Ghent University Faculty of Arts and Philosophy
“International Marketing and Management”:
an internship at MasterCard Worldwide
Supervisor: Ms. Ellen Van Praet Confidential Information
Paper (“scriptie”) submitted in partial fulfilment of the requirement for the Advanced Master Degree: Multilingual Business communication by Vanessa Vanleene
2008-2009
Acknowledgements
I would like to thank my mentor, Geert Brisart, for his speech on MasterCard back in
November 2008. It immediately motivated me to do my internship at this international
company. I want to thank him and all of my colleagues, Steven Van Sweevelt, Andrew
Slattery and Luisa Marques for their kindness, help and trust. With everything they did, they
made sure that my first experience in the world of business was a positive one.
A big thank you also to my parents for supporting me during this postgraduate master. They
are a bottomless source of creative ideas and assistance. Thanks also to my sister for not
minding me making so much noise every morning at 6.10 a.m.
Thank you to my lovely friends, the ones who literally travelled with me to Brussels and the
ones who did so mentally. All of their friendships mean the world to me.
Finally, thank you so much to my boyfriend, as encouraging and loving as ever. At the same
time also the one person whom I can talk to on financial topics, his extensive economic
knowledge and his support have been priceless.
Contents
1. Introduction....................................................................................................................1
2. MasterCard Worldwide...................................................................................................3
2.1 The payment card industry......................................................................................3
2.2 Corporate history ....................................................................................................9
2.3 Current developments in the payment market......................................................12
2.4 Competition on the payment market ....................................................................19
2.5 MasterCard SWOT analysis ...................................................................................22
3. International management and marketing....................................................................26
3.1 International management ...................................................................................26
3.2 International marketing ........................................................................................29
4. MasterCard Worldwide: internship...............................................................................36
4.1 Maestro in Europe ................................................................................................36
4.2 Market research....................................................................................................36
4.3 Marketing presentations.......................................................................................40
5. MasterCard: Conclusions ..............................................................................................46
6. Lexicon .........................................................................................................................49
7. Works cited...................................................................................................................51
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1. Introduction In May and June 2009, I was an intern at the external communications department at
MasterCard Worldwide. this particular company drew my special attention because of its
international orientation, its excellent reputation and the ‘mysterious’ product. I was eager
to find out how a payment card company worked, what exactly they sold and what my role
in the process could be. I became part of the Benelux Business Development team which
focused mainly on MasterCard’s business with the merchants and their banks in the Benelux,
a team led by Steven Van Sweevelt.
The merchants and especially their acquiring banks are very important to MasterCard
as their preferences and needs have a great impact on the payment process. It is of vital
importance that these parties are convinced of the customized solutions MasterCard has to
offer. However, MasterCard is just as important to the merchants as the merchants are to
the company. It would be very inconvenient and far too costly for the merchants to set up
their own payment card system. The present requirements of quickly accepting international
cards would make it especially hard to process payments without the existing network of an
internationally recognised brand of cards.
I will explain the intricate ways of the payment industry in the first chapter of this
paper. In that initial chapter, I will also give a short overview of MasterCard’s origins and
development in time. A third part will focus on some important developments in the
payment market and their impact on the company. The company’s competitors’ situations
will also be touched upon before concluding with a MasterCard SWOT analysis.
On my first day at MasterCard, I was immediately confronted with the international
orientation of the company when I met my colleagues. My closest co-workers were from
Great-Britain, Mexico, Portugal, Flanders and Wallonia which led to English being chosen as
the language of everyday communication. Many of my assignments, such as drafting
presentations, also required translation in three languages (English, French and Dutch) so
that they could be applied to various markets. All this made me wonder what the impact
really is when a company decides to transgress the borders of its mother country. The
second chapter of this dissertation is therefore on the topic of international management
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and marketing. This is where I set out to discover what matters most in conducting
international business. I also include examples from MasterCard to explain their way of
handling the global diversification.
In the third chapter, I elaborate my specific responsibilities and assignments. I will
indicate how the business analyses I worked at and the presentations I helped create were
all part of the implementation of Maestro in Europe and its consequences. The conclusion
will round up what I learned from this experience and how my postgraduate master helped
to find my way around MasterCard Worldwide.
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2. MasterCard Worldwide
2.1 The payment card industry
Globally there are more than 24,000 financial institutions providing payment cards, 27
million merchants accepting this kind of payment and hundreds of millions of cardholders1.
The financial institutions which provide the card acceptance services to the merchants are
called the ‘acquirers’. The consumers on the other hand have the ‘issuers’ to turn to: these
issuing banks take care of the cardholders and their accounts. The card payment industry
uses a number of arguments to convince merchants to accept payment cards in their
businesses. These cards are said to save time and money and enable merchants to attract
and retain more customers. According to the industry, payment cards offer consumers more
security, convenience, and control than any other payment method. The wide variety of
cards available—including credit, debit and prepaid—offers flexibility as well. Payment cards
enable consumers to purchase items in stores, but also on the Internet, through mail-order
catalogues and over the telephone, thus widening the (international) commercial
opportunities for customers and merchants alike.
MasterCard Worldwide is one of the most widely recognized card brands in the payment
card industry. Other brand names are, for instance, Visa and American Express. The industry
covers businesses with debit, credit, prepaid, Automated Teller Machine (ATM) and Point of
Sale (POS) cards. The role of MasterCard is to link banks, cardholders and merchants in the
four party model of electronic payments. It is of vital importance to explain what this model
consists of to clarify MasterCard’s role in the system.
The major bank card associations, such as MasterCard Worldwide and Visa, are the
connection between the four parties which are involved in each card transaction: namely the
cardholder, the cardholder’s issuing bank, the merchant and the merchant’s acquiring bank.
Even though all four parties need MasterCard’s services to complete any transaction, only
acquiring and issuing banks are MasterCard’s direct clients. When a consumer intends to
make a purchase using a payment card, he/she will ‘swipe’ or ‘dip’ the card at the terminal
1 For technical information on MasterCard and the industry, I also used MasterCard’s employee information which is only available on the company’s intranet.
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at the point of sale (POS). The terminal will transmit the information of the transaction via
the acquiring bank, via MasterCard to the issuing bank. The issuing bank will check whether
this specific cardholder has the requested credit available. In a few seconds, the transaction
is approved and the consumer’s available credit is reduced by the requested amount. In case
of a debit payment card, this reduction happens immediately, if a credit card is used, the
total amount spent in one month is only paid back at the end of that month. If only a portion
of the total amount due is paid, the remaining balance is passed on to the next month. In
this case, the sum becomes subject to finance charges depending on the credit card holder’s
agreement with the bank. MasterCard thus links acquiring banks and issuing banks to
transmit the correct information and at the end of the day, the company also settles the
scores between the various banks all over the world.
This, however, is only a small part of MasterCard’s role in the payment industry. In order
to look into the various functions of the company one had best use the three-tiered business
model it has adopted. In this business model, MasterCard presents itself as a franchisor,
processor and advisor. Since the adoption of the three-tiered business model, MasterCard
has also aimed to move towards a more transparent governance model. As mentioned
before, it is a common misconception that MasterCard issues cards to consumers and solicits
merchants to accept such payment cards.
MasterCard has only one group of clients: the financial institutions. These issuing and
acquiring financial entities deal with the needs of, respectively, consumers and merchants.
As a franchisor, MasterCard thus presents the banks with a portfolio of brands and products.
There are over 28 million acceptance locations for MasterCard, Maestro, Cirrus and
MasterCard Paypass. I will specify the differences between these financial products further
on in this chapter.
The second part of the business model focuses on MasterCard’s more technical
functionalities (processor). Thanks to the company’s electronic system and huge database,
whatever transaction -wherever on this planet- with a MasterCard branded payment card
and a terminal, is checked and approved within seconds.
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The third and final part of the business model is MasterCard’s service as an advisor,
providing industry-leading analysis and consulting services. The extensive data gathering of
MasterCard’s electronic network is put to good use as it enables the company to track
consumer behaviour and buying trends. With the results of some extensive data processing,
MasterCard can advise financial institutions and merchants to better anticipate the
consumers’ wishes and needs. I will elaborate on this when I discuss MasterCard’s products
further on in this chapter.
MasterCard Worldwide aims to present customised solutions to its international clients.
In order to do so the company has several divisions to cover the various regions of this
world: Asia Pacific, Canada, Europe, Latin America, South Asia/ Middle East/ Africa and the
United States. The global headquarters can be found at Purchase, New York. Each region
however, has its own MasterCard headquarters at one of the major cities2 of the area. The
offices of each region also offer its customers access to the payment services all over the
world and that in their own language. MasterCard’s tagline “heart of commerce” resonates
in this dedication to advance commerce globally. This dissertation will touch upon the
structure of the European region and leave out the other regions as these are similarly
structured.
MasterCard Worldwide’s business in Europe is managed at the European headquarters
at Waterloo, Belgium. The 51 European countries are organized into three areas. Given the
fact that MasterCard is the critical link in the four-party electronic payments model, the
company has installed local offices to better meet the needs of the customers. Even though
Europe, as a continent, is one of the smaller continents MasterCard Worldwide covers, the
various markets are extremely diverse not only in language but also in preferences and
character. MasterCard Worldwide on the whole provides businesses with its services in
about 210 countries all over the world. Europe’s 51 nations in only one zone indicate a very
diversified territory. Additionally, as the European region reaches all the way up to the
2 Southeast Asia/ Middle East/ Africa: Dubai, Europe: Waterloo, Asia /Pacific Region: Singapore, Latin America/ Caribbean: Miami, North America Region: New York, Canada: Toronto
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eastern border of Russia, there are both very mature markets as those in early development
in Europe.
The second chapter on international management and marketing will provide the reader
with a better understanding of the impact of the international diversification. My internship
covered the SEPA (Single European Payments Area) of Europe, and more specifically the
Benelux. I will elaborate on the SEPA and its consequences for the card payment market in
part 1.3. (Current developments in the payment market) of this first chapter. The President
of MasterCard Europe, Javier Perez, is responsible for all European countries and the 9,000
MasterCard financial institutions in the area.
In the following part, I will elaborate on MasterCard Worldwide’s product range. The
company has a very diversified range of payment programs and services. There are three
brands: MasterCard, Maestro and Cirrus and the product portfolio consists of: MasterCard
credit cards, MasterCard debit cards, Maestro online debit cards, Cirrus ATM cash access and
their related programs. First of all, there is the classic credit card whereby the cardholder
obtains a line of credit. With a credit card, the cardholder can buy goods and services with
borrowed money and retrieve cash up to the, previously agreed upon, maximum credit limit.
Once a month, the cardholder receives a statement detailing the previous month’s
transactions. The loan is interest-free if the cardholder pays the entire total due by the end
of the month. In this case, the line of credit was merely a short-term loan. If the cardholder
chooses to pay later, the sum is transferred to the next month and subject to, previously
established, interest. There are many possibilities when it comes to credit cards, mostly
differentiating according to fees paid on purchases, fees paid on balance transfers and the
additional rewards. These rewards can be fly miles, clothing discount cheques or tickets for
large sports events.
Secondly, there is the ever more popular debit card. Debit cards are swiftly replacing
credit cards as well as cash in the world of payments. Customers opt for the safety of
carrying less cash but also the control of their spending with a debit versus a credit card.
When a debit card is used to make a purchase or a withdrawal, the amount is immediately
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deducted from the cardholder’s checking account. There is no line of credit the consumer
can count upon, only the available money on the account. When it comes to debit cards,
MasterCard offers Cirrus cards and Maestro cards. Cirrus cards offer the possibility to
withdraw money at Automated Teller Machines (ATMs) everywhere in this world. Over
892000 ATMs at airport, transit stations and shopping malls offer the possibility to withdraw
the local currency. Opting for a Maestro card on the other hand means getting one card for
shopping as well as withdrawing money. The Maestro network reaches 60 different
countries and the network is spreading steadily as over 90 million Maestro cards have now
been issued. A feature of the debit cards which is greatly appreciated by the more careful
consumer of today, is the fact that these cards allow to keep track of spending. With each
transaction, a receipt is printed and every purchase is listed in detail (date, time, place and
amount) on the monthly statement.
The third kind of payment cards which also allows a great deal of control are the
‘prepaid’ cards. As the name indicates, prepaid cards need to be uploaded in advance. There
is no line of credit, and there is no link with any kind of checking account. The consumer
loads a certain amount of money onto the card. The card can then be used to withdraw
money at a different location and for purchases in the shopping street, by phone, by mail-
order and on the internet. Cash can be loaded onto the prepaid card at post offices and
convenience stores or via bank and internet accounts. Prepaid cards can be used abroad at
any location where MasterCard is accepted. As it is impossible to overdraft, there are no
interest fees but certain fees can be charged depending on the kind of card. There are
prepaid gift cards, prepaid travel cards and prepaid cards for everyday use.
A fourth and very innovatory type of payment because it does not require ‘swiping’
or ‘dipping’ the card, is PayPass. With PayPass, a simple tap to a PayPass terminal with the
PayPass card, a special PayPass keyring or a PayPass activated mobile phone, allows the
consumer to pay for items under 12 euro. This contactless payment method is speedy and
convenient as there is no need to enter a personal secret code. I will further elaborate on
PayPass in 1.3. when I will discuss ‘Smart Cards’ as one of the most recent developments in
the payment market.
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MasterCard however, has also listened to the needs of the market, especially the
merchants, when offering the ‘advisor’ products. According to Andrea McKenna in
“Payments Industry gives Retailers the Loyal Treatment”, the demand for data processing
came directly from the merchants.
As merchants seek better ways to increase customer loyalty, some payments players are well-positioned to help them collect that valuable information at the point of sale. And the demand from merchants to have these loyalty programs makes it critical for transaction processors and program operators to use their data and analyses to become more valuable to the retailer. (21)
For a merchant it is vital not only to have loyal customers, but also to have customers who
spend more and visit more frequently. In order to get such positive results however, a
merchant needs to be able to anticipate the customer’s needs. Retailers want to get this
kind of information to be able to offer special deals on specific products the customer
happens to be planning to buy. This is called ‘predictive marketing’. (McKenna 21) The
gathering and processing of these facts about the customer is where MasterCard’s advisor
services come in. MasterCard takes care of the process of managing complex amounts of
transaction data, turning it into useful information to drive customer traffic for its clients. At
the Point of Sale, MasterCard can get details on how much customers spend on which
products and at what time. Other than help with ‘predictive marketing’, the company also
analyses the results of promotional offers to see how successful they have turned out to be.
In certain areas, such as luxury goods, these special deals can often include sending a
sales person to help the customers shop. I participated in a Merchant Development Team
meeting to brainstorm on the topic of the offers MasterCard could make to high-end
retailers. This was supposed to take customer knowledge one step further, so retailers could
make the shopping experience match each individual’s different needs. The merchant’s IT
system would allow him or her to insert, store and recall information on specific customers’
preferences on the basis of their card information. However, to know which customers
prefer the help of a sales person, the payment card which identifies a customer and his/her
preferences, would need to be scanned at the entrance. These ideas may be realised in a
fairly near future since even a lot of knowledge can be gathered concerning any small group
of customers even with present-day applications. A retailer can target a certain individual
who made a certain purchase, for example buying baby diapers. On the basis of the first
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purchase, the merchant can predict that the customer will also be interested in baby food,
and later on food for toddlers. The card company who communicates with the cardholder
each month through the billing statement, can use the information to advertise the
merchant’s new, personalised, offers. As McKenna concludes, “[s]uch programs can help
merchants to develop better shoppers by communicating directly with loyalty cardholders
through card statements and e-mails. They also can target offers based on consumer
shopping behavior identified through card use.” (24)
MasterCard has chosen to adapt to the needs of the market in this way to be able to
differentiate. By helping retailers to get loyal customers, the brand hopes to get equally loyal
retail customers itself. According to T. Jack Williams, president of prepaid and debit
payment-processing company eCommLink Inc., differentiation is key. “The real effort is to
get the merchant to use your company for a variety of services so it’s painful, if not
impossible, to leave.” (McKenna 21) In June 2009, MasterCard purchased a Dublin software
company called Orbiscom Ltd. to better cater to the customers’ wishes. This was an
investment of $100 million in MasterCard’s advisor role for card-issuing banks, as the
company keeps outgrowing the initial core job of facilitating transactions. “Orbiscom’s
technology lets banks give their customers control over how their cards are used. For
instance, consumers who do not trust online merchants with their personal information can
get one-time-use account numbers.” (Terris 1) For MasterCard, the acquisition is a positive
result of the economic crisis of the past year. Initially, the vendor had only a partnership with
MasterCard but the financial crisis made acquisition prices very favourable. According to
John Williams, analyst with Macquarie Group, Orbiscom is a relatively small acquisition for
MasterCard anyway. “Any opportunity for the processors to enhance the platform that they
can offer to the banks is a good thing assuming it’s done at the right price.” (Terris 2)
2.2 Corporate history
The American born company MasterCard started out as the Interbank Card Association in
1966. It was created by a group of banks as a member-owned association as opposed to
other organizations such as BankAmericard, now known as Visa, which was dominated by a
single bank. At the ICA, elected member committees were in charge of the company’s
actions. (McKelvey 253) During the following years, the ICA developed a global network of
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banks in- and outside the USA. In 1969, the brand acquired the “Master Charge” name. The
brand quickly developed payment cards with magnetic stripes ‘magstripe’ used in the
trademarked interlocking circles. In 1979, exactly 30 years ago, the Californian Banking
Association purchased the Master Charge trademark and stressed the importance of
international growth by renaming the company: MasterCard. In the 80s, MasterCard became
a pioneer in various fields. The company was first to introduce the hologram security device
(1983), it was also the first-ever payment card issued in the People’s Republic of China
(1987), in the Soviet Union (1988) and MasterCard ended the decade as the industry’s co-
branding3 leader. (McKelvey 253) The 90s were mainly about raising brand awareness and
usage all over the world through large-scale advertising campaigns. Maestro, the world’s
first online POS debit network, was launched in order to reach as many customers as
possible in the four corners of the world. In 2001, MasterCard decided to add an extra
service to its workbook. In order to find a good use for the data gathered from all the
MasterCard transactions and the years of experience in the payment industry, the
MasterCard Advisors’ professional services was launched. This was at the time the largest
global consultancy focusing on the payment industry.
MasterCard converted into a private-share corporation called MasterCard International
after a merge with Europay International in 2002. MasterCard International reflected the
company’s ambition to become the industry leader as one worldwide company with one
management team. Merely 4 years later, the company again decided to change the
ownership structure to stress the globally integrated structure. This major transition led up
to MasterCard Inc. trading on the New York Stock Exchanger as MA from 2006 onwards.
More than ever, MasterCard stood at the forefront of global economy with its vision of
advancing commerce worldwide . MasterCard International thus changed its name to:
MasterCard Worldwide, The Heart of Commerce™.
In order to understand what the influence of these recent changes on company culture
has been, it is important to look at the impact of the move to the New York Stock Exchange.
MasterCard’s shares were listed for trading on the New York Stock Exchange in 2006. This
3 ‘co-branding’ is used to indicate a brand alliance between two or more brands of one product, in this case, a payment card. Examples are ING bank and MasterCard, 3suisses and Mastercard, etc.
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constituted a major change as it meant that the actions of the company would be directly
linked to the value of the stocks. MasterCard’s successes and failures were now to be
evaluated by an independent board. The company’s performances were to be tracked by
financial analysts and public investors would have their own specific points of interest.
Regulators and investors would get detailed information of MasterCard’s investment of their
money, which would directly lead to increased scrutiny. Today too, MasterCard employees
are able to buy in on stocks, or they receive stocks of their own company as an additional
salary. These stocks need to remain in their possession for a minimum of three years. The
stocks are used as incentives for the employees, encouraging them to deliver good work.
This listing on the stock market also allowed the company to access the public market to
raise capital. Thus, from 2006 onwards, the company culture became results-driven and high
performance-oriented, quite different from the atmosphere of the previous close-knit group
of befriended banks. The new strategy is to be customer-focused, and to employ a
commercial mindset to enhance shareholder value. All of this led to an extra investment in
marketing strategies, such as TV commercials and advertisements. MasterCard’s “Priceless”
campaigns hit the right spot with the public. Proof of this are the many alternative home-
made ‘priceless’4 movies which are being uploaded on consumers social network sites such
as YouTube and Facebook. The cultural transformation also led to a huge change in the way
MasterCard employees could and should communicate with the public. As of 2006, all
statements to the media or the investment community had to be made by the designated,
trained company spokespersons. In addition, the company has adopted a very strict ‘clean
desk’ policy, reminding employees that no MasterCard-related information should ever be
left on desks at night. Computers and documents all need to be locked away in employee
desk lockers. All presentations and PowerPoint slides need to have passed through the Legal
division of MasterCard Europe before they can be submitted. All of these measures have to
be taken in order to avoid careless inside trading or tipping and to protect company ideas
from the competitors.
