brands through advertising, promotions, sponsorships and digital, mobile and social media
initiatives in order to increase consumer preference for our brands and usage of our products. We sponsor a variety of
sporting, entertainment and charity-related marketing properties to align with consumer segments important to us and
our customers. Our advertising plays an important role in building brand visibility, usage and overall preference among
cardholders globally. Our “Priceless®” advertising campaign, which has run in 53 languages in 112 countries
worldwide, promotes MasterCard usage benefits and acceptance, markets MasterCard payment products and solutions
and provides MasterCard with a consistent, recognizable message that supports our brand around the globe. Our
consumer marketing approach uses consumer-centric research and insights focused on consumers' spending preferences.
Priceless Cities®, in more than 35 cities across all of our regions, seeks to increase preference for the MasterCard brand
by connecting consumers to their interests and offering them access to special experiences and offers when they are in
their home city or traveling.
MasterCard Revenue Sources
We generate revenues by assessing our customers primarily based on GDV on the cards and other devices that carry
our brands and from the fees we charge to our customers for providing transaction processing and other payment-
related products and services. Our net revenues are classified into the following five categories:
• Domestic assessments: Domestic assessments are fees charged to issuers and acquirers based primarily on the
dollar volume of activity on cards and other devices that carry our brands where the merchant country and the
issuer country are the same.
• Cross-border volume fees: Cross-border volume fees are charged to issuers and acquirers based on the dollar
volume of activity on cards and other devices that carry our brands where the merchant country and issuer
country are different.
• Transaction processing fees: Transaction processing fees are charged for both domestic and cross-border
transactions and are primarily based on the number of transactions.