EXHIBIT 99.1
MASTERCARD
INTERNATIONAL
[PRESS RELEASE LOGO]
Contacts:
Sharon Gamsin, 1-914-249-5622, sgamsin@mastercard.com
Veronika Clough, 1-914-249-3198, veronika_clough@mastercard.com
MASTERCARD INTERNATIONAL REPORTS CONTINUED GROWTH
FOR SECOND QUARTER, FIRST SIX MONTHS OF 2004
DOUBLE DIGIT GROWTH IN PURCHASE VOLUME WORLDWIDE
FOR BOTH CREDIT AND OFFLINE DEBIT AS GLOBAL ECONOMIC ACTIVITY IMPROVES
PURCHASE, NY, AUGUST 2, 2004 - MasterCard International today announced strong
performance results for the three and six month periods ended June 30, 2004, as
generally improving global economic activity led to double-digit purchase volume
growth worldwide. Total purchases on MasterCard credit and offline debit cards
rose 11.7% in the second quarter compared to the same period in 2003, and the
number of MasterCard cards issued around the world rose to 638.3 million.
"The first half of this year has been successful for both MasterCard and our
customers," said Robert W. Selander, MasterCard President and CEO. "Many of the
issues that limited economic growth last year are behind us, and we've seen
stronger purchase activity across our global network as more confident consumers
increased spending. Also this quarter, our Asia/Pacific region reported growth
in gross dollar volume (GDV) up for the first time in 18 months reflecting
renewed consumer confidence in the region."
Performance highlights for the second quarter and first half of 2004 include:
- Cardholders across the globe used MasterCard-branded cards for
almost 4.1 billion transactions, generating GDV of $349.0 billion in
the second quarter of 2004, an increase of 9.2% over the same period
in 2003. In the first six months of 2004, transactions reached 7.8
billion, generating GDV of $680.8 billion, an 8.8% gain over the
same period in 2003. GDV includes both purchase and cash volume;
- MasterCard's almost 25,000 customer financial institutions around
the world had issued more than 638.3 million MasterCard-branded
cards, a 6.4% increase over the same six-month period in 2003;
- The value of purchases on MasterCard-branded cards, a significant
measure of success, continued to show double-digit growth worldwide.
Globally, purchase volume rose 11.7% to $257.1 billion for the
second quarter of 2004 compared to the same period in 2003. Purchase
volume was $500.4 billion for the first six months of 2004, a 12.4 %
increase from the same period in 2003.
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MasterCard International-Page 2
MasterCard International Reports Continued Growth For Second Quarter, First
Six Months of 2004 August 2, 2004
MasterCard's GDV for credit programs worldwide grew 10.6% to $285.9 billion
compared to the same period in 2003. For the first six months of 2004, GDV
worldwide for MasterCard credit programs rose 10.3% to $558.9 billion compared
to the same period in 2003.
Currently, cardholders can use their MasterCard cards at more than 22 million
locations around the world: Asia/Pacific, 8.0 million locations; Canada, .6
million locations; Europe, 6.2 million locations; Latin America, 1.7 million
locations; United States, 5.0 million locations; and South Asia, Middle
East/Africa, .5 million locations. Acceptance locations include merchant
locations, ATMs and other locations where cash may be obtained.
