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Mastercard In Top 50 At Bloomberg Business

Mastercard In Top 50 At Bloomberg Business

The Nilson report which is a journal devoted to survey and analyzes payment systems industry says that 48% of the purchases made by consumers in United States during the year 2010 were done by credit cards and this number can increase to 59% till the coming year of 2015.

The demand of plastic money has been increasing in the whole world at top rate which makes a good news for payment processors like MasterCard which has a great margin of profit from a big percentage of purchases outside the US than its opponent Visa- 64% and 47% are their percentages.

Ajay Banga, the chief executive officer of MasterCard is positive about the possibility of increasing persuasion to consumers in the whole world to stop using cash and instead use MasterCard. Now about 15% of shopping transactions around the world are made through debit cards, credit cards and other digital means. Banga has a goal of increasing this percentage and has opened a war on cash.

The war on cash was really a rallying cry for everyone to focus on the 85 percent,

said Banga According to Business Week.

MasterCard was made public in 2006. By the year 2011, it has been named as the top fourth on the Standard & Poor’s 500 stock index of best performers. The analysts have exposed their expectations to see a 17% rise in the company’s earnings per share during the year 2012. It is on the number one on the recently released Bloomberg Business week list of top 50 performing companies. Visa is yet not eligible for this top 50 because it just ventured the trading in 2008. The rule is that companies must be in the business for more than 5 years to be considered for the top 50.

Visa processed about 39% of their credit card purchases in US by volume in 2010 whereas MasterCard processed about 23% only. This has been revealed by Nilson report. MasterCard however has made some deals with Google to get in the processing of their smartphone generated Google Wallet payment methods and is also striking a deal with Intel to make internet shopping much more risk free for the users.

Ajay Banga has really energized the company. They’ve become an aggressive challenger to Visa,

says David Togut, an analyst at investment bank Evercore Partners, according to Business Week.

Banga and MasterCard will have to keep on making those high-caliber deals in order to overtake Visa.

We are really a technology company,

says Banga as reported by Business Week.

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Copyright © 2018 | Image: Bloomberg Business | Categories: Credit Card News

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