Mastercard’s strategy and business model moves around growing its core payments network while diversifying customers and geographies and building new capabilities through a combination of organic and inorganic strategic initiatives. Thus moving along three key pillars:
Expand payments for consumers, businesses and governments
Extend our services to enhance transactions and drive customer value
Embrace new network opportunities to enable open banking, digital identity and other adjacent network capabilities
Mastercard is focusing on expanding its core payments network to enable payment flows for consumers, businesses, governments, and others across multiple payment rails.
This includes driving growth in consumer payments, capturing new payment flows, and leaning into new payment innovations like Mastercard Installments and solutions supporting digital currencies and blockchain applications.
The company is extending its services, which include cyber and intelligence solutions, insights and analytics, consulting, marketing services, loyalty, processing, and payment gateway solutions for e-commerce merchants.
These services drive value for customers and the broader payments ecosystem, supporting revenue growth in payments and new network opportunities.
Mastercard is embracing new network opportunities by building and managing new adjacent network capabilities to power commerce and payments.
This includes applying open banking solutions to help institutions and individuals exchange consumer-permissioned data securely and easily, and enabling digital identity solutions to instill trust in the digital world.
These priorities are interdependent: payments provide data and distribution to drive scale and differentiation in services and enable the development and adoption of new network capabilities; services improve the security, efficiency, and intelligence of payments, improve portfolio performance, differentiate offerings, strengthen customer relationships, and support open banking and digital identity platforms; new network opportunities strengthen the digital payments value proposition and provide new opportunities to develop and embed services in expanding product offerings.
People: Mastercard’s success is driven by the skills, experience, integrity, and mindset of its people. The company focuses on attracting and retaining top talent from diverse backgrounds and industries.
Brand: Mastercard’s brands and brand identities serve as a differentiator for the business, representing its values and enabling it to accelerate growth in new areas.
Data: The company uses its data assets, infrastructure, and platforms to create a range of products and services for its customers, while incorporating its data principles in how it designs, implements, and delivers those solutions.
Technology: Mastercard’s technology provides resiliency, scalability, and flexibility in how it serves customers. It enables broader reach to scale digital payment services to multiple channels, including mobile devices.
Franchise: Mastercard manages an ecosystem of stakeholders who participate in its network. The franchise creates and sustains a comprehensive series of value exchanges across its ecosystem.
Doing Well by Doing Good: Sustainable impact is fundamental to Mastercard’s business strategy. The company leverages its employees, technology, resources, partnerships, and expertise to address social, economic, and environmental challenges. Its environmental, social, and governance (ESG) priorities are expressed through three pillars – People, Prosperity, Planet – and all of its work is grounded in strong governance principles.
Mastercard is primarily owned by the Mastercard Foundation, which owns 10.7% of the company’s stocks, followed by The Vanguard Group, 8.2%, and BlackRock, 6.8%. Mastercard generated over $22 billion in revenue in 2022 and over $9.9 billion in profits (net income).
Mastercard’s revenue in 2020 was $15.3 billion.
The revenue increased to $18.88 billion in 2021.
By 2022, Mastercard’s revenue had grown further to $22.24 billion.
The growth in revenue from 2020 to 2021 was approximately 23.4%.
The growth in revenue from 2021 to 2022 was approximately 17.8%.
Over the three-year period from 2020 to 2022, Mastercard’s revenue increased by approximately 45.3%.
In 2020, Mastercard’s net income was $6.41 billion.
The net income increased to $8.68 billion in 2021.
By 2022, Mastercard’s net income had grown further to $9.93 billion.
The growth in net income from 2020 to 2021 was approximately 35.4%.
The growth in net income from 2021 to 2022 was approximately 14.4%.
Over the three-year period from 2020 to 2022, Mastercard’s net income increased by approximately 54.9%.
Visa is primarily owned by institutional investors like The Vanguard Group, with an 8.62% ownership stake, and BlackRock, with a 7.75 ownership stake. Some top individual shareholders comprise Chairman of the Board of Directors Alfred Kelly, President of Technology Rajat Taneja, and CEO Ryan Mclnerney.
Visa’s revenue in 2020 was $21.84 billion.
In 2021, Visa’s revenue increased to $24.1 billion.
By 2022, Visa’s revenue had grown further to $29.31 billion.
The revenue growth from 2020 to 2021 was approximately 10.4%.
The revenue growth from 2021 to 2022 was approximately 21.6%.
Over the three-year period from 2020 to 2022, Visa’s revenue increased by approximately 34.2%.
In 2020, Visa’s payment volume was $8.8 trillion.
The payment volume increased to $10.4 trillion in 2021.
By 2022, Visa’s payment volume had grown further to $11.6 trillion.
The growth in payment volume from 2020 to 2021 was approximately 18.2%.
The growth in payment volume from 2021 to 2022 was approximately 11.5%.
Over the three-year period from 2020 to 2022, Visa’s payment volume increased by approximately 31.8%.
In 2020, Visa processed 140.8 billion transactions.
The number of transactions processed increased to 164.7 billion in 2021.
By 2022, Visa had processed 192.5 billion transactions.
The growth in transactions processed from 2020 to 2021 was approximately 16.9%.
The growth in transactions processed from 2021 to 2022 was approximately 16.8%.
Over the three-year period from 2020 to 2022, the number of transactions processed by Visa increased by approximately 36.7%.
In 2020, Visa’s net income was $10.86 billion.
The net income increased to $12.31 billion in 2021.
By 2022, Visa’s net income had grown further to $14.96 billion.
The growth in net income from 2020 to 2021 was approximately 13.3%.
The growth in net income from 2021 to 2022 was approximately 21.5%.
Over the three-year period from 2020 to 2022, Visa’s net income increased by approximately 37.8%.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