FOR THE 3 MONTHS ENDED JUNE 30, 2004
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PURCHASE PURCHASE CASH CASH
ALL PROGRAMS EXCEPT GDV GROWTH VOLUME GROWTH TRANSACTIONS VOLUME GROWTH TRANSACTIONS ACCOUNTS CARDS
ON-LINE DEBIT PROGRAMS (BILLIONS) (LOCAL) (BILLIONS) (LOCAL) (MILLIONS) (BILLIONS) (LOCAL) (MILLIONS) (MILLIONS) (MILLIONS)
- ---------------------- ---------- ------- ---------- ------- ------------ ---------- ------- ---------- --- ------- ----------
South Asia / Middle
East Africa $ 3.7 27.0% $ 2.6 28.9% 43.7 $ 1.1 22.7% 9.5 9.2 11.0
Asia / Pacific 55.0 2.5% 36.6 15.5% 396.0 18.3 -16.3% 57.6 113.7 125.1
Europe 93.9 12.8% 71.4 12.8% 978.7 22.5 12.8% 186.2 93.3 105.8
Latin America 15.7 30.9% 7.0 26.7% 199.8 8.7 34.4% 77.2 40.7 51.0
Canada 12.0 13.0% 10.0 14.8% 150.7 2.0 4.5% 4.7 21.8 28.0
United States 168.7 7.2% 129.4 8.8% 1,817.6 39.3 2.3% 139.6 264.1 317.5
Worldwide 349.0 9.2% 257.1 11.7% 3,586.4 91.9 2.7% 474.8 542.8 638.3
CREDIT PROGRAMS
United States 134.2 6.4% 106.7 8.3% 1,278.5 27.5 -0.3% 18.1 213.0 262.0
Worldwide 285.9 10.6% 221.1 12.7% 2,804.7 64.8 3.7% 208.5 469.1 554.4
OFF-LINE DEBIT PROGRAMS
United States 34.5 10.7% 22.8 11.6% 539.1 11.8 9.1% 121.5 51.1 55.4
Worldwide 63.1 3.3% 36.0 5.5% 781.8 27.1 0.4% 266.3 73.7 83.9
FOR THE 6 MONTHS ENDED JUNE 30, 2004
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PURCHASE PURCHASE CASH CASH
ALL PROGRAMS EXCEPT GDV GROWTH VOLUME GROWTH TRANSACTIONS VOLUME GROWTH TRANSACTIONS ACCOUNTS CARDS
ON-LINE DEBIT PROGRAMS (BILLIONS) (LOCAL) (BILLIONS) (LOCAL) (MILLIONS) (BILLIONS) (LOCAL) (MILLIONS) (MILLIONS) (MILLIONS)
- ---------------------- ---------- ------- ---------- ------- ------------- --------- ------- ----------- ---------- ----------
South Asia / Middle
East Africa $ 7.1 27.3% $ 4.9 27.2% 87.4 $ 2.1 27.4% 18.5 9.2 11.0
Asia / Pacific 110.4 -0.3% 73.2 13.1% 775.2 37.2 -19.2% 110.8 113.7 125.1
Europe 182.7 13.0% 139.4 13.6% 1,868.0 43.2 11.3% 358.6 93.3 105.8
Latin Amercia 30.7 30.8% 13.5 25.3% 385.9 17.2 35.6% 150.2 40.7 51.0
Canada 22.8 13.1% 19.0 13.9% 282.1 3.9 9.5% 9.1 21.8 28.0
United States 327.1 7.6% 250.3 10.6% 3,498.6 76.8 -1.2% 265.5 264.1 317.5
Worldwide 680.8 8.8% 500.4 12.4% 6,897.1 180.4 -0.1% 912.6 542.8 638.3
CREDIT PROGRAMS
United States 260.9 7.2% 206.3 10.0% 2,457.2 54.6 -2.5% 36.2 213.0 262.0
Worldwide 558.9 10.3% 430.6 13.5% 5,387.6 128.3 0.7% 403.4 469.1 554.4
OFF-LINE DEBIT PROGRAMS
United States 66.2 9.2% 43.9 13.2% 1,041.4 22.2 2.1% 229.4 51.1 55.4
Worldwide 121.9 2.5% 69.8 6.0% 1,509.5 52.1 -1.8% 509.3 73.7 83.9
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MasterCard International-Page 3
MasterCard International Reports Continued Growth For Second Quarter, First
Six Months of 2004 August 2, 2004
SIGNIFICANT MILESTONES ACHIEVED
MasterCard also achieved a wide range of significant business milestones in the
first half of 2004:
- MasterCard announced an initiative to attack "phishing" before it
happens. MasterCard will work with NameProtect, a leading digital
fraud detection company, to identify sites established to steal
personal information. These sites are often used to launch phishing
attacks via email that can ultimately result in identity theft. In
addition, MasterCard and NameProtect will identify sites that broker
illegally-obtained payment card numbers. NameProtect's technology
will identify online scams in real-time, globally, by searching
domain names, web pages, chat rooms, and more. MasterCard will send
out rapid alerts to members when their accounts are identified as
being at risk, and notify authorities of potential compromises.
