Consumers Looking for New Opportunities to Use Their Debit Cards to Replace Cash and Checks.

Business Editors

ORLANDO, Fla.--(BUSINESS WIRE)--Nov. 8, 2001

Convenience and Ease of Use, Combined with Growing Use of Rewards

Programs Drive Adoption and Usage

Evolving usage patterns and expanded consumer preference for debit cards within a widening array of categories, such as department stores and fine restaurants, are driving strong continued growth, says Ann Camarillo, chief debit officer for MasterCard International and chief executive officer of Maestro(R) International.

Speaking at the 9th Annual Debit Card Forum, Camarillo stated debit card usage is expected to surpass credit within the next decade. However, despite the robust growth in volume and transactions -- which grew a healthy 30 percent in 2000 -- Camarillo stated debit is still in the growth stage of its life cycle. According to a recently completed independent study for MasterCard, cash and checks still comprise approximately 66 percent of all payments.

Camarillo identified strategies for increasing frequency of use and increasing usage per card as primary methods for debit programs to achieve their potential.

Camarillo also pointed to recent research that found consumers plan to use debit cards for a range of different merchant categories, such as doctors' office services where other forms of consumer payments have traditionally been the dominant choice.

"The ease and convenience of debit cards, combined with the increasing use of rewards and loyalty programs, will drive an evolutionary increase in debit card usage," said Camarillo. She noted that independent research has shown consumer perceptions for debit cards have conventionally driven usage to primarily grocery and fuel station purchases. Today, actual purchases at department stores and for hotel accommodations account for an expanding number of debit transactions. Camarillo said MasterCard is continually adding new merchant categories and locations, and today, MasterCard cards are accepted at 22 million locations around the world.

In addition, she cited other key achievements necessary for continued growth and global utilization of debit cards, including marketing, prepaid solutions, offering cardholders the choice to use their cards for PIN- and signature-based purchases, and global acceptance.

At MasterCard, Camarillo is responsible for managing MasterCard's worldwide debit strategy and operations as well as MasterCard's Debit Centre of Excellence based in Brussels. The Debit Centre of Excellence focuses on the global growth of debit through the development of both global and region-specific strategies. In addition, the Centre provides a focal point for MasterCard to benchmark successful programs and to identify best practices to help MasterCard members succeed and enhance profitability.

Debit Card Forum, sponsored by Thomson Financial Conferences, focuses on the challenges and opportunities facing debit issuers. The event features the industry's leading experts who will discuss: increasing debit activation, obtaining greater share of wallet, maximizing strategic alliances and increasing revenue streams with new debit products. The program addresses key issues challenging the advancement of debit and the latest solutions for combating these obstacles. Additionally, the conference touches on the latest technological advancements in the debit field and explores how these advancements create new opportunities for increased efficiency and expanded revenue streams.

About MasterCard

MasterCard International has a comprehensive portfolio of well-known, widely accepted payment brands including MasterCard(R), Cirrus(R) and Maestro(R). More than 1.7 billion MasterCard, Cirrus and Maestro logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is a leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard's award-winning Priceless(R) advertising campaign is now seen in 80 countries and in more than 36 languages, giving the MasterCard brand a truly global reach and scope. With more than 22 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. At June 30, 2001, gross dollar volume exceeded US$458 billion. MasterCard can be reached through its World Wide Web site at http://www.mastercard.com.