Mastercard Inc. (stylized as MasterCard from 1979 to 2016 and as mastercard from 2016 to 2019) is an American multinational payment card services corporation based in Purchase, New York. The company offers a variety of payment transaction processing and other related payment services (such as travel-related payments and bookings).
Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard branded debit, credit and prepaid cards to make purchases. Mastercard has been a publicly traded company since 2006.
Formation and Competition
Mastercard (originally Interbank, then Master Charge) was formed by an alliance of different banks and regional bankcard associations in reaction to the BankAmericard issued by the Bank of America, which would later become Visa and remains the largest competitor of MasterCard.
Along with Visa, Mastercard has been sued in numerous cases under antitrust laws. Prior to its initial public offering, Mastercard Worldwide was a cooperative due to the more than 25,000 financial institutions that issue its branded cards.
Early Development and Market Expansion (1958-1966)
Although the introduction of BankAmericard in September 1958 was initially a disaster, it was making a profit by May 1961. Bank of America consciously kept this information secret and allowed then-widespread negative impressions to persist to put off competition. This strategy worked until 1966 when the profitability of BankAmericard became too significant to hide.
Market Growth Timeline
| Period | Key Development |
|---|---|
| 1960-1966 | Only 10 new credit cards introduced in the United States |
| 1966-1968 | Approximately 440 credit cards introduced from banks across the US |
The rapid expansion from 1966 onward triggered a new wave of competition, as newcomers quickly bonded together in regional bankcard associations.
Regulatory Drivers for Consolidation
One of the key reasons why the majority of banks opted to join forces was regulatory in nature:
- 16 states restricted the capacity of banks to operate via branch locations
- 15 states completely prohibited branch banking and required unit banking
Unit Banking Limitations and Solutions
A unit bank can only operate legally at one location and hence is forced to be very small in size. By joining a regional bankcard association, a unit bank could:
- Add a credit card to its list of financial products in a hurry
- Gain economies of scale by outsourcing tedious back office chores, such as servicing the credit card, to the bankcard association
- Aggregate their customer base and merchant network
Critical Insight: Early credit cards failed due to the inability to use them within a small radius around their respective issuing banks. Regional associations solved this critical infrastructure problem by enabling nationwide payment acceptance.
The Buffalo Meeting and Formation of ICA (1966-1967)
In 1966, Karl H. Hinke, an executive vice president at Marine Midland Bank, asked representatives of several other banks to meet him in Buffalo, New York.
Marine Midland had just launched its own regional bankcard in the Upstate New York market only after Bank of America turned down its request for a BankAmericard regional license on the grounds that Marine Midland was too big.
Result: One of the outcomes of the Buffalo meeting was that a number of banks and regional bankcard associations soon agreed to join forces as Interbankard, Inc., which became the Interbank Card Association (ICA).
- By the end of 1967, ICA had 150 members
- Karl H. Hinke became the chairman of ICA
- Bank of America eventually became part of Mastercard as well. (In the 21st century, Bank of America would recreate the BankAmericard brand name as a MasterCard credit card, which it remains today)
Branding Evolution (1966-1969)
Initial Interbank Branding Challenges
The Interbank branding in 1966 consisted initially of just a small unobtrusive lowercase ‘i’ within a circle in the lower righthand corner across the front of each Interbank card, the rest of the design of the cards being the prerogative of each issuing bank.
Problem: This tiny logo turned out to be completely unsatisfactory for building nationwide brand awareness to compete against the established leader, BankAmericard.
Master Charge Launch (1969)
In 1969, Interbank built a new name for the national brand of the business: “Master Charge: The Interbank Card” by bringing together:
- The two overlapping yellow and orange circles of the Western States Bankcard Association
- The “Master Charge” name that had been coined by the The First National Bank of Louisville, Kentucky
Strategic Mergers and Expansion
That same year, 1969, First National City Bank became a part of Interbank and merged the bank’s proprietary Everything Card program with Master Charge.
International Expansion and Strategic Alliances (1968-1985)
European Market Access
In 1968, the ICA and Eurocard began a strategic alliance, which effectively provides:
- ICA access to the European market
- Eurocard acceptance on the ICA network
The Access card system of the United Kingdom was a member of the ICA/Eurocard alliance from 1972.
