Exhibit 99.1
MasterCard
International
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[Logo of Master Card]
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 in Gross Dollar and Purchase
Volume in First Quarter of 2005
Customer-Centric Approach Continues to Yield Strong Operating Results
Purchase, NY, May 3, 2005 - MasterCard International today announced strong
operating performance results for the first three months of 2005, reporting
continued double-digit growth in both gross dollar volume (GDV) and purchase
volume, as MasterCard cardholders around the world increasingly use their
MasterCard cards at home and abroad.
Cardholders worldwide used MasterCard-branded cards (excluding Maestro(R) and
Cirrus(R)) for 4.3 billion transactions during the first quarter of 2005,
generating GDV of $379.6 billion, an increase of 10.9% over the same period in
2004. Total purchases on MasterCard-branded credit and debit cards increased
11.4% during the quarter, as the number of MasterCard cards issued worldwide
rose to 697.9 million, an increase of 11.2% over the same period in 2004.
"The strength of the MasterCard brand and our portfolio of payment solutions
continues to resonate around the globe as illustrated by our robust operating
performance this quarter," said Alan Heuer, MasterCard chief operating officer.
"Expanded relationships with our customers, combined with our unsurpassed global
acceptance network, are making MasterCard cards the preferred means of payment
for a growing base of cardholders around the world. MasterCard cardholders know
they don't need to carry anything else."
Performance highlights for the first quarter include:
o MasterCard GDV totaled $379.6 billion, up 10.9% over the same period last
year. GDV includes both purchase and cash volume;
o MasterCard's nearly 25,000 customer financial institutions around the world
issued 697.9 million MasterCard-branded cards, an 11.2% increase over the
first quarter of 2004;
o The value of purchases on MasterCard-branded cards, a significant measure
of success, increased 11.4% to $277.2 billion.
MasterCard posted solid growth in both credit and debit. GDV for credit and
charge programs worldwide grew by 7.3% to $301.2 billion, while GDV for debit
programs climbed 27.3% to $78.4 billion.
-more-
Master Card International - Page 2
Master Card International Reports Double-Digit
GDV Growth in First Quarter of 2005
May 3, 2005
The performance breakdown by region is as follows:
For the 3 Months ended March 31, 2005
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All Programs Purchase Purchase Cash Cash Acceptance
except On-Line GDV Growth Volume Growth Transactions Volume Growth Transactions Accounts Cards Locations
Debit Programs (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) (Millions) (Millions) (Millions) (Millions)
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South Asia/
Middle East
Africa $4.4 24.9% $3.1 23.3% 49.6 $1.3 28.8% 11.8 11.6 13.6 .6
Asia/Pacific 62.0 7.0% 41.6 9.9% 418.9 20.3 1.6% 70.5 120.2 133.6 7.5
Europe 105.1 11.7% 80.5 12.9% 1,024.7 24.6 8.2% 177.0 101.1 114.2 7.3
Latin America 20.5 35.4% 9.0 32.5% 232.0 11.5 37.8% 90.4 49.2 60.2 1.9
Canada 13.2 13.0% 11.1 16.0% 147.7 2.0 -0.8% 4.4 23.8 29.4 .7
United States 174.5 9.0% 131.8 9.3% 1,878.7 42.6 8.3% 181.0 289.8 346.9 5.7
Worldwide 379.6 10.9% 277.2 11.4% 3,751.6 102.3 9.5% 535.1 595.7 697.9 23.7
Credit Programs
United States 131.6 3.8% 105.5 6.1% 1,256.6 26.1 -4.5% 16.3 226.6 277.8
Worldwide 301.2 7.3% 235.3 9.8% 2,854.4 65.9 -0.9% 206.6 503.4 593.6
Off-Line Debit
Programs
United States 42.9 28.9% 26.3 24.2% 622.0 16.5 37.1% 164.6 63.3 69.1
Worldwide 78.4 27.3% 41.9 21.4% 897.2 36.4 34.9% 328.4 92.3 104.2
"MasterCard has 40 years of experience working with our financial institution
customers as an ally and partner," said Heuer. "Our experience has shown us how
to understand our customers and their businesses and what they need most to
achieve their goals."
