Exhibit 99.1
(MASTERCARD INTERNATIONAL LOGO)
(PRESS RELEASE GRAPHIC)
Contacts:
Sharon Gamsin, 1-914-249-5622, sgamsin@mastercard.com
Jessica Antle, 1-914-249-5632, jessica_antle@mastercard.com
MASTERCARD INTERNATIONAL REPORTS
DOUBLE DIGIT GDV GROWTH IN THIRD QUARTER OF 2004
WORLDWIDE PURCHASE VOLUME UP 11.1% FOR BOTH CREDIT AND OFFLINE DEBIT
PURCHASE, NY, NOVEMBER 1, 2004 - MasterCard International today announced
continued strength in both credit and offline debit, demonstrating double-digit
growth globally, despite uncertain economic conditions created by rising oil
prices.
Cardholders worldwide used MasterCard-branded cards (excluding Maestro(R) and
Cirrus(R)) for 4.3 billion transactions, generating GDV of $365.9 billion in the
third quarter of 2004, an increase of 10.0% over the same period in 2003. Total
purchases on MasterCard credit and offline debit cards increased 11.1% for the
three months ending September 30, 2004, as the number of MasterCard cards issued
worldwide rose to 656.0 million.
"The third quarter of this year provides further evidence of the continued
success of MasterCard and our customers," said Robert W. Selander, MasterCard
President and CEO. "Even as macroeconomic factors such as higher fuel prices and
sporadic job growth have dampened consumer spending, we continue to see strong
purchase activity across our global network. This quarter we saw double-digit
purchase volume growth in most areas of the world, reflective of the global
power of our brand, the strength of our business partnerships, and the continued
migration away from cash and check towards our wide range of payment solutions."
Performance highlights for the third quarter of 2004 include:
- For the nine months ended September 30, MasterCard GDV totaled $1.0
trillion, up 9.5% over the same period a year ago. GDV includes both
purchase and cash volume;
- MasterCard's nearly 25,000 customer financial institutions around
the world issued 656.0 million MasterCard-branded cards, an 8.0%
increase over third quarter 2003;
- The value of purchases on MasterCard-branded cards, a significant
measure of success, continued to show strong growth worldwide.
Globally, purchase volume rose 11.1% to $266.8 billion for the third
quarter of 2004 compared to the same period in 2003. In the nine
months ended September 30, purchase volume rose 12.2%.
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MasterCard International - Page 2
MasterCard International Reports Double Digit GDV Growth in Third Quarter of
2004
November 1, 2004
- Currently, cardholders can use their MasterCard cards at 24 million
acceptance locations around the world, including over 1 million ATMs
and other locations where cash can be obtained.
MasterCard's performance in the third quarter was fueled by growth in both
credit and offline debit programs. GDV for credit and charge programs worldwide
grew 8.4% to $298.5 billion, and GDV for offline debit programs rose 17.7% to
$67.4 billion over the same period in 2003 (see Note to Editors). Gross
transactions for credit and offline debit programs increased by 11.3% in 2004
compared with the third quarter of 2003.
The performance breakdown by region is as follows:
FOR THE 3 MONTHS ENDED SEPTEMBER 30, 2004
------------------------------------------------------------------------------------------------------------------
ALL PROGRAMS GDV GROWTH PURCHASE GROWTH PURCHASE CASH GROWTH CASH ACCOUNTS CARDS
EXCEPT ON-LINE VOLUME TRANSACTIONS VOLUME TRANSACTIONS
DEBIT PROGRAMS (BILLIONS) (LOCAL) (BILLIONS) (LOCAL) (MILLIONS) (BILLIONS) (LOCAL) (MILLIONS) (MILLIONS) (MILLIONS)
------------------------------------------------------------------------------------------------------------------
South Asia /
Middle East
Africa $4.1 25.5% $2.9 26.2% 46.4 $1.2 23.7% 10.4 9.8 11.7
Asia / Pacific 55.0 2.3% 36.6 11.4% 413.4 18.4 -11.9% 63.0 118.8 128.4
Europe 101.0 14.9% 76.0 14.7% 1,046.3 25.0 15.3% 189.5 97.0 108.7
Latin America 16.9 32.5% 7.6 27.5% 211.5 9.3 36.8% 80.7 42.8 53.5
Canada 12.9 12.7% 10.8 13.7% 157.3 2.1 7.9% 4.7 22.4 27.9
United States 176.0 7.7% 132.9 7.7% 1,879.6 43.1 7.4% 151.7 270.9 325.8
Worldwide 365.9 10.0% 266.8 11.1% 3,754.5 99.1 7.2% 500.2 561.7 656.0
CREDIT PROGRAMS
United States 139.0 4.4% 109.7 6.9% 1,321.9 29.3 -4.1% 19.5 218.0 267.5
Worldwide 298.5 8.4% 229.5 11.2% 2,933.3 69.0 0.1% 221.0 481.8 568.1
OFF-LINE DEBIT
PROGRAMS
United States 37.0 22.1% 23.2 11.8% 557.7 13.8 44.2% 132.2 52.9 58.3
Worldwide 67.4 17.7% 37.3 10.5% 821.2 30.1 28.1% 279.2 79.8 87.9
FOR THE
3 MONTHS ENDED
SEPTEMBER 30, 2004
------------------
ALL PROGRAMS ACCEPTANCE
EXCEPT ON-LINE LOCATIONS
DEBIT PROGRAMS (MILLIONS)
------------------
South Asia /
Middle East
Africa .5
Asia / Pacific 8.5
Europe 7.0
Latin America 1.8
Canada .6
United States 5.6
Worldwide 24.0
FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2004
------------------------------------------------------------------------------------------------------------------
