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Mastercard Insiders

The document discusses Mastercard's strategy and operations, including its focus on expanding into the B2B market through acquisitions and making traditional ACH payments faster. It also discusses regulations affecting card markets and the growth of domestic payment networks in countries like India.

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45 views6 pages

Mastercard Insiders

The document discusses Mastercard's strategy and operations, including its focus on expanding into the B2B market through acquisitions and making traditional ACH payments faster. It also discusses regulations affecting card markets and the growth of domestic payment networks in countries like India.

Uploaded by

visheshg2027i
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MASTERCARD

They make sure merchants receive their money in their bank account from all
transactions that don’t involve paper money.
as a mediator between merchants, customers, and financial institutions that
process transactions.
transform the B2B financial services giant into a more consumer-focused
payments technology company
MasterCard continues to apply social media insights to achieve more fully
integrated business decisions.
Mastercard making strides to break the B2B market with notable acquisitions
acquiring several companies to strengthen their core network capabilities and
advance their expansion
consistently building and enhancing their core platform around technology in
wake of disruption from Fintech.
Mastercard’s acquisitions have highlighted its strategy to expand its B2B
market base. Mastercard is focusing on making traditional ACH payments
faster and close to real-time, ACH is the primary payment rail for B2B
transactions. This could enable it to tap the $125 tln B2B market. One of its
most significant acquisitions is Nets A/S. Its largest deal adds instant payment
services and accelerates its real-time payments strategy providing a better
alternative to traditional ACH, cash, and check

In recent years, major card markets such as us and Europe have witnessed
regulations that intend to regulate interchange fees and promote competition
Card networks are taking a collaborate and compete approach to manage the
onslaught of fintech disruptions
Interchange fees (a component of merchant discount rates) and transaction
routing flexibility has been the grouse of merchants for a long time in various
countries across the world
In countries like China India and Russia the support from their central bank and
the government policies led to ways in significance of the domestic card
network
300 + ₹1,000,000 cards have been issued till date and they are predominantly
debit cards. Rupay supports EMV cards and contactless cards. Rupay has tied
up with discovery networks to ensure global acceptance of rupay branded
cards.
Merchant discount rate for POS (Point of Sale) based UPI ( Unified Payment
Interface) transaction is 0.25% for payments below ₹1000 and 0.65% for all
other charges. Considering that UPI’s merchant discount rates are lower than
card based transactions and merchant bank account is credited in real time,
UPI merchant payments can grow to become a compelling alternative to
existing card network based transaction processing
To differentiate their services global card network such as visa MasterCard and
American Express have increased their focus on value added services……… to
strengthen their value proposition to the key stakeholders in the ecosystem--
card holder, merchant, card issuer and merchant acquirer. Key focus on global
card networks in this regard are in areas such as loyalty and dynamic
offers ,digital solutions analytics and insights fraud management consumer
alerts/settings and money transfer services.
LOYALTY AND DYNAMIC OFFERS
MaterCard EasySavings------MasterCard easy savings program is a merchant
funded, MasterCard managed, automatic rebate program for small/medium
sized merchants who may not have the where-withal to run their rewards
program.
DIGITAL SOLUTIONS
MasterCard digital enablement services (MDES)-----------supports contactless
payments at point of sale by leveraging NFC technology. MDES also supports in
digital secure remote payments (DSRP) whereby consumers can make in app
purchases using a token. MDES enables apple pay transaction (NFC and in-app)
and also leverages MasterCard tokenization services.
FRAUD MANAGEMENT
MasterCard expert processing system EPS………. EPS evaluates risk score for
every transaction process by MasterCard. EPS uses artificial intelligence (AI),
smart agent technology and business rules to generate fraud score in real-time
during authorisation routing in milliseconds.
MasterCard alerts are mobile geo location……………. MasterCard has partnered
zumigo to offer card holders with the mobile app solution that delivers location
alerts triggered by pre-set digital boundaries whenever card holders travel
domestically and internationally

CONSUMER ALERTS /SETTINGS


MasterCard inControl………….. MasterCard inControl enables card holders to
set spending limits and controls on payment accounts to determine exactly
where, when and how their cards are used.
MONEY TRANSFER SERVICES
MasterCard money send……………. consumers can send and receive funds using
money send. It supports domestic and international money transfer that can
be initiated online or through mobile text message.
Disruption from fintech---card networks are taking a collaborate and compete
approach
Card networks are increasing their focus on inhouse innovation initiatives to
conduct proof of concept trials using emerging technology trends and at the
same time working with fintech on many initiatives that involve emerging
technology.

Global card networks increased focus on value added services, breath of their
product /service offerings and depth in their understanding of the marketplace
will come in handy as they consolidate their market share in business segments
with higher profit potential such as corporate cards, travel and entertainment
segment, cross border payments and high end card products such as platinum
and black.

Switching and interchanging fee…Merchant Discount Rate…


MDR…NOT BE APPLICABLE...UPI & RUPAY…Demand of the Payment Council of
India
For debit card 0 MDR is good for financialisation, cashless economy, and digital
economy
Rupay and UPI of gov. can become monopoly in india.
1. Digital economy, UPI …. tech put to work…mastercard excited…
collaborate with fin techs and other companies using the same tech
2. As a payment tech co. – strategy – be in every choice of payment…
cards, UPI, acc to acc push payments….rapidly rising digital economy…
how do you keep it safe…that’s where mastercard …addressing cyber
risk, digital identity component…nascent areas of payment…ex. Many
inefficiencies in B2B payments and they have solution …
3. Mastercard have experience … which they can use in terms of
technology
4. Safe & secure is the headline
5. Weakness may be was data storage out of India and transaction fees as
well …
6. FinTech is innovation in payments and regulators take care of
effectiveness of monetary policies, sanctity and make the process i.e.
stability and security
7. They are not at the bleeding edge, rather at the leading edge at word
level for say.
8. Had a challenging 10 months
9. There home is in payment not in card…data analytics and cyber services
10.Targeting on very specific issues…partnership with HDFC Bank and USAID
… 100milllion dollars loan facility for women entrepreneurs …
11.MASTERCARD IS WILLING TO BE AVAILABLE WHERE NATIONAL INTEREST
LIES
12.MORE THAN A 3RD OF REVENUE…FROM SERVICES…CONSUMERS, CYBER
DATA AND ANALYTICS….MIX IN PAYMENTS….B2B, CUSTOMERS,
MERCHANTS,ETC….Diversified business can help them cope up any
pandemic

2008 m plastic money controlled by American companies

1. RUPAY’S ROBUST INFRASTRUCTURE


2. 2016 … JAM …jandhan, aadhar and mobile…rupay debit card, JIO
internet…. UPI introduced …
3. 2017…15% - 20121….60% RUPAYS SHARE
4. MUDRA SCHEME … linked with KISSAN CREDIT CARD<its users were
given accidental insurance of 1 lakh …
5. It was made mandatory for companies having revenue more than 50 Cr
to give their consumers a payment option of rupay card.
6. Weakness…average value of transaction through UPI and Rupay is still
below Rs. 2000 i.e. Rupay is not able to target people doing higher
transactions comparatively.
7. Credit card market share of rupay in india is approx. 20% whereas debit
card keeps 60% share in Indian market
8. To increase the ticket size and to make the credit card more lucrative,
credit card can also be linked with UPI so that the average ticket size can
increase

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