We’re charging up profits for MasterCard

Jill Barshay Jun 7, 2007
HTML EMBED:
COPY

We’re charging up profits for MasterCard

Jill Barshay Jun 7, 2007
HTML EMBED:
COPY

TEXT OF STORY

SCOTT JAGOW: MasterCard holds its annual shareholder meeting today. Well, “annual”— it’s only the second one — the company just went public a year ago. But so far, so good. MasterCard’s stock has quadrupled since then. More now from Jill Barshay.

Jill Barshay: MasterCard is sitting on a $2.5 billion cash cushion.

Kurt Strawhecker is a consultant to the industry. He says more shoppers are swiping plastic instead of paying by cash or check.

Kurt Strawhecker: Every year over the last three to four years, the industry growth in terms of the number of transactions have grown somewhere between 15 to 18 percent.

Each one of those transactions earns a fee for credit card companies like MasterCard. Now, MasterCard executives say they want to go on a shopping spree of their own.

Strawhecker says they may be eyeing new technology.

Strawhecker: Point-of-sale devices that would speed the point-of-sale transaction. That would be an excellent example of something that MasterCard would probably like to delve into.

Now Visa hopes to copy MasterCard’s success on Wall Street. Visa plans to go public by early next year.

In New York, I’m Jill Barshay for Marketplace.

TEXT OF STORY

SCOTT JAGOW: MasterCard holds its annual shareholder meeting today. Well, “annual”— it’s only the second one — the company just went public a year ago. But so far, so good. MasterCard’s stock has quadrupled since then. More now from Jill Barshay.

Jill Barshay: MasterCard is sitting on a $2.5 billion cash cushion.

Kurt Strawhecker is a consultant to the industry. He says more shoppers are swiping plastic instead of paying by cash or check.

Kurt Strawhecker: Every year over the last three to four years, the industry growth in terms of the number of transactions have grown somewhere between 15 to 18 percent.

Each one of those transactions earns a fee for credit card companies like MasterCard. Now, MasterCard executives say they want to go on a shopping spree of their own.

Strawhecker says they may be eyeing new technology.

Strawhecker: Point-of-sale devices that would speed the point-of-sale transaction. That would be an excellent example of something that MasterCard would probably like to delve into.

Now Visa hopes to copy MasterCard’s success on Wall Street. Visa plans to go public by early next year.

In New York, I’m Jill Barshay for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.

Raise a glass to Marketplace!

Just $7/month gets you a limited edition KaiPA pint glass. Plus bragging rights that you support independent journalism.
Donate today to get yours!