4 Even detective “Stella Bonasera” from the popular tvseries CSI made reference to the priceless campaign in fourth episode “Hung out to dry” of season three (2006).
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2.3 Current developments in the payment market
This section of the paper will focus on a few important developments in the payment
industry which have had a huge impact on the financial industry as a whole, on the company
specifically and on the responsibilities of my internship.
First I want to consider the decisions made by governments and policymakers which
impacted on the world of payments. The creation of a single European payment zone, for
instance, can potentially improve business for MasterCard. Secondly, there are the problems
with the interchange fees which have led to court cases for both MasterCard and its
competitors. Thirdly, there is the recent Cardholders’ Bill of rights which has been signed by
President Obama. The fourth and final subject I will touch upon is the rise of the ‘Smart
Cards’ and MasterCard’s very own PayPal.
I will start out by discussing the Single European Payment Zone, SEPA. In December
2001, the European Union imposed a new law to force banks to use the same fees for cross-
border and national payments. This allowed European consumers not only to pay with the
euro currency irrespective of the country, but also to make non-cash payments against
established and reasonable tariffs. The banks however, started to lose money because the
costs for processing the cross-border payments remained very high. The European Payments
Council or EPC was created to come up with a fit solution for this problem. The result was
the SEPA project, a project to create a unified European retail payment market. In this
monetary union, from January 2008 onwards, any economic citizen should be able to make
and receive payments in euro, by cash or by card, under the same basic conditions, rights
and obligations, anywhere in the SEPA zone. As a direct result the payment market is
opening up as the regional payment schemes have to face their international rivals.
Merchants have a far greater choice of acquiring banks and cardholders can browse many
more issuing banks. An openly competitive acquiring market means wider choice and more
value for money for the merchants. Cardholders will discover a wider card acceptance and a
payment market which will be innovating to better meet the customer’s needs. Whereas
‘domestic’ payments used to indicate: within one country, in Europe it will indicate any
payment within the SEPA zone. A cardholder with an Italian card, paying a Belgian merchant
with a Dutch acquiring bank will no longer be defined a ‘cross-border’ payment.
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All of these innovations offer great possibilities to the major payment card companies
like MasterCard and Visa. Those market leaders already have the system in place to have
international interoperability with wide POS and ATM acceptance. A very sophisticated and
complex system is required to process payments from the many different European
acquiring banks, issuing banks, cardholders and merchants. On the other hand, the increased
standardisation of fees and tariffs will make it easier for new payment initiatives to compete
with the established schemes. The result of all this is that debit cards which can be used
internationally become en vogue. Belgium’s Bancontact, the Netherland’s Pin and the U.K.’s
Switch domestic debit card systems, all limited to domestic –within one country- payments,
are now gradually replaced by MasterCard’s Maestro and Visa’s V-Pay to allow for debit
payments within the entire SEPA zone. European cardholders no longer need a credit card to
conclude an electronic payment in another SEPA country. The payment industry has also
noted a strong growth in the customers’ preference of debit over credit. In 2008, the in-
store use of debit climbed to 37%5 of the payment mix, up from only 21% in 1999. In order
to further push debit cards, MasterCard adopted a marketing strategy linked to the major
sports event of the year: the euro 2008 football championship. This sponsorship raised
awareness of the Maestro and MasterCard brands amongst the European public. It is too
early yet to tell whether the underlying reason for the switch to Maestro has been
sufficiently explained to the public. Society needs to be aware that it is the decision of the
European Commission which triggered this evolution from regional to international schemes.
Naturally, these new European rules were applauded by the industry but they were not a
stunt of the international credit card companies.
The ‘interchange’ discussion between the various members of the payment card
industry and the European Commission has featured heavily in the news. Interchange is a
fee which acquiring banks need to pay to issuing banks on each transaction. This fee is
supposed to compensate issuing banks for the risks and costs of providing cardholders with a
line of credit, a card and a checking account. Issuing banks have a far greater cost than the
acquiring banks as a result of administering millions of cards and investing in secure
technology and innovation. In order to achieve a better balance, this interchange fee was
5 Hough D., Riddle M., Allen C. and Fox M. “Banking Strategies. World of Choice: Consumer Payment Preferences” January| February 2009. The 2008 Study of Consumer Payment Preferences by BAI Research and Hitachi Consulting, quoted in MasterCard’s Employee Information.
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imposed on acquiring banks, and via those banks also on the merchants. In December 2007,
the European Commission ruled MasterCard’s interchange fees to be too high and imposed
a maximum. From June 2008 onwards, MasterCard had to repeal the MasterCard and
Maestro Intra-EEA cross-border POS interchange fees and replace them by temporary
interchange fees, approved by the European Commission. MasterCard has appealed before
the Court of First Instance but until a decision is reached, the temporary fees are valid in the
27 member states of the European Union. MasterCard’s biggest competitor, Visa, tried to
stay ahead of the legislators by voluntarily lowering its fees, signing an anti-trust agreement
with the European Union’s Competition Commission in 2002 . The European Commission6
however kept investigating the case and opened proceedings against Visa in March 2008.
The E.C. sent a Statement of Objections to the company in 2009. The retail association
EuroCommerce too, with Tesco and Carrefour amongst its members, demanded in June
2009 that Visa should lower the fees a great deal more. Lawsuits against Visa7’s interchange
fees are thus pending. Most acquiring banks recuperate the interchange fee from the
merchants. The interchange fee thus becomes a component of the Merchant Discount Rate
paid by the merchants to the acquiring banks for its acquiring services. The payment card
brand does not receive any percentage of this fee. MasterCard does set the price and the
level at which the interchange fee is set is of great importance. If it is too high, merchants
will not be eager to accept MasterCard payments cards. If it is too low, the issuing banks will
not receive enough compensation for the risks run, and MasterCard cards will not be
promoted with consumers. MasterCard believed its fees to be at a perfect balance between
maximizing card issuance and card acceptance. The decision of the European Commission
has definitely hurt the issuing banks and, indirectly, MasterCard.
Several factors are considered when setting an interchange fee. All of these
requirements must be satisfied in order for a transaction to qualify for a certain rate.
Examples of defining elements are: the merchant’s MasterCard sales and transaction
volume, the product type, the merchant category8. It is obvious that the company is hoping
6 http://www.europa-nu.nl/9353000/1/j9vvh6nf08temv0/vi3zjmbkntwj?ctx=vhk5iszwtoxv (consulted 12/08/2009) 7 http://sibosonline.com/fullstory.asp?id=20134 (consulted 12/08/2009) 8 Merchants are divided into categories according to their kind of busines, for example: hotels, restaurants, clothing shops, airlines, etc. An identifying number is linked to each specific category.
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to win the appeal so they can raise the interchange fees to their previous levels. What very
few people know is that the payment card companies have simply found new ways to get
the fees from the acquiring banks to the issuing banks. They have simply renamed the taxes
on the price lists, incorporating them in other fees.
In 2009, another important decision in the field of card payments was made as a
direct result of the global financial crisis which found its origins in the United States. On 22
May 2009 U.S.’ President Obama signed a wide ranging credit card reform bill. The
Cardholders’ Bill of Rights had already passed the House of Representatives the previous
year. The result is that from February 2010 onwards, new restrictions on interest rate
increases will be imposed. In addition, a notice of 45 days before changing interest rates,
requirements for transparency and limits on chargeable fees are imposed. It will also be
more difficult for youngsters under 21 to obtain a credit card. The new legislation will have a
big negative impact on MasterCard and its competitors and colleagues in the payment
business. The bill will force banks to limit the lines of credit they extend. With limited lines of
credit, there will be less spending with payment cards, resulting in less revenue for the
payment card companies.
The credit card fees are supposed to compensate the financial institutions and credit
card companies for the risks associated with credit card use. A card holder can decide
individually when to take out a loan, without having to go through the bank. The bank
merely sets a monthly limit on the size of the loans. The biggest flaw of the system however,
is that not everyone is able to deal with loans in a responsible way. Many card holders
overcharge when they have no opportunity to pay the loan back at the end of the month,
before the amount spent is charged with interest fees. Obama’s bill thus protects
irresponsible card holders against themselves.
Certain credit card holders, such as legal commentator Horace Cooper9, believe the
law punishes the responsible credit card holders. The bonuses they usually get for
responsible credit card use, such as lower interest rates and no annual fee for their accounts,
will be dropped. As credit card companies and banks have to limit the extended lines of
credit, they will seek revenue in similar charges for all cardholders. It is also feared that
9 http://foxforum.blogs.foxnews.com/2009/05/20/cooper_horace_credit_cards/ (consulted 08/08/09)
16
banks will reduce the activation period of the issued credit card from a period of several
years as now to mere months, in order to limit the risk. The new rules attempting to limit
overcharging and sky-high interest rates will put credit out of reach for a large part of the
population. At the White House meeting, President Obama addressed the invited executives
of credit card companies: “I trust that those in the industry who want to act responsibly will
engage with us in a constructive fashion, and that we’re going to get this done in short
order.”10
The final development in the current world of electronic payments is one which the
payment industry has been working hard on in the previous years. The industry has been
developing appropriate programs to counter payment card hackers, as this white-collar
crime generates a lot of-for the credit card sector- unwanted media attention. Thus Europay,
MasterCard and Visa recently developed the EMV-chip11. They created a frame with strict
international standards which applied for the chip cards, the chip cards accepting terminals
and ATMs. According to Dan Balaban “[t]he chips banks use for their EMV cards are in a
different class from the low-cost Mifare Classic12 transit and access-control cards […]” (14)
Payment-systems specialist Mike Hendry too believes that no EMV card has yet been cloned
successfully. The EMV chips are equipped with microprocessors to enable the cards to deal
with higher-level encryption keys and algorithms. U.K. researchers however did show that
card details can be stolen if someone tampers with the EMV acceptance terminals at the
Point of Sale. (Balaban 14)
The year 2008 was a year of fast development in the field of smart cards. Great
progress was booked in the field of e-IDs, e-Passports, contactless and Near Field
Communication (NFC) technology. Eurosmart released data indicating that the smart cards
industry sold 5,085 million units in 2008 and predicts to produce 5,400 million units in 2009.
The growth has to do with the growing EMV migration, the rise of contactless payment and
the global adoption of e-Passports. (“Cards industry continues to grow” Card Technology
Today (June 2009) 1-2) All of these products are gaining in popularity thanks to consumers
10 http://www.huffingtonpost.com/2009/04/23/obama-creditcard-ceos-mee_n_190473.html (consulted 09/08/09) 11 E M V stands for the inventors of the chip: Europay, MasterCard and Visa 12 The Mifare Classic card is an inexpensive, contactless, memory storage card. An example of it is the Oyster card, used at the London Metro.
17
and companies working hard to get their ‘green’ credentials in order. In 2008, Virgin Money
took it one step further by even dropped the plans for a biodegradable card in favour of the
state-of-the-art mobile phone technology. Rather than further developing another card,
albeit ‘greener’ than its competitors, the financial services company decided to invest in new
opportunities. Contactless technology has been developing quickly but until recently, both
MasterCard’s PayPass and Visa’s PayWave still used conventional payment cards. (Turner 6)
The ecological factor, however, is not the only reason smart cards are so attractive.
Contactless payment adoption has been very fast, especially when compared to the
time it took to get used to ATMs and signature debit cards. To pay with a contactless card or
phone, the device has to be held near a special contactless acceptance terminal. This allows
the cardholder to pay for transactions of up to 10 pounds without inserting a PIN13. The
smart cards do have a PIN and chip to allow for normal ‘dip’ or ‘swipe’ purchases and ATM
transactions. Furthermore, with the contactless payments, occasional checks to prevent
fraud will prompt for a PIN to be entered. This innovation has been welcomed by many
businesses and institutions and is on the verge of conquering many more, says Randy
Vanderhoof, executive director of the US-based Smart Card Alliance.
With over 35 million contactless payment cards issued so far and more than 100 000 merchants accepting contactless payments, some would consider this a mature market. However, that number is still very small compared to the total market […] New merchant segments are coming on board, such as upscale multi-lane supermarkets, discount warehouse chains, unattended vending operations, and new mass transit operations in major cities [...] (“Opportunities for 2009?” Card Technology Today 21:1)14
Some European countries such as France, Germany, the United Kingdom, but also Japan and
other large Eastern countries are far ahead of the rest of the world when it comes to the
implementation of smart bank cards. Latin America’s Mexico, Brazil and Canada on the other
hand still need to migrate from ‘magstripe’ cards to chip cards. In Japan, more than 50
million cell phone users are already carrying the wallet phones. This means that half of all
cellphone users have phones which are capable of serving as a payment means. The
sophistication of the mobile technology has greatly increased the memory and enlarged the
processing power of the cell phones. This has allowed for the smart cards to be matched
13 Personal Identification Number or password: it is a personal secret code linked to a payment card 14 anonymous writer published by Elsevier Ltd. “Opportunities for 2009?” Card Technology Today 21:1 (2009)
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with the handsets. However, only one third of those 50 million smart card activated
cellphone owners actually make purchases with their phones. (“Payment Via Wallet Phone”
Communications of the ACM 52:115) There are two different reasons for this. First of all there
is the psychological barrier. Customers fear that new technology will only create new
opportunities for criminals to intercept communication between the customer and the
merchant or the merchant and the bank. Secondly, there is the major issue of how many
merchants are actually ready to accept the new technology.
Barclays16 claims that over 8,000 retailers already accept contactless payments […] including many outlets of Pret A Manger, coffee Republis, EAT, BOOKs etc, Kispy Kreme, Threshers and thousands of independent retailers with more installing the technology every week. (“Barclays to go contactless with all customer debit cards” Card Technology Today 21:1)17
The major card brands each try to win over as many big issuing and big acquiring instances.
MasterCard and Visa even contact large merchants directly to conclude tailored deals.
Whereas Visa for example concluded a good partnership with Barclays at the beginning of
2009, MasterCard got Carrefour within the same time frame. Carrefour’s financial services’
subsidiary, Société des Paiements PASS agreed to launch the PASS MasterCard card from 11
February 2009 onwards. (“MasterCard and Carrefour launch contactless card” Card
Technology Today 21:1)18 For the merchant, the innovative card can help to attract and
retain new cardholders whilst also improving customer benefits and loyalty. The frantic
game of being the first with the best deal holds the payment cards industry in a firm grip.
Several of the presentations I made during my internship, served to convince potential
customers of the new possibilities and favourable opportunities of MasterCard’s offers.
An additional problem is that the new opportunities blur the line between financial
institutions, card brands and cellphone retailers. This might require a rethinking of the
business models. In any case, by 2013, the industry expects to have approximately 700
million consumers globally in possession of the wallet phone. (“Payment Via Wallet Phone”
15 anonymous writer “Payment Via Wallet Phone” Communications of the ACM 52:1 (2009) 16 Barclays is one of the biggest British issuing banks. It was the first bank in the U.K. to issue contactless Visa debit cards, from March 2009 onwards. 17 anonymous writer published by Elsevier Ltd. “Barclays to go contactless with all customer debit cards” Card Technology Today 21:1 (2009) 1-3 18 anonymous writer published by Elsevier Ltd. (“MasterCard and Carrefour launch contactless card” Card Technology Today 21:1 (2009) 1-3
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Communications of the ACM 52:1) Smart bank cards in combination with the Maestro
implementation will make future online shopping even more secure.
2.4 Competition on the payment market
The world of payment solutions is a very competitive business. The various payment card
brands compete with each other for the loyalty of the customers, the best deals with the
financial institutions and the strongest relationship with the merchants. They stimulate one
another to develop new and better, state-of-the-art payment solutions to better cater to the
needs of the markets. There are four major fields which can have an impact on MasterCard’s
position in the payments industry. First of all, the company pays a lot of attention to the
relationships with their customers, the banks, and the reputation of the brand. Secondly, the
recognition of their payment cards globally has to be worked at constantly. Furthermore, the
company keeps track of the number of issued cards and the extent of consumer and
business spending with them. The final key element which is linked to the importance of
brand name and reputation is the success of the marketing and promotional campaigns.
MasterCard has quite a number of competitors to deal with. Not only the other major names
in the industry, such as Visa, American Express and Discover but there are also a number of
direct threats to the MasterCard products such as the innovations coming from the world of
internet commerce (‘e-commerce’) and mobile phone commerce (‘m-commerce’). The final
competitor is the bank note as consumers continue to reach back to the means of payment
they know best: cash.
MasterCard’s biggest competitor, and the industry’s market leader, is Visa. This
company is operating the largest retail credit card network. Its revenue of 6,623 million
dollars in 2008 surpassed MasterCard’s 4,992 million dollars19 from the same year by far.
Visa has a very similar way of working, linking the members of the four-party payment
model. Many financial institutions issue both MasterCard payment cards and Visa payment
cards, this is called a structure of ‘duality’. Increasing consolidation with the banking
industry, however, has in recent years led to issuing banks deciding to issue but one of these
major players. “In the case of ‘non-dual’ financial institutions, MasterCard is competing with
Visa for the entirety of a member bank’s business.” (McKelvey 254) This can lead to the
19 2008 Annual Report on http://www.mastercard.com (consulted 16/08/09)
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issuing bank getting better deals from the credit card brands, they will, however, not be able
to have cardholders pick their favourite. The company, headquartered in San Francisco, had
an operating revenue of approximately $6,000 billion in 200820. Its total transaction count
rose to 53,684 million in 2008, up from 46,893 million in 2007.
American Express21 is a major financial and network services company of charge
cards, credit cards, travellers cheques, financial services and international banking. The
company has formed arrangements with financial institutions in 90 countries all over the
world, but mainly in the United States of America. With headquarters in New York City, this
card payment company is specialised in issuing corporate credit cards. The result of this
specialisation is that its cardholders spend two to four times as much as customers of
competing card brands, allowing American Express to charge a discount rate twice as much
as its competitors. In this way, American Express earns much more each time one of its cards
is used, on the other hand, the high acceptance rates also means that smaller retail
businesses are not easily convinced to accept American Express. Businesses not aiming for
those big spenders stick to accepting only MasterCard and Visa. American Express’ portfolio
also does not include debit cards. MasterCard and Visa have been sued by American Express
in 2004 for violating the anti-trust laws in the U.S.. The two biggest players of the payment
market were charged with forming a cartel, stopping banks from cooperating with American
Express. Both MasterCard and Visa were found guilty and Visa paid a $2.8 billion settlement.
In addition, American Express obtained the right to those banks who were previously locked
into exclusive agreements with the two frontrunners of the industry. A fourth card company
Discover Financial Services has also sued Visa and MasterCard with similar charges. The
three parties settled forcing MasterCard to pay a net after-tax fine of $515.5 million22 in
2008.
The fourth major payment card brand, launched nationally in 1986, is Discover Financial
Services23. Its network also covers over 185 countries, providing not just a cash rewards
credit card, it also offers savings products, student loans and a variety of personal loans. The
20 2008 Annual Report on http://www.visa.com (consulted 06/08/09) 21 http://www.americanexpress.com (consulted 14/08/09) 22 http://www.ecommerce-journal.com/news/mastercard_has_crossed_the_ts_in_the_story_with_discover_lawsuit (consulted 16/08/09) 23 http://www.discoverfinancial.com (consulted 16/08/09)
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company promotes its payment cards stressing the 0% annual fee and the cash back bonuses
for on-time payments. Customers can also opt for a cash back discount at select retailers or
bonus air miles at airline companies. Both American Express and Discover Financial Services
operated a closed-loop network at first , as opposed to MasterCard and Visa’s open-loop
network. Closed-loop cards are limited to specific merchants such as gift cards from a
retailer or a group of non-competitive retailers. The two companies decided to switch from
closed-loop to open-loop. At that point they discovered that many banks had an exclusive
issuing or acquiring agreement with MasterCard and Visa. The 2004 anti-trust trial resulted
from this disagreement between the payment card brands and banks. Since the conviction
of the two market leaders, Discover has been quickly developing its own impressive portfolio
of payment cards for students, businesses and frequent travellers alike. For now however, if
we compare recent stock prices of the four competitors, on the New York Stock Exchange
MasterCard stands very strong. On 14 August 2009, MasterCard stock prices were at
$202.6124, Visa at $67.80, American Express at 31.72 and Discover Financial Services at
$12.48.
Other competitors can be found in the world of online and mobile phone retailers or
e-commerce and m-commerce. A now very popular payment system called PayPal was
founded in December 2008 and acquired by eBay as its own payment program in 2002.