Rebranding as MasterCard (1979-1980)
In 1979, Master Charge: The Interbank Card was renamed as MasterCard. Starting in 1980, the company began to roll out new cards with a new logo. Cards maintained the overlapping red and yellow circles originally introduced in 1969; later card designs have continued to take this symbol.
Technology Innovations and Infrastructure
| Year | Innovation | Details |
|---|---|---|
| 1983 | Hologram security | Mastercard International Inc. became the first bank to use holograms as part of their card security |
| 1985 | ATM network | Took over the Cirrus network of automated tellers |
Modern Era Development (1997-Present)
Consolidation and Reorganization
In 1997, the Access card was taken over by Mastercard; the Access brand was retired. In 2002, MasterCard International merged with Europay International, which was also a large credit card issuer association (Eurocard had also become part of it in 1992). Mastercard became a Delaware corporation in connection with the merger, as well as in anticipation of an IPO.
Initial Public Offering (2006)
The company was a co-operative of banks and the first public offering was on May 25, 2006, selling 95.5 million shares at $39 per stock. The stock is traded on the NYSE with a ticker symbol of MA. The deal was conceived with the goal of preserving the value of the brand and keeping costs for regulators as low as possible.
Strategic Acquisitions (2010-2024)
| Year | Acquisition | Details |
|---|---|---|
| 2010 | DataCash | UK-based payment processing and fraud/risk management provider – expanded e-commerce offering |
| 2012 | Mobile Contactless Expansion | Announced expansion of mobile contactless payments program across the Middle East |
| 2014 | Pinpoint | Australian leading rewards program manager – undisclosed sum |
| 2016 | VocaLink | British company – $920 million for 92.4% stake |
| 2017 | Brighterion | AI and machine learning company with portfolio of intellectual property |
| 2019 | Nets (Scandinavian operations) | EUR2.85 billion acquisition offer |
| 2021 | Ekata | Identity verification company – $850 million |
| 2024 | Recorded Future | Cyber security company – $2.65 billion (September 2024) |
Geopolitical and Market Actions
In March 2022, following the Russian invasion of Ukraine, Mastercard announced that it would suspend all business operations in Russia.
On November 17, 2023, the Chinese government approved the local bank card clearing license for the joint venture that Mastercard has created in China. As of May 9, 2024, the joint venture has the ability to issue Mastercard bank cards to use the Chinese yuan to make payments.
Financial Performance
Revenue and Growth Metrics (2005-2024)
| Year | Revenue (US$ M) | Operating Income (US$ M) | Share Price (US$) | Employees |
|---|---|---|---|---|
| 2005 | 2,938 | 393 | — | 4,300 |
| 2006 | 3,326 | 229 | 6.20 | 4,600 |
| 2007 | 4,068 | 1,108 | 13.65 | 5,000 |
| 2008 | 4,992 | 534 | 20.33 | 5,500 |
| 2009 | 5,099 | 2,260 | 17.99 | 5,100 |
| 2010 | 5,539 | 2,752 | 22.01 | 5,600 |
| 2011 | 6,714 | 2,713 | 28.73 | 6,700 |
| 2012 | 7,391 | 3,937 | 41.58 | 7,500 |
| 2013 | 8,312 | 4,503 | 59.34 | 8,200 |
| 2014 | 9,441 | 5,106 | 75.33 | 10,300 |
| 2015 | 9,667 | 5,078 | 90.62 | 11,300 |
| 2016 | 10,776 | 5,761 | 94.50 | 11,900 |
| 2017 | 12,497 | 6,622 | 126.54 | 13,400 |
| 2018 | 14,950 | 7,282 | 186.16 | 14,800 |
| 2019 | 16,883 | 9,664 | 300.74 | 18,600 |
| 2020 | 15,301 | 8,081 | 370.00 | 21,000 |
| 2021 | 18,884 | 10,082 | 354.83 | 24,000 |
| 2022 | 22,237 | 12,264 | 347.73 | 29,900 |
| 2023 | 25,098 | 14,008 | 422.17 | 33,400 |
| 2024 | 28,167 | 15,582 | 524.23 | 35,300 |
As of 2024, Mastercard is ranked number 164 on the Fortune 500 corporate brands that are the largest in the United States, measured by revenue.
