This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MasterCard Bets on Murphy

One area that particularly peaks Murphy's interest is the growing prepaid card space.

"Other colleagues are out trying to do new and different things. My job is to make sure that the revenues coming in today keep coming in,"

-- Tim Murphy, MasterCard's chief product officer.

"We see it as a big growth opportunity in the U.S. and around the world," he said. "Generally, people misunderstand prepaid and tend to think of it in gift cards. That's how the industry was developed over the last 10 years or so, but prepaid is increasingly becoming a whole variety of different things way beyond gift. And the growth is really amazing in these new areas."

A study by the Boston Consulting Group, which was commissioned by MasterCard this year, estimates that the global prepaid industry could bulge to $840 billion by 2017 from $172 billion at the end of 2009 -- a compound growth rate in the mid-20s, Murphy noted.

Not only is prepaid being marketed to those that are so-called unbanked, to use an industry term, consumers who do not have bank accounts and tend to use pricey check cashing services. But with the advent of reloadable cards, the prepaid card is slowly becoming an alternative to a checking account.

Social Security checks, for instance, are no longer mailed to a receiver's home - they either get direct deposit or a MasterCard prepaid card, Murphy said.

Large corporations that employ consumers that may not have bank accounts are also looking to pay in the form of prepaid cards as well, he added.

"For us it's a critical growth area," he said. "We really are very focused on prepaid. I believe here at MasterCard we have the best team in the industry on it ... and we're just going to go all out at that space."

MasterCard's efforts are likely a lesson learned from its failures in the U.S. debit space. MasterCard's larger rival, Visa (V), scooped up a large portion of the debit share in the country, as MasterCard continued to focus on its credit products, both at home and internationally. That move proved to be troublesome for MasterCard as the financial crisis hit and consumers and businesses shored up their excessive credit spending.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
YHOO $27.05 -3.29%
AAPL $95.01 1.05%
FB $99.75 -4.15%
GOOG $682.74 -0.12%
TSLA $147.99 -8.99%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs