Delivering Innovative Solutions

This understanding also drives innovation that expands the boundaries of payments and delivers true cardholder value. One such innovation is MasterCard PayPass, our quick and easy Tap & Go contactless payment program that is revolutionizing quick-pay environments ranging from fast-food restaurants to gas stations to mass transit systems.

Other innovative payment options include our advanced chip-based smart cards, which offer greater security and a multitude of applications. At the high end of the payments spectrum, the World MasterCard® card is delivering a whole new level of exclusivity and rewards to top-tier and mass-affluent consumers — a fast-growing opportunity segment in markets worldwide. At the same time, our popular and ever-expanding prepaid offerings include categories from gift to payroll to travel. All said, we continue to enhance the cardholder experience by offering diverse payment options.

MasterCard is equally clear about what matters most to businesses — enabling our business customers to replace inefficient cash and check transactions with electronic payments. Our corporate and purchasing card programs include enhanced transaction data and integration tools that enable corporations and government agencies to reduce costs while increasing productivity and return on investment. Our small business programs, meanwhile, deliver financial flexibility and important safeguards, along with meaningful discounts and cardholder rewards. In the United States and Europe, our popular 2005 "Get Wired" campaign increased usage of MasterCard small business card solutions, offering greater flexibility while making life simpler for busy entrepreneurs.

Forging Stronger Ties

Growth, of course, would hardly be possible without stronger, more cooperative ties with merchants — which is why we work hard to offer added value by helping them increase their business, enhance efficiency and lead the battle against fraud and misuse.

In 2005, we delivered value to merchants on many different fronts, from the accelerated rollout of MasterCard PayPass to co-marketing and promotional programs involving global, regional and local partners in markets around the world. Our dedicated website, www.mastercardmerchant.com, continued to grow as a resource that enables merchants to make the most of their relationship with MasterCard. The year also saw the debut of MasterCard Connect, a program that streamlines processing and reduces merchants' costs by connecting merchants directly to Banknet®, our advanced global processing network.

In addition, last year we began conducting Merchant Advisory Group Meetings to give merchants a voice in the evolution of MasterCard products and policies. To date, meetings have been held in Australia, Canada, the United Kingdom, the United States and, most recently, South Africa. These meetings have effectively brought MasterCard together with top-tier merchants representing all industry categories, including retail, travel and entertainment, and new markets. In addition, we created a Point of Interaction Advisory Group that allows us to work with transaction acquirers, merchants and financial institution issuers from around the world to discuss the future of point-of-sale environments.

Clearly, as with all of our constituents, the bottom line is making connections — understanding what matters to people most and using insight and vision to deliver what they need.