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
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.”
Dominion holds Mastercard in its Global Trends Ecommerce Fund.
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