MasterCard International is the largest banking payment system that unites 22,000 financial institutions from 210 countries. The company’s activities are aimed at servicing individuals and legal entities, managing programs for issuing cards released under the MasterCard, Cirrus, Maestro brands.
The history of this powerful payment system began in 1966. Several American banks signed an agreement to create a powerful Interbank Card Association. Two years later, the company began successful partnership with the Eurocard system. In 1979, the name MasterCard Was approved. A year later, it has firmly consolidated one of the leading positions in the world.
In 2002, the company was reorganized into a joint stock company, and the MasterCard Incorporated holding became serious opponent for Visa. In 2006, IPO was held on the New York Stock Exchange. After that, the system was finally recognized as one of the most effective and reliable ones. The company now handles over 23 billion transactions annually.
The company improves its financial results every year having demonstrated stable and confident growth. At the end of 2011, net revenue increased by 20.2% and reached $1.7 billion. One year later, the company got net profit of $2.4 billion. This result is significantly higher than that the company got in 2010 — $1.8 billion. MasterCard has achieved such outstanding results not only due to the intensive card issuance and market development, but also due to the introduction of new technologies.
Earnings per share have also grown significantly —up to $18.7 per share. The company’s total revenue exceeds the same indicator of the previous year by 21.2%, it reached 6.7 billion. Giving the intensive increase of popularity of the payment system, all indicators will rapidly increase in subsequent periods. The volume of processed transactions also increased significantly — by 18.3%. Volumes increased by 16.1% in local currency.
Now the MasterCard system amounts to more than 25% of all bank cards in the world. Many financial institutions are also interested in actively using all the benefits of MasterCard.
All electronic payment systems expand the reach of potential customers by introducing the latest technologies. MasterCard is no exception. Reliability and efficiency of payment processing is a priority of the company’s activity. The exceptional stability of the system inspires well-deserved confidence in many potential partners. In 2011, the volume of online payments made via MasterCard bank cards increased by almost a quarter. In addition, the number of people using cards to pay on the Internet has significantly increased.
The company was one of the first to assess the prospects for the development of the commercial virtual sector. Therefore, along with real financial transactions in ATMs and retail outlets, electronic payments are quickly introduced. Nowadays, many businesses have websites focused exclusively on selling goods and services online. The owners of such resources appreciated the convenience of accepting card payments on their sites. The safety and convenience of the online payment system stimulate an increase in the audience of potential customers. Now the clients of the company are more than 200 thousand banks and numerous enterprises around the world. The only serious competitor to MasterCard in this field is still only Visa.
MasterCard develops actively its range of services. In the near future, the management promises to bring to life PayPass Wallet project. The perspective service is intended to be used as an electronic wallet. At first, efficiency and convenience of the functionality of this resource is planned to be tested only in four countries — the USA, Canada, Australia and Great Britain. Then an electronic wallet from MasterCard will become available to residents of other countries. Despite the fact that PayPass Wallet isn’t available now, many owners of Internet resources have already announced their intention to connect payment to the site through this electronic wallet.
MasterCard monitors closely all trends in the online payment market of Australia. Payment system specialists are looking for new ways to expand their activities and increase audience coverage. Therefore, this payment system is one of the most popular systems in Australia.