Security and experience
Mastercard (MA) is focusing on improving the customer experience to enhance customer loyalty. One of the company’s challenges in this respect it that it doesn’t come in direct contact with consumers. Instead, the company deals with consumers with the help of banks and merchants involved in the payment space. Thus, the company keeps track of these players to make sure that customers are fully satisfied.
Mastercard also ensures that while executing the transactions, the consumers feel secure. In the midst of the shift to digital tools, customer trust in secured transactions is crucial to customer satisfaction.
Making full use of digitization
Mastercard also plans to improve the way the transactions are carried out. As customers increasingly turn to digital tools, the company is trying to fully utilize this opportunity by offering consumers the ability to execute transactions via smartphones or wearable devices. The company is also taking steps to improve the execution of the transactions with its customers. Moreover, Mastercard is working to improve its ACH (Automated Clearing House) payments process.
Mastercard’s return on assets stood at 23.5% on an LTM (last-12-month) basis, and peers (XLF) like First Data (FDC), Global Payments (GPN), and Total System Services (TSS) have returns on assets of 2.5%, 2.8%, and 6.6%, respectively, on an LTM basis.