ALL PROGRAMS GDV GROWTH PURCHASE GROWTH PURCHASE CASH GROWTH CASH ACCOUNTS CARDS
EXCEPT ON-LINE VOLUME TRANSACTIONS VOLUME TRANSACTIONS
DEBIT PROGRAMS (BILLIONS) (LOCAL) (BILLIONS) (LOCAL) (MILLIONS) (BILLIONS) (LOCAL) (MILLIONS) (MILLIONS) (MILLIONS)
------------------------------------------------------------------------------------------------------------------
South Asia /
Middle East
Africa $11.2 26.5% $7.8 26.8% 133.7 $3.3 25.8% 29.0 9.8 11.7
Asia / Pacific 165.4 0.5% 109.8 12.6% 1,187.7 55.6 -17.0% 174.1 118.8 128.4
Europe 285.4 14.6% 217.0 15.1% 2,937.3 68.4 13.1% 546.8 97.0 108.7
Latin America 47.6 31.4% 21.1 26.0% 597.3 26.5 36.0% 230.9 42.8 53.5
Canada 35.7 13.0% 29.8 13.8% 439.4 5.9 8.9% 13.8 22.4 27.9
United States 503.2 7.6% 383.2 9.6% 5,378.3 120.0 1.8% 418.0 270.9 325.8
Worldwide 1048.5 9.5% 768.8 12.2% 10,673.8 279.8 2.5% 1,412.6 561.7 656.0
CREDIT PROGRAMS
United States 399.9 6.2% 316.0 8.9% 3,779.0 83.9 -3.0% 55.7 218.0 267.5
Worldwide 858.6 9.2% 661.1 12.6% 8,330.0 197.4 -0.9% 624.1 481.8 568.1
OFF-LINE DEBIT
PROGRAMS
United States 103.3 13.6% 67.2 12.8% 1,599.4 36.1 15.2% 362.3 52.9 58.3
Worldwide 190.0 10.7% 107.6 9.9% 2,343.7 82.4 11.8% 788.5 79.8 87.9
FOR THE
9 MONTHS ENDED
SEPTEMBER 30, 2004
------------------
ALL PROGRAMS ACCEPTANCE
EXCEPT ON-LINE LOCATIONS
DEBIT PROGRAMS (MILLIONS)
------------------
South Asia /
Middle East
Africa .5
Asia / Pacific 8.5
Europe 7.0
Latin America 1.8
Canada .6
United States 5.6
Worldwide 24.0
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MasterCard International - Page 3
MasterCard International Reports Double Digit GDV Growth in Third Quarter of
2004
November 1, 2004
SIGNIFICANT MILESTONES ACHIEVED
MasterCard also achieved a wide range of significant business milestones in the
third quarter:
- Bank of the West, which currently serves 450,000 debit card
customers and operates 296 branches in California, Oregon, New
Mexico, Nevada, Washington State and Idaho, is moving its debit card
program, along with the recently- acquired portfolios of Union Safe
Deposit Bank and Community First Bankshares, to MasterCard.
- McDonald's(R) will accept MasterCard PayPass(TM), a new
"contactless" payment option utilizing radio frequency technology,
at select McDonald's restaurants in the U.S. Participating
McDonald's restaurants in Dallas and the New York metropolitan area
will implement MasterCard PayPass later this year, with additional
locations to be added in 2005. The technology will allow cardholders
to make purchases at participating McDonald's restaurants without
swiping their card through a traditional card-reader.
- MasterCard implemented a range of new initiatives aimed at providing
merchants with new tools that will help them maximize the benefits
and value of accepting MasterCard payment cards. This included the
launch of MasterCardmerchant.com, a website for the merchant
community that provides information about MasterCard acceptance
programs and insight into how to most effectively leverage card
acceptance. MasterCard also published a new manual to provide
merchants with MasterCard rules and procedures, which can be
downloaded free of charge from the MasterCard merchant website.
- MasterCard launched new print advertising executions as part of the
brand's successful "Priceless" advertising campaign. For the first
time, MasterCard advertising features national merchants as part of
the brand's "Priceless" positioning and offers a dynamic new style
and layout. The ads focus on several high-profile national
merchants, including Banana Republic, The Gap, Kmart, Pier 1,
Travelocity, RadioShack, Shell and Williams-Sonoma.
- MasterCard will jointly launch Industrial Bank's first MasterCard
dual-currency international credit card through China UnionPay. The
card, called Industrial Card, marks an important milestone for
Industrial Bank in its drive to enter the international market.
Industrial Bank has 260 branches in almost all major domestic cities
across China.
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MasterCard International - Page 4
MasterCard International Reports Double Digit GDV Growth in Third Quarter of
2004
November 1, 2004
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.
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, cards and acceptance locations 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 acceptance
locations is provided by third parties and has not been independently verified
by MasterCard.
Cash volume growth for offline debit programs in the U.S. region has increased
significantly as a result of stricter enforcement of reporting requirements for
certain transactions not processed by MasterCard.
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.
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MasterCard International - Page 5
MasterCard International Reports Double Digit GDV Growth in Third Quarter of
2004
November 1, 2004
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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