Mastercard at Barclays Conference Notes

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Linda Kirkpatrick – EVP

Opportunities for new electronic payment

“. So the traditional merchant verticals that I mentioned earlier are fairly well penetrated with respect to electronic payments. The verticals that are not as mature or more nascent are rent, education, consumer loans, utilities, so these are businesses that are much more reliance on half stack and you see it as a form of payment and it’s in those verticals that we really see the opportunity to convert a significant amount of volumes, trillions of dollars in volume over to electronic.”

84% of global transactions are in cash and check

“So we talk about 84% of our world transactions are conducted in cash and check today. And when we look individually at the merchant verticals they each bring their own unique value proposition to us and we are motivated to expand those acceptance categories and to capture those transactions. Every transaction to our network represents an additional opportunity to generate revenue and to capture data, so we’re highly interested in expanding our reach.”

Apple Pay is a container in which MasterCard products can be loaded

“‘d say again Apple Pay is a container in which MasterCard products can be loaded. As it Samsung Pay as is — as it’s not the path frankly. So to the extent that those players are growing and building their platforms and we’re partnering very directly with them was giving them our tokenization technologies so that they can build those efforts when they grow so do we. So it’s from our perspective a positive that everyone is focusing on creating a safer more secure way to pay online as that’s where we see the trends moving.”

We play an important role in the process

“Well, I don’t know where regulation is going to go and how the new administration is going to look at Durban and other regulation that has been enacted but I’ll say as we play a very neutral third party role and interchange. It’s a unique industry that we’re in where interchange needs to be set in a way that promotes issuer to issue the card and also promotes merchants to accept those cards and that balance has to be incredibly well managed, otherwise it will stop the ecosystem as a whole. So from our perspective, someone needs to manage our process. We can’t expect millions of merchants to be able to negotiate separately with banks, but they – is not going to have the opportunity to do that.”