Situation Analysis

Strengths

» Mastercard is a well-established market leader in the financial technology space. » Mastercard has a strong geographic footprint with a presence in more than 210 countries globally, dealing in 150 currencies with 2.2 billion users. 1 » Mastercard and its products have a strong brand recognition in the financial technology industry. » Mastercard has a great track record of innovation. 2 » The new Mastercard branding with the changed logo and introduction as a sonic brand has been very well received. 3

Opportunities

» While Mastercard has been investing significantly in R&D, in order to remain competitive, there is scope for more investment in technology innovation and development. 6 » Mastercard can leverage digital payments as a cultural shift. 7 » With many companies shifting to individualized apps, Mastercard can leverage their card-on-file presence. 8

1. https://www.mastercard.us/en-us.html 2. https://www.mastercard.us/en-us/about-mastercard/who-we-are/innovation.html 3. . https://www.adweek.com/brand-marketing/sonic-branding-continues-to-gain-popularity-as-mastercard-launches-its-own-sound/ 4. https://www.forbes.com/sites/greatspeculations/2018/05/29/amex-is-likely-to-become-the-second-largest-u-s-card-processing-company-this-year/#3885c1e14fa0 5. https://d2rpq8wtqka5kg.cloudfront.net/128847/open20070601120000.pdf 6. https://www.forbes.com/sites/vishalmarria/2018/12/21/what-a-cashless-society-could-mean-for-thefuture/#6d2d39f73263

Weaknesses

» Mastercard has a declining market share and is having difficulty keeping up with companies like American Express, Visa and Discover. 4 » There is no immediate perceived benefit of using contactless payment methods. 5 » Despite efforts to shift brand identity, Mastercard is still perceived as traditional and focused on the physical card.

Threats

» Many competitors are catching up within the product development field and Mastercard is facing stiff challenges from international and local competitors. 9 » America is yet to adopt alternative payment methods thus leaving a gap in the market for other competitive companies to mobilize on this late adoption. 10 » Merchants, like Walmart, are exhibiting pushback of universal APMs. 11 » There is a general distrust for alternative payment methods and rigidity towards a cashless society among the older generations and women. 12

7. https://www.productiveflourishing.com/technology-and-culture-influence-each-other 8. https://www.qsrmagazine.com/fast-food/look-inside-fast-food-app-war 9. https://www.forbes.com/sites/forbesfinancecouncil/2018/05/03/how-customer-demands-havepushed-finance-to-evolve/#618351e032bc 10. https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2018/09/07/the-challenge-of-going-cashless/#4bdb7afe2d99 11. (https://www.paymentssource.com/news/walmart-wont-support-apple-pay) 12. Mintel. “Consumer Payment Preferences - US - September 2018