MasterCard Expands In Africa And Japan

August 30th, 2013 · by Trefis Team
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MasterCard (NYSE:MA) continued to build on its global footprint this week with a 5-year agreement with South African bank, Standard Bank and the announcement of a white-label near-field communication (NFC) mobile wallet service in Japan, in collaboration with C-SAM and DNP. [1] [2] The company has been expanding operations in these regions MasterCard reported a 21% year–on-year increase in GDV processed from Asia, the Middle East and Africa in 2012. In contrast, the growth was 9% in Europe and the U.S. The developing geographies now account for 27% of MasterCard’s global GDV.

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Japan

The mobile wallet service in Japan will offer consumers the ability to use their smartphones for contactless transactional and other value added services. As part of a three way deal, MasterCard will offer its PayPass contactless payment solutions.  C-SAM provides turnkey mobile transaction services to businesses in the U.S., Japan, China, India, Singapore, and Mexico. The company will provide an end-to-end Mobile Transaction Platform (MTP) on which DNP will develop the mobile wallet service.

The service will help increase electronic payment penetration in Japan. Currently, only 40% of Japan’s $1.8 trillion personal consumption expenditures (PCE) are through the electronic media. [3] Mobile phone penetration in the country is near 95%, with more than 120 million devices in circulation. [4] We believe MasterCard is positioning itself to capitalize from the mobile payment revolution in the country.

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South Africa

Standard Bank is one of the leading banks in the African continent with more than 1,200 branches in 18 countries including South Africa, Angola, Ghana and Nigeria. [5]  The bank had more than $184 billion assets at the end of 2012. The African continent is expected to grow in the coming years and South Africa in particular is a lucrative market. Nearly two-thirds of the $146 billion annual personal consumption expenditures in the country are through cash & check. We believe MasterCard can greatly expand its presence in the African continent with the agreement with Standard Bank.

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Notes:
  1. Mastercard Inc : MasterCard and Standard Bank Group Sign Agreement, August 29, 2013 [↩]
  2. Mastercard Inc : MasterCard, C-SAM, DNP to Introduce White-label NFC Mobile Wallet Services in Japan, August 28, 2013 [↩]
  3. Visa Investor Meeting 2013 [↩]
  4. List of countries by number of mobile phones in use [↩]
  5. About us // Overview [↩]
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