Mastercard ties growth to digital strategy – Payments Dive
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The network is advancing technologies to let consumers and businesses more easily use its cards, after doubling the number of merchants that accept them over the past five years.
Purchase, New York-based Mastercard, the no. 2 U.S. card network behind Visa, is building out its ecosystem on both the merchant and consumer ends. The number of merchants that accept Mastercard has doubled over the past five years, Mastercard Chief Product Officer Craig Vosburg said at an investor conference in March.
On the other side of the equation, the company is using technology to give consumers and businesses more ways to use their cards, Vosburg said, according to a transcript of his presentation at the Wolfe Research conference provided by the company. That’s where increased use of technologies, including contactless technology, can play a role.
Similarly, web-based biometric authentication smooths the way to users accessing their card account and making purchases. Likewise, tokenization adds a layer of security for a cardholder in using credentials via a virtual token. Contextual commerce also increases card use, by tucking shopping options into everyday experiences.
Much of the opportunity for digital-based growth has followed the rise of electronic commerce, super-sized by COVID-19 leading consumers and businesses online for transactions. “Digitalization in the form of e-commerce and the proliferation of the gig/subscription economy have further increased the number of transactions running on MA’s rails,” the BofA report said.
Mastercard has benefited from the expansion of its network outside the U.S., particularly in emerging economies, and from technological innovations that allow more merchants to accept the card, William Blair analyst Cris Kennedy noted in an interview last week. For instance, Square’s development of the dongle years ago allowed a sea of small and mid-sized merchants to start accepting cards, he noted.
“That was kind of revolutionary in the way of who and what type of device could accept the card payment, and so that just drives the growth of, the secular shift of, electronic payments away from cash,” Kennedy said.
While those digital trends are benefiting Mastercard, they’re also boosting prospects for rival Visa. Based on U.S. purchase volume last year, Visa controlled 52% of the market while Mastercard was a distant 24%, according to a February report from industry research firm The Nilson Report. However, Mastercard increased its market share by about half a percentage point over 2021 while Visa lost about half a percentage point, the report showed.
A spokesperson for Mastercard declined to comment other than to reference Vosburg’s comments.
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The company has more than doubled its headcount over the past year to meet demand for its payments software from clients like Marqeta and Gusto. Now, it plans more expansion for real-time services.
The leader of the Electronic Payments Coalition tells people looking to blame credit and debit card companies for higher gas prices to find a different scapegoat.
Subscribe to Payments Dive for top news, trends & analysis
Get the free daily newsletter read by industry experts
The company has more than doubled its headcount over the past year to meet demand for its payments software from clients like Marqeta and Gusto. Now, it plans more expansion for real-time services.
The leader of the Electronic Payments Coalition tells people looking to blame credit and debit card companies for higher gas prices to find a different scapegoat.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
The network is advancing technologies to let consumers and businesses more easily use its cards, after doubling the number of merchants that accept them over the past five years.
Purchase, New York-based Mastercard, the no. 2 U.S. card network behind Visa, is building out its ecosystem on both the merchant and consumer ends. The number of merchants that accept Mastercard has doubled over the past five years, Mastercard Chief Product Officer Craig Vosburg said at an investor conference in March.
On the other side of the equation, the company is using technology to give consumers and businesses more ways to use their cards, Vosburg said, according to a transcript of his presentation at the Wolfe Research conference provided by the company. That’s where increased use of technologies, including contactless technology, can play a role.
Similarly, web-based biometric authentication smooths the way to users accessing their card account and making purchases. Likewise, tokenization adds a layer of security for a cardholder in using credentials via a virtual token. Contextual commerce also increases card use, by tucking shopping options into everyday experiences.
Much of the opportunity for digital-based growth has followed the rise of electronic commerce, super-sized by COVID-19 leading consumers and businesses online for transactions. “Digitalization in the form of e-commerce and the proliferation of the gig/subscription economy have further increased the number of transactions running on MA’s rails,” the BofA report said.
Mastercard has benefited from the expansion of its network outside the U.S., particularly in emerging economies, and from technological innovations that allow more merchants to accept the card, William Blair analyst Cris Kennedy noted in an interview last week. For instance, Square’s development of the dongle years ago allowed a sea of small and mid-sized merchants to start accepting cards, he noted.
“That was kind of revolutionary in the way of who and what type of device could accept the card payment, and so that just drives the growth of, the secular shift of, electronic payments away from cash,” Kennedy said.
While those digital trends are benefiting Mastercard, they’re also boosting prospects for rival Visa. Based on U.S. purchase volume last year, Visa controlled 52% of the market while Mastercard was a distant 24%, according to a February report from industry research firm The Nilson Report. However, Mastercard increased its market share by about half a percentage point over 2021 while Visa lost about half a percentage point, the report showed.
A spokesperson for Mastercard declined to comment other than to reference Vosburg’s comments.
Get the free daily newsletter read by industry experts
The company has more than doubled its headcount over the past year to meet demand for its payments software from clients like Marqeta and Gusto. Now, it plans more expansion for real-time services.
The leader of the Electronic Payments Coalition tells people looking to blame credit and debit card companies for higher gas prices to find a different scapegoat.
Subscribe to Payments Dive for top news, trends & analysis
Get the free daily newsletter read by industry experts
The company has more than doubled its headcount over the past year to meet demand for its payments software from clients like Marqeta and Gusto. Now, it plans more expansion for real-time services.
The leader of the Electronic Payments Coalition tells people looking to blame credit and debit card companies for higher gas prices to find a different scapegoat.
The free newsletter covering the top industry headlines
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
