The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, also known as “One Belt, One Road,” aims to create Eurasian marketplace. In China this week, MasterCard’s CEO says the Chinese initiative can be a success, not only regionally, but also globally.
The African Development Bank (AfDB) and MasterCard partnered to expand financial inclusion across Africa and develop solutions that drive inclusive growth, broadening access and usage of digital financial services. MasterCard brings proven expertise to design and scale inclusive financial services solutions and infrastructure. The AfDB actively promotes sustainable economic growth and poverty reduction in Africa. Together they will work with African governments and local private sector companies to develop and deliver affordable services that meet the needs of a wide consumer base, especially the traditionally unbanked. This is meant to drive inclusion at a country level and enable service delivery on educate on financial inclusion and economic development.
MasterCard announced its participation the Macquarie Extreme Services Conference in New York. Mastercard will also present at the JPMorgan Global Technology, Media & Telecom Conference in Boston. There will be a listen-only live webcast of each discussion and replays will be archived for 7 days on the investor relations section of www.mastercard.com .
MasterCard appointed Tim Murphy to general counsel and chief franchise officer and will sit on the Executive Committee. Murphy, 46, joined MasterCard’s Law department in 2000 and became senior vice president and associate general counsel in 2003. In 2006, Murphy was named group executive, Customer Business Planning and Analysis, and was president of MasterCard’s U.S. Region from 2007 to 2009. Murphy then became chief product officer, responsible for leading the management, development and commercialization of MasterCard’s core payment solutions. Also, Craig Vosburg will assume the role of chief product officer after holding the role of group executive, U.S. Market Development. Mike Cyr, group executive, U.S. Markets Customer Delivery, will now become responsible for U.S. Market Development; and Jennifer Rademaker, group head, Core Products, Europe, will become group executive, U.S. Markets Customer Delivery, and now joins the company’s Operating Committee.
MasterCard and the Inter-American Development Bank (IDB) have recently signed a keystone agreement, as announced at the World Economic Forum in Davos, Switzerland, to work together in an effort to improve economic inclusion, transparency and financial formalization through the expansion of electronic payments in Latin America and the Caribbean (LAC). The five-year public-private partnership is intended to enhance access to information and promote the transition to electronic payment services in the region, which can help reduce transaction costs and increase the efficiency of financial disbursements. Replacing cash-based systems for electronic ones also can potentially reduce leakages, increasing the likelihood that payments and benefits end up in the hands of intended beneficiaries and recipients, helping to improve the lives of the underserved.
MasterCard announced a 10-for-1 stock split of the Company’s common stock to be effected through a stock dividend; An 83% increase in the Company’s quarterly cash dividend to $1.10 per share ($0.11 per share after the stock split); and a new share repurchase program authorizing the Company to repurchase up to $3.5 billion of its Class A common stock. The record date for the 10-for-1 stock split is the close of business on January 9, 2014, with share distribution scheduled for January 21, 2014. As a result of the split, shareholders will receive nine additional shares of MasterCard common stock for each share they hold as of the record date. Total shares of common stock outstanding will increase from approximately 120 million to 1.2 billion based on the Company’s share count as of December 5, 2013.
Ajay Banga, President and CEO of MasterCard, shared his views on how innovation can help drive economic growth. Banga noted that China’s current wave of industrialization – which has resulted in unprecedented growth based on low-cost labor – is challenged and the country needs a new model centered around continuous innovation. Bringing to bear MasterCard’s analysis and global experience in payments innovation before more than 500 audience members consisting of global CEOs, world leaders, and renowned scholars, Banga recommended China create a more level playing field for SMEs by removing the significant structural advantages that State-Owned Enterprises have over SMEs; reform the interest rate regime; harness a local banking model with right mix of global banks, large national banks and smaller regional / local banks to create efficiency in financing and serving SMEs; and Develop Electronic Payment Innovations that meet SMEs’ unique needs.
MasterCard appointed Ron Garrow Chief Human Resources Officer and member of its Executive Committee, effective April 1. Garrow joined MasterCard in March 2010 as Group Head, Global Talent Acquisition Management and Development. Then he was named Group Executive of Global Human Resources Plans and Programs, which included oversight of Rewards, Workforce Programs, Employee Relations and Human Resources Services and Solutions. Garrow held various Human Resources leadership positions at Bank of America over a six-year period, culminating in the position of Chief Learning Officer. He also spent 19 years at Wachovia in various Human Resources roles focused on training, leadership and executive development.
Ajay Banga, President and CEO of MasterCard Worldwide affirmed the company’s commitment to extending financial inclusion across Africa. Collaborating with local government officials, financial institutions, businesses and citizens, he shared his thoughts on a cashless society and vision of a world beyond cash. Banga addressed Central Bank of Nigeria (CBN) officials and other business leaders, acknowledging CBN’s Cashless Policy as the driving force behind the reform in the country’s electronic payments sector over the past two years. He also attended a signing ceremony in Nairobi, Kenya to announce an agreement between MasterCard and Equity Bank of Kenya to issue five million MasterCard-branded debit and prepaid cards. By 2013, 15 million grants will be given to 10 million recipients, mostly those who are unbanked, Resulting in $375 million savings by SASSA on operational costs alone.
MasterCard and Equity Bank of Kenya announced an agreement at a signing ceremony in Nairobi to issue five million MasterCard-branded debit and prepaid cards, over the next 18 months. This program empowers African consumers to use electronic payments which provide a safe and secure way to pay, versus cash and other forms of payment. MasterCard debit and prepaid cards with chip-enabled technology will be issued, first into the Kenyan market and then extended into Uganda, Tanzania, Rwanda, and South Sudan, signaling the largest rollout of EMV payment cards in sub-Saharan Africa to date. The cards will also introduce MasterCard PayPass with the first ever installation of PayPass enabled point of sale terminals across the region.
Having held its Annual Meeting of Stockholders, MasterCard announced directors were re-elected with a term to expire in 2013. They include Ajay Banga, President and Chief Executive Officer, MasterCard Incorporated; David R. Carlucci, Former Chairman and Chief Executive Officer, IMS Health Incorporated; Steven J. Freiberg, Chief Executive Officer, E*TRADE Financial Corporation; Richard Haythornthwaite, Chairman of the Board, MasterCard Incorporated, Non-Executive Chairman, Network Rail; Marc Olivié, President and Chief Executive Officer, W.C. Bradley Co.; Rima Qureshi, Senior Vice President and Business Unit Head, CDMA Mobile Systems, Ericsson; Mark Schwartz, Chairman, MissionPoint Capital Partners, LLC; Jackson P. Tai, Former Vice Chairman and Chief Executive Officer, DBS Group and DBS Bank, Ltd.;
MasterCard announced its participation in the following investor conferences in the month of May: On Tuesday, May 8, Gilberto Caldart, division president for south Latin America & Caribbean, will participate on an international markets panel at the Morgan Stanley Services Summit in New York. The discussion will begin at 1:35 p.m. Eastern Time and last…