Originally, PayPal was the first system catering to the needs of the first online shoppers. At
the time, it simply filled a gap in the payments market of an online person-to-person
payment solution. It was unleashing a lot of economic activity which would not have
happened without this application. According to Aaron McPherson, research manager at IDV
Financial Insights, PayPal has been through two major shifts in the past. First “it shifted from
a service designed to move money among personal digital assistants to one that helped
people make payments at online auctions.” (Wolfe 3) In the second shift, PayPal began
offering its services through e-commerce websites other than eBay. In 2009, PayPal is
looking to offer new services outside payment on the world wide web. The program will
open its platform to other software developers. By letting outsiders build applications that
link to PayPal’s core systems, and thus to open up its platform, the brand is hoping to tap
24 http://www.marketwatch.com/investing/stock/MA (consulted 16/08/2009) and ‘Investors relations’ at the companies’ corporate websites.
22
into the rest of the payments industry’s energy. PayPal’s vice president of platform and
emerging technology, Osama Bedier, indicates that the goal is to let PayPal become “the
enabler for electronic products and services that otherwise might have no way to be
monetized.” (Wolfe 1) The brand has now also established itself in the business-to-consumer
payments, making it a definite competitor to the industry. In 2007, PayPal had $47.5 billion
in total payment volume out of a total of $113 billion in TPV for eBay. Compared to the TPV
of 2006, this was a 33% increase. In 2008, there were over 60 million active accounts in 190
countries all over the world. (MarketWatch 134) For now, PayPal is mainly a competitor to
the issuing banks. Even though PayPal is a competitor to MasterCard in the online payments
sphere, the two companies have also worked out some deals. PayPal has even been issuing
MasterCard branded debit cards in the US.
Amazon too offers its own payment service to surfing customers. E-shoppers can use the
Amazon Payment Service, paying directly from their own checking account or using an
Amazon Payment Account.
2.5 MasterCard SWOT analysis
The opportunities created by SEPA, the difficulties with the Interchange fees, the current
economic trends resulting from the financial crisis and the march from paper to electronic
retail payments give conflicting signals as to MasterCard’s future. A SWOT analysis clearly
listing the strengths, weaknesses, opportunities and threats can shed some light on
MasterCard’s position in the payment card industry.
When it comes to strengths, MasterCard as a company is widely recognised by
customers and rivals within the industry. The strong brand name is a must in this business as
the customers’ and merchants’ trust is of vital importance. A reliable brand of payment
cards pushes merchants to accept it at their shops and draws the attention of customers
inquiring about a debit or credit card. MasterCard is recognised as one of the blue-chip25
companies, meaning that is considered to be a well-established, creditworthy and large
corporation. The good financial situation of the company allows them to invest in innovation
and IT. This innovation combined with the possibilities of the IT department result in diverse
25 The term ‘blue-chip’ derives from the world of casinos. In poker games, the blue chips are the chips with the highest value. In the economic world it is used to denominate stocks of high quality which pay good dividends even if the company is down a bit. For example: Coca-Cola, Nike, MasterCard, Visa, etc.
23
products such as contactless payments. A final strength are the years of experience in the
business which have helped to create the large network of customers of acquiring as well as
issuing banks.
The weaknesses of MasterCard are very much related to the fact that the wellbeing
of the payment industry is influenced by how the international economy is doing. With
consumer confidence at an all-time low and thus careful consumer spending, payments on
the whole have gone down. Transactions are both fewer and smaller. Some consumers feel
the need to control their spending by using cash. Another weakness is that, notwithstanding
the innovations in the field of security, payment cards stay susceptible to fraud. In 2008,
information and data of more than 45,00026 credit cards were stolen from hacked
computers. The recently developed EMV chips and PINs offer reliable security walls but in
some countries payments using only the credit card data and an autograph are still possible.
Randy Vanderhoof from Smart Card Alliance indicates that “[p]roperly implemented, the
chip, payment terminal, and network can interact to prevent card cloning and add other
transaction security features.” (11) This eradicates fraud as the card information becomes
useless at the Point Of Sale. In the U.S. however, criminals can still clone and use magnetic
stripe cards. It would be of great impact to all members of the four-party payment system to
put chips on the U.S. bank cards too. For now, issuers, acquirers and merchants seems to
prefer the security risks over the investments such a transition would require. If criminals
illegally use someone’s payment card information, the cardholders do not run any risk as
they can easily retrieve the money if they can prove to their banks that they did not make
the purchase. It is mainly problematic for the banks who have to deal with all these fraud
related refunds.
The opportunities for MasterCard are multiple. Continued development of new
complex security systems enable the company to put an end to payment card fraud and thus
promote themselves as the most reliable card brand. Good contacts with mobile phone
companies enable MasterCard to be first in developing new high-tech payment possibilities
for the future. These developments increase the volume of debit card business and attracts
the attention of new customers. New payment possibilities are therefore one of the biggest
26 http://www.deredactie.be/cm/vrtnieuws/binnenland/1.541658 (consulted 01/08/09)
24
growth opportunities for the company. MasterCard has now also enlarged its portfolio with
Maestro SecureCode, a security system for debit payments online. The new possibilities in
Europe to pay with a debit card in any country in the SEPA zone, opens up the market for
debit cards. Payment cards are not only used abroad or used to make big payments, but
groceries and other daily shopping sprees at local retail locations are paid by card as well.
Credit cards remain ideal for short-term loans as these loans –if paid back at the end of the
month- are not charged with any fees. Consumers thus have better control over postponing
a number of large payments to the end of the month when the wages are deposited.
Moreover, cards are now considered the ‘green’ alternative to paper money, as one small
plastic card replaces piles of printed paper bills and metal coins.
The main threats for MasterCard come from their strong competitors, the volatile
economic environment, the security dangers and the European regulations. MasterCard’s
most important competitor is Visa, another well-established international payment card
brand. Competition is constantly on, whether it is in saturated markets to try and conquer
customers of the other brand or whether it is in new markets (such as Russia) where it is
important to offer the most favourable deal. Any innovation at MasterCard can be quickly
countered by Visa innovations and visa versa. Other competitors like American Express, also
push MasterCard to stay at the top of their game.
Another important threat is paper money, or cash. As mentioned before, whenever
consumer confidence is low, consumers tend to reach back to using cash. The recession has
definitely had an effect on size and number of card transactions. Doing groceries when
carrying only cash will automatically limit the consumer to spending only the cash in hand;
with a credit or debit card, there are hardly any limits. According to the BAI/Hitachi research
project, consumers say “that they would spend about $30 on a cash transaction at most. By
contrast, their maximum purchase on a debit card averages about $100”27. Merchants also
prefer cash for small amounts as there is a fee to be paid on each payment card transaction.
Merchants often believe that small transactions are not worth the cost. Some merchants
have thus imposed an extra fee on their customers if they wish to pay by card for an amount
27 Hough D., Riddle M., Allen C. and Fox M. “Banking Strategies. World of Choice: Consumer Payment Preferences” January| February 2009. The 2008 Study of Consumer Payment Preferences by BAI Research and Hitachi Consulting, quoted in MasterCard’s Employee Information.
25
of five euro or less. Within the market, there is also the cannibalisation of credit cards by
debit cards. The ever-growing popularity of debit cards, and the widespread use, entail a
downfall of the credit card use. Furthermore, the tighter regulations imposed by the
European commission increase uniformity of tariffs and fees. Not only can this mean less
profitability, it also opens opportunities for new (European) initiatives on the financial
market.
A final threat is the danger of client concentration. If banks merge to become bigger
companies, they are better able to negotiate with MasterCard than smaller entities. Given
the fact that MasterCard depends heavily on the brand-licensing fees and assessment fees
on the money flow by the financial entities, the company needs to try and settle as
favourable prices as possible.
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3. International management and marketing
3.1 International management
‘Think globally, act locally’
This commonly used expression in international business indicates the importance for a
company operating globally to adapt research theories, marketing strategies and
communication policies to the needs of various sub-regions. It remains to be seen however,
which part of the sentence requires the biggest emphasis.
A company can decide to have a main global strategy and adapt it where it seems fit.
When expanding, the company can also decide not to extrapolate a single formula but to
diversify according to each new region, even changing its company name. Another problem
is to discover how a company splits up the targeted territory to develop an appropriate and
fit strategy. Once a strategy is built up, it still needs to be put into practise when the
company is confronted with different languages, different attitudes and different cultural
traditions. MasterCard Worldwide for instance offers its services to customers in 210
countries all over the world. To be able to pick up on the latest trends on the individual
markets, the company has divisions in practically every country with large MasterCard
headquarters in the biggest cities of each region. I will elaborate on MasterCard’s
multilingual websites and the company’s global sponsoring further on in this chapter.
International companies can make different choices when deciding whom to put in
charge of business at a company division outside the mother country. Very often, personnel
from the mother country is relocated to the new developing markets. This however is a
costly process as “the annual cost of an overseas assignment is rarely less than $300,000
and, in a few cases, can exceed $1 million. This may not even include training, which can be
extensive” (Gorchels 97). Companies venturing abroad make this choice if they are uncertain
that host-country managers will be able to correctly adopt the corporate culture or if there is
limited local talent. The downside of working with expatriates on the other hand is that they
still need to fit into a different culture and acclimatize to the local traditions. Especially
marketing personnel should be familiar with the local market, speak the native language and
27
preferably be from the region. Expatriate managers should be multicultural in orientation
and try to adapt as effortless as possible to the new culture.
In this second chapter, I will set out to stress the importance of local knowledge and
experience in the successful international company MasterCard. The brand is globally
recognised and it maintains a very strong presence in the international business world as a
result of its international pro-activeness and its high ambitions for future growth. I will also
elaborate on problems linked to international markets which are very apparent but clearly
need to be addressed in an appropriate way. With the expansion of a firm beyond the
boundaries of a single market come distribution channels, competitor actions and customer
wants which differ greatly from those in the home market. Not only is it challenging for a
company to coordinate activities over a large geographical area, all corporate publications
also need to be translated into different languages. I will deal with the difficulties of good
translations whilst stressing the significance of addressing customers in their native
language.
In social studies, cross-cultural research is divided into two schools. There are two
approaches to applying a marketing model developed in one country, to a number of other
countries. On the one hand, the ‘etic’ school assumes that theory and constructs are
universal. This would mean that theories can be extended to whatever country without
taking the new context into consideration. Applied to marketing this means that
typically, a pseudoetic research perspective is strongly anchored in the domestic market context. The domestic market forms the dominant frame of reference. It is assumed that market and cultural context are also salient in other countries. (Douglas 200528: 3)
The ‘emic’ school opposes this view indicating that theories are not universal but need to be
developed according to the context. They believe that it is important to check whether a
construct developed within one given socioeconomic environment applies to another
environment without changes. Constructs can, for example, be expressed differently if they
are related to a contextually embedded behaviour. In her 2005 paper on international
28 This is the first article by Douglas S.P. and Craig C.S., Douglas, S.P. and Craig C.S. “On Improving the Conceptual Foundations of International Marketing Research” Journal of International Marketing 14:1 (2005) 1-22 It will be referred to as Douglas 2005.
28
marketing research, International business professor Susan Douglas gives an example of the
Chinese world of business. In China, individual trust in one specific seller or salesperson
stems from the trust in the reputation or creditworthiness of a company and not from the
seller’s individual product knowledge. Trust in a certain company is in many Eastern cultures
determinate for the trust in the salespeople of that organisation. Douglas concludes that
“trust may be expressed in different ways in different cultures” (4). To expand
internationally in a successful way, the company needs to have a thorough knowledge of the
different socioeconomic environments it will encounter.
Linda Gorchels, director of executive marketing programs at the University of
Wiconsin-Madison, and her colleagues conducted research to understand what international
executives in Germany, Japan and the U.S. valued most. Three characteristics kept returning:
knowledge of social/cultural practices, economic conditions, and trade regulations. These
key elements of regional knowledge turn out to be vital for thriving international offices. In a
new market, the company managers and the marketing division need to be aware of the
local consumer needs, the local competitors, the various possible distribution channels and
the product requirements. Cultural habits can indeed vary heavily according to geographic
area. An international marketing manager will therefore need to be aware of different
negotiating and communication uses. Gorchels provides an example of the Asian world
where “the focus is on relationships, requiring rapport building prior to (or as part of) the
negotiation process. Communication in these situations is generally indirect, and an effort is
made to avoid confrontation and maintain harmony” (104). If a U.S. business person is
unaware of this difference, the negotiation process is in danger as U.S. business people are
used to direct communication with a strong focus on the deal instead of the relationship.
As companies expand further into international markets, penetrating emerging markets, such as China, India, and Brazil, as well as markets within the former Soviet Bloc, the Middle East, and Latin America, the conduct of international marketing research is becoming increasingly important and complex. (Douglas29 2007: 30)
29 This is a second article by Douglas S.P. and Craig C.S., “Collaborative and Iterative Translation: An Alternative Approach to Back Translation” Journal of International Marketing 15:1 (2007) 30-43 It will be referred to as Douglas 2007.
29
For its international research, a company needs to decide what the unit of their analysis will
be and how much they can differentiate company management according to the different
zones. The individual country is typically considered as a unit. It can be useful however, to
examine the differences “both within and among countries because there may be
considerable intracountry heterogeneity. Within-country heterogeneity is particularly
relevant for international market segmentation because it results in segments that cross
national boundaries.” (Douglas 2005: 8) It can be rewarding to use alternative units in
international markets research given the fact that a country as a unit of analysis is often too
limited. It suffices to take a closer look at the Benelux to understand the importance of
debating what a unit of analysis consists of. An international company targeting Belgium for
instance, should take the different languages, the different zones and the different traditions
into account. Whether it is by focusing on a major city, by using a broader scope of a large
region or by combining these levels, the research will lead to a valuable understanding of the
variety of cultures. Units all over the world will differ “in terms of language, levels of literacy,
educational systems, and rules of social interaction.” (Douglas 2005: 10)
3.2 International marketing
Major companies, having acquired a thorough understanding of the domestic market need
to make sure that they spend enough on marketing abroad to correctly communicate to
their international audiences. Everything customer-related, from researching the global
market’s diversified interests to adapting product concepts, is lifted to a higher level of
complexity. The most commonly made mistakes in International Marketing can be divided
into two kinds: those related to language and those related to cultural sensitivities. If
companies want to take advantage of the opportunities of foreign markets, they need to find
a good approach to tackle these issues.
Translation mistakes are not always simply wrong translations of a specific word or
concept, it can just as well be that a literal translation of a specific word is simply not used in
a similar context. To knowledgeably communicate a brand internationally it is vital not to
simply translate an advertising copy in the target language. Messages conveyed within an
advertisement are also linked to a market’s culture. (Stewart-Allen 16) Companies of
American origin often make the mistake to take an English copy and have it translated to
30
another language. Other than language, international companies have to keep an eye out for
differences in symbolism. As symbols are related to culture, it is very common that a symbol
representing something positive in one culture is an insult in another. A ‘thumbs up’ in
America signalling that everything is ok, is a huge offence in Mexico. Again, it is best to use
local staff to avoid embarrassment or insult. In addition, using the correct local symbols can
mean a leap forward in the results of a local advertising campaign. The visual and verbal
stimuli of the local market need to be compared as well as the meaning of colours and
colour combinations. (Douglas 2005: 11)
Stewart-Allen gives an interesting example of a difference in cultural marketing
between the U.S. and Europe. Direct mailings in the U.S. typically open with a punchy
commercial offer whereas European customers prefer to be addressed in a polite and calm
manner. Simply put, the preferences of the customers make the difference between:
‘VANESSA! GET YOUR VERY OWN MASTERCARD DEBIT CARD NOW! FREE OF CHARGE
DURING THREE MONTHS’ or ‘Dear Ms. Vanleene, did you know that MasterCard offers a free
debit card to those under 25?’. Different people have different likes and dislikes, and these
are often influenced by the local environment and culture. Bill Hunt, global CEO for search
agency Global Strategies stresses again that: “to determine the best way to market a local
population, make sure you have a contact on the ground in that country, whether it’s an
agency, consultant or local office” (Bannan 18).
In the next part, I would like to concentrate on what options international players
have to obtain the best possible translation of advertisements, websites and questionnaires.
The technique for checking a certain translation which has been used most commonly over
the past years is called ‘back translation’. It requires a bilingual speaker of both target
language and source language. First the text is translated by the speaker from the target
country into the target language. The result of that translation is then translated by a
speaker from the source country into the source language. The result is compared with the
original text to track potential problems and mistakes. Douglas and Craig stress that
“Extensive checking, pretesting of the translation, and debriefing are essential to ensure a
reliable and accurate translation.” (2007: 31) Thomas Semon too indicates that “language
31
problems in multinational research are routinely resolved by the double-translation method,
but cultural differences and organizational problems remain vexing.” (9)
‘Back translation’ is perhaps too simple a procedure, as there are some definite
limitations to it. The procedure starts from the assumption that the target language has an
equivalent for each word or word pair of the source language. This only works in so far as no
idioms or expressions are used. It leaves little nuance and leads directly to a very literal
translation. Witty advertising campaigns, detailed manuals and wide-ranging websites are in
that case out of the question. It is possibly an unwise choice for a company embarking on an
international adventure, to limit itself to simplified language use on the foreign markets.
Douglas and Craig, in 2007, therefore believed that complex translations really need a team-
based approach so as to make sure all the required skills, i.e. disciplinary knowledge and
linguistic abilities, are present. The two marketing experts name two forms of collaborative-
based work: the committee and the expert team approach. The committee approach
requires all members of the team to be present and to finish the translation together. In the
expert team, the translators work independently and the finished translation is a product of
the putting-together of their individual work. In both cases, the team members have to be
familiar with the different languages as well as the different cultures. If a translation has
been finished and approved, it still requires testing and feedback from, preferably both,
monolingual and bilingual respondents, in addition to debriefing by linguistically mixed field
staff and perhaps some of the company’s foreign contacts.
During my traineeship for MasterCard, I translated the presentations –in Dutch - we
had created in English first. The French translations I did were checked by a French secretary
who had no knowledge of the project which facilitated an objective check of the translation.
I sat at the same table when the French native speaker was reading the presentation to
explain the original message when required. As the presentations were eventually approved
by the legal team, they were sent to one of the customers, mostly financial institutions, who
pretested them with their clients, the merchants. Clearly, to have an entire team dedicated
to one translation is a costly business. Economising companies can be tempted to risk errors
and save time by using the do-it-yourself approach. Thomas Semon also correctly points out
that people often find it difficult to accept help as they would rather prove their ability,
32
resourcefulness and know-how. (9) In International research and marketing however,
speaking a foreign language fairly well, will often not be sufficient for a large range of
corporate communications to a foreign public. The damages to the brand name and sales
figures cannot be underestimated as blunders tend to stick to customers’ minds.
When one considers the international marketing plan of a company, one also needs
to have a look at how the company is marketing itself. The goal in creating international
advertising is not to disguise your brand’s cultural heritage or to pose as a local brand, says
copywriter Simon Anholt in his book Another One Bites the Grass. (quoted in Stewart-Allen
16) Cultural roots have proven to create a point of differentiation. However, the company
does need to present an international orientation. It is not only important to translate
advertisements, the website which the customers consult after being drawn to the ad also
needs to be adapted. The international orientation of a company shows in the smallest of
details.
Especially in b-to-b, one of the most annoying things is when forms require information that makes no sense to someone in another country-like [sic] asking for phone numbers with 10 characters. Just changing these things can help someone think, ‘This is a company that doesn’t see the entire world is [sic] the U.S. (Danny Sullivan of Search Engine Land, quoted in Bannan 18)
One of the most important challenges of international management and marketing is
actually making sure that the brand name and all the product names are applicable to the
various languages and cultures of the target countries. An example of the need to urgently
adapt an already issued product name, happened at Toyota. Toyota had to adapt the name
of the roadster car model MR2 to the French-speaking market. (Lasswell, 68) Whereas the
use of numbers and letters to create a product name would seem a safe choice for the
international market, Toyota still encountered problems with this one. As the French
pronunciation came down to ‘est merdeux’, the 2 was immediately dropped when the car
was sold on the French market. Even if the translation of a brand name of product name is
perfect though, it is still important to check whether it does not lose all cultural resonance in
the target country. It may be challenging to control the emitted corporate message in one
language, it is even more difficult to protect brand integrity in multiple languages. (Mescan
54) This can backfire in a painful way since it is possible that “when the brand is positioned
33
at one level in one country and at a lower level in another, the entire market perception can
gravitate to the lowest positioning.” (Simmonds 54)
An extra challenge in the field of international marketing is for the designers of the
advertisements. Different languages require a different amount of text space. There are
character-based languages which could need up to twice the space and there are those
tongues which simply use more words to cover one concept. It is important to deal with it
when constructing an advertisement, especially if each additional word will mean an
additional marketing cost. Finally, there are a number of practicalities an international
company needs to take into account. First of all, a company working outside the U.S. or
Europe also has to deal with a lot of different currencies. Its systems need to be adapted to
this and so do all listings of prices on the corporate website as well as the advertisements.
Secondly, there are the troubles with time zones which I experienced first hand when trying
to contact the MasterCard division in New York. Fortis Investment bank has found its own
solution to the problem. The bank’s Trade Processing team which needs to be reachable 24
hours a day is divided into four teams. Two Belgian teams, one Japanese team and one in
New York make sure that the customer will get someone on the line any time of day or
night.
“As firms increasingly reach out over national borders, it is crucial for managers to
grasp how culture might influence customer perceptions of service quality and subsequent
expressions of satisfaction.” (Abu-Shalback Zid 5) If managers understand the impact of a
correctly adapted marketing, the allocating of funds will be more effective. There is much
more investing now in the understanding of different cultures in order to maximise customer
reception. With the results of that research, management and advertising techniques of the
home market can be adapted to better fit the needs of the target country. All major card
brands for example, such as MasterCard Worldwide, Visa and American Express, offer their
customers the possibility to select a corporate website adapted to the specific country of the
customers. These ‘global websites’ however, are no perfect copies of one another, smaller
countries and smaller language groups need to do with more basic information of the local
options. The internet is perfect for international marketing activities as it is “by its very
nature an international communication medium” (Bennett quoted in Moen 32). Practically
34
every single business nowadays uses the basic Internet features such as a home page and an
email address. International companies however need take it a few steps further to best use
it to communicate, conduct business, target customers and distribute products or services.
(Moen 31)
When developing its global marketing strategy30, MasterCard has decided to focus on
the sponsoring of major sports events all around the world. Given the fact that passion for
sports is an international one, MasterCard has selected a number of sports to cover just
about every continent. At these ‘memorable moments’ and ‘priceless experiences’, huge
banners of the main sponsor will certainly help to put the brand in the spotlight. When it
comes to soccer, MasterCard is the exclusive sponsor of the UEFA European Championships
and the UEFA Champions League. It is present in Latin America as well at the region’s
marquee tournaments: Copa America and the South American Qualifiers. Golf fans around
the world will notice MasterCard’s presence at the PGA TOUR/ Champions Tour as it is the
promoted method of payment at the PGA TOUR shops and Tournament Players Clubs. The
company invests in various golf events in Scotland, Florida, Hawaii and Mexico. A third major
kind of sports, baseball, is represented in the sponsoring of the Major League Baseball.
MasterCard has been sponsoring this event and 15 Major League clubs for over ten years. In
New Zealand, rugby games are sponsored and Australia has its cricket events covered.
Lately the company has also moved into the world of entertainment, seeking
association with the BRIT Awards, the Soundstage and Jazz at Lincoln Center in New York
City. In Europe, Australia and Asia Pacific, the focus is mainly on the sponsoring of major
fashion events. This kind of marketing activities are supposed to boost brand recognition,
enhance card acceptance and drive card usage globally. Another objective of course is to
secure/separate the positive emotions evoked by the sports events (enjoying watching or
participating and the winning experience) so as have the potential clients associate them
with MasterCard.
What kind of management, research or marketing each individual company ends up
focusing on varies. It is a fact however, that to compete successfully on a global scale, the 30 http://www.mastercard.com/us/company/en/whatwedo/current_sponsorships.html (consulted 09/08/09)
35
major players have to know how to answer the needs of the global population. Kenneth
Simmonds, professor of marketing and international business at the London Business School,
summed it up in his 1999 paper:
Blindness to customer motivation leads firms to use their home market formula without adjustment, perhaps by spending in an effort to change customers to fit the formula. In a global village, a single formula might work, but the real world is not a global village. Customer motivation in each country must be known, understood, and appealed to. (53)
A considerable budget for research, marketing and management is often required. This
makes expanding globally a process of many years of making progress in conquering new
territories only when the company keeps booking steady profits.
36
4. MasterCard Worldwide: internship
4.1 Maestro in Europe
During my two-month internship at MasterCard Europe in Waterloo, I was part of the
Merchant Development team. The tasks I was assigned to do fit in with the external
communications department, mostly addressing one specific part of MasterCard’s
customers: the acquiring financial institutions. I started on 27 April 2009, a time of great
change and frantic preparations at our division. With the European regulations for the SEPA
zone pressing, the introduction of Maestro in Europe had to be going as fast as possible. In
addition, the progress of our competitors needed to be closely monitored and taken into
account. My tasks all fit in this bigger frame of Maestro-related research and marketing.
4.2 Market research
MasterCard set out to convince all the parties of the four-party business model of the
urgency of implementing Maestro. Financial institutions will have to adapt their line of
products, merchants have to adapt the terminals of their businesses to the acceptance of
the new Maestro cards, and customers have to be explained where the change came from
and what it consists of. Each party wants to know why the change is happening, what the
results are going to be and what the operation is going to cost them.
During my internship I conducted various cases of research of the European market,
mainly concentrating on the Benelux. I had about four different possibilities to conduct this
research and to come up with appropriate numbers and results. The first and most
important tool to gather information was the Key Merchant’s database, secondly the world
wide web, thirdly the European committees and finally other MasterCard divisions all over
the world. I will further elaborate on what the briefing was, how I acquired the skills and
what the end result was when working with these diverse desk research tools.
The Key Merchant’s database is an electronic database system especially designed for
MasterCard Worldwide by the British ICT consultant Peter Saunders. The purpose of this
system is to provide MasterCard staff direct access to key business information. The system
allows its users to formulate their own business information requirements and it provides
37
access to data that meets the business information needs. The program keeps a good
balance between ease of use and flexibility of reporting. Both technical and non-technical
staff can easily access the system and have the majority of their information needs satisfied.
(Key Merchants User Guide. Application Version 2.0) In my first week at MasterCard, the
system had actually just been upgraded. The new 2009 version which I used for two months,
had just been launched and still in its test phase. Compared to the previous system, it
allowed for many more thorough queries31 and details. This Key Merchant’s system provided
me with information about the use of MasterCard’s products, worldwide, down to individual
sites. It contains no information which can identify individual cards or card holders. The
information categories are: merchants’ names and locations, acquirers’ names and locations,
issuer’s names and locations, data on the cardholders’ presence at the POS, brand names,
etc.
The information source for the system is MasterCard’s clearing data, these are the
transactions which passed authorization and which have been fully processed by the
acquirers’ and issuers’ systems. In the database, there are basically several billion rows of
information about MasterCard transactions. Peter Saunders’ company also ‘cleans’ the
source raw data to improve the accuracy and usefulness of the information contained within
the database. The actual physical form of the Key Merchants server is a massive and
powerful computer which is based in the basement of the MasterCard building in Waterloo.
Because of the amount of data in the database, all processes using the system are detached
from the individual database user’s Personal Computer. Once the database research job has
finished, the data is stored on the server ready for the user to download to his or her PC. I
received several hours of training (working with the Key Merchant system, Excel and Access)
by my colleague Luisa Marques. In addition, Peter Saunders came to the company to give a
training for the entire team on the new features of the updated program. The ICT consultant
could also be contacted by phone at all times. This turned out to be highly necessary as
there were quite a number of system failures at first. With this database, I have resolved
several cases of researching the present state of the market. Managers from different
MasterCard Europe divisions sent questions which I researched on the database in order to
31 A query is a task for a database which the user can draft and combine with other queries to make a certain selection of data.
38
obtain an excel file with the requested information. With the excel file I created pivot tables
to list the information according to certain parameters or certain details the manager
requested, for example a top 10 of countries with the most Maestro transactions. There
would always be a total Euro volume and a total Transactions volume. The questions I
received, depending on the division they originated at, could be divided into questions which
dealt with specific acquirers, with Maestro acceptance in Europe and with Maestro
SecureCode.
One of the first tasks was to research the acquiring bank(s) of Dutch Railways. This
question came up because a large American issuing bank had had a cardholder’s card
declined in Europe. It was declined because the card did not have a chip and PIN, as
American cards often still only have a magnetic stripe. This happened at a large dealer
namely the Dutch National Railway and it would happen again with the next customer with a
similar card if the problem was not solved. With the information I gathered, the acquirers
could be contacted and the origins of the problem detected and solved.
Another focus of the marketing division was e-commerce, the online card payments.
MasterCard Marketing was looking to start a project offering MasterCard cardholders
incentives when purchasing their products online at a MasterCard merchant. I analysed the
Euro volume processed in one year for a number of online merchants. The best selling
merchants would thereupon be offered to take part in the MasterCard incentives program.
These are just two examples of the research I did, listing countries according to Euro
volume, listing merchants (e-commerce as well as brick-and-mortar32) according to
transactions volume, researching which markets were already booking actual Maestro
transactions. Most of the research I was responsible for served to either discover new
opportunities on the market or to obtain information to avoid and resolve certain problems.
An example of this kind of data report33 can be found in the appendix to this paper.
32 Brick-and-mortar companies are merchants which have an actual building where they sell their products, as opposed to certain, strictly e-commerce companies such as eBay. Some brands are both brick-and-mortar and e-commerce companies, for example Nike. 33 Appendix: Doc 1. Database research: Maestro
39
Some of my tasks, namely browsing the internet and contacting the appropriate
governmental instances, were done in answer to a business analysis request. I was asked to
analyse MasterCard’s opportunities on the market of privately owned parking businesses in
Europe. The parking business is a large business with a huge Euro volume per year. Yet a
great deal of the parking industry’s revenues is lost to payment card companies as parking
customers mostly pay using cash (coins) or parking cards. With the introduction of Maestro
branded debit cards, the market could be opened up for MasterCard as customers would
much sooner pay by debit card rather than credit card for the parking service. With extra
promotion by the parking companies, customers could also learn to prefer debit cards over
cash. It was my main aim to discover who the main parking companies in Europe are and
what their Gross Euro Volume (GEV) is. Once I obtained this information, it seemed
interesting to compare it to the MasterCard and Maestro volume processed. The basis and
the checking point for my research became the European Parking Association (EPA). Their
publications allowed me to unveil the total parking market turnover: 40 billion euro in 2007.
Via telephone, the EPA headquarters in Germany willingly provided me with information on
the biggest players of the industry. On the basis of that, I came up with the top 5: APCOA,
Vinci Group, Q-Park, Interparking Group and Saba. For each of these companies, I researched
the main countries they were operating at, their revenues and the payment possibilities they
offered. I did so mainly using their corporate websites and their annual reviews. The parking
companies often turned out to have a wide range of payment cards, gifts cards and
corporate cards of their own, opening up new co-branding opportunities for MasterCard. I
discovered that the top 5 privately owned companies turned out to only generate about 2
billion euro of the 40 billion euro total. Via the Key Merchant database, I investigated what
the MasterCard and Maestro volume was each of them processed. The value of all
MasterCard transactions at these companies , from February 2008 to January 2009, added
up to 467.5 million euro. Once I had all the results, I could draft a document for the Benelux
managers which they could use to determine a strategy. With this information they could
determine which companies to address with the Maestro story and what numbers to use in
price negotiations. The result of this business analysis34 can be found in the appendix.
34 Appendix: Doc.2. Business Analysis: Parking Industry
40
A final way of obtaining information within such a huge international company as
MasterCard Worldwide is consulting other teams within MasterCard Europe or even other
divisions all over the world. Sometimes questions came up which could not be looked up in
the Key Merchant database because the database could not select on that specific basis. To
find the latest figures of SecureCode e-Merchants worldwide, I had to phone and email
around. I eventually got most answers from the headquarters in New York which could only
be reached after 3 p.m. Brussels time because of the time difference. I also relied heavily on
my colleagues to find out who, from what division, could get me the appropriate
information. MasterCard Worldwide is split up into many different teams and divisions of
which the members then sometimes work independently or with yet another team. To find
the (top secret) answers to the SecureCode question I had to go from people in the Debit
Planning35 group and the Secure Code group in Waterloo, to the Senior Business Leader36 of
the Debit Channel Management team, the Vice President37 of eCommerce and the Vice
President38 of the Payment System Integrity team in New York.
4.3 Marketing presentations
As I explained in Chapter two of this dissertation, the importance of various languages within
large international companies is not to be underestimated. The marketing work I did during
the internship can basically be divided into creating presentations for the Merchant
Development Team and helping creating websites with the Marketing Division. Most of
these were targeting the Benelux market. As they were mostly composed in English in
cooperation with my British colleague Andrew Slattery, they needed to be translated in
Dutch and French afterwards. The original English version was also sent out, as the managers
of several large businesses in the Benelux are English natives. My information sources were
mostly other MasterCard sources, such as foreign websites for more developed markets
such as Germany, the United Kingdom and the United States. This resulted in a lot of
translating from German and English to Dutch and French with a number of dictionaries at
hand. All presentations and websites needed to be checked by MasterCard’s Legal Division
before they were sent out. They apply very strict rules on copyright and on disclosing
35 Desmond Boyle 36 Marcelo Tangioni 37 Carl Stefanelli 38 Paul Baker
41
classified information to the public. These rules are clearly a direct result of MasterCard’s
listing on the New York Stock Exchange which I discussed in the first chapter of this
dissertation. It is also important to protect the new MasterCard products from the
competitors until they are fully developed and on the market. As soon as information is sent
to acquirers and issuers, it is very possible that they pass it on to MasterCard’s competitors
to use in price and product negotiations.
MasterCard also required a number of presentations pre-made for its customers, the
financial institutions. Some of the presentations were meant to help the banks inform the
merchants about the advantages of the use of Maestro and about the Maestro SecureCode.
The banks needed a blueprint with the most important facts which they could then adapt
according to the various merchants they would address. It is a smart move to adapt the
challenges a MasterCard product offers a solution to, to the challenges a certain merchant
faces.
The presentation which Andrew Slattery, MasterCard’s co-branding manager, and I
worked on for several weeks was the ‘Maestro SecureCode Merchant Value Proposition’.
This proposition was supposed to serve as a help for the acquiring banks and financial
entities who have to address e-merchants to explain the European Maestro implementation
and the possibilities for their businesses. We started with a table of contents and a rough
version of what the presentation could look like. My colleague and I decided to start out by
giving a short overview of the booming e-commerce industry. I researched some graphs on
the internet and we were allowed to use some of MasterCard’s own researches which had
already been made public on a previous occasion. We then listed some of the advantages of
the use of debit cards for consumers as well as merchants. Again some percentages could
prove the preferences of the customers of debit over credit. A second part focused on the
needs of the e-merchant which is: “E-commerce merchants want a payment guarantee with
convenience for consumers at a cost effective price.” The answer to their problem would
then be the Maestro SecureCode system which allows for a near perfect, authentification of
the cardholders. Listings of top e-Tail merchants who had already started using Maestro
SecureCode could serve as an extra conviction. An overview of the Maestro roll-out in
Europe presented the changes which are taking place within the SEPA. At the end of the
42
presentation, we listed the benefits for the e-merchant and the benefits for the e-customers.
With the Maestro SecureCode system, the e-merchant could get a guaranteed online
transaction thus reducing fraud and disputes with customers. Furthermore the 28 million
cardholders with one single payment means would definitely constitute an improvement for
any merchant. The appendix with additional information on extra features and system
technicalities could serve as a source of extra convincing details for the acquiring bank if they
felt this could be useful for a particular merchant. The purpose of this presentation was to
provide acquiring banks with a blueprint of a Maestro SecureCode presentation. To see
whether we had reached the scope with the end result, I sent the presentation to Ogone, a
payment service provider for shopping online and by phone. It was of course only sent out
after going through MasterCard’s Legal Department/Division. With Ogone’s feedback we
drafted the final version which I translated into Dutch and French, which I included in the
appendix39. Along the process, various MasterCard managers provided us with a great deal
of feedback and help.
At the beginning of June, one of my managers, Steven Van Sweevelt asked me to help
create a presentation and PowerPoint for a lecture in Oslo, Norway on 18 June 2009. This
lecture was part of the Teller Seminar with an audience of banking people and merchants.
The presentation had to be on the latest economic trends in European merchant markets
and touch upon some of MasterCard’s payment solutions, introducing Maestro’s European
implementation. The other topics of the seminar were: “Card usage and activation, customer
marketing and MasterCard offers and sponsorship” and “The impact of Interchange for the
merchants”. For my presentation, I started out with some general world wide web browsing
to find some recent articles on altered consumer spending as a result of the financial crisis. I
also asked around to obtain other presentations on Maestro, EMV chips, SEPA, SecureCode
from which I could use graphs and core information. Steven gave me a brief overview of the
everything he wanted to see mentioned, he came up with a table of contents and gave me
regular feedback throughout the process of creating the presentation. Working together
closely was necessary as he was the one to go abroad and actually present it. I began the
presentation with an overview of the post 2008 changes in the world economy. The global
economical trends of seemingly unstoppable growth, wealth and internationalisation in the 39 Appendix. Doc.3. French Presentation: Value Proposition Maestro SecureCode
43
21st century showed the flip side of the medal in 2008: the economy had to face inflation,
ecological poverty and crisis on a global scale. This has seriously damaged consumer
confidence which is up until now at an all-time low. I discovered that four factors could be
seen as shaping the new European consumer: unemployment, ecological pressure, the rise
of the commodity prices and the disappearance of personal wealth. I inserted a lot of
numbers and statistics to give a clear view on how low that consumer confidence really is. To
draw the audience in, I also researched some consumer trend numbers specifically for
Norway. The new consumer turned out to now better manage the budget and to make more
informed choices when shopping, so as to save money. Consumers prove to be very time
conscious, e.g. they are no longer willing to lose time driving to shops or queuing at
checkouts.
The next part focused on the impact of this new consumer profile on retailers and
banks. As it turns out, more consumers are now buying at discount and low price stores with
small excesses in the luxury business. The middle price stores are therefore almost
completely pushed out of the market. Consumers are also downscaling, buying smaller cars
and smaller houses. This serves two purposes, not only is it cheaper to purchase, it is also
more eco-friendly. Another important change for retailers is the huge popularity of internet
shopping. With all the new possibilities, customers are even less likely to stay loyal to one
retailer than before. For the banks, the most important project is to win back consumers’
confidence and trust. My conclusion to the presentation showed some of MasterCard’s
payment systems which could offer good solutions to each and every one of the named
problematic economic trends. There is the Maestro SecureCode program which helps to
make shopping online easy and secure thanks to the use of the debit card. Interesting for
retailers are also the new contactless payment systems which will limit the lost time at
checkout and keep impatient customers happy. Here is where MasterCard’s advisor role and
loyalty programs come in as well. The result of the Norwegian presentation40 can be
consulted in the appendix as the fourth document.
40 Appendix: Doc. 4. English Presentation: Norway, consumer trends
44
The websites to which I contributed were the Dutch and French versions of a new
Maestro website for the Belgian market and a separate Dutch one for the Netherlands41.
These websites needed to go on air in July to explain to cardholders what the possibilities of
the Maestro branded debit card are. I received a flow chart from the marketing division with
a very basic structure of the website. Our Merchant Development team had to provide them
with the explanation of what Maestro is, the information for Merchants and Acceptance
institutions, the Frequent Asked Questions (FAQ), some tips and tricks, the way to use a
Maestro card and some security explanations. I looked at German and French Maestro and
MasterCard websites to find the correct vocabulary and to copy some appropriate content.
Luckily, at that point, I had also worked on several presentations on Maestro for merchants
and banks. This allowed me to correctly select the most important information.
When a test version of the Maestro website for the Netherlands was pre-aired. I was
asked to provide some feedback. I noticed some spelling mistakes, some typos and also the
mixed use of the formal second person pronoun “u” and the informal pronoun “je”. This,
however, was something the marketing group was aware of and had decided to leave that
way. Consistency is usually preferred but in this case the company made an exception They
wanted to use the informal pronoun for everything concerning the campaign to address the
customers in a direct way which would call for action. The first idea was to use that informal
tone consistently throughout the website. However, the strong links with the financial sector
which always uses formal speech for the corporate websites, required MasterCard to use the
formal pronoun for the rest of the Maestro website.
For a project of co-branding with issuing bank ING, MasterCard had also come up with a
new project to attract new potential customers’ attention. As I explained in the second
chapter of this dissertation, MasterCard has a longstanding tradition of sponsoring sports
events. In Europe, the main football event is the Champions League. I was asked to translate
the advertisement which offered the customers the possibility of winning two tickets for the
UEFA Champions League. Interested customers had to request a MasterCard Gold ING
subscription or ING payment card. To be able to participate to the lottery of the tickets the
41 The Dutch website can be found at http://www.maestrocard.com/nl/nieuws.html (consulted 05/08/09) The Belgian Maestro websites required more time (or more funds).