Products and Services
Card Tier Structure
Depending on the geographical location, Mastercard-issuers can issue the cards in tiers, from lowermost up to the highest tier:
Credit Cards
| Tier Level | Product Lines |
|---|---|
| Basic | Traditional/Classic/Standard |
| Premium | Gold/Titanium |
| Luxury | Diamond, Platinum |
| Elite | World, World Rewards, World Black Edition, Black, World Elite, World Legend |
Debit Cards
| Tier Level | Product Lines |
|---|---|
| Basic | Traditional/Classic/Standard |
| Premium | Gold/Titanium |
| Luxury | Diamond, Platinum |
| Elite | World, World Black Edition, Black, World Elite |
Digital and Emerging Services
Web Shopping Mall (2010)
Through a relationship with an Internet company specializing in personalized shopping, Mastercard opened a Web shopping mall on April 16, 2010, that it claimed can identify with considerable precision what its cardholders are likely to buy.
Apple Pay Integration (2014)
In September 2014, Mastercard collaborated with Apple to add a new feature that allows mobile wallet payments to Apple’s new iPhone and Apple Watch models, called Apple Pay, which allows mobile users to more easily use their Mastercard and other credit cards.
Mastercard Track Business Payment Service (2020)
Mastercard introduced Mastercard Track Business Payment Service in May 2020. The service offers business-to-business payments between buyers and suppliers.
According to the head of global commercial products, it “creates a directory of the suppliers, so that suppliers can publish their payment rules and allow them to better control the way they are paid and for buyers to find the suppliers and know what their requirements are”.
Cryptocurrency and Digital Assets
Initial Cryptocurrency Support (February 2021)
On February 10, 2021, Mastercard announced their support of Cryptocurrencies saying that later on in 2021, Mastercard will begin supporting select cryptocurrencies directly on their network.
Key Focus Areas:
- Using digital assets for payments
- Crypto assets will need to provide the stability people need in a vehicle for spending, not investment
Bakkt Partnership (October 2021)
In October 2021, Mastercard revealed that via its partnership with Bakkt, any bank or merchant using its network will soon have the ability to provide crypto services.
NFT Support (June 2022)
In June 2022, Mastercard announced it will allow cardholders to purchase NFTs through various NFT scaling platforms.
Cryptocurrency Services Expansion (April 2023)
In April 2023, Mastercard announces it wants to help scale up partnerships with cryptocurrency businesses. At the time of announcing, the firm had already partnered with other financial companies to provide cards associated with crypto in certain nations.
The company introduced its Mastercard Crypto Credential service which would enable transactions between countries that had to comply with requirements such as the “travel rule” by the Financial Action Task Force (FATF) using technology from firm CipherTrace. It worked with wallet providers including Bit2Me, Lirium, Mercado Bitcoin, and Uphold.
Specialized Payment Solutions
Direct Express Debit Mastercard (2008)
Mastercard, Comerica Bank, and the U.S. Treasury Department joined forces in 2008 in an effort to create the Direct Express Debit Mastercard.
Purpose: The federal government uses the Express Debit product to make electronic payments to people who do not have bank accounts. Comerica Bank is the debit card’s issuing bank.
Consumer Protections: The Direct Express cards provide a number of consumer protections to the recipient.
Executive Club Multi-Currency Cash Passport (2013)
In June 2013, Mastercard announced a partnership with British Airways to provide members with the Executive Club Multi-currency Cash Passport that will reward members with:
- Additional points
- Multi-currency payments
Key Features
The Passport card users can load up to ten currencies:
- Euro
- Pound Sterling
- U.S. Dollar
- Turkish Lira
- Swiss Franc
- Australian Dollar
- Canadian Dollar
- New Zealand Dollar
- U.A.E. Dirham
- South African Rand
Exchange Rate Mechanism: If being used, the card finds the best exchange rate based on the local currency and if the local currency was not already loaded onto the card, it uses funds from other currencies.
Mobile and Contactless Payment Solutions
QkR Mobile Payment Application
QkR is a mobile payment application being developed by Mastercard that is operating in the US and Australia for the purpose of ordering products and services through a smartphone where payments are charged to the associated credit card.
Deployment Scope
QkR is being deployed for use in larger scale events, such as:
- Sport events and concerts
- Movie theaters
- Schools
Technical Differentiation
Unlike other Mastercard mobile payment apps like Pay Pass, QkR does not make use of NFC from the phone, but instead uses an Internet connection.