Focus in 2005
In 2005, MasterCard will continue its focus on broadening customized services to
financial institution customers, enhancing relationships with merchants that
accept MasterCard cards, and developing innovative payment solutions and
services. In the first quarter of 2005 the company has already seen significant
business milestones that have helped drive MasterCard's success in these areas:
Broadening Customized Services for Financial Institution Customers
o The company unveiled its enhanced World MasterCard(R) card program to
further establish its leading profile among affluent consumers in the
United States. The program offers issuers flexibility and customization
options, while providing high-income consumers with unsurpassed global
acceptance and an ability to redeem rewards in categories of their
choosing.
o MasterCard announced the expansion of the MasterCard Global Premium
Collection with the addition of more than 50 new high-value offers from the
worlds' leading providers of travel and lifestyle services and merchandise.
The collection is specifically tailored to appeal to premium MasterCard
cardholders.
-more-
Master Card International - Page 3
Master Card International Reports Double-Digit
GDV Growth in First Quarter of 2005
May 3, 2005
Enhancing Relationships with Merchants that Accept MasterCard Cards
o MasterCard launched a new initiative to help merchants and their business
partners safeguard card transaction data and prevent fraud. The
first-of-its-kind program will focus on helping merchants understand how to
implement the requirements necessary for storing, securing and sharing
transaction data.
o Marriott International, Inc. announced its participation in the MasterCard
enhanced hotel folio data program. Now corporations whose business
travelers pay with eligible MasterCard(R) Corporate Cards will receive line
item expense data for stays at approximately 1,500 Marriott-branded hotels
in the United States and Canada. Marriott's participation extends
MasterCard e-Folio's reach to more than 7,000 hotel properties in North
America, far more than any other corporate payments solution provider.
Carlson, Choice, and Hilton joined in 2003. With Marriott signed-on,
approximately 40 percent of MasterCard corporate card transactions in North
America will take place at enrolled hotel properties.
Developing Innovative Payment Solutions and Services
o MasterCard International announced it is working with MBNA, the Seattle
Seahawks and the Baltimore Ravens Football Clubs to incorporate
MasterCard(R) PayPass(TM) contactless payment technology into the MBNA
Seahawks and MBNA Ravens Extra Points credit card programs. Both Qwest
Field in Seattle and M&T Bank Stadium in Baltimore will accept MasterCard
PayPass cards at the point-of-sale, beginning with the 2005 football
season.
o Sheetz, Inc. announced that it expects to be the first retailer in the
nation to accept MasterCard PayPass(TM) across its entire chain. The
innovative radio frequency-based payment option solution represents one of
the most significant payment advancements in the retail industry.
o MasterCard Advisors(TM), the professional services arm of MasterCard
International, continued to build momentum in the first quarter for its
innovative offering SpendingPulse(TM), which provides insight into U.S.
economic retail sales performance across a number of dimensions, including
industry sector and geography. With its unique access to payment activity
information, and the ability to extract MasterCard-specific variables,
SpendingPulse provides a reliable measure of national retail sales days or
weeks ahead of alternative data sources like the U.S. Department of
Commerce.
o MasterCard International unveiled a new program that makes it easier for
taxpayers to settle their U.S. federal tax obligations. Thanks to a
relationship with H&R Block(R), the world's largest tax services company,
and Link2Gov, a provider of online payment processing for government
agencies, Debit MasterCard(R) cardholders can now pay their Federal Tax
Year 2004 Form 1040 balance due payment online without incurring a
convenience fee.
Master Card International - Page 4
Master Card International Reports Double-Digit
GDV Growth in First Quarter of 2005
May 3, 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.
Master Card International - Page 5
Master Card International Reports Double-Digit
GDV Growth in First Quarter of 2005
May 3, 2005
This press release contains forward-looking information. Although MasterCard
believes that its expectations are based on reasonable assumptions, it can give
no assurance that its objectives will be achieved. Important factors that could
cause actual results to differ materially from forward-looking information
contained in this press release include: global political and economic
conditions; MasterCard's ability to achieve its strategic objectives; the
performance of MasterCard's member financial institutions and the nature of
MasterCard's business relationships with these institutions; substantial and
increasingly intense competition in the global payments industry; the success of
MasterCard's global advertising, sponsorship, promotion and merchant acceptance
initiatives; the functionality and security of MasterCard's transaction
processing systems; MasterCard's ability to adapt to industry trends with
technological and payment program innovations; the resolution of certain legal
proceedings and regulatory actions; and changing market dynamics. MasterCard
disclaims any obligation to publicly update or revise any forward-looking
information.
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 48
languages, giving the MasterCard brand a truly global reach and scope. For more
information go to www.mastercardinternational.com or refer to our filings with
the U.S. Securities and Exchange Commission.
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