MASTERCARD
SUMMARY OF THE CASE
• Use of “plastic money” has become normal
• started in 1966- ICA
• 1968- it went global.
NOW
• affiliations to 23000 financial institutions
• 370 million credit/debit cards in use
• 13 million locations
SUMMARY OF THE CASE (cont..)
•Competitors- Visa & American Express
• to cope it seeks new segments.
• methods
• health care
• sports
• affluent section
SUMMARY OF THE CASE (cont..)
Health care
• to collect payments
• no need of immediate payment by
patient
• Health Care Guide and Planning Kit
• MSA-MasterCard MasterMoney
SUMMARY OF THE CASE (cont..)
Sports industry
• sponsors for world cup soccer, Jordan Grand
Prix Formula One
• also formula one has the affluent fans which
was their next target
SUMMARY OF THE CASE (cont..)
The affluent
• rich need these benefits- perhaps more..
• interchange fee
• elite cards with perks
• BankAmerica Corp first to get WorldCard
• also no losses
SUMMARY OF THE CASE (cont..)
•MasterCard has tough competition from AmEx
• since so many platinum cards issued its status
has tarnished unlike AmEx
• American express platinum card dominates the
market for the affluent class
• AmEx has experience in serving this market,
whereas MasterCard does not.