MasterCard reports strong growth in its payment programs for second quarter

"The first half of 2002 was an historic time for MasterCard, as we completed our integration with Europay International and our conversion to a unified, shareholder-owned global payments company," said Robert W. Selander, MasterCard's President and CEO.

"The strong growth we are announcing today clearly demonstrates that even in a weak global economy, our members and their customers are increasingly turning to MasterCard as their payment brand of choice."

"Moving forward, we expect that the new global MasterCard organization will provide even greater business-building opportunities to the industry by delivering creative, high-quality and reliable payments solutions to customers, whether they operate in one country, on one continent, or in markets around the world," he said.

Highlights of the first six months of 2002 include:

• Cardholders across the globe used MasterCard®-branded cards (excluding Cirrus® and Maestro on-line debit activity) for more than 6.3 billion transactions in the first six months of 2002, generating gross dollar volume (GDV) of $534.7 billion, an increase of 15.7% over the same period in 2001. Second quarter 2002 transactions reached 3.3 billion, generating GDV of $280.3, a 15.2% gain over second quarter 2001;

• As of June 30, 2002, MasterCard's 15,000 member financial institutions around the world had issued nearly 559 million MasterCard-branded cards, a 16.7 % increase over June 30, 2001;

• Maestro, MasterCard's online, PIN-based global debit brand, continued to grow in the first half of 2002, with the Maestro brand mark appearing on 458.6 million cards worldwide at June 30, 2002, a 17.8% increase over June 30, 2001;

• At June 30, 2002, MasterCard cardholders were able to use their cards at approximately 28.4 million acceptance locations around the globe, a 26.4% increase over June 30, 2001. At June 30, 2002, Maestro was accepted for purchases at more than 6.9 million merchant terminals in 83 countries and territories, and at approximately 800,000 MasterCard/Maestro/Cirrus ATMs around the world;

• The value of purchases on MasterCard cards, a significant measure of success, continued to show significant gains. Globally, purchase volume (excluding cash transactions) rose 13.3% to $371.7 billion for the first six months of 2002 compared to the same period in 2001. Purchase volume was $195.9 billion in the second quarter of 2002, also a 13.3% increase from the 2001 period;

• More than 125 million MasterCard, Maestro, Mondex, and Clip-branded smart cards have been issued worldwide, and more than half of them carry value-added applications like loyalty, digital ID, e-ticketing, e-coupons or personal data storage.

MasterCard's strong growth in first six months of 2002 was fueled by growth in both credit and debit programs. GDV for worldwide MasterCard credit programs grew 14.6% to $444.3 billion, and GDV for MasterCard off-line debit programs rose 21.6% to $90.4 billion, in each case compared to the first six months of 2001.

Strategy for Success
Selander attributed MasterCard's success to the company's strategic focus on providing exceptional customer service and technological capabilities, unsurpassed acceptance, and customized payments solutions for its member financial institutions across the globe.

"In the five years since we embarked on a new strategic direction and revamped our organization to focus on partnering with our members to help them achieve their business goals, we've strengthened our brand, significantly enhanced our technology capabilities, our acceptance channels and our payments programs. We've shown our members that we can provide value-added services and solutions that help them grow and achieve their targets," he said. "That's what being the best business partner is all about."

Strong Regional Results
Strong MasterCard-branded GDV growth was reported for all regions, which each reporting double-digit gains in the first six months of 2002 compared to the same period in 2001: the U.S. rose 16.8%; Europe, 11.9%; Asia/Pacific, 14.9%; Latin America, 26.4%; South Asia, Middle East/Africa, 22.1%; and, Canada, 19%.

In South Asia, Middle East/Africa, MasterCard GDV grew 22.1% during the first six months of 2002, and 23.4% for second quarter of 2002, in each case compared to the same period in 2001. Strong purchase volume growth of almost 23%, strong cash volume growth rates and a very strong GDV growth rate in South Africa fueled the region's growth in the second quarter of 2002 compared to 2001.

"The first six months of 2002 has seen considerable growth across the SAMEA region with a 22.1% increase in the Gross Dollar Value compared to 2001. Much of this growth can be directly attributed to the very successful acquisition and usage programs run by our members, utilizing MasterCard's World Cup Sponsorship" explained Sonny Sannon, president, MasterCard International, South Asia Middle East and Africa.