Mastercard Success – The Payment Portal that grew with Collaborations

How MasterCard Became $395 Billion Valued in Less than Two Decades?

Mastercard is a multinational company that provides financial services to people all over the world. It is an American-based company that helps its customers to facilitate the payment between purchasers and bankers. Mastercard also does the business of issuing several cards such as credit, debit and prepaid to the purchasers.

The company opened its IPO (Initial Public Offering) in 2006 and, since then, it became a publicly-traded company. Let's get to know the success story of this spectacular business that made everyone's life much easier.

Mastercard Success – Key Points

• Company Name - Mastercard
• Founded - 1966
• Founder - Wells Fargo
• Headquarters - Mastercard International Global Headquarters, Purchase, New York, U.S
• Type - Public Company
• Sector - Financial Services
• Number of employees - 21,500
• Revenue - $15 billion
• Area Served - Worldwide

Mastercard – Founders and Team

Mastercard got founded by Wells Fargo in 1966 as an Interbank Card Association Company. Some of the significant people in the organization are as follows:

• CEO - Michael Miebach
• Vice Chaiman - Walt Macnee
• Chief Marketing Officer - Raja Rajamannar
• General Counsel - Noah Hanft
• Chief Human Resources Officer - Michael Fraccaro

Mastercard Success Story – Brand Name, Logo, and Tagline

• Brand Name - The brand name of Mastercard says the exact thing that the company does. It is truly a matter of every card, hence the name.
• Logo - The logo of the company has changed a couple of times. The current logo of Mastercard is in catchy red and yellow color that grabs the attention of all the people.
• Tagline - Mastercard has used several slogans to advertise its brand. They currently advertise by using the catchphrase Priceless. It is associated with their running campaign.

Mastercard – Investors and Funding

Mastercard has not to shred its funding history to date. It is unknown.

However, some of the recent investments made by the company are as follows:

• $5.4 million - Signzy, Venture Round, 2020
• Undisclosed Amount - Marqeta, Corporate Round, 2020
• $7 million - Episode Six, Series A round, 2020
• $32 million - Bond, Series A round, 2020
• Undisclosed Amount - Verestro, Corporate Round, 2020
• $128 million - AvidXchange, Series F, 2020
• $11 million - Previse, Venture Round, 2020
• Undisclosed Amount - DigiAsiaBios, Series B round, 2020
• $10 million - Enveil, Series A Round, 2020
• Undisclosed Amount - Trust Stamp, Corporate Round, 2020

Mastercard – Partnerships

Mastercard has entered into several partnerships that will help it to grow. It will also help in diversifying their business and making it more known to the customers. Some of the partnerships of the company are as follows:

• Apple
• Pine Labs
• Bank of Baroda
• DoorDash
• HelloFresh
• Fandango
• Lyft
• ShopRunner

Mastercard Success – Business Model

Mastercard provides its financial services in more than 200 countries and over 140 currencies. They work in the same manner as Visa Card and American Express. All the transactions made using the Mastercard involve four different parties. These are a customer, a merchant, a bank issuer, and a bank. After the transaction, the cost gets paid by the issuer to the acquirer's bank. Merchant charges an interchange fee from all those who accept Mastercard payment.

Mastercard Success Story – Growth

Some of the milestones reached by the company in terms of growth are as follows:

• Collected a revenue of $15 million in the FY 2017-18.
• The company's revenue increased more than 20% in the next financial year.
• The growth in their sales was almost 13%.

Mastercard – Revenue Model

None of the Mastercard's revenue comes from the interchange fee. Most of their revenue comes from the banks that issue MasterCard to the customers and from transaction fees. The gross revenue earned by Mastercard is indirect, as in, it hasn't got from the consumers directly. The company's revenue is increasing day by day, and they have also increased their processing fee.

Mastercard Story - Sponsorships

Mastercard is also famous for sponsoring various events. They mainly sponsor sports events all around the world. Some of the events sponsored by them are as follows:

• UEFA Champions League
• PGA Tour's Arnold Palmer Invitational
• FIFA World Cup
• Mastercard Lolo Formula One
• Brazil National Football Team
• League of Legends Esports
• League of Legends World Championship
• Mid-season Invitational
• Copa Libertadores
• Alamo Bowl

Mastercard Story – Competitors

Mastercard has few rivals in the market that are ever ready to give it a quick competition. Some of the competitors of Mastercard are as follows:

• Visa - It got founded in 1958. Visa is one of the strongest rivals of this company. They are also ahead in the revenue collection from Mastercard.
• American Express - It got founded in 1850. American Express is also one of the strongest players in the market. They have more customers and employees as compared to MasterCard and, they also earn twice the revenue earned by them.
• Discover - It got founded in 1985. This company is also performing well in the market and, it earns good revenue.

Mastercard – Future Plan

Some of the upcoming plans of the company are as follows:

• Mastercard is planning to expand in the international market.
• They are planning to own an investment and banking company.
• It has recently bought a stake in a Bangalore-based startup, Instamojo. It will help the company make a stronghold in the Indian market.
• It will also help various MSMEs in digitizing their businesses.
• Mastercard is planning to help these small businesses set up their online stores with smoother digital payment choices.
• They are planning to go with the new trend on the open banking system.
• Mastercard is also focusing on building its customer base.
• It has acquired Finicity and will soon update its strategy of open banking.

Mastercard – Leading Financial Player

Mastercard has become a household name because of its awesome worn in the financial sector. It helps in the smoother and easier transaction of money between the purchaser and the merchants. The company is growing at a rapid rate and, its customer base is also increasing every year. Mastercard will soon become the leading player in its sector.