MasterCard "Priceless" New CEO

"There are some things money can't buy. For everything else, there's MasterCard." 

Every One Knows About This Advertisement and World Renowed Company Master card.So, Here is Recent Update About This Company..............

MasterCard Inc. said President and Chief Operating Officer Ajay Banga will become chief executive on July 1, ending the 13-year reign of Robert Selander as he prepares for retirement.

Mr. Banga, 50 years old, was seen as the heir apparent to Mr. Selander when he joined MasterCard in August after working for 13 years at Citigroup Inc., where he had senior-management roles in the U.S. and abroad. He was among a string of executives who left Citigroup last year for other jobs.

Mr. Banga described his new role as an "opportunity that comes once in a lifetime," during a call with reporters Monday morning. He is on the board of Kraft Foods Inc. and is joining MasterCard's board, effective immediately.

"Innovation is the key to continued success," Mr. Banga said.....

, emphasizing MasterCard's growth opportunities as consumers gravitate toward electronic means of payments while moving away from cash and checks. MasterCard's areas of focus will include e-commerce and mobile commerce, Mr. Banga said.

Mr. Banga's "global experience positions him well as the new CEO," said Sanjay Sakhrani, an analyst at Keefe, Bruyette & Woods, in a research note published Monday. 

Zaineb Bokhari, an equity analyst at Standard & Poor's, downgraded MasterCard's shares to "hold" from "buy" on Monday. "We expect the transition to be smooth, but at recent levels, see less upside to our $270 target price," said Ms. Bokhari in a note published Monday.

Mr. Selander will keep his spot on the board and serve as the vice chairman until retiring at the end of 2010. He shepherded the company through its initial public offering in 2006.

Unlike traditional credit-card issuers, MasterCard, based in Purchase, N.Y., and rival Visa Inc. are insulated from credit woes arising from card delinquencies and defaults because they don't lend to consumers. MasterCard and Visa make money from the fees they charge banks to process card payments on the plastic these banks issue. J.P. Morgan Chase & Co. and Citigroup are among the top issuers of MasterCard- and Visa-branded cards. The more consumers charge on MasterCard and Visa, the more these two companies earn in fees.

MasterCard shares added 69 cents, or 0.3%, to close at $259.57 in 4 p.m. composite trading on the New York Stock Exchange.

History:-

In 1966 the aforementioned group of California banks formed the Interbank Card Association (ICA). With the help of New York's Marine Midland Bank, now HSBC Bank USA, these banks joined with the ICA to create "Master Charge: The Interbank Card". The card was given a significant boost in 1969, when National City Bank joined, merging its proprietary Everything Card with Master Charge.

In 1979, "Master Charge: The Interbank Card" was renamed simply "MasterCard". In the early 1990s MasterCard bought the British Access card and the Access name was dropped. In 2002, MasterCard International merged with Europay International SA, another large credit-card issuer association, which for many years issued cards under the name Eurocard.

In 2006, MasterCard International underwent another name change to MasterCard Worldwide. This was done in order to suggest a more global scale of operations. In addition, the company introduced a new corporate logo adding a third circle to the two that had been used in the past (the familiar card logo, resembling a Venn diagram, remains unchanged). A new corporate tagline was introduced at the same time: "The Heart of Commerce"

Source:WSJ.

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