Mastercard Targets Consumer Purchases, Remittances and B2B AP as Areas of Growth

During Mastercard’s investor day event Wednesday (Nov. 10), the company announced its forecasted growth targets were rising and its net revenue is likely to rise in the “high-teens” percentiles from 2022 to 2024.

Mastercard has also reportedly been looking at a 50% minimum annual operating margin in that time. In its presentation, Mastercard also noted that it planned to expand its business to business (B2B) accounts payable flows, placing a focus on virtual cards and real-time payments.

The company plans to look to payments for its new revenue opportunities — there, Mastercard sees a $255 trillion total market in which there’s opportunity untapped, including its role in consumer payments. In that regard, Mastercard plans to do more digital adoption.

Additionally, Mastercard has been optimistic lately about other things including remittances, commercial transactions and bill payments, with the company seeing greater room for card adoption.

According to Chief Financial Officer Sachin Mehra, Mastercard will be looking to bolster adoption in smaller businesses, and that could include reaching “micro-merchants” who use their phones to accept payments.

Furthermore, Chief Product Officer Craig Vosburg says Mastercard will be capitalizing on 5G technology to boost connectivity, and with that in mind, the company will be working with security, authentication and fraud management in order to grow its services business.

Per the report, Mastercard’s services business will likely bring in over $6.5 billion in revenue in 2021.

PYMNTS previously reported that Mastercard was debuting a commercial card buy now, pay later (BNPL) solution for smaller businesses in the Asia-Pacific (APAC) region. The program will be called Mastercard Pay & Split and will allow financial institutions to offer an installment pay solution.

Read more: Mastercard Launches Commercial Card Solution for Small Business Financing in APAC

The launch in the APAC region will reportedly help smaller operators boost their growth in the region as the pandemic’s economic effects continue to roil the world.

According to a survey the company commissioned, 77% of respondents from India and 80% in Singapore were interested in a BNPL-style product.