MasterCard (MA)

History of the Company

MasterCard Inc. is a provider of financial and payment processing services, mainly through credit and debit cards. It is the second-largest payment processing company, after Visa, operating in over 200 countries. 

The company went public in 2006; before that, it was owned by the thousands of financial institutions that issued its cards. MasterCard was known as Interbank/Master Charge from 1966 to 1979. It was founded as an alternative to the BankAmericard (which eventually became the Visa card) by four California banks: Wells Fargo, Crocker National Bank, United California Bank, and the Bank of California. 

In 1966, this group of banks created the Interbank Card Association. Along with New York’s Marine Midland Bank, they created the Master Charge card. In 1968, an alliance with Eurocard brought the card to the European market. The card was renamed MasterCard in 1979, and became MasterCard Worldwide in 2006 to signal the company’s global reach. 

Trading MasterCard: What You Need to Know

  • MasterCard’s annual and quarterly earnings reports provide key insights into its future growth. Traders should watch carefully for any news or events that may affect the company’s performance. 
  • MasterCard has faced several antitrust lawsuits for collaborating with Visa against American Express, using blacklists and exclusivity clauses to prevent banks from doing business with American Express. Other lawsuits have been brought against the company for high swipe fees. 
  • When the credit card debuted, it was hailed as an innovation and transformed the way people performed financial transactions. Now the rise of mobile and online payments are prompting new innovations. Global Payments (GPN) agreed to implement MasterCard’s MasterPass digital payments service. Traders should monitor how MasterCard is able to take advantage of new technologies. 
  • Visa and MasterCard have been criticized for their dominance of the payment processing market worldwide. When MasterCard blocked payments to WikiLeaks, European officials were concerned that a U.S. company could prevent European citizens from making a payment to a European company. 
  • MasterCard’s global reach means that it has enormous power. If Europe and Russia decide to move away from MasterCard in favor of their own payment processing companies, MasterCard may lose some of its influence. The company’s ability to move into the online payment market will help determine its future success. 

Traders interested in trading MasterCard stock should perform a careful analysis of the company. UFX provides tools, trading tips, and support services to help you make the smartest decision about trading MasterCard.

Trade MasterCard