MasterCard Reports Continued Online Debit Growth in Second Quarter of 2005

PURCHASE, N.Y.--(BUSINESS WIRE)--Sept. 7, 2005--MasterCard International today reported strong global online debit activity during the second quarter, as debit continues to take share from cash and check as a preferred means of payment. The Maestro(R) brand mark now appears on 578.1 million cards worldwide, including 34.5 million MasterCard(R) debit cards, representing 5.9 percent growth versus the second quarter of 2004.

Merchant acceptance of MasterCard's online debit programs also grew. As of June 30, 2005, consumers could make online debit point of sale purchases with their MasterCard debit or Maestro cards at over 9.2 million merchant locations globally. At the end of the second quarter, there were more than one million ATMs around the world accepting cards bearing the MasterCard, Maestro or Cirrus(R) logos.

"As the popularity of debit continues to increase, so too does MasterCard's position as a leading global debit partner," said Richard G. Lyons Jr., senior vice president, MasterCard International. "The combination of our worldwide online network, unsurpassed acceptance, and customer-centric business model continue to fuel the growth of our debit business and deliver added value to consumers, merchants and financial institutions."

Strong Regional Results:

-- MasterCard reported strong growth in processing of online debit purchase transactions in the United States during the quarter, increasing 313 percent over the second quarter of last year. As of June 30, 2005, the number of cards in the U.S. increased 11.3 percent to 47.1 million, including 32.7 million Debit MasterCard cards and 14.4 million Maestro cards. There were 383,000 ATMs in the MasterCard(R) ATM Network and 1.6 million merchant locations where these cardholders can make online debit point of sale purchases. No other online debit card is accepted at more U.S. merchant locations and ATMs than those bearing the MasterCard, Maestro or Cirrus logos.

-- Maestro also experienced strong card growth in the second quarter in the South Asia, Middle East and Africa region, with a 41.7 percent increase to 34.9 million cards, including 0.2 million MasterCard debit cards that also bear the Maestro logo. Maestro purchase transactions over the same period totaled 24.4 million, yielding purchase volume of $1.8 billion. Gross dollar volume (GDV) for online debit activity in the region was $21.5 billion. GDV includes Maestro purchase volume and Maestro and Cirrus ATM volume.

-- Issuance of cards bearing the Maestro brand mark increased 12.7 percent throughout Latin America to 82.6 million cards, including 1 million MasterCard debit cards that also bear the Maestro logo. Maestro purchase transactions for the second quarter reached 160.1 million, producing $3.5 billion in purchase volume. GDV for online debit activity in the region was $15.1 billion.

-- Maestro cards in circulation in Europe grew to 257.4 million, a 1.7 percent increase over the same period in 2004. Maestro purchase transactions in Europe for this period approached 1.5 billion, producing purchase volume of $104.3 billion. GDV for online debit activity was $308.0 billion.

-- In the Asia/Pacific region, the number of Maestro cards issued was 147.7 million at the close of the quarter, including 0.6 million MasterCard debit cards that also bear the Maestro logo. Maestro purchase transactions totaled 134.4 million, while purchase volume registered at $7.8 billion. GDV for online debit activity in the region was $27.7 billion.

Forward-Looking Statement

This press release contains forward-looking information. Although MasterCard believes that its expectations are based on reasonable assumptions, it can give no assurance that its objectives will be achieved. Important factors that could cause actual results to differ materially from forward-looking information contained in this press release include: global political and economic conditions; MasterCard's ability to achieve its strategic objectives; the performance of MasterCard's member financial institutions and the nature of MasterCard's business relationships with these institutions; substantial and increasingly intense competition in the global payments industry; the success of MasterCard's global advertising, sponsorship, promotion and merchant acceptance initiatives; the functionality and security of MasterCard's transaction processing systems; MasterCard's ability to adapt to industry trends with technological and payment program innovations; the resolution of certain legal proceedings and regulatory actions; changing market dynamics and the other risk factors disclosed in MasterCard Incorporated's most recent Annual Report on Form 10-K. MasterCard disclaims any obligation to publicly update or revise any forward-looking information.

Note to Editors

The data in this press release is provided by the member financial institutions of MasterCard International Incorporated and its affiliates ("MasterCard") and is subject to revision and amendment by such members subsequent to the date of its release. In addition, a portion of the data relating to cards reflects the impact of routine portfolio changes among members and other practices that may lead to over counting of the underlying data in certain circumstances.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard, Maestro and/or Cirrus volumes are reported.

Data regarding GDV and purchase volume is derived from information provided by MasterCard members that is subject to logical and statistical verification by MasterCard and limited cross-checking against information provided by MasterCard's transaction processing systems. Data concerning cards and acceptance locations is derived from information provided by MasterCard members that is subject to certain limited logical and statistical verification by MasterCard. Certain information with respect to acceptance locations is provided by third parties and has not been independently verified by MasterCard.

The data in this press release includes information with respect to Maestro- and Cirrus- branded transactions that are not processed by MasterCard and transactions for which MasterCard does not earn revenues. Accordingly, the data in this press release cannot be taken as an indication of the financial performance of MasterCard International or its parent company, MasterCard Incorporated.

About MasterCard Incorporated

MasterCard Incorporated is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard, through its principal operating subsidiary, MasterCard International Incorporated, manages a family of well-known, widely accepted payment card brands including MasterCard(R), Maestro(R) and Cirrus(R) and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless(R) advertising campaign is now seen in 105 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information go to www.mastercardinternational.com.

Contacts

MasterCard International
Joanne Trout, 914-249-6644
joanne_trout@mastercard.com
or
Weber Shandwick
Jeff Dahncke, 212-445-8217
jdahncke@webershandick.com