The Nation Newspaper

Tag: MasterCard

  • MasterCard rewards investors

    MasterCard, the global payments giant, has unveiled a plan for its shareholders seeking income.

    The firm said it will tomorrow, split its stock 10-for-1. Shareholders will receive their nine additional shares on January 21. Total shares outstanding will increase from 120 million to 1.2 billion.

    MasterCard has the third-highest share price in the S&P 500, behind Google.

    The company also announced a 83 per cent increase to its quarterly dividend and increased its quarterly dividend 83 per cent to $1.10 per share, or a split-adjusted 11 cents per share. This is in line with a trend of companies adding to dividends as improved earnings leave them with large cash piles, MasterCard has doubled its dividend twice since May 2012 after several years at 15 cents per share.

    Finally, it issued a new $3.5 billion share buyback programme. Citi analyst Donald Fandetti wrote in a note that these moves are all positives for the stock, noting particular optimism for the share repurchase.

    The show of confidence comes one month after the credit card company reported better than expected earnings and transaction growth. MasterCard shares are up 58.2 per cent year-over-year. Competitor Visa is up 35.6 per cent in the same period and closed at $199.43. In September Visa was added to the Dow Jones Industrial Average, MasterCard is not one of the average’s 30 stocks.

     

  • Visa, MasterCard win $5.7b approval

    Visa, MasterCard win $5.7b approval

    Visa Incorporated and MasterCard Incorporated have won approval for a $5.7 billion settlement that ended years of litigation with United States (US) merchants over allegations that credit-card swipe fees are improperly fixed.

    US District Judge John Gleeson told Bloomberg he was satisfied with the settlement, which was estimated to be the largest-ever antitrust accord.

    “For the first time, merchants will be empowered to expose hidden bank fees to their customers, educate them about those fees and use that information to influence their customers’ choices of payment methods,” Gleeson wrote in his ruling in federal court in Brooklyn, New York.

    Once owned by groups of major banks, Foster City, California-based Visa and Purchase, New York-based MasterCard have defended themselves for decades against legal claims that they operated price-fixing schemes. Swipe, or interchange, fees are set by Visa and MasterCard and paid by merchants when consumers use credit or debit cards.

    MasterCard and Visa separated from the banks through initial public offerings in 2006 and 2008, respectively. Merchants filed a class-action lawsuit against the companies and the biggest card-issuing banks in 2005. They later alleged that the payment networks continued to fix prices with the banks even after the IPOs.

     

    Lawyers representing merchants nationwide announced the settlement in July 2012. Once worth as much as $7.25 billion, the settlement was valued at about $5.7 billion as of August as a result of reductions for about 8,000 merchants that dropped out of the damages portion.

    Dozens of large retailers, including Wal-Mart Stores Inc, Amazon.com Inc and Target Corporation, as well as major airlines, health insurers and other consumer businesses criticized the deal. Some said the amount should have been higher and that a legal release preventing future lawsuits was written too broadly.

    “We are reviewing the ruling and will take whatever steps are necessary to protect the rights of merchants and safeguard the pocketbooks of their customers,” Mallory Duncan, general counsel at the National Retail Federation, said in a statement. The group expects to appeal, he said.

  • UBA inaugurates World MasterCard

    United Bank for Africa (UBA) Plc has introduced the World MasterCard, which is the most exclusive card in the MasterCard staple.

    In a statement, the bank said this is consistent with the bank’s focus of providing appropriate product to every customer segment, including high net-worth customers who cherish rare and exclusive privileges.

    Head, Cards, UBA Plc., Adédèjì Olówè, said the card programme, which is available by invitation only, can be tied to any of Naira, US Dollar, Pounds Sterling and Euro domiciliary account.

    He emphasised that the product offers benefits such as travel accident and inconvenience insurance; extended warranty; purchase protection; concierge services; and emergency cardholder services. The card, Adedeji stated, is exclusively made from a rare alloy of Silver Nickel, only a few materials of which exist.

