Академический Документы
Профессиональный Документы
Культура Документы
Forum
+ Reply to Thread
Thread: The History of MasterCard Credit Cards
LinkBack Thread Tools Display
#1
Michael Dolen
Administrator
The History of MasterCard Credit Cards Less than a decade after the creation of Visa, a few banks got together to launch a competing network, which would eventually be known as MasterCard.
The year is 1965 and BankAmericard (the predecessor to Visa) had become a success. They had millions of accounts in California and had begun licensing the program elsewhere. Meanwhile over in Kentucky, a threat is looming on the horizon. Entrepreneurs Raymond Tanenhaus and Stanley Benovitz had created similar system and sold it to United California Bank in 1966. That same year, the bank teamed up with several others; Crocker National Bank (of CA), Wells Fargo, and Bank of California. Together they launched the Interbank Card Association (ICA). ICA offered reciprocal acceptance of credit cards among the participating banks. For example, Bank of California would accept card transactions on behalf of Wells Fargo and vice-versa.
8/25/13
In 1985 the number of MasterCard accounts reached 120 million worldwide. A business card for the international market was also introduced. In 1986 the company entered the Pacific Rim market, opening an office in Hong Kong and eventually becoming the first credit card issuer in China. In 1988 the acquisition of Cirrus (the largest ATM network in the world) gave MasterCard a new revenue stream and greater acceptance. By the early 90s MasterCard had a worldwide debit system in place (Maestro) which competed directly with Visas Interlink. As the decade progressed not only did MasterCard chip away at Visas marketshare, but they also forayed into areas where plastic was rarely used, such as taxicabs, supermarkets, and convenience stores.
The IPO
Prior to the companys IPO in 2006, MasterCard was owned by its member banks all 25,000+ of them! However after going public on the NYSE, many of the banks sold their stock. Now they probably wish they didnt, because todays price is nearly 10x higher than the $39/share initial public offering.
During this time the name was changed to MasterCard Worldwide to infer a more global image. The corporate logo was also modified to include a third translucent circle, which overlaps the original two. However the logo on MasterCard credit cards and debit cards remains the same.
+ Reply to Thread
Previous Thread | Next Thread
Home
Message Board
Blog
Media Inquiries
Privacy Policy
Disclosure Policy
Contact
Archive
Top
creditcardforum.com/visa-mastercard/27-history-mastercard-credit-cards.html
2/3
8/25/13
Advertising Disclosure: CreditCardForum is an independent, advertising-supported comparison service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are authors alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.
creditcardforum.com/visa-mastercard/27-history-mastercard-credit-cards.html
3/3