The Business Model – How does it work?

MasterCard is a global electronic payment-processing company that enables consumers, businesses, governments to move money around safely and quickly.

The MasterCard name and brand has become synonyms with payments as there are over 2.17bn cardholders around the world that have steadily been increasing year on year.

Its payment system is based on a “four-party” model. A cardholder makes a purchase from a merchant, the card issuer authorises the payment and sends it onto the merchant’s account where their bank makes the funds available for use. At the centre of this process stands Mastercard. It authorises, routes, and clears the transaction between the four parties and takes a small fee (1-2%) for doing so.

In 2019 it processed over 84bn transactions. With the world slowly moving towards a cashless society, the dependence on card-based payments will only increase presenting an enormous opportunity for MasterCard.

Industry:Software & Computer Services
Analyst: Zaven Boyrazian
Current Cog Score: 🔒 / 100
Original Cog Score: 🔒 / 100
Last Updated:6th Sep 2021
Date Added:10th Dec 2020
Price Added:$337.46

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Business Analytics

Risk Profiling

Corporate Valuation

Financials Breakdown

Competitor Comparison

Forecasting



Zaven Boyrazian owns shares in MasterCard. Reasonable steps have been taken to ensure the accuracy of the information at the time of publishing. The views and expressions within this analysis are the opinions of the author. It has not taken into account the circumstances of any specific individual, and does not constitute personal advice or a personal recommendation for any individual; neither should it be solely relied upon by any individual when making an investment decision. TheMoneyCog has a disclosure policy.

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