Mastercard: “the next five to ten years will be all about the app”
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Mastercard: “the next five to ten years will be all about the app”

According to credit card giant Mastercard’s president for the UK, Ireland, Nordics, and the Baltics, the near-term future of payments is “all about the app.” Speaking to reporters recently, Mark Barnett noted that a new Mastercard shows as much as 84% of adults use digital banking at least once a month. Trade body UK Finance agrees that cash is on its way out: by 2024, debit cards will account for half of all payments, and contactless technology continues to conquer the world.

Mastercard’s share price has appreciated by 44% year to date

Mastercard 12th June

Source: Yahoo Finance

Barnett’s responsibility is “growing the payments industry in the region and creating a world beyond cash, including emerging technologies like contactless and mobile,” and it seems to be something he excels at. He has stated that a major driver of new business is partnership with emerging players, noting that the company is “delighted to be the partner of choice for most fintechs and if you look about 80% of them that’s the case.” This is not an accident – he has pursued them specifically.

Barnett is full of praise for the business models these fintechs have created – particularly their use of new app technology to create more flexible payment systems. He told reporters:

“With no legacy systems, it's really stunning what they've achieved. These start-ups, despite their size, they want to move very quickly and they have global ambitions – so they've pushed us too. I think the immediate future, in the next five to 10 years, will be all about the mobile app.”

Supporting this contention is the fact that a recent Mastercard survey suggests 44% of people would consider switching to a digital-only bank in the future. This, he describes as “incredible” adding: “considering a lot of these firms don’t advertise, the fact that nearly 50% of people have even heard of them is a great achievement.”

Disclosure

Dominion holds Mastercard in its Global Trends Ecommerce Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.