    “The heft of the material is its signature. The recognition of the programme has afforded it the highly coveted MasterCard premium hologram. In addition, there is a great security service protecting our esteemed customers everywhere they shop with Fraud Protection and MasterCard Zero Liability,” he added.

    According to Adedeji, UBA also offers a dedicated lounge for its premium cardholders at the Head Office supported by 24/7 private banking customer support.

     

    The introduction of World MasterCard is coming after UBA Plc added MasterCard for Domiciliary Accounts to its robust bouquet of electronic products. This variant of Debit MasterCard products is tied to domiciliary accounts instead of Naira Current or Savings account and offers the same flexibility of usage anywhere in the world, including Nigeria.

     

  • Access Bank, Mastercard partner on cashless Nigeria

    Access Bank, Mastercard partner on cashless Nigeria

    Access Bank as part of its effort to promote the cashless and financial inclusion policy of the Central Bank of Nigeria (CBN) is forging a synergy of cooperation with MasterCard in conjunction with the Nigerian National Identity Management Commission (NNIMC) to roll-out 13 million MasterCard-branded National Identity Smart Cards (NISC) with electronic payment capability as a pilot programme.

    This revelation was made at the sidelines of the ongoing World Economic Forum on Africa in Cape Town, South Africa.

    As part of the programme, in its first phase, Nigerians 16 years and older, and all residents in the country for more than two years, will get the new multipurpose identity card which has 13 applications including MasterCard’s prepaid payment technology that will provide cardholders with the safety, convenience and reliability of electronic payments.

    The project will have Access Bank Plc as the pilot Issuer Bank for the cards and Unified Payment Services Limited (Unified Payments) as the payment processor. Other issuing banks will include United Bank for Africa, Union Bank, Zenith, Skye Bank, Unity Bank, Stanbic, and First Bank.

    The Bank’s Group Managing Director, Aigboje Aig-Imoukhuede explained that, “Access Bank’s involvement in this project is testament to our ongoing efforts to expand financial inclusion in Nigeria. The new identity card will revolutionize the Nigerian economic landscape, breaking down one of the most significant barriers to financial inclusion– proof of identity, while simultaneously providing Nigerians with a world class payment solution.”

    Earlier, Michael Miebach, President, Middle East and Africa, MasterCard informed that The Director General and Chief Executive of the National Identity Management Commission, Chris Onyemenam said MasterCard was chosen as the payment technology provider for the initial rollout of the National Identity Smart Card project because of the company’s commitment to furthering financial inclusion through the reduction of cash in the Nigerian economy.”

  • MasterCard records $605m profit

    MasterCard records $605m profit

    MasterCard Incorporated posted fourth quarter profit that beat analysts’estimates as customers made more purchases. Net income excluding litigation charges increased 18 per cent to $605 million, or $4.86 a share, from $514 million, or $4.03, a year earlier, the Purchase, New York-based company, said in a statement obtained by Bloomberg.

    “It was a solid quarter capping a really solid year despite the economic challenges,” MasterCard Chief Financial Officer Martina Hund-Mejean said.

    Chief Executive Officer Ajay Banga is fending off competitors Visa Incorporated and Shanghai-based China UnionPay as he seeks a larger share of the electronic payments processing market.

    Banga is targeting developing countries, such as Myanmar, Ghana, Nigeria and Angola for growth amid a global consumer shift from cash to plastic. “We are gaining traction in our United States credit business with some recent wins, continuing to experience momentum in our mobile initiatives around the world, and securing important business in emerging markets like Africa and Brazil,” Banga said.

    Profit comparisons were skewed by a $770 million expense tied to settling litigation with merchants taken in the fourth quarter of 2011. Including that cost, earnings a year earlier were $19 million, or 15 cents a share.

    MasterCard’s total revenue increased 9.7 per cent to $1.9 billion, beating the Bloomberg forecast of $1.89 billion. Worldwide spending on MasterCard- and Maestro-branded cards climbed 13 per cent to $727 billion, based on local currencies, the company said. Processed transactions jumped 20 per cent to 9.2 billion.