- MasterCard signature debit cards were again accepted at all Wal-Mart
store locations in the U.S., underscoring a significant win for
MasterCard cardholders in giving them as much choice in payments as
possible. In addition to MasterCard signature debit cards, Wal-Mart
will continue to accept all other MasterCard payment products,
including credit, PIN debit, and corporate cards.
- McDonald's(R) joined with MasterCard to provide MasterCard
cardholders with cashless payment options at more than 3,000
McDonald's restaurants in the U.S. Cashless payments include credit
cards and PIN and signature-debit card payments. McDonald's expects
the number of participating restaurants to more than double by
year-end.
- MasterCard Advisors(TM), the professional services arm of MasterCard
International, announced the acquisition of consulting firm Watch
Hill Partners, which specializes in optimization of customer
relationships through multiple channels and technologies. MasterCard
Advisors also announced the launch of a new Web-based financial
tool, PurchaseLogic, which gives corporations a transparent view of
their entire procure-to-pay process.
- MasterCard announced that a number of the world's leading smart card
vendors signed its M/Chip(TM) 4 Development Agreement and are
actively developing products in support of M/Chip 4 for 2004
availability. M/Chip 4 is at the core of MasterCard's smart card
strategy and represents the latest generation of EMV payment
applications.
NOTE TO EDITORS
Online debit activity, which includes MasterCard's online debit program,
Maestro, and MasterCard's ATM-only brand, Cirrus, will be available at a later
date.
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MasterCard International-Page 4
MasterCard International Reports Continued Growth For Second Quarter, First
Six Months of 2004 August 2, 2004
The data in this press release is provided by the member financial institutions
of MasterCard International Incorporated and its affiliates ("MasterCard") and
is subject to revision and amendment by such members subsequent to the date of
its release. A portion of the data relating to accounts and cards reflects the
impact of routine portfolio changes among members and other practices that may
lead to over counting of the underlying data in certain circumstances.
Information with respect to gross dollar volumes ("GDV") includes the impact of
balance transfers and convenience checks. The number of cards includes virtual
cards, which are MasterCard-branded payment accounts in connection with which
functional cards are not generally issued.
Information denominated in U.S. dollars is calculated by applying an established
U.S. dollar/local currency exchange rate for each local currency in which
MasterCard volumes are reported.
Period-over-period rates of change in volume-based information are provided on a
local-currency basis. Accordingly, the period-over-period rates of change in
this press release cannot be extrapolated directly by reference to the U.S.
dollar volume information presented for the current and historical periods.
MasterCard-branded data regarding GDV, purchase volume, purchase transactions,
cash volume and cash transactions is derived from information provided by
MasterCard members that is subject to logical and statistical verification by
MasterCard and partial cross-checking against information provided by
MasterCard's transaction processing systems. MasterCard-branded data concerning
accounts and cards is derived from information provided by MasterCard members
that is subject to certain limited logical and statistical verification by
MasterCard. Certain information with respect to ATM locations is provided by
third parties and has not been independently verified by MasterCard.
Period-over-period rates of change in GDV, purchase volume and cash volume for
worldwide off-line debit and credit programs have been impacted by portfolio
changes that resulted in the reclassification of certain volumes previously
reported as off-line debit program volumes into credit program volumes.
Accordingly, the rates of change in GDV, purchase volume and cash volume for
worldwide off-line debit and credit programs may be adjusted in the future.
The data in this press release includes information with respect to
MasterCard-branded transactions that are not processed by MasterCard and
transactions for which MasterCard does not earn revenues. Accordingly, the data
in this press release cannot be taken as an indication of the financial
performance of MasterCard International or its parent company, MasterCard
Incorporated.
ABOUT MASTERCARD INTERNATIONAL
MasterCard International is a leading global payments solutions company that
provides a broad variety of innovative services in support of our global
members' credit, deposit access, electronic cash, business-to-business and
related payment programs. MasterCard International manages a family of
well-known, widely accepted payment cards brands including MasterCard(R),
Maestro(R) and Cirrus(R) and serves financial institutions, consumers and
businesses in over 210 countries and territories. The MasterCard award-winning
Priceless(R) advertising campaign is now seen in 96 countries and in 47
languages, giving the MasterCard brand a truly global reach and scope. For more
information go to www.mastercardinternational.com.
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