After federal regulations reduced the amount of revenues credit card payment processing networks could command, the world’s second-largest such business will shift its attentions to promoting products for wealthier consumers.
An executive for MasterCard recently revealed that the company would soon begin to turn its promotional attentions to attracting affluent clients in an effort to drive more revenues with a larger number of purchases and more expensive accounts, according to a report from Dow Jones Newswires. In addition, it will also try to get more involved in emerging payment methods such as prepaid debit and mobile transactions.
Currently, about 85 percent of the retail purchases completed worldwide are made with either cash or check, meaning that credit card payment processing networks are now trying to promote the use of products such as prepaid cards as an alternative to these transactions, the report said.
Typically, consumers who use cash or check to complete purchases are those who cannot afford to pay for credit cards or other banking services. These underbanked consumers number in the millions nationwide and are considered an untapped market.