Marketing strategy of Mastercard: Business Model & Strategy

Additional Four-Party System Fees: The merchant discount rate is established by the acquirer to cover the costs of participating in the four-party system and providing services to merchants. The rate considers the amount of the interchange fee the acquirer generally pays to the issuer.
Additionally, acquirers may charge merchants processing and related fees in addition to the merchant discount rate. Issuers may also charge account holders fees for the transaction, including, for example, fees for extending revolving credit.
Mastercard has a multi-layered strategy to protect the global payments ecosystem. Mastercard protects the network from cyber and information security threats as part of this strategy, providing resiliency and security protection

Value Proposition

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  making electronic payments more convenient, secure, and efficient
  
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  delivering better, seamless consumer experiences
  
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  Providing consumers with choices, empowering them to make and receive payments in the ways that best meet their daily needs
  
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  protecting consumers and all other participants in a transaction, as well as consumer data
  
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  providing loyalty rewards
  

Products & Services

Mastercard provides various integrated products and services that support payment products that customers can offer to consumers and merchants. These offerings facilitate transactions across Mastercard’s multi-rail payments network and platforms among account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations in markets globally.

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  Core payment products: Consumer debit and credit, Prepaid, and Commercial Credit and Debit
  
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  Net payment flows: Disbursements and Remittances, B2B Payments, and Consumer Bill Payments.
  
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  Value Added Services: Cyber and Intelligence Solutions; Insights, Analytics, and Test and Learn; Consulting and Innovation; Digital Services; and Issuer and Merchant Loyalty
  

Marketing Strategy of Mastercard

Mastercard has a multi-brand marketing strategy and business model. Mastercard’s brands include Mastercard, Maestro, and Cirrus. Mastercard promotes its brands and brand identities through advertising, promotions, and sponsorships, as well as digital, mobile, and social media initiatives, to increase people’s preference for its brands and usage of its products. 

As part of its marketing strategy, Mastercard sponsors a variety of sporting, entertainment, and charity-related marketing properties to align with consumer segments important to Mastercard and its customers. Advertising plays an essential role in building brand visibility, preference, and overall usage among account holders globally.
Mastercard’s “Priceless” advertising campaign, which has run in over 50 languages and more than 120 countries worldwide, promotes Mastercard usage benefits and acceptance, markets Mastercard payment products and solutions, and provides Mastercard with a consistent, recognizable message.
Revenues in the business model of Mastercard are classified into five categories: domestic assessments, cross-border volume fees, transaction processing, other revenues, and rebates and incentives (contra-revenue).