Mastercard eyes 14% growth, buys 12.5% Electracard stake | business | Hindustan Times
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Mastercard eyes 14% growth, buys 12.5% Electracard stake

Global payments company Mastercard Worldwide said it aims to grow its revenue by 12-14 per cent per annum for the next few years, driven by a strategy combining organic and inorganic (by acquisition) growth.

business Updated: Sep 30, 2010 23:32 IST
HT Correspondent

Global payments company Mastercard Worldwide said it aims to grow its revenue by 12-14 per cent per annum for the next few years, driven by a strategy combining organic and inorganic (by acquisition) growth.

The company, which reported a net income of $913 million (R4,000 crore) for the six months ended June 2010, announced acquisition of 12.5 per cent stake in Pune headquartered Electracard Services, which had R110 crore sales in 2009-10, and is the largest third party processor for cards and the market leader in Internet payment gateway solutions in the country.

“Payment industry is expected to grow at the rate of 8-10 per cent per annum and I think we can grow more than industry rate, around 12-14 per cent in the next few years,” said Ajay Banga, president and chief executive officer, Mastercard Worldwide, while announcing the acquisition. Financial details of the deal were not disclosed.

“For us, all geographies including developed regions such as Europe and emerging economies such as India, Brazil will contribute to revenue growth,” he said. “Globally 85 per cent of the retail transactions are happening in cash, which shows the potential of growth for us.”

In India, around 97 per cent of the retail transactions are happening in cash. “India is important market for Mastercard Worldwide as it is among the highest revenue earner,” he said.

He said Mastercard is associated with Unique Identification Project and is willing to play significant role in India’s financial inclusion programme.

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