45
customers had to be new to the ING cards or MasterCard Gold cards. They received an
additional reduction for the subscription, a sum which is about the value of what MasterCard
usually charges for the use of the card during one year. To get this reduction, customers had
to print an ING card voucher or MasterCard gold card voucher from the ING website. I have
included the original French version and my English translation in the appendix.42
42 Appendix: Doc.5. Marketing Project: Champions League
46
5. MasterCard: Conclusions
My two-month experience of being part of a major, widely renowned enterprise has been a
very positive one. A close-knit team of colleagues at MasterCard introduced me kindly but
resolutely to the world of business. The uncertainties preceding the start of my internship
quickly evaporated when I realised that people did not really take my inexperience in
account. I was given ‘real’ tasks and became an active and productive member of the
Merchant Development team. In addition, I noticed that I did have a lot to offer in return for
their time investment in me. The very first day, I was already taken to two serious meetings
with one of MasterCard’s customers, Atos Wordline. This was a very convincing way of being
introduced to the entire electronic card payments system. It made all the theoretical facts I
had been briefed on in the morning less abstract. Even though I could not really participate
in the meeting, one of the representatives of Atos turned out to be Italian and we exchanged
some words in her native tongue. I also immediately noticed the multilingualism of my
managers as one of the meetings was entirely in English and the next one in a mix of French
and Dutch.
A most interesting characteristic of the company was the freedom you experienced as
an employee. As everyone was expected to be doing their jobs and finishing their work
before the next deadline, there was no need for any kind of extra checks. I thought this
contributed greatly to the atmosphere in the workspace. A scheduled meeting naturally did
require very strict time management but the exact timing of lunch breaks, starting hours and
finishing hours was, up to a certain point, left to the choice of the employee. At MasterCard,
I discovered very soon that experience and a general readiness to share that experience
with junior colleagues is of the greatest importance. I received quite a number of training
sessions, one-on-one time and extra explanations by a variety of colleagues. This allowed me
to quickly understand the products we were working with and grow aware of the most
pressing projects and the deadlines which were approaching.
I also noticed that this inter-collegiality was not limited to teaching me, the intern,
about the payments market and MasterCard. The colleagues all sought help and advice from
47
one another thus improving the quality of their work and speeding up the output. Managers
from different levels within the team exchanged information with one another and seemed
very open to input from anyone, including me. I very much liked the team meeting I was
invited to on my last day at the company too. At this team meeting, I discovered several
members of my team which I had actually never met before. This showed the complexity of
the mechanism of the large-scale company. Although working within the same group, direct
contact between all members was very rare. At this meeting, all team members explained
their projects, clarified financial MasterCard figures or led a brainstorm session. This allowed
team members to be well informed of their colleagues’ work which was often parallel to
their own, sometimes even on one and the same subject.
To complete the tasks I had been assigned, I used several experiences and competences
I had acquired during my multilingual business communication year. First of all, there was
the urgency of mastering the appropriate English and French lexicon. Because we had been
reading articles on economy and we had discussed some of the topical issues I was quite
well informed about the current developments of the economy. From the beginning of the
year onwards, we had been very much encouraged to read newspapers and focus on the
latest financial and political news. I continued to keep my knowledge up to date by reading
both the Dutch and the French ‘Metro’ newspaper each morning during my long train trip to
Waterloo. I used the vocabulary on payment cards from the French language classes for my
translations of websites and presentations. One of my major assignments at MasterCard also
included creating and designing PowerPoint presentations or websites, for the structure and
lay-out of which I often used the feedback we had received in the context of our class
assignments. Thus I had especially grown aware of the importance of (1) thoroughly and
clearly informing the audience , (2) using short and clear titles and (3) limiting the number of
words on the PowerPoint slides. Not everyone I worked with agreed with my views on short
titles on slides, however, so for one project I had to give in to a superior’s veto.
The financial knowledge which I obtained during various Master classes was useful to help
me interpret annual reports of companies I was researching. I would also like to believe that
the IT course on data processing I opted for at university, helped me to master the Key
Merchant Database faster. I had learned to work with “queries” in Access 2007 so when
“queries” reappeared in the MasterCard database, it became easy enough to grasp.
48
As mentioned before , the training I received from my colleagues was generous and
very much appreciated. Luisa Marques spent many hours with me working on projects with
the Key Merchant Database, Excel 2007 and Access 2007. Andrew Slattery gave me highly
interesting (and very funny) short presentations on various payment card related subjects.
Steven Van Sweevelt went through several presentations with me, providing me with his
feedback and explaining the underlying structure. All in all, I believe that the combination of
this team of colleagues and the background I got from Multilingual Business Communication,
helped me to obtain the best possible results when delivering my work.
For me, the internship at the multinational MasterCard confirmed that this is the kind
of surroundings I would want to make a career in. I have also had the chance to prove that
that is a possibility with the diplomas I have obtained. What was very clear from this
experience was the fact that there is, in professional life also, never really a limit to your
intellectual growth. Large companies will ensure that employees keep abreast of
developments. At MasterCard, the device was called MasterCard University. This informed
employees of lectures, workshops and classes in several fields of business life which they
could attend. However, informal conversations with colleagues, and paying attention to your
own and others’ mistakes, can be equally productive sources of growth and progress.
In the final analysis, I believe I was very well prepared for this internship. However,
an additional lecture on international companies, blue-chip companies or the payment
industry would be useful. Furthermore, students might benefit from an overview of the
intercultural differences in the marketing division of practically any major company. All too
often the impact of the various cultural and linguistic identities on the international world of
business is being underestimated.
49
6. Lexicon Acquirers: ATM: Cross-border payment: Dip: Domestic payment: e-commerce: e-tail: EMV chip: EPA: EPC: GEV: Interchange fee: Issuers: m-commerce: magstripe: Merchant: PIN: POS:
The financial institutions who accept card transactions from the merchants. Automated Teller Machine, a cash dispenser or cash machine A payment with a card from one country at another country (↔ domestic) ‘dipping’ a card is putting the card in the terminal to make a payment (↔ ‘swipe’) A payment with a card from one country within that country (↔cross-border) Online commerce Retail merchants operating online A computer chip for payment cards developed by Europay, MasterCard and Visa European Parking Association European Payments Council Gross Euro Volume A fee the acquiring banks pay to the issuing banks via the card brand The financial institutions who provide customers with payment cards. Mobile phone commerce The magnetic stripe on the payment card The trader or shop owner Personal Identification Number, a secret code linked to a payment card Point Of Sale, example: a shop
50
SEPA: Swipe: Terminal: TPV:
Single European Payment Area ‘swiping’ a card is quickly moving the card through the terminal to make a payment (↔ ‘dip’) The electronic device the merchant uses to pass cardholder information to acquiring and issuing bank Total Payment Volume
51
7. Works cited Abu-Shalback Zid, L. “The concept of culture” Marketing Management 13:6 (2004) 5 anonymous writer “Payment Via Wallet Phone” Communications of the ACM 52:1 (2009) 13 anonymous writer published by Elsevier Ltd. “Barclays to go contactless with all customer
debit cards” Card Technology Today 21:1 (2009) 1-3 anonymous writer published by Elsevier Ltd. “MasterCard and Carrefour launch contactless
card” Card Technology Today 21:1 (2009) 1-3 anonymous writer published by Elsevier Ltd. “Opportunities for 2009?” Card Technology
Today 21:1 (2009) Balaban, B. “Staying Ahead Of Hackers: Are New Chips Worth It For Banks?” Cards &
Payments 22:01 (2009) 14-15 Bannan, K.J. “Global Sem.” B to B 92:17 (2007) 17-19 Chmielnicki, J. “Lost in translation” Sales & Marketing Management 156:10 (2004) 20 Douglas, S.P. and Craig C.S. “Collaborative and Iterative Translation: An Alternative Approach
to Back Translation” Journal of International Marketing 15:1 (2007) 30-43 Douglas, S.P. and Craig C.S. “On Improving the Conceptual Foundations of International
Marketing Research” Journal of International Marketing 14:1 (2006) 1-22 Gorchels, L. Jambulingam T. and Aurand T.W. “Executive Insights: International Marketing
Managers: A Comparison of Japanese, German, and U.S. Perceptions” Journal of International Marketing 7:1 (1999) 97-105
Green, J. “A Time To Reflect” Cards & Payments 22:1 (2009) 6 Lasswell, M. “Lost in Translation” Business 2.0 5:7 (2004) 68-70 MarketWatch “Paypal: 10 years of successful operation highlight the potential threat to card
issuers” Global Round-up 7:8 (2008) 134 McKelvey, S., McDonald, M. and Cramer R. “MasterCard and Major League Baseball: Metrics
for Evaluating a Most ‘Memorable’ Promotion” Sport Marketing Quarterly 14:4 (2005) 253-261
McKenna, A. “Payments Industry Gives Retailers the Loyal Treatment” Cards & Payments
20:7 (2007) 21-24
52
Mescan, S. “Why Content Management Should Be Part of Every Organization’s Global Strategy” Information Management Journal 38:4 (2004) 54-57
Moen Ø. “The internet and international marketing” Quarterly Journal of Electronic
Commerce 3:1 (2002) 31-41 Semon, T.T. “Cutting corners in language risky business” Marketing News 35:9 (2001) 9 Simmonds, K. “Executive Insights: International Marketing – Avoiding the Seven Deadly
Traps” Journal of International Marketing 7:2 (1999) 51-62 Stewart-Allen, A. L. “Don’t lose advertising in the translation” Marketing News, 34:13 (2000)
16
Terris, H. “MasterCard Buy a Sign of Networks’ New Imperative” American Banker 174:3
(2009) 1-9
Turner, C. “Virgin Money drops green card for mobile payments” Marketing Week 31:24
(2008) 6 Vanderhoof, R. “A Lack of Chips Making U.S. Card Data Vulnerable” American Banker 174:13
(2009) 11 Wolfe, D. “PayPal looks Past Web to Find Its Future” American Banker 174:42 (2009) 1-11 Consulted Websites http://foxforum.blogs.foxnews.com/2009/05/20/cooper_horace_credit_cards/ (consulted 08/08/09) http://sibosonline.com/fullstory.asp?id=20134 (consulted 12/08/09) http://www.americanexpress.com (consulted 16/08/09) http://www.deredactie.be/cm/vrtnieuws/binnenland/1.541658 (consulted 01/08/09) http://www.discoverfinancial.com (consulted 16/08/09) http://www.ecommerce-journal.com/news/mastercard_has_crossed_the_ts_in_the_story_with_discover_lawsuit (consulted 16/08/09)
53
http://www.europa-nu.nl/9353000/1/j9vvh6nf08temv0/vi3zjmbkntwj?ctx=vhk5iszwtoxv (consulted 12/08/09) http://www.marketwatch.com/investing/stock/MA (consulted 16/08/2009) http://www.maestrocard.com/nl/nieuws.html (consulted 05/08/09) http://www.mastercard.com (consulted 16/08/09) http://www.mastercard.com/us/company/en/whatwedo/current_sponsorships.html (consulted 09/08/2009) http://www.huffingtonpost.com/2009/04/23/obama-creditcard-ceos-mee_n_190473.html (consulted 09/08/09) http://www.visa.com (consulted 06/08/09)
Ghent University Faculty of Arts and Philosophy
Appendix
Doc.1. Database Research: Maestro
Doc.2. Business Analysis: Parking Industry
Doc.3. French Presentation: Value Proposition Maestro
Doc.4. English Presentation: Norway, consumer trends
Doc.5. Marketing Project: Champions League
Bedrijf
Stagebegeleider Afdeling Taken Talen tijdens de stage stageperiode
MasterCard WorldWide
Chaussée de Tervuren 198A
1410 Waterloo
+32 2 352 51 11
Geert Brisart External Communications:
Merchant Development
- Marktonderzoek
(werken met database,
Excel, Access)
- Powerpoints opstellen
- Vertalingen naar Engels,
Frans en Nederlands
- Presentaties maken
- Website opstellen
- Business Analysis Request
voor de parking sector
Nederlands
Engels
Frans
(in mindere mate
ook Italiaans
en Duits)
27 April ‘09
Tot
30 Juni ‘09
Period: Jan Feb March 09
Merchant Country: in Europee-Commerce merchants with Maestro SecureCode
9575 e-Merchants accepting SecureCode for a total of 5 144 636 EURO8285 also used it in transactions for a total of 4 175 995 EURO1290 support it but didn't use it for a total of 968 941 EURO
Merchants/Merchant Country EuroVolume
Cardholder Authentication FRANCE Count of Merchant_Name_Description7084e-Merchant supports Securecode Sum of Total_Euro_Currency_Volume1749240,17AND it was used in these transactions UNITED KINGDOM Count of Merchant_Name_Description195
Sum of Total_Euro_Currency_Volume731691,6PORTUGAL Count of Merchant_Name_Description236
Sum of Total_Euro_Currency_Volume615282,83ROMANIA Count of Merchant_Name_Description27
Sum of Total_Euro_Currency_Volume43177,45SPAIN Count of Merchant_Name_Description265
Sum of Total_Euro_Currency_Volume196550,87MALTA Count of Merchant_Name_Description6
Sum of Total_Euro_Currency_Volume172852,01NETHERLANDS Count of Merchant_Name_Description44
Sum of Total_Euro_Currency_Volume142049,16LATVIA Count of Merchant_Name_Description32
Sum of Total_Euro_Currency_Volume141866,59POLAND Count of Merchant_Name_Description147
Sum of Total_Euro_Currency_Volume112099,08SWEDEN Count of Merchant_Name_Description27
Sum of Total_Euro_Currency_Volume44816,49IRELAND Count of Merchant_Name_Description7
Sum of Total_Euro_Currency_Volume45586,34CZECH REPUBLIC Count of Merchant_Name_Description108
Sum of Total_Euro_Currency_Volume43301,24CYPRUS Count of Merchant_Name_Description13
Sum of Total_Euro_Currency_Volume37936,21GERMANY FEDERAL REPUBLIC OFCount of Merchant_Name_Description16
Sum of Total_Euro_Currency_Volume26579,86BELGIUM Count of Merchant_Name_Description5
Sum of Total_Euro_Currency_Volume24061,43LIECHTENSTEIN Count of Merchant_Name_Description2
Sum of Total_Euro_Currency_Volume20799,01ITALY Count of Merchant_Name_Description18
Sum of Total_Euro_Currency_Volume9507,68SLOVENIA Count of Merchant_Name_Description9
Sum of Total_Euro_Currency_Volume4908,02ANDORRA Count of Merchant_Name_Description14
Sum of Total_Euro_Currency_Volume7840,98SLOVAKIA Count of Merchant_Name_Description10
Sum of Total_Euro_Currency_Volume2548,71AUSTRIA Count of Merchant_Name_Description8
Sum of Total_Euro_Currency_Volume1921DENMARK Count of Merchant_Name_Description9
Sum of Total_Euro_Currency_Volume624,91BULGARIA Count of Merchant_Name_Description1
Sum of Total_Euro_Currency_Volume605,86LUXEMBOURG Count of Merchant_Name_Description1
Sum of Total_Euro_Currency_Volume88,57MONACO Count of Merchant_Name_Description1
Sum of Total_Euro_Currency_Volume59,29Cardholder Authentication Count of Merchant_Name_Description 8285Cardholder Authentication Sum of Total_Euro_Currency_Volume 4175995,36Security Protocol FRANCE Count of Merchant_Name_Description138e-Merchant supports Securecode Sum of Total_Euro_Currency_Volume46816,67but it was NOT used in these transactionsUNITED KINGDOM Count of Merchant_Name_Description895
Sum of Total_Euro_Currency_Volume383423,27PORTUGAL Count of Merchant_Name_Description6
Sum of Total_Euro_Currency_Volume34257,09ROMANIA Count of Merchant_Name_Description70
Sum of Total_Euro_Currency_Volume436524SPAIN Count of Merchant_Name_Description2
Sum of Total_Euro_Currency_Volume103,23MALTA Count of Merchant_Name_Description4
Sum of Total_Euro_Currency_Volume3446,38NETHERLANDS Count of Merchant_Name_Description15
Sum of Total_Euro_Currency_Volume9666,13POLAND Count of Merchant_Name_Description54
Sum of Total_Euro_Currency_Volume12364,72SWEDEN Count of Merchant_Name_Description18
Sum of Total_Euro_Currency_Volume19531,59IRELAND Count of Merchant_Name_Description17
Sum of Total_Euro_Currency_Volume911,09CZECH REPUBLIC Count of Merchant_Name_Description21
Sum of Total_Euro_Currency_Volume2417,26CYPRUS Count of Merchant_Name_Description7
Sum of Total_Euro_Currency_Volume2397,09GERMANY FEDERAL REPUBLIC OFCount of Merchant_Name_Description2
Sum of Total_Euro_Currency_Volume134,56BELGIUM Count of Merchant_Name_Description4
Sum of Total_Euro_Currency_Volume2309,96LIECHTENSTEIN Count of Merchant_Name_Description1
Sum of Total_Euro_Currency_Volume124,81ITALY Count of Merchant_Name_Description6
Sum of Total_Euro_Currency_Volume4221,13SLOVENIA Count of Merchant_Name_Description20
Sum of Total_Euro_Currency_Volume4695,26SLOVAKIA Count of Merchant_Name_Description6
Sum of Total_Euro_Currency_Volume4964,68DENMARK Count of Merchant_Name_Description2
Sum of Total_Euro_Currency_Volume227,2BULGARIA Count of Merchant_Name_Description1
Sum of Total_Euro_Currency_Volume62,37LUXEMBOURG Count of Merchant_Name_Description1
Sum of Total_Euro_Currency_Volume42,52Security Protocol Count of Merchant_Name_Description 1290Security Protocol Sum of Total_Euro_Currency_Volume 968641,01Total Count of Merchant_Name_Description 9575Total Sum of Total_Euro_Currency_Volume 5144636,37
1
Europe’s Parking Business
A. Executive Summary (p.2)
B. Inleiding (EPA) (p.3)
a) European parking market: Size b) European parking market: Trends c) Private cars in Europe
C. MasterCard’s processed Volume in European Parking Business (p.6)
D. Top 5 Players (p.7)
I. APCOA (p.8)
a) APCOA Key Figures b) APCOA Payment Systems c) APCOA MasterCard Numbers
II. VINCI PARK (the Vinci Group) (p.11)
a) VINCI Key Figures b) VINCI Payment Systems c) VINCI MasterCard Numbers
III. Q-PARK (p.15)
a) Q-PARK Key Figures b) Q-PARK Payment Systems c) Q-PARK MasterCard Numbers
IV. THE INTERPARKING GROUP (p.19)
a) INTERPARKING Key Figures b) INTERPARKING Payment Systems c) INTERPARKING MasterCard Numbers
V. SABA (the Abertis Group) (p.23)
a) SABA Key Figures b) SABA Payment Systems c) SABA MasterCard Numbers
E. MasterCard’s processed Volume in European Parking Business (separate countries)
(p.28)
2
A. Executive Summary
TOP 5 Parking Business
Turnover 20071
1. APCOA 589 000 000
2. VINCI GROUP 562 000 000
3. Q-Park 419 400 000
4. Interparking Group 240 000 000
5. Saba 131 000 000
TOTAL 1 941 400 000
2007 total parking market turnover: 40 billion EURO (estimated2) Top 10 market turnover: 2.8 billion EURO (estimated) Top 5 market turnover: 2.3 billion EURO (estimated) -> 1.9 billion EURO The top 10 privately owned parking companies generate “only a 7% share of this turnover, equating to 2.8 billion euro”. (> 1.94 billion euro sum 2007 turnovers ) MasterCard: 467.5 million EURO (Febr08/Jan09: MasterCard)
AUTOMOBILE PARKING LOTS (75233) Maestro
Sum of Total_Euro_Currency_Volume 5869676.43
Sum of Total_Transaction_Count 322272
MasterCard Credit
Sum of Total_Euro_Currency_Volume 441587324.2
Sum of Total_Transaction_Count 22819695
MasterCard Debit
Sum of Total_Euro_Currency_Volume 5587235.49
Sum of Total_Transaction_Count 825142
Proprietary Sum of Total_Euro_Currency_Volume 666.04
Sum of Total_Transaction_Count 27
SOL Sum of Total_Euro_Currency_Volume 103012.35
Sum of Total_Transaction_Count 9624
SWI Sum of Total_Euro_Currency_Volume 14369950.58
Sum of Total_Transaction_Count 1403219 AUTOMOBILE PARKING LOTS AND GA Sum of Total_Euro_Currency_Volume 467517865.1 AUTOMOBILE PARKING LOTS AND GA Sum of Total_Transaction_Count 25379979
1 Numbers listed on companies’ websites. 2 Estimated at EPA conference by Q-Park Director 3 All names queried only on 7523. Transactions listed erroneously under 8675 (automobile associations), 5999 (miscellaneous and specialty retail stores), 4722 (Travel Agencies and tour operators), 4789 (transportation services not elsewhere classified), 4816 (computer network – information services) will thus not show.
