Exhibit 99.1
MASTERCARD INTERNATIONAL
(MASTERCARD LOGO)
PRESS RELEASE
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 GROWTH FOR 2004 AS GROSS DOLLAR VOLUME
CLIMBS 10.6% WORLDWIDE
MASTERCARD CUSTOMERS, MERCHANTS AND CARDHOLDERS BENEFIT FROM A BRAND THAT
RESONATES AROUND THE WORLD AND AN ACCEPTANCE NETWORK THAT IS SECOND TO NONE
PURCHASE, NY, FEBRUARY 2, 2005 - MasterCard International today announced strong
performance results for the fourth quarter and full-year 2004, demonstrating
positive growth across all regions and in key measures of success in the
payments industry. In 2004, cardholders worldwide used 679.5 million
MasterCard-branded cards for nearly 16.7 billion transactions, generating gross
dollar volume (GDV) of $1.5 trillion, an increase of 10.6 percent over 2003.
"2004 marked the 25th anniversary of the MasterCard brand and the seventh year
of our award-winning Priceless advertising campaign," said Alan J. Heuer, chief
operating officer, MasterCard International. "Today our customers, their
cardholders and merchants are truly benefiting from a brand that is recognized
globally. With more than 24 million acceptance locations around the world, no
card is more widely accepted than MasterCard."
"This year's results affirm the continued strength of MasterCard's relationships
with our customers and our ability to meet increasing global demand for
innovative and convenient payment solutions," he continued. "The rate of GDV
growth this year was nearly twice that of 2003, reflective of an improving
global economic landscape and the continued emergence of credit and debit as the
preferred payment options."
For the fourth quarter, worldwide GDV climbed 12.5 percent, as total purchases
on MasterCard credit and offline debit cards increased 12.1 percent for the
three months ended December 31, 2004. It was the company's fifth consecutive
quarter of double-digit worldwide purchase volume growth.
Performance highlights for 2004 include:
- - Cardholders across the globe used MasterCard-branded cards (excluding
Maestro(R) and Cirrus(R)) for almost 16.7 billion transactions, generating
GDV of $1.5 trillion, an increase of 10.6 percent over 2003. GDV includes
both purchase and cash volume.
- - At year-end, MasterCard's almost 25,000 customer financial institutions
around the world had issued 679.5 million MasterCard-branded cards, an 8.6
percent increase over 2003.
- - The value of purchases on MasterCard-branded cards showed strong growth
worldwide, rising 12.4 percent to over $1 trillion.
-more-
MasterCard International - Page 2
MasterCard International Reports Double-Digit Growth for 2004
February 2, 2005
MasterCard's strong performance in 2004 was fueled by growth in both credit and
debit programs. GDV for worldwide credit and charge programs grew 8.8 percent to
nearly $1.2 trillion, while GDV for offline debit programs rose 18.7 percent to
$277.2 billion.
STRONG REGIONAL RESULTS
Positive GDV growth was reported in all of MasterCard's regions in 2004. This
included 9.3 percent growth in the United States, 12.8 percent growth in
Canada, 14.2 percent growth in Europe, 33.3 percent growth in Latin America,
25.5 percent growth in South Asia/Middle East/Africa and 1.8 percent growth
in Asia/Pacific. Asia/Pacific returned to positive growth with solid performance
in most countries except Korea, where the payments industry continues to be
plagued with challenges such as credit card delinquencies and write-offs.
The performance breakdown by region is as follows:
FOR THE 3 MONTHS ENDED DECEMBER 31, 2004
-------------------------------------------------------------------------------------------------------------------
ALL PROGRAMS GDV GROWTH PURCHASE GROWTH PURCHASE CASH GROWTH CASH ACCOUNTS CARDS ACCEPTANCE
EXCEPT ON-LINE VOLUME TRANSACTIONS VOLUME TRANSACTIONS LOCATIONS
DEBIT PROGRAMS (BILLIONS) (LOCAL) (BILLIONS) (LOCAL) (MILLIONS) (BILLIONS) (LOCAL) (MILLIONS) (MILLIONS) (MILLIONS) (MILLIONS)
-------------------------------------------------------------------------------------------------------------------
South Asia /
Middle East
Africa $ 4.5 23.2% $ 3.3 26.6% 52.0 $ 1.2 14.8% 11.1 10.5 12.7 .5
Asia / Pacific 60.7 5.9% 41.0 11.4% 425.9 19.7 -4.0% 67.0 118.4 131.8 8.8
Europe 111.3 13.9% 85.3 15.1% 1,105.0 26.0 10.3% 187.4 99.2 111.6 7.1
Latin America 21.5 36.6% 9.5 31.2% 244.0 12.0 41.3% 92.7 46.1 57.0 1.9
Canada 14.8 12.4% 12.7 15.2% 167.8 2.0 -2.4% 4.5 23.2 28.5 .7
United States 188.5 11.5% 143.3 9.1% 2,039.3 45.2 19.9% 163.4 278.6 337.8 5.6
Worldwide 401.2 12.5% 295.1 12.1% 4,034.1 106.1 13.6% 526.1 576.0 679.5 24.6
CREDIT PROGRAMS
United States 146.8 6.5% 117.7 7.5% 1,432.8 29.1 2.8% 18.7 217.6 271.5
Worldwide 321.4 9.1% 252.4 11.4% 3,132.0 69.1 1.2% 209.8 487.8 579.7
OFF-LINE DEBIT
PROGRAMS
United States 41.7 33.4% 25.6 17.1% 606.5 16.0 71.5% 144.6 61.0 66.3
Worldwide 79.8 29.0% 42.7 16.6% 902.1 37.1 47.0% 316.3 88.2 99.7
FOR THE YEAR ENDED DECEMBER 31, 2004
-------------------------------------------------------------------------------------------------------------------