     

  • Enterprise Bank rolls out prepaid MasterCard

    Enterprise Bank rolls out prepaid MasterCard

    Enterprise Bank customers will, henceforth, enjoy additional convenience with the introduction of the lender’s dual purpose prepaid MasterCard used locally and internationally.

    In a statement, the bank said the new addition is a multi-purpose chip and pin debit card that can be pre-funded with cash. The card can then be used to effect cashless payments (like a bank debit card) on the internet, Point of Sale (POS) terminals and cash from Automated Teller Machines (ATMs).

    It said that the unique benefits of the card, which is open to both customers and non-customers of the bank alike is that the individual would have no need to open or have a bank account in order to have the prepaid card. The card, which can be pre-funded in naira or dollar denominations, is ideal for students, corporate accounts expense cards, estacode, and corporate travel and travel cards among others.

    The card, the bank added, also eliminates the burden of carrying cash around just as it allows its holders to spend more than their approved daily spend limits since both the Personal Travel Allowance (PTA) and Basic Travel Allowance (BTA) are loadable on it.

    “With the product, holders of the Mastercard prepaid do not need to carry huge amounts in foreign currencies for foreign trips because money loaded in the card is already available, secure, safe and can be used anywhere in the world,” it said.

     

     

     

  • MasterCard announces first retail collaboration with Flying Dove

    MasterCard announces first retail collaboration with Flying Dove

    MasterCard has announced its first collaborative relationship with a local Nigerian retailer, Flying Dove Limited, authorised distributors for Sony Corporation and owners and operators of Sony Centres in Nigeria.  Through the collaboration, MasterCard will incentivise its cardholders to make use of electronic payment solutions, thus supporting the Central Bank of Nigeria’s (CBN) move towards a cashless economy.

    The joint venture between MasterCard and Flying Dove Limited, signals the first cashless initiative of its nature in Nigeria for MasterCard.  The collaboration supports MasterCard’s vision to accelerate the move towards more convenient and safer payment methods for consumers, and to then showcase the success of the collaboration to the wider Nigerian business sector.

    Omokehinde Ojomuyide, country manager, West Africa, MasterCard Worldwide commented, “MasterCard cardholders will quality for a 5% discount on the purchase of any item at Sony Centers across Nigeria.  In addition, and as part of the alliance with MasterCard, Sony Centre staff will undergo card acceptance and fraud prevention training. We will also be supporting Flying Dove by marketing the discount offer, further showcasing the benefits of moving towards electronic payments to our cardholders.”

    Ashok Jain, Managing Director of Flying Dove Limited, added, “Working alongside MasterCard has allowed us, as a retail leader in Nigeria, to further solidify our position in the local market.Our vision is to help make payments in all of the Sony Centres more convenient, easierand safer for customers and the Sony Centre staff.”

    Ojomuyide commented that the key stakeholders in the success of the cashless initiative are the financial sector, consumers and businesses. “Strategic initiatives such as our collaboration with Flying Dove Limited will assist each stakeholder to better supportthe CBN, in its quest to drive the development and modernization of the Nigerian payment system.”

    Ojomuyide provided further insight: “The CBN’s cashless policy aims to curb the increasing cost of cash, including handling and production costs.  It was forecasted by the CBN in 2011 that the direct cost of cash management in Nigeria would increase substantially to N192billion by 2012, impacting economic efficiency and the efficiency of all financial systems in the country.  The CBN further noted that the reduction of cash will assist in curbing the impact of corruption and other criminal behaviour, which will have a positive impact on all Nigerian citizens.”

    “MasterCard will continue to work with Nigerian banks and retailers to facilitate the reduction of cash within their payment systems by offering innovative, safe and convenient payment alternatives to their customers.  We look forward to achieving our shared goal of a cashless Nigeria, where our dependency on cash transactions will be significantly reduced,” concluded Ojomuyide.