3
B. Inleiding (EPA)
a) European parking market: Size
(source = presentation given by director of Q-Park group for EPA conference)
The economic value of the industry: 5 billion EURO (approx.) The current market turnover: 40 billion EURO (approx.) Expectations market turnover 2011: 50 billion EURO (in response to general economic growth and the growth in mobility) National car usage has increased from 84.7 to 84.8 % in Western Europe EU 15. EPA= 18 European countries 19 associations 3000 member operations
2.7 million parking spaces (8.500 car parks / millions on-street spaces) EU 15= Total number of public parking spaces is 300 million parking spaces These generate a turnover of 40 billion euro The top 10 privately owned parking companies generate only a 7% share of the total turnover, equating to 2.8 billion euro, of which 15% or 419.4 billion euro by Q-Park. The top 5 privately owned parking companies generate only a 6% share of the total turnover, equating to 2.3 billion euro. They operate approximately 2.7 million parking spaces, less than 1% of the total supply and approximately one quarter of the available ‘paid parking’ spaces.
b) European parking market: trends A trend towards consolidation among parking companies as the parking sector offers favourable opportunities for geographical risk spreading strategies and for long-term investors.
- NCP’s lease contracts have been sold to Maxquarie and NCP services (management & street parking) has been retained as a separate division by 3i.
- APCOA has been sold to EURAZEO (one of Europe’s major investment companies.) - Interparking and Vinci have been discussing a merger and a collaboration has been
announced to the market
4
EPA COUNTRIES
1. AUSTRIA Wirtschaftskammer Österreich Fachverband d. Garagen-, Tank- stellen u. Servicestationsunt. Wiedner Hauptstr. 63 A- 1045 Wien
2. BELGIUM Federation des Parkings de Belgique a.s.b.l. Mr J.M. Cordier Rue de l'Evêque 1 B- 1000 Bruxelles
3. CROATIA Croation Parking Association Mate Kraljevic Ilica 45 HR- 10000 Zagreb www.cpa.hr
4. CYPRUS Vert & Blanc Car Parks 199 Chr. Haggipavlou Ave. CY- 3302 Limassol/Cyprus www.vertetblanc.com.cy
5. FRANCE Federation Nationale des Metiers du Stationnement 18, avenue des Champs Elysees F- 75008 Paris
6. FINLAND Finnish Parking Association Mr. Boris Koreneff Simonkatu 2 A (Forum) FIN- 100 Helsinki www.bk-group.com
7. GERMANY Bundesverband Parken e. V. Richartzstraße 10 D- 50667 Köln www.parken.de
8. GREAT BRITAIN British Parking Association Stuart House, 41-43 Perrymount Road GB- Haywards Heath RH16 3BN West Sussex www.britishparking.co.uk
9. HUNGARIA H U N G A R O P A R K Laszlo Bubb P.O.B. 1766 H- 1465 Budapest www.fkpt.hu
10. IRELAND The Irish Parking Association Unit 3, Borrowside Business Park Sleaty Road Carlow Ireland www.parkingireland.ie
11. ITALY A I P A R K Corso Giuseppe Garibaldi, 7 I- 00039 Zagarolo (RM) www.aipark.org
12. LUXEMBOURG VINCI PARK 83 rue de Strasbourg L- 2651 Luxembourg www.vincipark.lu
13. THE NETHERLANDS VEXPAN Postal address: Postbus 5135 NL- 1410 AC Naarden the Netherlands Visitors address: Gooimeer 4-15 1411 DC Naarden www.vexpan.nl
14. NORWAY N O R P A R K
Mr Egil Ostvik Nedre Slottsgate 8 N- 157 Oslo www.norpark.no 15. POLAND Polish Parking Association ul. Polna 52/1 PL- 60-533 Poznan Poland www.polishparking.org 16. PORTUGAL A N E P E Rua S. José no 35 D P- 1150-321 Lisboa www.anepe.pt
17. SLOVAK REPUBLIK Slovak Parking Association Kosická 2 SK- 01001 Zilina www.spa-parking.sk
18. SLOVENIJA Parking Association Slovenija GIZ MP Contact: Boris Selih
19. SPAIN ASESGA Plaza de Santo Domingo 1, 1A ES- 28013 Madrid www.asesga.org
20. SWEDEN Svepark Service AB Östergatan 39 S- 21122 Malmö www.svepark.se
21. SWITZERLAND ParkingSwiss c/o AGVS, Autogewerbeverband der Schweiz Mittelstr. 32 Postfach 5232 CH- 3001 Bern www.parkingswiss.ch
5
c) Private cars in Europe (estat figures)
In Europe in 2004: 216 million passenger cars
On average 472 cars per 1000 inhabitants (US: 759/1000)
1. Luxembourg (659/1000)
2. Italy (581)
3. Portugal (572)
4. Germany (546)
5. Malta (525)
6. Austria (501)
7. France (491)
8. Belgium (467)
9. United Kingdom (463)
10. Slovenia (456)
11. Sweden (456)
12. Spain (454)
13. Cyprus (448)
14. Finland (448)
15. Netherlands (429)
16. Ireland (385)
17. Lithuania (384)
18. Czech Republic (373)
19. Denmark (354)
20. Poland (314)
21. Latvia (297)
22. Hungary (280)
23. Slovakia (222)
6
C. MasterCard’s Processed Volume in Parking Business in Europe
period: 12 months: February08/January09
7523 AUTOMOBILE PARKING LOTS AND GA Maestro
Sum of Total_Euro_Currency_Volume 5869676.43
Sum of Total_Transaction_Count 322272
MasterCard Credit
Sum of Total_Euro_Currency_Volume 441587324.2
Sum of Total_Transaction_Count 22819695
MasterCard Debit
Sum of Total_Euro_Currency_Volume 5587235.49
Sum of Total_Transaction_Count 825142
Proprietary Sum of Total_Euro_Currency_Volume 666.04
Sum of Total_Transaction_Count 27
SOL Sum of Total_Euro_Currency_Volume 103012.35
Sum of Total_Transaction_Count 9624
SWI Sum of Total_Euro_Currency_Volume 14369950.58
Sum of Total_Transaction_Count 1403219 AUTOMOBILE PARKING LOTS AND GA Sum of Total_Euro_Currency_Volume 467517865.1 AUTOMOBILE PARKING LOTS AND GA Sum of Total_Transaction_Count 25379979 7523 Sum of Total_Euro_Currency_Volume 467517865.1 7523 Sum of Total_Transaction_Count 25379979 Total Sum of Total_Euro_Currency_Volume 467517865.1 Total Sum of Total_Transaction_Count 25379979 MasterCard Data Analysis MasterCard/Maestro Volume processed in Europe in Parking Business Febr08/Jan09 (12 months)
7
D. Top 5: Main Players
TOP 5
Players
Parking
Business
Parking Spaces
(source: companies’
websites)
Countries
(source: companies’
websites)
Turnover
(source: companies’
websites)
1. APCOA 1 240 000 18 589 000 000
2. Vinci Group 1 035 200 12 (10europe) 562 000 000
3. Q-Park 792 482 10 419 400 000
4. Interparking
Group
250 000 7 240 000 000
5. Saba 104 513 6 (3europe) 131 000 000
TOTAL 3 422 195 1 941 400 000
Western Europe: 300 million parking spaces
Total market turnover 40 billion EURO
8
I. APCOA
(http://www.apcoa-europe.com /)
Airport Parking Corporation of America runs 1.24 million parking spaces in 18 European
countries.
a) APCOA Key Figures
9
b) APCOA Payment systems
Chip and Pin
Our team was the first in the parking industry to introduce ‘chip and pin’ into our operations. As technology innovators, we constantly push ourselves and our partners to deliver up to the minute technology.
RingGo and Verrus Payment Systems
In 2006, APCOA launched a cashless payment system using mobile phones. This enables customers to pay for their parking without the need to queue at a machine.
Cashless payment is based on the use of mobile phones and is very simple. Customers register their credit card details and vehicle registration numbers with the system. Then, when they arrive at the station car park, all they have to do is find a space and park. When they have a moment, they can then use their mobile phones to purchase their parking for the day. Payment is entirely secure, and the system can even send out VAT receipts online.
Suppose customers find that their cars will be parked for longer than planned? They can use the new system remotely, to top up their parking from wherever they happen to be.
Paying Options:
1. Pre- Pay - Customers pre-select the time that they wish to park for and they can also opt (at additional cost) to receive an SMS text message notifying them that their pre-paid time is due to expire and that they must either return to their vehicle or else make a top-up payment.
2. Time Used - Customers activate their parking sessions via a mobile phone call (which effectively starts the clock). When they then want to end their parking session they must remember to make another phone call. Using this system, some operators have implemented per minute or even per second billing for parking, rather than just an hourly tariff, which allows customers to pay for the exact amount of time they have parked.
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c) APCOA MasterCard Numbers
MasterCard Data Analysis APCOA Feb08-Jan09 Total Euro and Total Transactions in 12 months
GERMANY FEDERAL REPUBLIC OF Sum of Total_Euro_Currency_Volume 24908059
Sum of Total_Transaction_Count 749686
UNITED KINGDOM Sum of Total_Euro_Currency_Volume 10888587
Sum of Total_Transaction_Count 436422
AUSTRIA Sum of Total_Euro_Currency_Volume 1849343
Sum of Total_Transaction_Count 270360
NETHERLANDS Sum of Total_Euro_Currency_Volume 880894.9
Sum of Total_Transaction_Count 57504
IRELAND Sum of Total_Euro_Currency_Volume 64374.88
Sum of Total_Transaction_Count 686
BELGIUM Sum of Total_Euro_Currency_Volume 47833.25
Sum of Total_Transaction_Count 5572 Total Sum of Total_Euro_Currency_Volume 38639092 Total Sum of Total_Transaction_Count 1520230
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II. Vinci Park
(www.vincipark.com)
The Vinci Group
Share price 13/05/2009: 33.09 euros
a) VINCI Key Figures Pro forma key figures at 31 December 2007 (in € millions)
Breakdown of parking spaces
Breakdown of parking spaces at 31 December 2007
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Vinci Park, de grootste europese en een van de grootste wereldwijd opererende
parkeerplaatsbedrijven, beschikt over 1,2 Miljoen voertuigstelplaatsen in Europa en
Noordamerika.
Amérique
CANADA
ETATS-UNIS
Europe
ALLEMAGNE
BELGIQUE
ESPAGNE
FRANCE
LUXEMBOURG
REPUBLIQUE TCHEQUE
ROYAUME-UNI
RUSSIE
SLOVAQUIE
SUISSE
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b) VINCI Payment systems
1. Liber-t tag:
The first car park operator to accept payment by Liber-t tag. In over 200 facilities, drivers can pay their parking fees by Liber-t tag. Already used for motorway tolls and some service stations, Liber-t generates a considerable time saving by enabling account holders to pay their total tolls and parking fees once a month.
2. Total GR card:
1,500,000 professional road users in France have a Total GR card. Use your Total GR card to pay your parking fees. Monthly invoice (no more detailed expense claims).
3. Moneo:
To make parking easier, since 2002 meters equipped with a card reader so that you can pay using your electronic purse, Moneo. An on-street parking payment method that does not require municipalities to collect money from meters. And useable for other small day-to-day purchases too.
4. Bank Card:
Paying becomes even simpler! Take a ticket when you drive into the car park. When it’s time to leave, don’t join the queue for manual payment. Drive your car directly to the exit barrier and pay at the terminal using your bank card. This payment method is safer and easier! We install the latest payment methods and the most flexible technical solutions in our facilities: Liber-t tag, Total GR card, city card, Moneo electronic purse, parking cheque, bank card, etc.
We monitor advanced technologies and study best practices all over the world so that we can pioneer the installation of high-performance payment methods.
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c) VINCI MasterCard Numbers
MasterCard Data Analysis Vinci Feb08-Jan09 Total Euro and Total Transactions in 12 months
FRANCE Sum of Total_Euro_Currency_Volume 1273268.6
Sum of Total_Transaction_Count 78724 GERMANY FEDERAL REPUBLIC OF
Sum of Total_Euro_Currency_Volume 411188.25
Sum of Total_Transaction_Count 96026
UNITED KINGDOM Sum of Total_Euro_Currency_Volume 147362.64
Sum of Total_Transaction_Count 7791
BELGIUM Sum of Total_Euro_Currency_Volume 55681.06
Sum of Total_Transaction_Count 6888
SPAIN Sum of Total_Euro_Currency_Volume 21411.22
Sum of Total_Transaction_Count 1204
SLOVAKIA Sum of Total_Euro_Currency_Volume 1264.45
Sum of Total_Transaction_Count 49
AUSTRIA Sum of Total_Euro_Currency_Volume 135.12
Sum of Total_Transaction_Count 40 Total Sum of Total_Euro_Currency_Volume 1910311.34 Total Sum of Total_Transaction_Count 190722
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III. Q-Park
(www.q-park.com)
a) Q-PARK Key Figures
In nine out of the 10 countries where Q-Park operates, Q-Park is ranked in the top 3. Q-Park
is market leader in the Netherlands, Belgium, Ireland, Sweden and Finland. Overall, Q-Park is
among the top 3 European parking companies.
2007:
Dividend: 43.70eur/share (2006: 33.90eur) Return 13.5%
Net profit 108.6 million; balance sheet total 3.9 billion euro
16
17
b) Q-PARK Payment Systems
Near Field Communication. (sinds 30/01/08)
Dankzij de samenwerking tussen Payter, SKIDATA en Q-Park hoeven bezoekers met een mobiel niet meer langs de betaalautomaat. Payter voegt hiermee een nieuwe mogelijkheid aan de mobiele portemonnee toe: parkeren. Bij het in- en uitrijden van de parkeergarage halen Payter bezoekers hun mobiele telefoon gewoon langs de in- en uitrijdterminal. Met de 'Mastercard Over-the-Air Provisioning Service' kunnen banken eenvoudiger en sneller dan voorheen een mobiele betaaldienst voor hun klanten opzetten, op basis van het reeds bestaande RFID betaalsysteem van Mastercard, PayPass.
Q-Park Key De Q-Park Key is een handige afstandsbediening met sleutelhanger. Met één druk op de knop, dus zonder uw raampje te openen, opent u 24 uur per dag de slagboom. Voor de Q-Park Key betaalt u éénmalig € 34,95 en per maand € 1,50 abonnementskosten. Geen betaalautomaat
Abbonnementen
Voor diegenen die vaak in dezelfde parkeergarage parkeren. Daarmee bent u altijd verzekerd van een vrije plek in uw vaste parkeergarage tegen een aantrekkelijke prijs. Uw abonnement stelt u zelf samen op basis van de uren waarop u het meeste in uw vaste abonnementslocatie parkeert. U heeft daarbij de keuze uit zes standaard tijdsperioden.
P+R terreinen
Betalen doet u elektronisch vanuit uw eigen auto. U ontvangt geen parkeerkaartje en u hoeft dus niet langs een betaalautomaat. Bij het inrijden steekt u uw creditcard in de kaartlezer. Het systeem registreert het tijdstip van inrijden. Bij het uitrijden steekt u vervolgens uw creditcard, NS-Business Card of Mobility Mixx waarmee u bent ingereden in de kaartlezer. Het systeem registreert het tijdstip van uitrijden.
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c) Q-PARK MasterCard Numbers
MasterCard Data Analysis Q-Park Feb08-Jan09 Total Euro and Total Transactions in 12 months
NETHERLANDS Sum of Total_Euro_Currency_Volume 5865609
Sum of Total_Transaction_Count 838001
BELGIUM Sum of Total_Euro_Currency_Volume 575417.4
Sum of Total_Transaction_Count 33958
UNITED KINGDOM Sum of Total_Euro_Currency_Volume 379447.5
Sum of Total_Transaction_Count 31380
GERMANY FEDERAL REPUBLIC OF Sum of Total_Euro_Currency_Volume 4811.52
Sum of Total_Transaction_Count 1279 Total Sum of Total_Euro_Currency_Volume 6825285 Total Sum of Total_Transaction_Count 904618
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IV. The Interparking Group
(http://www.interparking.com/Public/)
a) INTERPARKING Key Figures
50 million customers a year, approximatively 350 towns, 481 car parks totaling some
250.000 parking spaces (76,000 on-street parking spaces) in Germany, Austria, Belgium,
Spain, France, Italy and the Netherlands that generate a turnover of over 240 million euros.
This puts Interparking among the top three in the European market in this sector.
7 countries, international: (60% of turnover) and the undisputed leader in Belgium
In Germany: Interparking is now number one on the German market. Joint venture with
Deutsche Bahn. In Austria, Salzburg, Vienna and Lintz; in Spain: presence in Madrid,
Barcelona and Bilbao; in France (formerly Uniparc and Codeparc); in the Netherlands; in
Italy, 62,000 on-street parking spaces in 150 towns in Tuscany, Sicily, Umbria and Apulia.
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b) INTERPARKING Payment Systems (http://www.servipark.com/ )
Our cards - Welcome to the world of simplicity and liberty!
Whether you are a tradesman, a private person, self employed or work in a company; a wide range of products has been developed to make parking easy. From card to parking cheque, parking becomes a pleasure.
P CARD SHOPPING - For carefree shopping and parking without queues en ticket.
The P Card Shopping®, for private users, gives access to all car parks of the Servipark network nearby the most important commercial areas of Belgium. No longer necessary to take a ticket or go to a ticket machine. Simply insert the P card in the slot on the way in and
21
out of the car park. The P Card Shopping® is revolutionary. She is linked to a Visa, Mastercard or American Express credit card. You can do your shopping with peace of mind. No more queuing at the ticket machine and as icing on the cake you can obtain free parking time from the shops. Ask for the P Card Shopping®, free of charge!
P CARD CORPORATE – The Business Card
You use your car all the time and you lose precious time looking for a place to park. Problems: car park receipts that you shouldn’t loose and the weight of the petty cash. The Corporate® is the solution for all professionals. Insert the card at the entrance and the exit of a Servipark car park and the deal is done. At the end of the month, an invoice with automatic payment by your bank, will list all your transactions, which you can also follow on the Internet. An ally for your business
For tradesmen and companies – The Park and Vouchers
PARK and SHOP® - The charming gift from the tradesmen.
Offering free parking with the Park & Shop® ticket is a gift which will be appreciated by your customers. With this cheque they can park one hour free of charge in any car park of the Servipark network. At the end of the month, an invoice with automatic payment by your bank, will list all the tickets which have been used and you can also verify their use on the Internet.
PARK and GUEST® - The business world’s ally!
All you and your customers and coworkers need to do is park in one of the associated car parks. Thanks to the Park & Guest® ticket, you offer them a place to park and they can recover their vehicle without risking a fine and in all security. With this cheque one can park up to 12 hours free of charge and it is valid in the entire Servipark network. At the end of the month, an invoice with automatic payment by your bank, will list all the tickets which have been used and you can also verify their use on the Internet. An easy way to park with which your business associates and your personnel will be delighted.
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c) INTERPARKING MasterCard Numbers
MasterCard Data Analysis Interparking Feb08-Jan09 Total Euro and Total Transactions in 12 months
ITALY Sum of Total_Euro_Currency_Volume 416342.58
Sum of Total_Transaction_Count 11638
NETHERLANDS Sum of Total_Euro_Currency_Volume 300817.43
Sum of Total_Transaction_Count 36526
BELGIUM Sum of Total_Euro_Currency_Volume 100983.52
Sum of Total_Transaction_Count 12301
FRANCE Sum of Total_Euro_Currency_Volume 2944.94
Sum of Total_Transaction_Count 27 Total Sum of Total_Euro_Currency_Volume 821088.47 Total Sum of Total_Transaction_Count 60492
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V. SABA
(www.saba.es)
a) SABA Key Figures
saba has been operating in all areas of the parking business since 1966.
The firm currently operates controlled parking zones in Spain, Italy, Portugal and Morocco
Since it was set up, saba has followed a rising course. By 31st December 2007, its revenue
had reached 131 million euros, a 10.6% increase on 2006.
24
25
The Abertis Group: saba forms part of abertis, an international group that manages mobility
and telecommunications infrastructures across five business areas. As a result of the
activities undertaken in the fields of toll roads, telecommunications infrastructures, airports,
car parks and logistic parks, abertis is present in 17 countries in three continents.
Car parks. abertis, through its saba branch, manages more than 100,000 car parking spaces,
in 180 car parks in more than 70 cities in Spain, Italy, Portugal, Chile, Morocco and Andorra.
31 December 2007: 104,513 spaces (a 12% increase on the previous year). The volume of vehicles using one or other of the Group's car parks: 51,648,000 vehicles. Growth in the period 2003-2007 because of the Group's international expansion. In 2007, the number of rotation vehicles using one or other Saba parking facility smashed through the 50 million barrier, to total 51.6 million, implying a 6% year-on-year increase. Overall, the increase amounted to some 3 million individual vehicles, of which 1.4 million stemmed from the business in Italy. With 7.9 million vehicles, the year-on-year increase in Italy was 22%.
b) SABA payment systems State-of-the-art technology that can directly benefit customers is implemented in the company's car parks, so as to offer a swifter, more convenient and more personalized service; this includes the electronic vehicle guiding system to identify vacant or occupied spaces, or the VIA T payment system.
a wide variety of passes: they are designed to suit your particular needs.
saba tempo
With the DISCOUNT and LONG STAY passes, we offer a parking service during the hours you
need.
For permanent stays of up to 6 hours, 8 hours, 10 hours, 12 hours. These vouchers are sold
in packs of 10 units.
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saba multi-day card
Validity: You can use the saba multi-day card during a minimum of 7 days and a maximum of one month. 24 hours parking: 24 hours during your chosen weekly period in one of our car parks. Reduced cost: Save on the normal tariffs.
saba complement card
Park more hours. When you need it. We offer our subscribers the possibility to add more
hours to their stay with the saba complement card. If you are a part-time subscriber and you
need to use the 24 hours service in specific days, we offer you the saba complement card.
For a minimum of 4 days and up to 92 days.
Servisaba card
Would you like to offer your clients 24 hour car-park?
With the servisaba card, you can offer your clients a 24 hour car-park service during the
days you need. You can contract a fixed quantity of cards a month, a fixed quantity of cards
to charge for use or a fixed and a variable for use quantity number of cards.
Shopkeepers special
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c) SABA MasterCard Numbers
MasterCard Data Analysis saba Feb08-Jan09 Total Euro and Total Transactions in 12 months
SPAIN Sum of Total_Euro_Currency_Volume 524256.9
Sum of Total_Transaction_Count 47408 Total Sum of Total_Euro_Currency_Volume 524256.9 Total Sum of Total_Transaction_Count 47408
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E. MasterCard’s Processed Volume in Parking Business in Europe (information on separated European countries)
period: 12months: Febr08/Jan09
7523 UNITED KINGDOM Maestro
Sum of Total_Euro_Currency_Volume 46859.7
Sum of Total_Transaction_Count 2578
MasterCard Credit
Sum of Total_Euro_Currency_Volume 206082029.8
Sum of Total_Transaction_Count 9787734
MasterCard Debit
Sum of Total_Euro_Currency_Volume 173664.18
Sum of Total_Transaction_Count 7880
SOL Sum of Total_Euro_Currency_Volume 103012.35
Sum of Total_Transaction_Count 9624
SWI Sum of Total_Euro_Currency_Volume 14369950.58
Sum of Total_Transaction_Count 1403219 UNITED KINGDOM Sum of Total_Euro_Currency_Volume 220775516.6 UNITED KINGDOM Sum of Total_Transaction_Count 11211035
GERMANY Maestro Sum of Total_Euro_Currency_Volume 54671.25
Sum of Total_Transaction_Count 948
MasterCard Credit
Sum of Total_Euro_Currency_Volume 88897036.45
Sum of Total_Transaction_Count 3153434
MasterCard Debit
Sum of Total_Euro_Currency_Volume 172122.54
Sum of Total_Transaction_Count 6763 GERMANY Sum of Total_Euro_Currency_Volume 89123830.24 GERMANY Sum of Total_Transaction_Count 3161145
NETHERLANDS Maestro Sum of Total_Euro_Currency_Volume 173680.61
Sum of Total_Transaction_Count 9847
MasterCard Credit
Sum of Total_Euro_Currency_Volume 45096572.54
Sum of Total_Transaction_Count 3312895
MasterCard Debit
Sum of Total_Euro_Currency_Volume 38280.47
Sum of Total_Transaction_Count 2417 NETHERLANDS Sum of Total_Euro_Currency_Volume 45308533.62 NETHERLANDS Sum of Total_Transaction_Count 3325159
SWEDEN Maestro Sum of Total_Euro_Currency_Volume 75429.81
Sum of Total_Transaction_Count 7027
MasterCard Credit
Sum of Total_Euro_Currency_Volume 32308135.51
Sum of Total_Transaction_Count 3606337
29
MasterCard Debit
Sum of Total_Euro_Currency_Volume 4491825.46
Sum of Total_Transaction_Count 772157
Proprietary Sum of Total_Euro_Currency_Volume 666.04
Sum of Total_Transaction_Count 27 SWEDEN Sum of Total_Euro_Currency_Volume 36876056.82 SWEDEN Sum of Total_Transaction_Count 4385548
DENMARK Maestro Sum of Total_Euro_Currency_Volume 147767.73
Sum of Total_Transaction_Count 5932
MasterCard Credit
Sum of Total_Euro_Currency_Volume 17023313.75
Sum of Total_Transaction_Count 622243
MasterCard Debit
Sum of Total_Euro_Currency_Volume 487870.03
Sum of Total_Transaction_Count 19077 DENMARK Sum of Total_Euro_Currency_Volume 17658951.51 DENMARK Sum of Total_Transaction_Count 647252
ITALY Maestro Sum of Total_Euro_Currency_Volume 1868622.74
Sum of Total_Transaction_Count 25469
MasterCard Credit
Sum of Total_Euro_Currency_Volume 11512626.69
Sum of Total_Transaction_Count 359060
MasterCard Debit
Sum of Total_Euro_Currency_Volume 25021.28
Sum of Total_Transaction_Count 891 ITALY Sum of Total_Euro_Currency_Volume 13406270.71 ITALY Sum of Total_Transaction_Count 385420
IRELAND Maestro Sum of Total_Euro_Currency_Volume 292417.79
Sum of Total_Transaction_Count 7031
MasterCard Credit
Sum of Total_Euro_Currency_Volume 12283231.97
Sum of Total_Transaction_Count 463352
MasterCard Debit
Sum of Total_Euro_Currency_Volume 15146.33
Sum of Total_Transaction_Count 799 IRELAND Sum of Total_Euro_Currency_Volume 12590796.09 IRELAND Sum of Total_Transaction_Count 471182
BELGIUM Maestro Sum of Total_Euro_Currency_Volume 285707.83
Sum of Total_Transaction_Count 3647
MasterCard Credit
Sum of Total_Euro_Currency_Volume 9874893.08
Sum of Total_Transaction_Count 475205
MasterCard Debit
Sum of Total_Euro_Currency_Volume 24636.54
Sum of Total_Transaction_Count 1517 BELGIUM Sum of Total_Euro_Currency_Volume 10185237.45
30
BELGIUM Sum of Total_Transaction_Count 480369
SPAIN Maestro Sum of Total_Euro_Currency_Volume 300265.98
Sum of Total_Transaction_Count 2794
MasterCard Credit
Sum of Total_Euro_Currency_Volume 6816478.33
Sum of Total_Transaction_Count 307906
MasterCard Debit
Sum of Total_Euro_Currency_Volume 60440.06
Sum of Total_Transaction_Count 4426 SPAIN Sum of Total_Euro_Currency_Volume 7177184.37 SPAIN Sum of Total_Transaction_Count 315126
AUSTRIA Maestro Sum of Total_Euro_Currency_Volume 1598491.07
Sum of Total_Transaction_Count 214427
MasterCard Credit
Sum of Total_Euro_Currency_Volume 3584505.97
Sum of Total_Transaction_Count 274032
MasterCard Debit
Sum of Total_Euro_Currency_Volume 10115.09
Sum of Total_Transaction_Count 781 AUSTRIA Sum of Total_Euro_Currency_Volume 5193112.13 AUSTRIA Sum of Total_Transaction_Count 489240
FINLAND Maestro Sum of Total_Euro_Currency_Volume 984.31
Sum of Total_Transaction_Count 29
MasterCard Credit
Sum of Total_Euro_Currency_Volume 3168487.59
Sum of Total_Transaction_Count 214928
MasterCard Debit
Sum of Total_Euro_Currency_Volume 33118.41
Sum of Total_Transaction_Count 2919 FINLAND Sum of Total_Euro_Currency_Volume 3202590.31 FINLAND Sum of Total_Transaction_Count 217876
FRANCE Maestro Sum of Total_Euro_Currency_Volume 321047.32
Sum of Total_Transaction_Count 18427
MasterCard Credit
Sum of Total_Euro_Currency_Volume 2123919.33
Sum of Total_Transaction_Count 114306
MasterCard Debit
Sum of Total_Euro_Currency_Volume 31892.8
Sum of Total_Transaction_Count 1684 FRANCE Sum of Total_Euro_Currency_Volume 2476859.45 FRANCE Sum of Total_Transaction_Count 134417
CZECH REPUBLIC Maestro Sum of Total_Euro_Currency_Volume 202742.63
Sum of Total_Transaction_Count 8042
MasterCard Credit
Sum of Total_Euro_Currency_Volume 710718.43
Sum of Total_Transaction_Count 24542
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MasterCard Debit
Sum of Total_Euro_Currency_Volume 2329.07
Sum of Total_Transaction_Count 91 CZECH REPUBLIC Sum of Total_Euro_Currency_Volume 915790.13 CZECH REPUBLIC Sum of Total_Transaction_Count 32675
LUXEMBOURG Maestro Sum of Total_Euro_Currency_Volume 26186.06
Sum of Total_Transaction_Count 411
MasterCard Credit
Sum of Total_Euro_Currency_Volume 763035.43
Sum of Total_Transaction_Count 37004
MasterCard Debit
Sum of Total_Euro_Currency_Volume 13985.71
Sum of Total_Transaction_Count 3479 LUXEMBOURG Sum of Total_Euro_Currency_Volume 803207.2 LUXEMBOURG Sum of Total_Transaction_Count 40894
POLAND Maestro Sum of Total_Euro_Currency_Volume 277732.27
Sum of Total_Transaction_Count 9472
MasterCard Credit
Sum of Total_Euro_Currency_Volume 456382.25
Sum of Total_Transaction_Count 18262
MasterCard Debit
Sum of Total_Euro_Currency_Volume 1699.76
Sum of Total_Transaction_Count 90 POLAND Sum of Total_Euro_Currency_Volume 735814.28 POLAND Sum of Total_Transaction_Count 27824
GREECE Maestro Sum of Total_Euro_Currency_Volume 2023.54
Sum of Total_Transaction_Count 9
MasterCard Credit
Sum of Total_Euro_Currency_Volume 262746.55
Sum of Total_Transaction_Count 8039
MasterCard Debit
Sum of Total_Euro_Currency_Volume 1191.86
Sum of Total_Transaction_Count 66 GREECE Sum of Total_Euro_Currency_Volume 265961.95 GREECE Sum of Total_Transaction_Count 8114
SLOVENIA Maestro Sum of Total_Euro_Currency_Volume 100929.5
Sum of Total_Transaction_Count 2736
MasterCard Credit
Sum of Total_Euro_Currency_Volume 120186.76
Sum of Total_Transaction_Count 9647
MasterCard Debit
Sum of Total_Euro_Currency_Volume 148.3
Sum of Total_Transaction_Count 11 SLOVENIA Sum of Total_Euro_Currency_Volume 221264.56 SLOVENIA Sum of Total_Transaction_Count 12394
SLOVAKIA Maestro Sum of Total_Euro_Currency_Volume 40170.67
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Sum of Total_Transaction_Count 1642
MasterCard Credit
Sum of Total_Euro_Currency_Volume 160398.49
Sum of Total_Transaction_Count 5458
MasterCard Debit
Sum of Total_Euro_Currency_Volume 1939.3
Sum of Total_Transaction_Count 22 SLOVAKIA Sum of Total_Euro_Currency_Volume 202508.46 SLOVAKIA Sum of Total_Transaction_Count 7122
ANDORRA Maestro Sum of Total_Euro_Currency_Volume 255.58
Sum of Total_Transaction_Count 44
MasterCard Credit
Sum of Total_Euro_Currency_Volume 168068.43
Sum of Total_Transaction_Count 18147
MasterCard Debit
Sum of Total_Euro_Currency_Volume 141.64
Sum of Total_Transaction_Count 25 ANDORRA Sum of Total_Euro_Currency_Volume 168465.65 ANDORRA Sum of Total_Transaction_Count 18216
ROMANIA Maestro Sum of Total_Euro_Currency_Volume 36732.47
Sum of Total_Transaction_Count 710
MasterCard Credit
Sum of Total_Euro_Currency_Volume 43430.84
Sum of Total_Transaction_Count 750
MasterCard Debit
Sum of Total_Euro_Currency_Volume 89.36
Sum of Total_Transaction_Count 1 ROMANIA Sum of Total_Euro_Currency_Volume 80252.67 ROMANIA Sum of Total_Transaction_Count 1461
LATVIA Maestro Sum of Total_Euro_Currency_Volume 13499.88
Sum of Total_Transaction_Count 808
MasterCard Credit
Sum of Total_Euro_Currency_Volume 60991.27
Sum of Total_Transaction_Count 2842
MasterCard Debit
Sum of Total_Euro_Currency_Volume 570.6
Sum of Total_Transaction_Count 20 LATVIA Sum of Total_Euro_Currency_Volume 75061.75 LATVIA Sum of Total_Transaction_Count 3670
ESTONIA Maestro Sum of Total_Euro_Currency_Volume 2551.96
Sum of Total_Transaction_Count 219
MasterCard Credit
Sum of Total_Euro_Currency_Volume 50162.98
Sum of Total_Transaction_Count 2937
MasterCard Debit
Sum of Total_Euro_Currency_Volume 208.13
Sum of Total_Transaction_Count 22
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ESTONIA Sum of Total_Euro_Currency_Volume 52923.07 ESTONIA Sum of Total_Transaction_Count 3178
CYPRUS Maestro Sum of Total_Euro_Currency_Volume 470.57
Sum of Total_Transaction_Count 8
MasterCard Credit
Sum of Total_Euro_Currency_Volume 14849.09
Sum of Total_Transaction_Count 448
MasterCard Debit
Sum of Total_Euro_Currency_Volume 798.57
Sum of Total_Transaction_Count 4 CYPRUS Sum of Total_Euro_Currency_Volume 16118.23 CYPRUS Sum of Total_Transaction_Count 460
MALTA Maestro Sum of Total_Euro_Currency_Volume 376.64
Sum of Total_Transaction_Count 13
MasterCard Credit
Sum of Total_Euro_Currency_Volume 5042.84
Sum of Total_Transaction_Count 184 MALTA Sum of Total_Euro_Currency_Volume 5419.48 MALTA Sum of Total_Transaction_Count 197
BULGARIA Maestro Sum of Total_Euro_Currency_Volume 58.52
Sum of Total_Transaction_Count 2
MasterCard Credit
Sum of Total_Euro_Currency_Volume 79.88
Sum of Total_Transaction_Count 3 BULGARIA Sum of Total_Euro_Currency_Volume 138.4 BULGARIA Sum of Total_Transaction_Count 5 Total Sum of Total_Euro_Currency_Volume 467517865.1 Total Sum of Total_Transaction_Count 25379979
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TOP 10 EUROPEAN COUNTRIES SORTED ACCORDING TO EURO VOLUME
7523 UNITED KINGDOM
Sum of Total_Euro_Currency_Volume 220775516.6
Sum of Total_Transaction_Count 11211035
GERMANY Sum of Total_Euro_Currency_Volume 89123830.24
Sum of Total_Transaction_Count 3161145
NETHERLANDS Sum of Total_Euro_Currency_Volume 45308533.62
Sum of Total_Transaction_Count 3325159
SWEDEN Sum of Total_Euro_Currency_Volume 36876056.82
Sum of Total_Transaction_Count 4385548
DENMARK Sum of Total_Euro_Currency_Volume 17658951.51
Sum of Total_Transaction_Count 647252
ITALY Sum of Total_Euro_Currency_Volume 13406270.71
Sum of Total_Transaction_Count 385420
IRELAND Sum of Total_Euro_Currency_Volume 12590796.09
Sum of Total_Transaction_Count 471182
BELGIUM Sum of Total_Euro_Currency_Volume 10185237.45
Sum of Total_Transaction_Count 480369
SPAIN Sum of Total_Euro_Currency_Volume 7177184.37
Sum of Total_Transaction_Count 315126
AUSTRIA Sum of Total_Euro_Currency_Volume 5193112.13
Sum of Total_Transaction_Count 489240 Total Sum of Total_Euro_Currency_Volume 458295489.5 Total Sum of Total_Transaction_Count 24871476
1
August 15, 2009
Maestro SecureCodeLe commerce électronique en toute sécurité en Europe
August 15, 2009 2
Agenda
1. Les opportunités et les défis de l’e-Commerce
2. Une solution pour les e-Commerçants: Maestro SecureCode
3. Les avantages pour les e-Commerçants et leurs clients
2
August 15, 2009 3
1. Les opportunités et les défis de l’e-Commerce
August 15, 2009 4
L’e-Commerce au niveau mondial: opportunités
• Partant du constat que l’e-Commerce ne cesse d’augmenter au cours des années en nombre de transactions mais aussi en CA, cette croissance pourrait être accélérée en
renforçant la confiance des consommateurs
élargissant les moyens de paiement aux cartes de débit
Source: KRC MasterCard SEPA Sondage Consommateurs, la GB, la France, l’Allemagne, les Pays Bas, la Belgique et la Pologne, Mars07
3
August 15, 2009 5
• Actuellement, les Cartes de Crédit sont le moyen de paiementen ligne le plus apprécié.
– 59 % des achats en ligne sont faits par Carte de Crédit– 23 % par transfert bancaire
• Le paiement cash-à-la-livraison occupe également une place prépondérante dans certains pays européens: au Portugal (35%), en Grèce (31%), en Espagne (29%) et en Italie (28%),
• En GB, +/- la moitié des clients en ligne utilise la Carte de Débit.
Credit Card
Bank Transfer
Other
L’e-Commerce au niveau européen: opportunités du Débit
Source: KRC MasterCard SEPA SondageConsommateurs, la GB, la France, l’Allemagne, les Pays Bas, la Belgique et la Pologne, Mars07
August 15, 2009 6
• Mode de paiement en ligne principal: la Carte de Crédit• Quel mode de paiement les titulaires de cartes utilisent en général pour les
transactions en ligne, en GB, aux Pays-Bas et en Belgique?
1712Cash à la livraison
0211Chèque
3133Autres
BelPays-BasGBTOTAL%
4
11
35
42
538
33172Virement bancaire
393Débit Direct
142345Carte de Débit
423544Carte de Crédit
11894326n =
L’e-Commerce au niveau européen: Opportunités du Débit
Source: KRC MasterCard SEPA Sondage Consommateurs, la GB, la France, l’Allemagne, les Pays Bas, la Belgique et la Pologne, Mars07
4
August 15, 2009 7
• Mode de paiement en ligne préféré: la carte de Débit• Quel mode de paiement les titulaires de cartes préfèrent-ils pour les transactions en
ligne, enGB, aux Pays-Bas et en Belgique? Crédit ou Débit?
48665355Deb30202927CreMe permet de budgétiser mes dépenses plus
efficacementDeb
Cre
DebCre
Deb
Cre
Deb
Cre
37173230Est le mode de paiement dans lequel j’ai confiance
37183531Est le mode de paiement de mon choix
36284639Réduit mon risque personnel ou la responsabilité
58435352Est plus flexible
57646161
55716062
BelPaysBGBTOTAL%
42
35
1000
414542
284136
250250500n =
L’e-Commerce au niveau européen: Opportunités du Débit
Source: KRC MasterCard SEPA Sondage Consommateurs, la GB, la France, l’Allemagne, les Pays Bas, la Belgique et la Pologne, Mars07
August 15, 2009 8
Les avantages d’activer les Cartes de Débit dans l’e-Commerce:
Les Cartes de Débit peuvent remplacer des modes de paiement inconfortables comme cash-à-la-livraison et les virements de banque.
Les Cartes de Débit fournissent les commerçants avec un mode de paiement plus efficient, plus rapide et plus sûre.
Les e-Commerçants comme les consommateurs vont profiter de l’activation et de l’adoption des Cartes de Débit:
– Garantie de paiement– Synchronisation d’achat & de paiement – Une expérience de paiement aisée en toute sécurité
Les e-Commerçants: avantages du Débit
5
August 15, 2009 9
La Sécurité
• Les cartes de débit sont directement liées aux comptes bancaires des consommateurs
• Manque de garantie de sécurité du data en ligne
– mène à des consommateurs inquiets
– mène à un manque de confiance des consommateurs
– mène à une perte de vente
e-Commerce: le défi de securité
August 15, 2009 10
• Presque la moitié des adultes U.S. en ligne, ou 46% de plus de 155 millions, signalent des inquiétudes sur
– le vol d’information– un abus de data – une attaque lancée sur l’Internet
Et limitent par conséquent leurs achats
38%: ont dépensé moins d’argent en ligne qu’avant29%: ont réduit les dépenses de 75% ou plus26%: ont réduit les dépenses de 50% à 74%28%: ont réduit les dépenses de 25% à 49%
Source: Gartner Inc. report
L’e-Commerce: le défi de securité
6
August 15, 2009 11
• Les consommateurs exigent de leurs banquesdes garanties de protection pour leurscomptes courants
• Pour cette garantie, les banques ont besoin d’un processus de vérification du titulaire de carte et une autorisation de paiementsans faille
• Les banques veulent éviter des charges liées à la fraude, en particulier liées àl’authentification en ligne
L’e-Commerce: la securité du Débit
August 15, 2009 12
Points d’attention pour les e-Commerçants
• Les commerçants e-Commerce veulent une garantie de paiement– éviter les plaintes, les chargebacks et la perte de revenus– se prémunir contre la fraude
• Souhaitent de la commodité pour les consommateurs– ventes en ligne faciles et rapides
– paiement en ligne aisé et agréable
• Souhaitent minimiser le coût du paiement
7
August 15, 2009 13
Conclusion
Deux problèmes prioritaires de l’e-Commerce:
la sécuritédu shopping en ligne
pour le consommateur
garantie de paiementpour l’ e-Commerçant
la solution
Authentification du titulaire de carte
du commerçant
August 15, 2009 14
Conclusion
MasterCard a identifié les prochains besoins principaux pour l’authentification du titulaire de carte dans le monde virtuel:
b. Cohérence; Chaque service, chaque voie de livraison
c. Prix économique; Pour la solution “mass-market”
a. Haute Sécurité; Pour le problème de l’e-Fraude
d. Commodité; Importance de l’adoption du consommateur
* Source: OneSmart Authentication product presentation
8
August 15, 2009 15
2. La solution pour les e-Commerçants: Maestro SecureCode
August 15, 2009 16
Qu’est-ce que Maestro?
• Le système carte de Débit le plus répandu au monde
• Maestro est une marque de paiement reconnue mondialement
• 650 millions de cartes dans le monde entier et 295 millions de cartes en Europe ont accès aux systèmes
• Ces cartes sont déjà acceptées en 10.8 millions de points de vente et en 1.2 millions d’ ATMspartout dans le monde
• L’usage facile partout au monde incite les titulaires de carte à utiliser leur carte de débit plus couramment et à faire augmenter la quantité et la valeur de leurs transactions de débit.
9
August 15, 2009 17
Qu’est-ce que Maestro SecureCode?
• SecureCode est une solution pour “authentifier”les titulaires de carte sur Internet.
• L’acceptation Maestro en ligne exige le SecureCode.
• Les titulaires de carte doivent entrer leur SecureCode dans un nouveau browser windowpour que leur transaction en ligne puisse être autorisée.
• La banque émettrice confirme le titulaire de carte et exécute la transaction.
• Les titulaires de carte s’identifient chez leurs banques en utilisant le code personnalisé.
August 15, 2009 18
SecureCodeSecureCode en Actionen Action
10
August 15, 2009 19
August 15, 2009 20
11
August 15, 2009 21
Tom JMaxwell
675412346786745 November 2012Maestro
August 15, 2009 22
********
12
August 15, 2009 23
August 15, 2009 24
Top e-Commerçants avec SecureCode (1)
13
August 15, 2009 25
Top e-Commerçants avec SecureCode (2)
August 15, 2009 26
Les cartes Maestro SecureCode en Europe
• Il y a plus de 28 millions de Maestro SecureCode cartes émises en Europe et plus encore vont suivre
• Développement en GB et Espagne • Une émission dans 6 autres pays:
– Belgique – Allemagne– Italie– Pologne– Portugal– Russie
Pas de Plan
Mise en oeuvre
En cours d’émission
Discussion de la mise en oeuvre
14
August 15, 2009 27
3. Les avantages pour les e-Commerçants et leurs clients
August 15, 2009 28
Les avantages pour les e-Commerçants
SecureCode• Fourni la preuve explicite d’un achat en ligne garanti• Réduit la fraude et les plaintes• Élimine la de-synchronisation entre le moment de la
vente et le paiement• Une solution mondiale de débit qui vous permet de
toucher des millions de titulaires de carte avec une activation Maestro SecureCode
• Réduit le nombre de modes de paiement dans les differents pays d’opération
• Règlement électronique des plaintes et opposition plus facile à traiter
15
August 15, 2009 29
Les avantages pour les clients
• Les consommateurs ont le choixde payer directement ou de façon différée pour leurs courses en ligne*
• Les consommateurs veulent sesentir en sécurité et protégéscontre des transactions non-authorisées.*
* KRC MasterCard SEPA Sondage des Consommateurs, UK, la France, l’Allemagne, les Pays Bas, la Belgique et la Pologne,Mars 2007
Maestro en ligne ouvre la carte de débit aux achats sur Internet dans la vie quotidienne:- C‘est pratique parce que je peux utiliser la même carte - Je peux contrôler ce que je dépense- Je suis protégé contre la fraude
August 15, 2009 30
Comment démarrer?
• Contacter votre banque d’Acquisition pour obtenir des informations vous permettant d’accepter Maestro SecureCodedans votre business en ligne
16
August 15, 2009 31
Appendix
August 15, 2009 32
MasterCard introduit le Maestro Advance Registration Program™ (MARP):
• Permettant aux consommateurs Maestro de faire des courses en ligne utilisant une plate-forme sécurisée
• Tout en maintenant l’expérience check-out du commerçant très efficace et pratique
Associer la sécurité de consommateur et la commoditéde check-out en ligne
Sécurité en ligne et commodité grâce au Maestro Advanced Registration Program
17
August 15, 2009 33August 15, 2009 3333
• MasterCard a introduit un nouveau programme pour améliorer la commodité de la carte Maestro en maximisant le nombre de commerçants qui l’acceptent
• La Maestro Advance Registration Program permet aux commerçants qualifiés d’accepter Maestro pour les transactions e-commerce sans devoir utiliser MasterCard SecureCode pour authentifier chaque transaction
• Les commerçants qui y prennent part peuvent balancer leurs objectifs de l’expérience de check-out avec leur préférence pour une transaction garantie ??????????
Sécurité en ligne et commodité avec Maestro Advanced Registration Program
August 15, 2009 34August 15, 2009 3434
Maestro Advance Registration ProgramRésumé
• Conçu pour les commerçants, permet aux consommateurs d’enregistrer une carte de paiement pour l’emploi dans les transactions de l’avenir
• Le commerçant doit demander le SecureCodeauthentification quand le consommateur fait sa première transaction Maestro
• Les transactions Maestro dans l’avenir ne devront pas être SecureCode authentifiées. Toutefois, la banque émettrice aura droit de chargeback en cas de fraude
• MasterCard va répartir un Account Authentification Value (AAV) statique aux commerçants pour qu’ils puissent identifier les transactions pas authentifiées.
18
August 15, 2009 35August 15, 2009 3535
Maestro Advance Registration Program Critères de qualification des commerçants
• Exige pièces d’identitéd’authentification comme username et mot de passe pour enregistrer le consommateur pour le check-out
• CB ratio de 30 bps ou moins
• PCI DSS compliant
• CVC2 & AVS (ou disponible)
• Système de gestion de risque du dernier cri
• SecureCode doit être complètement opérationnel pour authentifier les transactions initiales.
1
June 18, 2009 1
The Dawn of a New European Economy
Understanding the newest trends and their consequences in the European Card Payments Business
Steven Van SweeveltCommerce Development
June 18, 2009 2
1. A New European Economy
The beginning of the 21st century was marked by an ever-growing Globalization of the Economy.
• Growth
• Wealth
• Internationalisation& Harmonisation
• Inflation
• Ecological Poverty
• Crisis on a Global Scale
-> 2008 2008 ->
2
June 18, 2009 333333
SEPA: Harmonization –
Any Card….• Virtually all debit cards now bear an International SEPA compliant brand• Limited Exceptions: Finland, Italy, Netherlands, France
…Any Terminal• Approximately 90% of all national use only
debit card terminals now accept Maestro®
in the EU 31
1 1. A New European Economy: SEPA
June 18, 2009 444
SEPA: Transparency -Cards Framework:
Opening national markets = allowing multiple scheme and service providers / market= options for retailers and issuing banks
SEPA: Opportunity –Increased choice of schemes under SEPA Schemes to deliver more features / functionalities on unique needs.
SEPA: Conclusion –FEWER BARRIERS = MORE OPPORTUNITIES
2 1. A New European Economy: SEPA
3
June 18, 2009 55
‘Economic Zones’signalling the creation of a true single market for both payments and shopping
Top Maestro European cross-border debit card usage cities by country Sept 07-Aug 08
In spite of economic downturn, this trend continues and is enhanced by consumers actively looking for lowest cost/greatest value, regardless of country
1. A New European Economy: SEPA
June 18, 2009 66666
• Competition for retailer card payment services
• Evolution of number of available debit card acquirers by country from 2007 to 2009
• Maestro and MC now domestic brands and volumes migrating to
international schemes on co-brand cards from local schemes
BELGIUMFrom 1 to 8
IRELANDFrom 3 to 6
AUSTRIAFrom 2 to 9
LUXEMBURGFrom 1 to 3
NETHERLANDSFrom 1 to 8
SWITZERLANDFrom 1 to 3
PORTUGALFrom 1 to 3
3
1. A New European Economy: SEPA
4
June 18, 2009 777715 August 2009
7
“We are centralizing all of our card processing businessfor our petrol stations across Europe for debit and credit under one format, terminal and provider”
“ I want to offer acceptance of debit cards at my parking garages and meters”
“We want to accept debit cards on our tollway network from both Italy and abroad in the same way.”
“We want to begin accepting debit cards in Italy on our website”
“We need to offer an electronic refund in new ‘cash free’ shops and the local scheme doesn’t offer”
“We like the ability to approve cards even if our terminal is not working at the moment”
“We like the Purchase with Cash Back Solution as an added customer service.”
‘We want to accept German debit cards on our website in the same way as everywhere else”
4
1. A New European Economy: SEPA
June 18, 2009 888
2. The New Consumer’s Response
5
June 18, 2009 99
• Consumer Confidence is at an all-time low due to the events of 2008.
• 4 factors have shaped the New European Consumer.
Rise of commodity prices
Disappearance of Personal wealth
With housingBanking and
Stock markets collapse
Unemployment &Business outlook
2. The New Consumer’s Response
Ecological Pressure
June 18, 2009 1010
Source: TNS dimarso - March 2009
– 60% believes there will be a global depression– 73% expects to cut back their spending the coming year– Consumers expect to increase their savings, from 42% to 65%.
BUT 55% will not be able to save any money.– 10% expects to lose their home the coming year– 27% will have to postpone their retirement– 30% expects their job will be at risk– 60% has to sacrifice free time to cope with higher work pressure /
handle more tasks themselves
2. The New Consumer’s Expectations
6
June 18, 2009 1111
2. The New Consumer’s Expectations: Norway
June 18, 2009 1212
The New European consumer is
• BETTER MANAGING its BUDGET
• Shopping BETTER INFORMED: Smart Spending
• SAVING MONEY or trying to
• TIME CONSCIOUS
2. The New Consumer’s Habits: Conclusions
7
June 18, 2009
3. Impact on Retailers and Banks3. Impact on Retailers and Banks
June 18, 2009 14
•Luxury/•premium
•Middle-price
•Discount/•low price
•Luxury/•premium
•Discount/•low price
80s 90s-2008 2008 <
3. Impact on Retailers
Move to lower segments
8
June 18, 2009 15
3. Impact on Retailers
Downscaling• In the consumer market, the ‘go small’ trend is replacing the
‘big-is-better’ thinking.
• Anticipation of future inflation. • Characteristics:
– Minimal architecture: streamlined eco prefab housing
– Micro products: Miniline by BMW
• Reason to buy:– Ecofriendly
– Smarter
June 18, 2009 16
3. Impact on Retailers
Source: a media consumption study by Mediascope Europe. EIAA Online Shoppers 2008
e-Commerce• 2004 40% has ever bought
on-line
• 2008 80% bought on-line
• UK (486 MIO) and Germany (342 MIO) made most purchases
• Norway (€1203) and UK (€1203)are the biggest on line spenders per capita
1%3%
5%
2%
5%
9%
6%7%
15%
2002 2007 2012 E
Rest of the w orld US and Canada Europe
Online spend as % of total retail spend
9
June 18, 2009 17
3. Impact on Retailers
Source: a media consumption study by Mediascope Europe. EIAA Online Shoppers 2008
e-Commerce: On-line research On-line purchase
June 18, 2009 18
3. Impact on Retailers
Disloyal BehaviourIn an information-rich society, the patience-poor customer seeks out more alternatives and demands more.
Short Term increased promotional pressure leads to Longer Term brand erosion and trains shoppers to buy on promotion.
• Companies can increase revenues by nearly 50% by retaining only 5% of their customer base.
Source: Frederick Reichheid “The Loyalty Effect”
• 47% of European consumers in 2008 indicated they were not brand-loyal.Source: Consumer Behaviour survey 2008 Deloitte
10
June 18, 2009 19
3. Impact on Retailers
Unpredictable “the zapping society”– 60% of women (BE) claim they cannot do what needs to be done.
– Short-term mindset
– Disappearance of traditional weekly bulk shopping trip
– Multi dimensionnel clusters / life stage and life style.
Difficult to target
Winning store concepts – best target / best satisfy
June 18, 2009 20
11
June 18, 2009 21
3. Impact on Banks
Lost of Trust
2007
1. Firefighters 96%2. Doctors 89%3. Teachers 88%4. Police 81%5. Judges 78%6. Bankers 72%7. Church repres. 64%8. Journalists 49%
2009
1. Firefighters 93%2. Doctors 89%3. Teachers 76%4. Police 65%5. Judges 56%6. Church repres. 48%7. Journalists 34%8. Bankers 18%
Source: European Trusted Brands 2009 by Reader’s Digest
Evolution: Most trusted Jobs
June 18, 2009 22
3. Impact on Banks
Less Savings
Increase in defaults
Credit Losses
Lower economicgrowth
Weakening of banks’ balance sheets
Lower credit growth
12
June 18, 2009 23
4. MasterCard4. MasterCard’’s s European Payment SolutionsEuropean Payment Solutions
June 18, 2009 24
4. MasterCard’s European Payment Solutions
0
1000
2000
29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1
Account balance
Days
Average balance
0
1000
2000
29 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 1
Account balance
Average balance
Heavy ATM user, low POS user Heavy POS user, Low ATM user
Consumers’ natural choice Best choice for • the bank• the consumer• the economy
Drive acceptance at POS:
13
June 18, 2009 25
Secure & Fast Internet – also on debit cards
– Easy and Secure Shopping On-line
– Activation of Debit Cards: – opening up e-Commerce
– 28 million European Maestro SecureCode cards
4. MasterCard’s European Payment Solutions
June 18, 2009 26
Speed at Check Out
FranceUK Germany
4. MasterCard’s European Payment Solutions
14
June 18, 2009 27
Increased Budget Control
4. MasterCard’s European Payment Solutions
June 18, 2009 28
Rewards on your payment card
• Unique identifier
• Always on hand• Data Rich
• 1-1 marketing at Check Out
CUSTOMER GROUPS MARKETING BUDGET
DEAL SEEKERS
LOYALS
4. MasterCard’s European Payment Solutions
15
June 18, 2009 29
Conclusions
1.Crisis – is temporary
But some trends are there to last
2.Fundamentally – way of doing business will not change
But anticipation on trends will put you in pole position
Short Term: cards business hasdeveloped some solutions
Long Term: win will come from an industry wide collaboration
Gagnez 2 tickets pour un match de
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* Réduction de 25 € pour toute souscription d’une ING Card ou de 34,70 € pour toute souscription d’une MasterCard Gold ING (soit le montant actuel de la redevance annuelle due respectivement pour l’une ou l’autre carte; variable moyennant information préalable), et ce pour une durée d’un an et pour autant que la demande d’offre soit introduite auprès d’ING entre le 06/07/2009 et le 14/08/2009 inclus (sous réserve d’acceptation de votre dossier par ING et d’accord mutuel). Offre valable uniquement contre remise du bon de va-leur ING Card ou MasterCard Gold (disponible sur www.ing.be) à votre agence ING au moment de la demande. Offre réservée aux personnes qui ne sont pas encore titulaires d’une ING Card ou d’une MasterCard Gold au moment de la demande d’offre et limitée à une réduction par personne. Pour l’ING Card, vous ne payez, grâce au bon de valeur, que les frais d’utilisation de votre carte (p. ex. en cas de retrait) et, en cas d’utilisation de l’ouverture de crédit, les intérêts débiteurs sur le montant prélevé (taux d’intérêt annuel effectif global – T.A.E.G. = 10,95%; taux en vigueur au 1/6/2009, variable moyennant information préalable). La MasterCard Gold ING est une carte de crédit destinée aux particuliers agissant à des fins privées. L’ING Card est une MasterCard assortie d’une ouverture de crédit facultative, destinée aux personnes physiques majeures. Si vous souhaitez une MasterCard sans ouverture de crédit, veuillez vous adresser à une agence ING. Les conditions générales de l’ING Card et de la MasterCard Gold sont disponibles dans toutes les agences ING et sur ww.ingcard.be.
** La participation à la tombola est soumise à la souscription d’une ING Card ou d’une MasterCard pour une durée d’un an dont la demande d’offre est introduite auprès d’ING entre le 06/07/2009 et le 14/08/2009 inclus (sous réserve d’acceptation de votre dossier par ING et d’accord mutuel). Votre participation à la tombola (via le formulaire disponible, après introduction de votre demande de carte, via la messagerie Home’Bank d’ING) implique votre adhésion au règlement de la présente tombola, disponible sur demande auprès d’ING. La tombola est organisée par Child Focus (avenue Houba de Strooper 292, 1020 Bruxelles) en collaboration avec ING Belgique (tombola autorisée par A.R. III/42/CD.585.13-366). Date du tirage au sort: le 01/09/2009. Autres conditions et règlement de la tombola disponibles auprès des agences ING et sur www.ing.be.
ING Belgique SA – Banque / Prêteur – Avenue Marnix 24, B-1000 Bruxelles – RPM Bruxelles – TVA BE 0403.200.393 – BIC (SWIFT): BBRUBEBB – Compte: 310-9156027-89 (IBAN: BE45 3109 1560 2789). Éditeur responsable: Philippe Wallez – Avenue Marnix 24, B-1000 Bruxelles – Z24162F.
Demandez maintenant votre carte de crédit ING Card ou
MasterCard Gold ING gratuite pendant 1 an**
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* A 25 € reduction for each ING Card subscription or a 34.70 € reduction for each MasterCard Gold ING subscription (that is the actual amount of the yearly charges for one of these cards; this can vary depending upon prior information), for the duration of one year if the request for this offer is made at ING between 06/07/2009 and 14/08/2009 (with the confirmed acceptance of your file by ING and the achievement of a mutual agreement). Offer only valid in exchange for the ING Card voucher or MasterCard Gold voucher (available on www.ing.be) at the time of the request at your nearest ING bank. The offer is designed exclusively for those who are not yet ING Card or MasterCard Gold cardholders at the moment of the request and it is limited to one reduction per person. With this voucher, your ING Card will cost you nothing except the costs resulting from its use (for example in case of a cash withdrawal) and, if you open up a line of credit, the charged interests of the debited sum (the overall Effective Annual Interest Rate – E.A.I.R. = 10, 95%; the rate is in effect from 01/06/2009, this can vary depending upon prior information). The MasterCard Gold ING is a credit card intended for individuals acting in their private capacity. The ING card is a MasterCard with the possibility of opening a line of credit, intended for individuals over the age of 18. For a MasterCard without such a line of credit, contact your nearest ING bank. The general conditions for the ING Card and the MasterCard Gold are available at all ING bank branches and on www.ingcard.be. ** The participation to the lottery of these tickets is linked to the subscription to an ING Card or a MasterCard for the duration of one year and if the request of the offer is made at ING between 06/07/2009 and 14/08/2009 (with the confirmed acceptance of your file by ING and the achievement of a mutual agreement). Your participation to the lottery (after submitting the card request with the available form via ING’s Home’Bank messaging) indicates you agree with the regulations of this specific lottery, all regulations are available on demand at ING bank. The lottery is organized by Child Focus (avenue Houba de Strooper 292, 1020 Brussels), in collaboration with ING Belgium (lottery authorised by A.R. III/42/CD.585.13-366). Lottery draw date: 01/09/2009. More conditions and the lottery regulations are available at the ING bank branches and on www.ing.be.
ING Belgium SA – Bank / Loaner – Avenue Marnix 24, B-1000 Brussels – RPM Brussels – TVA BE 0403.200.393 – BIC (SWIFT): BBRUBEBB – Account: 310-9156027-89 (IBAN: BE45 3109 1560 2789). Responsible publisher: Philippe Wallez – Avenue Marnix 24, B-1000 Brussels – Z24162F.
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