Printer Friendly

MASTERCARD ANNOUNCES STRONG GROWTH IN 1991; U.S. REGION BOARD OF DIRECTORS ESTABLISHED

 MASTERCARD ANNOUNCES STRONG GROWTH IN 1991;
 U.S. REGION BOARD OF DIRECTORS ESTABLISHED
 VANCOUVER, B.C., April 9 /PRNewswire/ -- At its 25th annual meeting of members today in Vancouver, MasterCard International Incorporated announced strong growth in both volume and cards for each of its six global regions.
 Worldwide, MasterCard(R) card sales volume increased by 12.5 percent to $220.9 billion in 1991. Cards in circulation grew to 171.8 million, a 6.8 percent increase over 1990, while acceptance locations grew by 7.6 percent to 9.8 million in 170 countries and territories.
 The MasterCard/CIRRUS(R) ATM Network expanded its reach to more than 77,000 ATMs in 31 countries and territories. MasterCard Travelers Cheques maintained market share with $10 billion in sales.
 "In 1991, a year of economic uncertainty around the world, MasterCard increased its effectiveness through expanded alliances, targeted marketing programs, and a stronger organization in every region," said Alex W. "Pete" Hart, president and chief executive officer of MasterCard International. "We also committed ourselves to improving the profitability of our members, and to taking advantage of the opportunities for growth in the debit arena by leveraging our worldwide strategic alliances through the launch of Maestro(TM), our global, on-line point-of-sale debit brand."
 Around the world, MasterCard focused much attention on the area of service quality in 1991 through the launch of several initiatives. These included faster and easier Emergency Card Replacement Service/ Emergency Cash Advance Service, and an alliance with Thomas Cook that enables MasterCard cardholders to receive travel assistance at any of the 1,600 Thomas Cook offices in 110 countries, free-of-charge.
 Global brand presence was enhanced through an aggressive program to complete the conversion of all cards and merchant signage to the new mark. Also, several new MasterCard advertising campaigns were introduced in key markets, while The Whole World in Your Hands(TM) campaign highlighted MasterCard's universal reliability and acceptance.
 "MasterCard developed a new regional staff structure, with a revamped financial system, in order to work more closely with members and support their profitable growth," continued Hart. "We also strengthened existing strategic partnerships and regional boards, and created new ones, giving members more autonomy to make local decisions; and implemented franchise management rules to establish and enforce standards to ensure consistent levels of quality across all MasterCard products and services."
 U.S. Region Board of Directors Established
 MasterCard has established a fully functioning U.S. Region board of directors, and has named five new directors: Richard D. Field, senior executive vice president, Bank of New York; Paul G. Kahn, chairman of the board, AT&T Universal Financial Corp.; Michael J. Schmitz, executive vice president, First Wisconsin National Bank; William E. B. Siart, president, First Interstate Bancorp; and Stephen E. Wall, vice chairman, Society National Bank.
 "The U.S. Region had an excellent first year, as MasterCard gained share in the general purpose card market, reversing the share-loss trend of the last five years," said Peter S.P. Dimsey, president, U.S. Region. "With the fundamentals now in place, we can move forward more aggressively for even greater success in 1992."
 In 1991, U.S. gross dollar volume rose 6.2 percent to $98.8 billion, with 90.0 million cards in circulation. The Gold MasterCard(R) Card achieved its eighth consecutive year of volume growth in excess of 20 percent (23.9 percent), while cards in circulation also increased by 23.0 percent.
 Key initiatives in the United States included the strengthening of the four regional offices, and developing a "model" office in the Western Region by bringing in all MasterCard services -- issuing, acquiring, technical support, MAPP(R), CIRRUS, and debit -- to form an "Effective Account Management" team. In addition, the Master The Moment(TM) advertising campaign, which positioned MasterCard as the card providing "More Value For The Way We Really Live," improved the brand image and was a major factor in making MasterCard response rates to mail solicitations the best in the bankcard industry. Merchant acceptance programs designed for the supermarket, fast food, movies, parking, mail order/telephone order, and restaurant industries also opened up new markets and maintained MasterCard's unsurpassed acceptance.
 MasterCard co-branding rules enabled members to capitalize on some major co-branding opportunities in 1991, led by the AT&T Universal MasterCard Card, the Ameritech Complete MasterCard Card, and a Ford MasterCard card, among others.
 A Year of Growth in Asia/Pacific
 Efforts to build brand awareness and enhance regional presence fueled continued strong growth in the Asia/Pacific Region. "The Master" advertising campaign, adapted to the markets of Australia, Korea, Singapore, Hong Kong, India, and Malaysia, conveyed the value of the MasterCard brand. MasterCard's regional presence was also strengthened by the addition of Japanese representation to the Asia/Pacific Regional Board and by the establishment of representative offices in Korea and Taiwan.
 Gross dollar volume growth for the region was 3.9 percentage points higher than the worldwide rate, rising 16.4 percent to $30.3 billion and accounting for 13.7 percent of worldwide volume. Cards in circulation increased 10.3 percent to 33.4 million, and merchant locations reached 3.2 million, a 15.9 percent increase.
 MasterCard's major Asia/Pacific markets experienced substantial growth, especially Australia, Hong Kong, Indonesia, and Malaysia. In Taiwan, where the first MasterCard card was launched in October, over 20,000 cards were issued by year-end. MasterCard remained the dominant brand in China, Korea, India, and Sri Lanka, and gained market share in New Zealand.
 Strong Alliances in Europe
 New and strengthened alliances in Europe translated into continued growth and solid positioning for the Eurocard International S.A./MasterCard partnership.
 A focal point of 1991 was the introduction of the "Europackage," a full range of "pay before," "pay now," and "pay later" products that will include edc/Maestro, the first on-line, global, point-of-sale debit program. In addition, a strategic alliance between Eurocard and CIRRUS System, Inc., led to the creation of an international ATM program for European members which will increase the number of CIRRUS ATMs in the region to more than 25,000 in 1992. Co-branding agreements between Eurocard/MasterCard and Air Travel Card also enhanced competitive positioning within the travel and entertainment market.
 The Eurocard/MasterCard sponsorship of World Championship Soccer maximized brand awareness, as total viewership for these events in 1991 exceeded one billion.
 These efforts in the region resulted in a gross dollar volume of $64.9 billion, accounting for 29.4 percent of overall MasterCard volume. Within Continental Europe, cards in circulation increased by 30.1 percent to 14.5 million -- enabling Eurocard/MasterCard to achieve market leadership in new card issuance for the first time.
 In the United Kingdom and Ireland, the share-loss trend was reversed as gross dollar volume increased by 5.8 percent to $6.3 billion, while cards in circulation stand at 11.4 million. Strong card growth was experienced in France and the Netherlands, and MasterCard retained its leadership position in Germany, where card issuance now exceeds 3 million.
 Latin America Still Fastest-Growing
 For the fourth consecutive year, Latin America remained MasterCard's fastest-growing region, with volume growth of 24.1 percent to $10.4 billion and card growth of 16.0 percent to 12.5 million. Merchant acceptance locations reached 832,256, a 7.1 percent increase.
 This growth was the result of successful efforts to heighten brand visibility and improve service quality. The first pan-regional advertising campaign promoted MasterCard's worldwide acceptance in the region's three languages, while brand awareness was enhanced through MasterCard's sponsorship of the South American Soccer Championship, Copa America. Customer service was improved by the establishment of the Miami-based Customer Attention Center, and cardholders received greater cash access as MasterCard/CIRRUS ATMs increased to 1,909 in 10 countries and territories.
 MasterCard maintained its leadership position in the region's three largest markets: Argentina, Brazil, and Mexico. In addition, Mexico remained MasterCard's Latin American leader in cards and volume. MasterCard also became the number one card in Chile.
 Market Share Gained in Canada
 Aggressive, proprietary marketing by Canadian issuers, combined with regional marketing campaigns of the MasterCard Association of Canada (MAC), contributed to a 6.3 percent rise in volume and a market share gain for MasterCard. In addition, the popular Gold MasterCard MasterAssist(R) travel assistance services program helped increase the number of Gold MasterCard accounts by 36.2 percent.
 Two MasterCard television commercials, along with a major national redecalization campaign, substantially raised brand visibility.
 Growth Despite Turmoil in Middle East/Africa
 Despite the economic turmoil caused by the Gulf War and the collapse of the Bank of Credit and Commerce International, MasterCard continued to experience strong growth in the Middle East/Africa Region, as volume increased by 20.0 percent, while cards in circulation exceeded 1 million. Merchant locations also increased by 4.3 percent. MasterCard now has 42 percent of the market share in this region. In addition, in 1991, the Middle East/Africa Regional Board approved steps toward regional self-funding.
 It was clear that in 1991 MasterCard made major strides toward fulfilling its strategies to globalize the MasterCard franchise and strengthen the worldwide position of the brand.
 "With our momentum strong and our vision focused, MasterCard remains committed to working closely with our members to support their profitable growth," said Hart. "We will do this by continuing to increase the value of the MasterCard brand in every region of the world, building a strong network of members, and providing innovative marketing and superior technical support. We are well positioned to achieve our mission in the near future."
 -0- 4/9/92
 /CONTACT: Richard Woods of MasterCard International, 212-649-5450/ CO: MasterCard International Incorporated ST: British Columbia IN: FIN SU:


