The skinny on the planned cashless society
A control grid beyond even Hitler’s imagination
MasterCard Banks On Cashless Society
By Scott Stoddard
MasterCard (MA), the No. 2 credit card processing company after Visa (V), is benefiting from a global shift to cashless transactions.
CEO Ajay Banga has said cashless transactions are rising five to six percentage points a year as consumers around the world become increasingly comfortable using credit and debit cards — and even cell phones — to make purchases online or in stores.
MasterCard’s EPS jumped 36% in Q2 on higher-than-expected transaction volume. That built on healthy gains of 30% and 24% in each of the prior two quarters. Q2 revenue rose 22%, accelerating for the third straight quarter.
The company generates revenue through the number of transactions processed as well as through gross dollar purchase volumes.
Like Visa, MasterCard faces head winds as of Saturday, when regulators impose a cap on fees that banks can charge merchants for debit-card transactions.
But MasterCard sees its future overseas, in regions where personal consumption is rising fastest. The firm generates 58% of revenue outside the U.S. MasterCard’s gross dollar volume rose 9.9% in the U.S. in Q2, but it grew 19.9% in the rest of the world.
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