Rob Reeg, MasterCard senior vice president, systems development, says: "With the new platform, members now have the flexibility to customise processing to their business, allowing them to take advantage of many new opportunities, both locally and globally."

The company has initiated a three-step strategy for delivery of the new core processing platform:
* A massive, world-wide upgrade of Banknet, MasterCard's global network, to the industry's first virtual private network (VPN). Created four years ago, the VPN saved members 47.7 years of processing time by reducing by nearly half the time it takes to process each transaction;
* Development of new customisable features and functionality through proprietary modular software, focused on the introduction of its new Global Clearing Management System (GCMS). Thirty-three members have already committed to early migration to the GCMS;
* Distribution of network processing to regional service centres, enabling customised local processing.

The new platform is designed to accommodate any type of payment, including those initiated through emerging and evolving payment channels such as the Internet and wireless devices.

According to Reeg, the new platform will help members break through expensive international processing barriers which even prevented entry into some markets.

Members will be able to dictate convenient daily settlement times, factoring in local holidays and time zones instead of conforming to the U.S. clock and calendar. Members can also determine which currency they will settle in rather than being forced to convert to U.S. dollars.

The new platform also provides support for local data practices, local processing and local fees. It will recognise a member as a single entity, whether it operates in one or multiple countries, enabling member portfolios to be consolidated, even though they may be settled in varying currencies.

Mastercard says that transaction-routing enhancements and elimination of batching transactions will help increase operating efficiency while the new applications will also help members better manage customer account performance. Real-time, online access to transactional data will help issuers and acquirers resolve cardholder and merchant inquiries immediately, often in a single phone call, as opposed to time-consuming, labour-intensive research that can drag on for weeks.

In addition, the system's bandwidth on demand means an unlimited number of transactions can flow through the system without risk of bottlenecks or other congestion issues. "It's virtually impossible for our system to reach capacity," claims Reeg.

Jerry McElhatton, MasterCard global technology and operations senior executive vice president, says: "The days of `one size fits all' are over. With the new platform, our members' business goals drive the technology, instead of technology driving their business decisions."