Enabling Technologies

MasterCard Wants to be at the Forefront of Innovation by Partnering with Startups

MasterCard recently announced the expansion of its intellectual property relationship with First Performance Global. With this, MasterCard will be acquiring an equity stake in First Performance Global. The two financial service providers will begin by working to increase First Performance’s ability to offer payment card issuers and processors self-service tools for cardholders.

First Performance has been using the MasterCard license to design and develop its platform since 2014. With its unique feature, First Performance provides cardholders the ability to personally make decisions about when to “turn on” and “turn off” their credit and debit cards. It also allows them to activate loyalty programs and control where and how their cards can be used through a simple, easy-to-use GogoNogo mobile app.

Just last week MasterCard also revealed that it had entered into an agreement to acquire Applied Predictive Technologies (APT) for $600 million, subject to customary purchase price adjustments. The company said that this initiative would help the company deliver differentiated services to merchants complementing its recent acquisition of 5One, a London-based retail consulting and analytics firm.

As with First Performance, it has been reported that MasterCard has entered into this expanded relationship so as to increase card control. With some of First Performance enabled innovative features, MasterCard’s recent collaboration is likely to serve as a win-win for both the companies.

MasterCard recently reported a revenue rise of 2.7 per cent and a 17 per cent rise in profits. In all, the company posted earnings of $1 billion, or 89 cents a share, up from $870 million, or 73 cents a share, in the prior-year period. The company’s anticipation is that there will be "more significant headwinds from (foreign exchange) than we expected in January," said MasterCard Chief Financial Officer Martina Hund-Mejean in a conference call with analysts.

Kate

Kate is a staff writer at LetsTalkPayments.com., , She likes to write about mobile payments and mobile commerce.

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