How It Works
The mechanism is straightforward:
- Users can open the app
- Scan a QR code found on the back of the seat in front of them
- Order refreshments of their choosing
- The order is sent off to a concession stand around the corner
Strategic Positioning
QkR is being marketed to vendors as a replacement for other mobile payment apps and mobile ordering apps that will be developed or distributed by the vendor (such as Starbucks’s app, McDonald’s app, or Chipotle’s mobile ordering app) or by a third party, like Square, headed by Twitter cofounder Jack Dorsey.
Mastercard Contactless
Mastercard Contactless (formerly known as PayPass) is an EMV compliant, contactless payment feature, similar to American Express’ ExpressPay and Visa payWave.
Technical Standards
Built on the ISO/IEC 14443 standard, it gives cardholders an easier way to make payments by:
- Touching a payment card or other payment device (such as a phone or key fob)
- On a point-of-sale terminal reader instead of swiping or inserting the payment card
Transaction Limits by Currency
Contactless can currently be used on transactions of up to and including:
- 100 GBP (British Pound)
- 50 EUR (Euro)
- 60 BAM (Bosnian Mark)
- 80 CHF (Swiss Franc)
- 50 USD (US Dollar)
- 100 CAD (Canadian Dollar)
- 200 SEK (Swedish Krona)
- 500 NOK (Norwegian Krone)
- 100 PLN (Polish Zloty)
- 350 DKK (Danish Krone)
- 80 NZD (New Zealand Dollar)
- 100 AUD (Australian Dollar)
- 1000 RUB (Russian Ruble)
- 500 UAH (Ukrainian Hryvnia)
- 500 TRY (Turkish Lira)
Market Development Timeline
| Year | Event | Details |
|---|---|---|
| 2003 | PayPass Market Trial | Nine-month trial in Orlando, Florida with JPMorgan Chase, Citibank, and MBNA; 16,000+ cardholders and 60+ retailer locations |
| 2003 | Mobile Integration | Working with Nokia and Nokia 6131 AT&T Wireless and JPMorgan Chase to include PayPass with NFC technology in Dallas, Texas |
| 2011 | Google Wallet Partnership | Google and MasterCard partnered to produce Google Wallet for Android mobile devices |
| 2014 | Apple Pay Launch | Apple launched Apple Pay for iOS devices |
| 2015-2016 | PayPass Sunset | Citicards in the US ceased PayPass enabled plastic; July 16, 2016 – all PayPass support ended for Citicards |
Biometric Payment Innovation
Biometric Metal Card Initiative (2025)
In Mid-2025, Mastercard officially announced the implementation of biometric enabled metal credit cards on the basis of IDEX Pay.
Manufacturing and Approvals
In February 2025, South Korean manufacturer KONA I received a Letter of Approval from Mastercard to produce both:
- Biometric plastic (PVC) cards
- Biometric metal cards
These cards incorporate a fingerprint sensor as part of the card’s secure chip, to allow the cardholder authentication to be completed on the card itself for in-store EMV PIN-free transactions, while making sure that biometric data never leaves the card.
Commercial Launch (July 2025)
In July 2025, bank Eastern Bank PLC (EBL) in Bangladesh launched in partnership with Mastercard the world’s first commercially issued “World Elite” tier biometric metal credit card.
Key Details:
- Launch date: July 5, 2025 at Dhaka
- Partners: IDEX Biometrics, KONA I, and Infineon Technologies
- Capabilities:
- Fingerprint authentication in EMV transactions
- Contact and contactless payments
- Part of Mastercard’s Priceless Specials programme
Global Adoption
Mastercard’s global FAQ shows biometric payment cards have been issued in more than 70 markets, with these advantages:
- Work with standard EMV terminals and ATMs
- Require no new infrastructure
- Can be used with user self-enrollment kits
Antitrust Litigation and Market Power Issues
Operating a payment processing network carries with it the risk of engaging in anticompetitive conduct because of the large number of parties involved (that is, the customer and his or her bank and the merchant and his or her bank).
Few companies have been prosecuted with a higher number of antitrust lawsuits, both in the US and abroad.
United States Litigation
American Express Exclusion (1980s-1990s)
Mastercard and Visa engaged in systematic parallel exclusion of American Express in the 1980s and 1990s. Mastercard used exclusivity clauses in its contracts and blacklists to prevent the banks from doing business with American Express. Such exclusionary clauses and other written evidence was used by the United State Department of Justice in regulatory actions against Mastercard and Visa. Discover has also sued Mastercard for similar problems.
Debit Card Swipe Fee Price Fixing
Both Mastercard and Visa paid about $3 billion in damages for debit card swipe fee price fixing in a class action lawsuit that was filed in January 1996. The underlying litigation named such retail giants as plaintiffs including:
- Wal-Mart
- Sears, Roebuck & Co.
- Safeway
Merchant Acceptance Coercion (1996)
In 1996, four million merchants filed suit in federal court against Mastercard because it made them accept debit cards if they wanted to accept credit cards, and dramatically increased credit card swipe fees. This case was settled with a multibillion dollar payment in 2003, making it the largest antitrust judgement ever given.
Department of Justice Bank Issuer Case (1998-2001)
In 1998, the Department of Justice appeared as an example of a bank suing Mastercard due to rules that prohibited their issuing banks from doing business with American Express or Discover. The Department of Justice prevailed in 2001 and the verdict held. American Express also became a plaintiff.
Additional Litigation
- August 23, 2001: Mastercard International Inc. was sued in violation of the Florida Deceptive and Unfair Trade Practices Act.
- November 15, 2004: Mastercard Inc. paid a settlement of $1.8 billion to American Express due to anticompetitive practices preventing American Express from issuing cards through US banks.
Swipe Fee Fixing and Merchant Discount Cases
2012 Preliminary Settlement Approval
On November 27, 2012, a federal judge entered an order to give preliminary approval to a proposed settlement to a class action lawsuit filed by merchants and trade associations in 2005 against Mastercard and Visa.
Allegations: The suit was lodged because of alleged price-fixing practices used by Mastercard and Visa.
Opposition: About one-fourth of the named class plaintiffs decided to opt-out of the settlement. Opponents took issue with some provisions that would prohibit future lawsuits and make it impossible for merchants to opt out of substantial parts of the proposed settlement.
Merchant Allegations
Plaintiffs alleged that Visa Inc. and Mastercard set an interchange fee (also known as a swipe fee) that are charged to merchants for the privilege of accepting payment cards.
The complaint also claimed that defendants unfairly interfere with merchants from encouraging their customers to use less expensive forms of payment such as:
- Less expensive cards
- Cash
- Checks
Settlement Developments
- November 2019: $6.24 billion settlement was approved preliminarily
- 2019: $5.54 billion settlement was approved
- October 2022: The case was still ongoing as some merchants appealed the settlement
Antitrust Settlement with US Justice Department (October 2010)
In October 2010, Mastercard and Visa settled with the US Justice Department in a second antitrust case.
Key Agreement: The companies agreed to permit merchants displaying their logo to:
- Refuse certain types of cards (since interchange fees differ)
- Give consumers discounts for the use of cheaper cards
ATM Operators Litigation
Mastercard, along with Visa, has been sued in a class action by ATM operators that claim rules put in place by the credit card networks in effect fix ATM access fees.
Allegations: The suit alleges that this represents a restraint of trade under federal law. The lawsuit was the result of a club of National ATM Council and independent automated teller machine operators.
Specific Accusation: The rules of the Mastercard and Visa network forbid ATM operators from charging lower prices for transactions over PIN debit networks that are not affiliated with Visa or Mastercard.
The suit contends that through this price-fixing:
- The price artificially increased that consumers pay through ATMs
- It restricts the amount of revenue gained by ATM operators
- This violates the Sherman Act’s prohibition against unreasonable restraints of trade
Attorney Perspective: Johnathan Rubin, an attorney for the plaintiffs, said, “Visa and Mastercard, are the ringleaders, organizers and enforcers of a conspiracy among U.S. banks to fix the price of ATM access fees in order to keep the competition at bay.”
Costs of Merchant Fraudulent Card Uses (October 2025)
In October 2025, merchants agreed to a $231.7 million settlement before a U.S. District Judge, in case B & R Supermarket, Inc., for injuries resulting from costs incurred in frauds in respect of:
- Counterfeit cards
- Lost or stolen cards
Mastercard’s Portion: $79.8 million out of the total settlement.
Oceania Regulatory Actions
Australia (2003)
In 2003, the Reserve Bank of Australia made it compulsory to drastically reduce the interchange fees from around 0.95% of the transaction to around 0.5%.
Notable Results:
- Decline in the number of reward cards
- Rise in the number of debit cards used
Australia also:
- Banned the no surcharge rule – a policy created by credit card networks such as Visa and Mastercard to prevent merchants from collecting a credit card usage fee from the cardholder
- Introduced changes to interchange rates for debit cards
- Looked at abolishing interchange fees altogether
New Zealand (2006)
As of November 2006, New Zealand was considering doing the same, after a lawsuit by the Commerce Commission charging Visa and Mastercard with price-fixing. In New Zealand, however, merchants charge 1.8% for every credit card transaction.
European Union Regulatory Action
General Overview
The European Union has repeatedly reprimanded Mastercard for having monopolistic trade practices.
2009 Antitrust Case
In April 2009, Mastercard was found guilty in an antitrust case by the European Union and agreed to lower debit card swipe fees down to 0.2 percent of purchases.
European Central Bank Proposal (December 2010)
In December 2010, a senior official from the European Central Bank called for a break up of the Visa/Mastercard duopoly by the creation of a new European debit card to be used in the Single European Payments Area (SEPA).
2013 Investigation
In 2013, Mastercard was the subject of an investigation by the European Union for:
- High fees charged to merchants to accept cards issued outside the EU versus cards issued in the EU
- Other anti-competitive practices which could prevent electronic commerce and international trade
- High fees associated with premium credit cards
The EU’s competition regulator stated that these fees were of special concern due to the increasing position of non-cash payments.
2007 Cross-Border Transaction Ruling
Mastercard was ruled by the European Commission in 2007 not to be able to charge fees on cross-border transactions wholly conducted within the EU.
The European Commission said that their investigation also covered large differences in fees between national borders. For example, an amount of EUR50 could cost EUR0.10 in the Netherlands but it could cost eight times that in Poland.
The Commission argues that rules by Mastercard prohibiting merchants from taking advantage of better terms provided to them in other EU countries, may be against antitrust law.
Consumer Organization Support
The action against Mastercard was praised by the European Consumer organisation (BEUC). BEUC said the interbank fees drive prices up and harm consumers.
BEUC Director General Monique Goyens said: “So in the end, all consumers are hit by a scheme which ends up rewarding the card company and issuing bank.”
2019 Antitrust Fine
In January 2019, the European Commission issued an antitrust fine of EUR570,566,000 against Mastercard for “obstructing merchants’ access to cross-border card payment services”, because of Mastercard’s rules, which required acquiring banks to apply the interchange fees in the country where a retailer was located.
The Commission concluded that Mastercard’s rules stopped retailers from benefitting from the lower fees and limited competition between the banks cross border, in breach of EU antitrust rules.
Violation Resolution: The violation of the antitrust laws came to an end when Mastercard amended its rules because of the Entering into Force of Interchange Fee Regulation in 2015 which introduced caps on interchange fees. The Commission did grant Mastercard a 10% reduction of the fine however, in return for Mastercard acknowledging the facts and cooperating with the antitrust investigation.
2021 Pre-Paid Card Violation
In February 2021, following an investigation by the British Payment Systems Regulator, Mastercard admitted liability for violating breaches of competition law with regard to pre-paid cards.
2024-2025 Ongoing Investigation
In November 2024, the European Commission announced that it will carry out a further investigation into whether the fees charged by the schemes of Visa and Mastercard have a negative impact on retailers. Some retailers had in recent years complained about the fees, citing lack of transparency.
The Commission took its investigation further in June 2025 seeking a retailer view and seeking comments from the card operators on whether a “standardized summary of fees” would help to promote transparency.
European Expansion (November 2025)
In November 2025, Mastercard announced that it is expanding in Europe with the establishment of new hubs in Warsaw and Gdansk in Poland.
Other Significant Issues and Regulatory Matters
Gambling Transactions with US Internet
Mastercard, Visa, and other credit cards have had their account funded since the beginning of online gambling in the mid-1990s.
