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MasterCard Inc's Endless Growth Opportunity

MasterCard (NYSE: MA  ) has been around for 50 years, but believe it or not, it is still a growth company.

MasterCard's CEO, Ajay Banja, recently said:

The future of money won't be about cash or the form it takes. The future of money and commerce will be about breaking down barriers and increasing access for more people across both geographies and incomes. Why? Because with the right payment systems and new innovations in place, how you pay for things drives greater equality of opportunity in society.

He highlighted the changes which will mark the payments industry in the coming years. They will allow for greater inclusion and equality for the more than 2.5 billion adults who don't have access to "the financial mainstream," which allows them do things like pay bills, save money, or borrow, all that we "take for granted."

Only half of the world's adult population have access to a formal financial instituion:

Source: Ajay Banga Says the Future of Money Will Drive Equality, Wall Street Journal.

But that was only half the story.

The massive opportunity
One of the most fascinating bits of insight for investors came when Banga revealed:

We're already seeing the use of money in the form of cash and checks decline and the use of electronic payments increase. Keep in mind, we're at the beginning of this journey, as 85% of the world's retail transactions are still done in cash and check. It's a journey that will get us to a world of greater equality and financial inclusion.

MasterCard has been around since 1966, but this is still a company in the early stages of its growth.

The opportunity that exists across the globe is truly astounding. Outside of the United States, MasterCard saw its purchase volume grow by 15% on a local currency basis from the first quarter of 2013 to the first quarter of 2014. And 65% of its purchases come from foreign countries:

Source: Company Investor Relations.

The reality is, even despite the fact it is a household name, and in the majority of homes a household product (more than 343 million cards in the U.S. alone) there is so much potential growth which awaits MasterCard and the broader payments industry across the globe. And it is only beginning to scratch the surface of that.

As a reason for optimism, all signs point to this possible growth and expansion not only benefiting MasterCard and its investors, but perhaps billions of people across our planet.

Your credit card may soon be completely worthless
There is no denying the opportunities available to MasterCard, but there is one other company which will benefit. You see, the plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

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  • Report this Comment On July 11, 2014, at 12:31 PM, Mom44 wrote:

    I had an eye opener on MA this past month. Chase is going to offer only VISA cards and I'd had a MasterCard with them for years. I continue to need a MasterCard because Sam's Club doesn't take VISA (only MA and Discover accepted there).

    Well, I've found that good MA cards are hard to find with decent rewards. Most banks are only offering VISA. And think about the smaller market if banks such as Chase are only offering VISA! I'll probably go with Barclay's World MasterCard, but for someone with excellent credit, my choices are very few. What's going on?

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Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

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9/1/2015 4:00 PM
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MasterCard CAPS Rating: *****