ALL PROGRAMS GDV GROWTH PURCHASE GROWTH PURCHASE CASH GROWTH CASH ACCOUNTS CARDS ACCEPTANCE
EXCEPT ON-LINE VOLUME TRANSACTIONS VOLUME TRANSACTIONS LOCATIONS
DEBIT PROGRAMS (BILLIONS) (LOCAL) (BILLIONS) (LOCAL) (MILLIONS) (BILLIONS) (LOCAL) (MILLIONS) (MILLIONS) (MILLIONS) (MILLIONS)
-------------------------------------------------------------------------------------------------------------------
South Asia /
Middle East
Africa $ 15.7 25.5% $ 11.1 26.7% 185.8 $ 4.6 22.6% 40.0 10.5 12.7 .5
Asia / Pacific 226.0 1.8% 150.3 11.9% 1,609.6 75.6 -13.6% 243.5 118.4 131.8 8.8
Europe 398.0 14.2% 303.3 15.8% 4,054.5 94.7 9.2% 735.3 99.2 111.6 7.1
Latin America 69.2 33.3% 30.6 27.7% 841.8 38.6 38.2% 324.9 46.1 57.0 1.9
Canada 50.5 12.8% 42.5 14.2% 607.2 7.9 5.8% 18.3 23.2 28.5 .7
United States 695.9 9.3% 526.4 9.4% 7,416.4 169.4 8.9% 598.3 278.6 337.8 5.6
Worldwide 1,455.2 10.6% 1064.4 12.4% 14,715.4 390.8 5.9% 1,960.3 576.0 679.5 24.6
CREDIT PROGRAMS
United States 546.7 6.3% 433.7 8.5% 5,211.8 113.0 -1.6% 74.4 217.6 271.5
Worldwide 1178.0 8.8% 912.7 12.3% 11,450.1 265.3 -1.8% 823.1 487.8 579.7
OFF-LINE DEBIT
PROGRAMS
United States 149.2 22.1% 92.8 13.9% 2,204.7 56.4 38.6% 523.9 61.0 66.3
Worldwide 277.2 18.7% 151.6 12.7% 3,265.3 125.5 26.9% 1137.2 88.2 99.7
-more-
MasterCard International - Page 3
MasterCard International Reports Double-Digit Growth for 2004
February 2, 2005
DRIVING INNOVATIVE AND CONVENIENT PAYMENT SOLUTIONS
A wide range of significant business milestones in 2004 fueled MasterCard's
growth and brand reach around the world:
- - Associated Bank, Bank of the West and Washington Mutual selected Debit
MasterCard(R) as their principle signature-based debit program. Collectively,
these three U.S. financial institutions issue an estimated 10 million
signature-based debit cards.
- - MasterCard Advisors(TM) introduced new services in the area of database
mining, including the launch of the SpendingPulse(TM) national retail data
service which aggregates and analyzes MasterCard's United States payments
network activity to produce estimates of United States retail sales.
- - In the United States, MasterCard expanded acceptance to top merchants in
every quick service restaurant (QSR) category, most notably with McDonald's
and Taco Bell in 2004. Expansion of QSR acceptance helped MasterCard realize
a 67 percent year-over-year increase in the number of QSR purchase
transactions, a 51 percent increase in QSR purchase dollar volume, and a 23
percent increase in the number of QSR merchant locations.
- - McDonald's said it will accept the MasterCard(R) PayPass(TM) contactless
payment feature at thousands of locations across the United States.
Additionally, Motorola is planning to conduct a field trial of mobile phones
enhanced with PayPass technology. PayPass is also expanding to customers and
merchants outside of the United States with pilots being conducted in the
Asia/Pacific region and Canada.
- - MasterCard SecureCode(TM), MasterCard's online payment protection service,
continued to gain momentum worldwide with more than 48,000 merchants enrolled
in the program and 2,903 issuers offering it to cardholders. Additionally 230
acquirers are enrolled and 115 vendors are licensed, offering 82 certified
vendor products.
- - Enhancements made in 2004 to the MasterCard Multinational Corporate Program
now enable MasterCard issuers to manage and consolidate corporate card
programs -- including the MasterCard Corporate Card(R), MasterCard Purchasing
Card(R) and MasterCard Corporate MultiCard(R) -- for multinational
organizations that require commercial card programs in more than one country.
- - MasterCard reached a key milestone on the road to global smart card adoption.
MasterCard's customer financial institutions have issued 233 million
MasterCard(R), Maestro(R) and Cirrus(R) smart cards around the world.
- - In South Africa, Capitec Bank and MasterCard announced a pilot of the world's
first pre-authorized debit card based on the EMV standard. The new debit card
is specifically designed to provide a straightforward, low-cost banking
product with easy access to the mass market.
- - ABN AMRO Bank N.V. and MasterCard International signed a multi-year strategic
alliance under which MasterCard will be the bank's preferred payment card
brand in more than 60 countries. MasterCard will work with ABN AMRO to
develop their existing payment card business and will support their entry
into new markets.
-more-
MasterCard International - Page 4
MasterCard International Reports Double-Digit Growth for 2004
February 2, 2005
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.
-more-
MasterCard International - Page 5
MasterCard International Reports Double-Digit Growth for 2004
February 2, 2005
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 97 countries and in 47
languages, giving the MasterCard brand a truly global reach and scope. For more
information go to www.mastercardinternational.com.
###