Federal Wire Act Cases (2000-2001)
On March 20, 2000, the United States District Court for the Eastern District of Louisiana heard motions in Re: MasterCard International Inc. in connection with multi-district litigation that Mastercard had illegally interacted with a number of internet casinos.
Plaintiffs claimed, among other things, that Mastercard had committed a violation of the Federal Wire Act. They asked the Supreme Court for financial relief toward losses incurred at gambling sites outside the US.
The District Court’s decision of February 23, 2001, later affirmed by the United States Court of Appeals for the Fifth Circuit, favored Mastercard. The Fifth Circuit also solicited clarification on the application of the Wire Act to the gambling industry through illegal online.
Verdict: The court decided that the wire act only applied to gambling activities involving a “sporting event or contest”. Therefore, the court could not decide that Mastercard breached the Wire Act.
PASPA Overturn Impact (May 2018)
When PASPA was overturned May 14, 2018, Mastercard had to give new guidance to its member banks. It clarified that restrictions on state location applied not to the member bank processing a transaction and sending the money to the individual placing the wager, but to the person making the bet.
According to different state gaming laws, sports betting providers should implement Internet geolocation to identify a customer’s physical location before betting on a game.
The Independent Community Bankers of America in particular requested information regarding a new on-line gambling merchant category code. Mastercard has had MCC 7801 dedicated to online gambling. This code is different to:
- 7800 for government owned lotteries
- 7802 for government licensed horse and dog tracks
FTC Complaint (August 2023)
On August 30, 2023, the American Civil Liberties Union (a litigation organization) filed a complaint with the Federal Trade Commission that consists of a group of other organizations requesting the Federal Trade Commission investigate the policy for being an unfair business practice under Section 5 of the FTC Act.
Branding and Marketing
The “Priceless” Campaign
Mastercard’s current advertising campaign tag line is Priceless. It started in 1997. The slogan that will be associated with the campaign is:
“There are some things money can’t buy. For everything else, there’s Mastercard.”
The Priceless campaign in its various more recent iterations has been applicable to both Mastercard’s credit card and debit card products. They use the Priceless description as well to market their products such as:
- Their priceless travel site, which offers deals and offers for Mastercard holders
- Priceless cities, offers for people in certain locations
Corporate Rebranding Evolution
2006 Rebranding
In mid-2006, MasterCard International changed its name to MasterCard Worldwide. This was to indicate a more global scale. In addition to that, the company implemented a new corporate logo with the addition of a third circle to the two previously in use (the familiar card logo, resembling a Venn diagram, was not changed). A new corporate tagline was also introduced at the same time: “The Heart of Commerce”.
2016 Rebranding
In July, 2016, Mastercard unleashed their new rebranding at the same time as their new corporate logo. In addition, they changed the name of their service from “MasterCard” to “mastercard” (all lowercase).
2019 Logo Simplification
In January 2019, Mastercard removed the name of the company from its logo, and now the name serves only as overlapping discs.
Brand Trust Rankings
In 2021, Mastercard came in the number 13 on Morning Consult’s list of the most trusted brands.
Sports Sponsorships
Mastercard sponsors major sporting events and sponsors teams all over the world. These include:
- Rugby’s New Zealand
- The MLB
- The UEFA Champions League
- The PGA Tour’s Arnold Palmer Invitational
Previous and Current Sponsorships
Previously, it also sponsored:
- The back of the football team and the blue shirt number of the national team in the Football Association (the National Football League)
- The main sponsor of the Football World Cup but terminated its contract after a court settlement and its rival, Visa, took up the contract in 2007
- The national football team of Brazil and the Copa Libertadores
Formula One Racing
1997 Formula One Entry
In 1997, Mastercard was the primary sponsor for the Mastercard Lola Formula One team which withdrew from 1997 Formula One season on account of financial problems failing to qualify for its first race. The team also sponsored Jordan Grand Prix all the way to the end of the 2001 Formula One Season, from the 1998 season.
2024-2026 McLaren Partnership
In July 2024, Mastercard is returning to Formula One with a multi-year deal with McLaren Racing. In August 2025, McLaren Racing signed the deal with Mastercard as the official naming partner of the team. The team will compete in the 2026 season onwards as the McLaren Mastercard Formula 1 Team.
Additional Sponsorships
- Alamo Bowl game – sponsored from 2002 through 2005
- League of Legends esports – became the first major sponsor in late 2018, sponsoring the League of Legends World Championship, Mid-Season Invitational, and the All-Stars event
- Memorial Cup – sponsor until 2018 of the CHL’s annual championship between its 3 leagues
- Cricket in India – In September 2022, Mastercard bought the title sponsorship rights on all the international and domestic home matches organized by the board of cricket control in India
Corporate Operations and Leadership
Headquarters and Operations
Mastercard has its headquarters in the Mastercard International Global Headquarters in Purchase, New York. The Global Operations Center is based out of O’Fallon, a suburb of St. Louis, Missouri.
Corporate Recognition
Mastercard was ranked in 2013 among the best companies to work for by Forbes. In 2016, Mastercard UK joined 144 companies in signed the HM Treasury’s Women in Finance Charter, a pledge to balanced representation of gender in the company.
Management & Board of Directors
Key Executives
- Michael Miebach: President and Chief Executive Officer
- Walt Macnee: Vice Chairman
- Robert Reeg: President – Global Technology & Operations
- Raja Rajamannar: Chief Marketing Officer – Global Marketing
- Gary Flood: President – Products & Services
- Noah Hanft: General Counsel, Chief Franchise Officer, Corporate President
- Michael Fraccaro: Chief Human Resources Officer
- Chris McWilton: President – North America Market
- Ann Cairns: President – International Markets
- Javier Perez: President – Europe
- Kevin Stanton: Chief Transformation Officer
- Ari Sarker: President – Asia-Pacific
- Betty Devita: President – Canada
- Gilberto Caldart: President – Latin America & Caribbean
Board of Directors
Prior to the IPO in 2006, Mastercard was an association with a board of directors made up of banks. The present board of directors consists of the following persons:
| Name | Role | Details |
|---|---|---|
| — | Non-Executive Chair | Dean Emerita, School of International and Public Affairs, Columbia University |
| Candido Botelho Bracher | Independent Director | Former CEO, Itau Unibanco Group |
| Richard K. Davis | Independent Director | Former Executive Chairman and CEO, U.S. Bancorp |
| Julius Genachowski | Independent Director | Managing Director of The Carlyle Group |
| Goh Choon Phong | Independent Director | Chief Executive, Singapore Airlines Limited |
| Oki Matsumoto | Independent Director | Founder, Chairman and CEO, Monex Group of Companies |
| Michael Miebach | President & CEO | MasterCard |
| Youngme Moon | Independent Director | Donald K. David Professor of Business Administration, Harvard Business School |
| Rima Qureshi | Independent Director | Executive Vice President, Chief Strategy Officer, Verizon Communications Inc. |
| Gabrielle Sulzberger | Independent Director | Strategic Advisor, Two Sigma Impact |
| Jackson Tai | Independent Director | Former Vice Chairman and CEO, DBS Group and DBS Bank Ltd. |
| Harit Talwar | Independent Director | Former Partner and Chairman, Consumer Business (Marcus), Goldman Sachs |
| Lance Uggla | Independent Director | CEO, BeyondNetZero |
Strategic Initiatives and Vision
World Beyond Cash Initiative (2017)
In 2017, CEO Ajay Banga reaffirmed the company’s commitment to reaching those beyond the orbit of the financial system with access to digital payment systems with the unbanked people of the world.
The company invested $500M in India with offices in Pune and Vadodara in an attempt to assist Mastercard in bringing cashless transactions to the largest population in the world.
The company additionally announced to invest an extra $750M in cashless apps and technology, particularly on India between 2017 and 2020.
Banknet – Global Payment Infrastructure
Mastercard operates Banknet, a worldwide telecommunications system that ties all the:
- Mastercard Card issuers
- Acquirers
- Data processing centres
into one financial telecommunications network. The operations hub is in St. Louis, Missouri. Banknet uses the protocol 8583 from ISO.
Network Architecture Comparison
Mastercard’s network is quite different from Visa’s network:
- Visa’s Network: A star-based system in which all endpoints terminate at one of a number of main data centers in which context all transactions are processed centrally
- Mastercard’s Network: An edge-based, peer-to-peer network where transactions travel a meshed network, directly to other endpoints, without having to travel to a single point
Network Resilience Advantage
This means that Mastercard’s network is much more resilient, in the sense that a failure in one location can not isolate a large number of endpoints.