GK-OS -- NY060 -- 6840 04/09/92 13:52 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 9, 1992
Words:1623
Previous Article:AIR & WATER TECHNOLOGIES SUBSIDIARY TO INSTALL CHIMNEY AT PSI ENERGY'S GIBSON STATION
Next Article:CEI'S CO-OP PROVIDES $100,000 TO LOW INCOME CUSTOMERS; CUSTOMER PAYMENT PLANS AVAILABLE


Related Articles
MORE THAN 10 MILLION GLOBAL MERCHANT ACCEPTANCE LOCATIONS REPORTED BY MASTERCARD; FIRST QUARTER 1992 REPORT ANNOUNCES NEW MILESTONE
MORE THAN 10 MILLION GLOBAL MERCHANT ACCEPTANCE LOCATIONS REPORTED BY MASTERCARD; FIRST QUARTER 1992 REPORT ANNOUNCES NEW MILESTONE
MASTERCARD REJECTS DEAN WITTER/MOUNTAIN WEST'S APPLICATION FOR MEMBERSHIP
MASTERCARD REJECTS DEAN WITTER/MOUNTAIN WEST'S APPLICATION FOR MEMBERSHIP
AMMIRATI & PURIS SELECTED AS NEW ADVERTISING AGENCY FOR MASTERCARD
MASTERCARD REPORTS FOURTH QUARTER DOLLAR VOLUME GROWTH IN FIVE YEARS -- TOTAL FOURTH QUARTER U.S. DOLLAR VOLUME INCREASED BY 17 PERCENT --
CORRECTION TO VISA INTERNATIONAL STATEMENT ON COUNTERFEIT FRAUD
Asia Payments Announces Appointment of New CEO.
MasterCard Announces Annual Meeting Results; Stockholders Re-Elect Three Members to Board of Directors.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters