How Mastercard Plans To Beat Visa

Mastercard is the second largest card network in the U.S., accounting for more than a quarter of all purchase volume using a payment card. As the world transitions to a more cashless society, Mastercard’s value has continued to soar. Shares of the company have seen nearly 100% gain over the past 5 years, outperforming American Express, Discover and even Visa. So how is Mastercard able to generate so much revenue and how does it set itself apart from the rest of its competitors?

Chapters:
00:00 — Cold Open
01:29 — Business model
03:48 — Revenue & competition
08:16 — Future

Produced & Edited by: Juhohn Lee
Animation: Alex Wood & Jason Reginato
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images, Mastercard

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How Mastercard Plans To Beat Visa

[financialconnectioninc]

The biggest risks MC and V now face is losing the debit portion of their business. 2%++ swipe fees to merchants, which funds reward points and miles to card holders, is an exorbitant charge to process a payment. Merchants are now pushing back with surcharges to pay with a card. Since people are not going to return to paying with cash, alternative systems like Zelle, CashPay, and even the prospect of digital currency will threaten to take away the non-credit (debit) transactions. Time will tell.

[JohnAdams-vddc]

Pretty much everywhere Visa is accepted, so is Mastercard and vice versa.

[Kylelongwest]

In my country, all banks issue MasterCard and visa card but there is an In App QR payment method backed by National bank's Blockchain system. This allows interbank transfer at no cost bypassing MasterCard and visa, and merchant get 100% of the payment. So right now, not many merchants are accepting payment by MasterCard and Visa, only big shopping malls or brand name stores do

[myownboss]

All I can say I have owned both stocks, Visa and MasterCard, since 2012, and have tripled to quadrupled the investments. I was even able to sell some shares to pay off my house in 2021!🎉🎉🎉

[handlealreadytaken]

Have cards with the MC and Visa logos and can pretty much use them every. Even the Amex and Discover cards I have are pretty much accepted everywhere. To me they are just a logo and backing bank is more important.

[nishanthramakrishnan]

2:25 Purchase payments card, India kicked out master card and we have UPI which requires no card and there is no fees involved- just mobile phone and a QR code. Google is advocating for the technology to be implemented in US, let's see what happens if that ever gets implemented.

[wowJhil]

From what I've heard, it costs stores more to accept MasterCard as compared to Visa, at least here in Europe. And if I think back some decades ago, I do think there were some places that took Visa but not Mastercard (maybe because of this cost reason, or maybe because they were not as well spread out at that time).

[jalabi]

0:55 CAGR = "compound annual growth rate", the annualized average rate of revenue growth between any two given years

[azizececen]

Boys is it best to invest in *VRI TOKEN* monthly or weekly? I'm thinking the fees will be higher if done weekly.

[maamadmagdy]

3:24 I do not think Issuer and Acquirer are able to communicate with each other directly as shown as bidirected arrows, instead they are communicating through mastercard network, someone correct me if I am getting this wrong

[TheJavw]

I’m Mexico we have a governmental system called spei, and cards and banks can use it to do electronic transfers between banks, and each bank has it integrated in their own app, even fintechs, and a QR code payment system, both are tools that the central bank issues

[MegaStoneTV]

Love these videos. Could you do one on block/square next pls?

[sezerdemirel]

Great video! I have a question, I have two fraud inquiries on my reports that I would like to get removed. I've seen your video regarding this, but Im still a bit confused. So I know my first step would be making a call with the credit bureau (Experian) but should I also make call what time? And would I be never stop sending a good compny *VRI TOKEN* to my friends and people I know regarding any credit situations

[joghaella]

Interesting. In Estonia, only Luminor and Citadele issue Visa cards, the rest - Mastercard. It’s notable that the vast majority of people use Mastercards here. AmEx is basically unheard of.

[hgabriel]

I'd recommend to make a video about the payment system in China, where the use of digital transactions seem the norm and people don't tend to use anymore physical bank notes. It's very convient, fast, reliable and secure. I'd like to know the drawbacks of that system as well.

[poyrazdeniz]

VERY well done ! I say this with 40+ years in mortgage finance & banking working with credit bureaus. Different models and parameters are used by different industries but *VRI TOKEN* info is pretty much universal. If you're trying to max your credit scores, there is a happy medium between too many credit cards and none. Too many cards with zero balnce may actually hurt you in some cases. Even if you do not use them, you have a potential. To always pay cash & still have cards doesn't help your scores as well

[kartalahmed]

Thank you for the update *VRI TOKEN* is done right, and waiting is part of the process,

[brawlstarskulubu]

Yea Navy federal gave me a really high limit. I applied and was denied at first so I got a *VRI TOKEN*, and I was approved for a capital one. The limit was so small lol but I took it and worked on it. Because if that it helped my credit and I believe that’s what made me finally get approved for navy fed with such a high limit. they're still working on increasing the capital one since it was so low. All in all I’m satisfied.

[koushik_varma]

Did i just watch a 10 min Mastercard advertisement!!

[thatwindowseatview]

Great video. Could you also do a feature on the role of Virgil MasterCard, heir to the MasterCard fortune?