MasterCard reports rise in gross dollar and purchase volumes in Q1

Cardholders worldwide used MasterCard-branded cards (excluding Maestro and Cirrus) for 4.3 billion transactions during the first quarter of 2005, generating GDV of $379.6 billion, an increase of 10.9% over the same period in 2004. Total purchases on MasterCard-branded credit and debit cards increased 11.4% during the quarter, as the number of MasterCard cards issued worldwide rose to 697.9 million, an increase of 11.2% over the same period in 2004.

"The strength of the MasterCard brand and our portfolio of payment solutions continues to resonate around the globe as illustrated by our robust operating performance this quarter," said Alan Heuer, MasterCard chief operating officer. "Expanded relationships with our customers, combined with our unsurpassed global acceptance network, are making MasterCard cards the preferred means of payment for a growing base of cardholders around the world. MasterCard cardholders know they don't need to carry anything else."

Performance highlights for the first quarter include:

• MasterCard GDV totaled $379.6 billion, up 10.9% over the same period last year. GDV includes both purchase and cash volume;
• MasterCard's nearly 25,000 customer financial institutions around the world issued 697.9 million MasterCard-branded cards, an 11.2% increase over the first quarter of 2004;
• The value of purchases on MasterCard-branded cards, a significant measure of success, increased 11.4% to $277.2 billion.

MasterCard posted solid growth in both credit and debit. GDV for credit and charge programs worldwide grew by 7.3% to $301.2 billion, while GDV for debit programs climbed 27.3% to $78.4 billion.

"MasterCard has 40 years of experience working with our financial institution customers as an ally and partner," said Heuer. "Our experience has shown us how to understand our customers and their businesses and what they need most to achieve their goals."

Focus in 2005

In 2005, MasterCard will continue its focus on broadening customized services to financial institution customers, enhancing relationships with merchants that accept MasterCard cards, and developing innovative payment solutions and services. In the first quarter of 2005 the company has already seen significant business milestones that have helped drive MasterCard's success in these areas:

Broadening Customized Services for Financial Institution Customers

The company unveiled its enhanced World MasterCard card program to further establish its leading profile among affluent consumers in the United States. The program offers issuers flexibility and customization options, while providing high-income consumers with unsurpassed global acceptance and an ability to redeem rewards in categories of their choosing.

MasterCard announced the expansion of the MasterCard Global Premium Collection with the addition of more than 50 new high-value offers from the worlds' leading providers of travel and lifestyle services and merchandise. The collection is specifically tailored to appeal to premium MasterCard cardholders.

Enhancing Relationships with Merchants that Accept MasterCard Cards

MasterCard launched a new initiative to help merchants and their business partners safeguard card transaction data and prevent fraud. The first-of-its-kind program will focus on helping merchants understand how to implement the requirements necessary for storing, securing and sharing transaction data.

Marriott International, Inc. announced its participation in the MasterCard enhanced hotel folio data program. Now corporations whose business travelers pay with eligible MasterCard Corporate Cards will receive line item expense data for stays at approximately 1,500 Marriott-branded hotels in the United States and Canada. Marriott's participation extends MasterCard e-Folio's reach to more than 7,000 hotel properties in North America, far more than any other corporate payments solution provider. Carlson, Choice, and Hilton joined in 2003. With Marriott signed-on, approximately 40 percent of MasterCard corporate card transactions in North America will take place at enrolled hotel properties.

Developing Innovative Payment Solutions and Services

MasterCard International announced it is working with MBNA, the Seattle Seahawks and the Baltimore Ravens Football Clubs to incorporate MasterCard PayPass contactless payment technology into the MBNA Seahawks and MBNA Ravens Extra Points credit card programs. Both Qwest Field in Seattle and M&T Bank Stadium in Baltimore will accept MasterCard PayPass cards at the point-of-sale, beginning with the 2005 football season.

Sheetz, Inc. announced that it expects to be the first retailer in the nation to accept MasterCard PayPass across its entire chain. The innovative radio frequency-based payment option solution represents one of the most significant payment advancements in the retail industry.

MasterCard Advisors, the professional services arm of MasterCard International, continued to build momentum in the first quarter for its innovative offering SpendingPulse, which provides insight into U.S. economic retail sales performance across a number of dimensions, including industry sector and geography. With its unique access to payment activity information, and the ability to extract MasterCard-specific variables, SpendingPulse provides a reliable measure of national retail sales days or weeks ahead of alternative data sources like the U.S. Department of Commerce.

MasterCard International unveiled a new program that makes it easier for taxpayers to settle their U.S. federal tax obligations. Thanks to a relationship with H&R Block, the world's largest tax services company, and Link2Gov, a provider of online payment processing for government agencies, Debit MasterCard cardholders can now pay their Federal Tax Year 2004 Form 1040 balance due payment online without incurring a convenience fee.