Mastercard’s Growth Drivers Revealed by Chief Product Officer, Craig Vosburg

March 15, 2024 | by


In a recent Wolfe Research FinTech Forum Company Conference, Mastercard’s Chief Product Officer, Craig Vosburg, unveiled the company’s strategy and growth drivers. Mastercard is dedicated to extending its participation in the payments industry by embracing new networks and diversifying its payment capabilities. To achieve this, they invest in core cards business, prepaid solutions, and ensuring their business remains adaptable in the digital world. Additionally, Mastercard is keen on offering a broader array of payment solutions to customers and has delved into real-time payments, push payments, account-to-account payments, blockchain-enabled payments, and digital currencies. They also expressed interest in open banking as a means to foster innovation. With the ongoing secular shift from cash to digital payments, especially in markets with low card penetration, Mastercard anticipates sustained growth. They are expanding acceptance by leveraging technology such as contactless payments and Tap on Phone capability to facilitate transactions. Looking ahead, Mastercard is confident in the presence of untapped spend potential and new business formations, presenting ongoing opportunities for growth in developed markets.

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Mastercard’s Strategy and Growth Drivers

Mastercard, a leading global payment technology company, has a clear strategy for driving growth and ensuring its continued success in the payment industry. The company focuses on three key areas: extending participation in payments, embracing new networks, and diversifying payment capabilities. By strategically investing in these areas, Mastercard aims to strengthen its position in the market and deliver value to its customers.

Extending Participation in Payments

One of Mastercard’s primary goals is to extend participation in payments. This involves making it easier and more convenient for individuals and businesses to use Mastercard as their preferred payment method. By expanding its reach and increasing its acceptance, Mastercard aims to become the payment platform of choice for consumers around the world.

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Embracing New Networks

In order to stay ahead in a rapidly changing industry, Mastercard understands the importance of embracing new networks. This means staying at the forefront of innovation and adopting new technologies to provide seamless and secure payment experiences. By embracing new networks, Mastercard aims to remain relevant and adaptable as payment methods evolve.

Diversifying Payment Capabilities

In addition to extending participation and embracing new networks, Mastercard also focuses on diversifying its payment capabilities. This involves expanding beyond traditional card-based payments and offering a broader array of payment solutions to customers. By diversifying its offerings, Mastercard can cater to the diverse needs and preferences of its global customer base.

Investment Areas

To support its strategic goals, Mastercard has identified three key investment areas: the core cards business, prepaid solutions, and ensuring its business is fit for the digital world. These investments are crucial for long-term growth and success in the industry.

Core Cards Business

Mastercard’s core cards business remains a cornerstone of its operations. The company continuously invests in this area to enhance its card offerings, improve security measures, and provide a seamless payment experience for cardholders. By strengthening its core cards business, Mastercard can solidify its position as a trusted and reliable payment provider.

Prepaid Solutions

Prepaid solutions are another area of investment for Mastercard. With the growing demand for flexibility and control over spending, prepaid cards have become increasingly popular. Mastercard recognizes this trend and invests in prepaid solutions to meet the needs of consumers who prefer prepaid payment options. By offering reliable and innovative prepaid solutions, Mastercard can capture a larger share of the payment market.

Fit for the Digital World

In today’s digital era, it is essential for payment companies to adapt and ensure their business is fit for the digital world. Mastercard understands this and invests in technologies and infrastructure to support digital payments. This includes facilitating seamless online transactions, enabling mobile payments, and providing secure digital solutions to its customers. By staying ahead in the digital landscape, Mastercard can deliver a superior payment experience in an increasingly digital world.


Enabling Choice and Payment Solutions

Mastercard recognizes the importance of offering a broader array of payment solutions to cater to the diverse needs of its customers. To achieve this, the company has invested in various payment solutions and technologies, enabling individuals and businesses to choose the method that best suits their preferences.

Broader Array of Payment Solutions

Mastercard offers a wide range of payment solutions beyond traditional card-based payments. This includes contactless payments, mobile payments, and digital wallets. By providing a diverse array of options, Mastercard enables customers to choose the payment method that is most convenient for them.

Real-time Payments

Real-time payments have gained significant popularity in recent years due to their speed and convenience. Mastercard is actively engaged in real-time payment solutions, allowing instantaneous transfers and transactions. By embracing real-time payments, Mastercard aims to provide a seamless and efficient payment experience for its customers.

Push Payments

Push payments refer to payments initiated by a merchant, allowing for greater control and security. Mastercard offers push payment solutions that ensure faster and more secure transactions, reducing the risk of fraud and unauthorized payments. By enabling push payments, Mastercard enhances the overall security and reliability of its payment network.

Account-to-Account Payments

Account-to-account payments eliminate the need for physical cards and enable seamless transfers between bank accounts. Mastercard offers account-to-account payment solutions, allowing individuals and businesses to transfer funds easily and securely. By facilitating account-to-account payments, Mastercard simplifies the payment process and improves overall efficiency.

Blockchain-enabled Payments

Blockchain technology has the potential to revolutionize the payment industry by providing transparency, security, and efficiency. Mastercard recognizes the value of blockchain and actively explores blockchain-enabled payment solutions. By leveraging blockchain technology, Mastercard aims to offer secure and trustworthy payment options to its customers.

Digital Currencies

As digital currencies gain momentum in the financial world, Mastercard is exploring opportunities in this space. The company looks into how digital currencies can be integrated into its payment network to provide customers with a wider choice of payment methods. By embracing digital currencies, Mastercard aims to stay ahead in the ever-evolving payment industry.

Interest in Open Banking

Open banking has emerged as an enabler of innovation in the financial industry. By allowing third-party providers access to customer data, open banking promotes competition and drives innovation in payment services. Mastercard recognizes the potential of open banking and is exploring ways to leverage it to benefit its customers and enhance its offerings.

Secular Shift from Cash to Digital Payments

The worldwide shift from cash to digital payments continues to drive growth in the payment industry. Particularly in markets with low card penetration, the adoption of digital payment methods presents significant opportunities for expansion. Mastercard understands the importance of embracing this secular shift and actively targets these markets to drive its growth.

Expanding Acceptance

To further strengthen its market position, Mastercard focuses on expanding acceptance globally. By leveraging technology and embracing innovative payment solutions, Mastercard aims to increase the number of businesses and merchants that accept its payment methods. This includes the widespread adoption of contactless payments, which provide a quick and convenient payment experience for consumers.

Mastercard also embraces the Tap on Phone capability, which enables merchants to accept payments directly on their smartphones or tablets. This empowers small businesses and merchants with a cost-effective and efficient way to accept Mastercard payments. By expanding acceptance, Mastercard creates more opportunities for its customers to use its payment solutions, driving growth and loyalty.

Digital Strategy

Mastercard’s digital strategy revolves around expanding its network and increasing the number of places people can use Mastercard. By continually expanding its network of merchants, Mastercard ensures that its payment solutions are widely accepted and easily accessible. This strategy aligns with its goal of extending participation in payments and optimizing customer convenience.

Opportunities for Growth in Developed Markets

Despite being well-established in developed markets, Mastercard continues to see untapped pockets of spend and new business formations. The company recognizes the ongoing opportunities for growth in these markets and focuses on capturing these opportunities to sustain its momentum.

The identification of untapped pockets of spend allows Mastercard to target specific industries or consumer segments that have yet to fully embrace the benefits of digital payments. By tailoring its offerings and solutions to these segments, Mastercard can capture market share and drive growth.

Furthermore, new business formations present opportunities for Mastercard to establish relationships with emerging businesses and provide them with payment solutions tailored to their needs. By fostering these partnerships, Mastercard can support the growth of these new businesses and deepen its presence in the market.

In conclusion, Mastercard’s strategy and growth drivers set the foundation for its continued success in the payment industry. By extending participation in payments, embracing new networks, and diversifying payment capabilities, Mastercard is well-positioned to meet the evolving needs and preferences of its customers. Through strategic investments in core areas, enabling choice through a broader array of payment solutions, and embracing emerging trends such as open banking and digital currencies, Mastercard remains at the forefront of innovation in the payment industry. With a focus on expanding acceptance, leveraging technology, and seizing growth opportunities in both developed and emerging markets, Mastercard is primed for continued growth and success in the years to come.

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