SWOT Analysis of MasterCard

MasterCard worldwide is financial company and known as leaders in industry of finance and payments. MasterCard worldwide is operating in world of business and banking for more than 4 decades. The objective of company is to make the business transactions effective and efficient worldwide. Number of transactions processed by the network of MasterCard worldwide is about 23 billion per year. The transactions are processed between owners of Master Cards or card issuing authorities and banks of sellers. Headquarter of the company is located in New York, USA.  MasterCard is trading in New York stock Exchange as NYSE: MA.  Master Charge was original name of MasterCard and was introduced in market as competitor of Visa card which was initially known as Bank AmeriCredit.


• The tagline of MasterCard is “Priceless” which emphasis on convenience offered by the facility to card owner.

• MasterCard ensures high level publicity for its products and association with top most brands.

• MasterCard offers convenience of usage at various platforms.

• MasterCard is available in more than 100 countries worldwide.

• Association with renowned events worldwide such as World Cup.

• The successful business model integrated by MasterCard is primarily based on Advisor, franchisor and processor.

• With wide range of products by MasterCard, customer enjoys freedom, security, flexibility and convenience.

• Effective consultation services offered by MasterCard advisors worldwide. 

• MasterCard worldwide offers consistent, reliable, secure and valuable processing with its innovative technology.

• The profitable business of MasterCard ensures high returns.

• MasterCard Company operated in duopoly and enjoys secure position in market.


• Due to online processing of transactions, MasterCard has to deal with high risk of frauds.

• Online accounts are vulnerable to security breach.

• Recovery from clients

• Risks from legal actions.

• The concern of European Union regarding control of MasterCard in business of online transactions.


• The emergence of cashless economies provides more opportunities for MasterCard industry.

• With advent of technology in every field of life trend of digital currency is increasing rapidly.

•Increasing trend of online shopping and online business enhances the business of MasterCard.

• With improved data mining tools the potential for MasterCard market also enhances.

• People prefer debit cards over credit cards to avoid extra charges on transactions.


• Increasing competition in market of card industry however, the biggest competitor of MasterCard is Visa Card.

• Due to economic recession all over the world the economic policies are also getting complicated.

• With emergence of Ecommerce and alternative solutions for payments such as PayPal and Amazon Payment the business of MasterCard can get influence if not improved with change in technology.

• Due to increasing number of unemployed customers in US with lack of ability to pay, the charge off for such customers increase and that reduces profits earned by the company.

• Risk of security breach influence the confidence of customer on online transactions by MasterCard.

• Emerging substitute products by small financial companies can influence market of MasterCard.


• Official website of company http://www.mastercard.com/us/company/en/index.html Retrieved 7th November, 2012.

• Financial analysis by yahoo finance http://finance.yahoo.com/news/zacks-analyst-blog-highlights-fiserv-113158767.html Retrieved 8th November, 2012.

• Official website financial education http://www.mastercard.com/global/financial-education/ Retrieved 8th November, 2012.

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