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MasterCard US SME Overview 2013
 

MasterCard US SME Overview 2013

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    MasterCard US SME Overview 2013 MasterCard US SME Overview 2013 Presentation Transcript

    • ADVANCING RELATIONSHIPS ADVANCING COMMERCEU.S. SME OverviewTom Misson, Small Business Lead, U.S. Commercial ProductsThomas Harris, Middle Market Lead, U.S. Commercial ProductsMarch 19, 2013
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCEAgendaMarch 19, 2013Page 2Framing the SME OpportunitySmall Business Insights & Go-to-Market ApproachMiddle Market Insights & Go-to-Market ApproachMasterCard SME Solutions
    • ADVANCING RELATIONSHIPS ADVANCING COMMERCEFraming the SME Opportunity
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCEThe Untapped SME OpportunityPage 4Sources:1Federal Reserve, 2011; 2B2B International SME research, 2011; 3Packaged Facts, 2011; 4D&B, 2012; 5Kaiser AssociatesLarge Market research, 2011; 6Nilson, 2012 & MasterCard analysisTotalSpendEstimateCardableOpportunityCarded VolumeAround 8%of total Small Business spend iscurrently captured on card$4.8T1$2.4T2$0.4T3March 19, 2013$7.8T4$2.3T5$0.1T6Less than 2%of total Middle Market spend iscurrently captured on cardCompanies with$5MM-$1B in Annual RevenuesCompanies with$0-$10M in Annual Revenues
    • ADVANCING RELATIONSHIPS ADVANCING COMMERCESmall Business Insights &Go-to-Market Approach
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCESmall Business SegmentationMarch 19, 2013Page 6Business Builders 21% 48%Community Pillars 10% 17%Planes, Trainsand Entrepreneurs 11% 16%Traditionalists 19% 8%Sohos 28% 10%Mom & Pops 11% 1%Value ofCardable Spend81%42%Number ofCompaniesSmall Business Segments% Number ofCompanies% Value ofCardable SpendNote: Sole proprietors with under $50,000 in revenue excluded
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCEMasterCard Small Business StrategyPage 7March 19, 2013Expand and attack addressable market, close competitivegaps, exploit points of differentiation and grow acceptanceOptimize “Grow the Pie”• Enhance product suite and drive pointsof differentiation• Deliver needs-based solutions persegment• Optimize issuer andend-customer performance• Penetrate procurement and grow acceptance• Drive spend in key categories• Wholesale Trade• Recurring Payments• Migration away from Check and Cash spend$2.4T Addressable Market $4.8T Addressable MarketGet the CardIssuer Push / SB PullGet the TransactionMake the card transactionmore valuable and betterCreate the HubDeliver needs basedservices that build loyaltyand brand presence321
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCESmall Business Key InsightsPage 8March 19, 2013Small BusinessOwnersKey Concerns Key Trends• Poor Sales• Time• Government• Cash Flow• Purchase VolumeGrowth• AcceptanceGrowth• Online & MobileChannel Growth• Rewards &Savings Innovation
    • ©2013 MasterCard.Proprietary and ConfidentialSmall Businesses are Increasing MobileUsage To Manage Their BusinessSource: “Examining the Payment Needs of Small Businesses”, Synergistics, 2012; 2012 Guardian Analytics and Ponemon Institute “Business Banking Trust Study”Source: 2012 National Retail Federation; “Examining the Payment Needs of Small Businesses”, Synergistics, 2012Page 9March 19, 201323%54%0%10%20%30%40%50%60%2010 2012Use Mobile Device toAccess Online BankingUse Mobile Device as CashRegister Among Retailers6%50%0%10%20%30%40%50%60%Currently Use Will use in thenext 18 monthsADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and ConfidentialMasterCard Small Business advantageMarch 19, 2013Page 10MasterCard Added-Value• Issuers• End-Users• MerchantsA focus on delivering differentiated value to ALL ourcustomersADVANCING RELATIONSHIPS ADVANCING COMMERCEEcosystem Participants• Leverage MasterCardWorldwide capabilitiesand assets• Achieve differentiation fromconsumer programs• Achieve competitivedifferentiation
    • Middle Market Insights &Go-to-Market Approach
    • ©2013 MasterCard.Proprietary and Confidential76%23%11%13%6%13%4%20%2%15%1%18%0%10%20%30%40%50%60%70%80%90%100%Companies Revenues$500MM-$1B$250MM-$500MM$100MM-$250MM$50MM-$100MM$25MM-$50MM$5MM-$25MMCapturing the opportunity requires afocus on customer needsDistribution of Middle Market CompaniesEmergingEnterprisesBusinessBuildersCoreMiddleMarketPage 12Sources: D&B, 2012; MasterCard Analysis, 2012March 19, 2013ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and ConfidentialPlatforms• MasterCard Business Network• Easy Savings for CommercialInsights• American Express SWOT Analysis• Vertical Analytics• High-Growth Customer Analytics• D&B Prospecting ListsGo-to-MarketSupport• Prospecting Analytics Support• Marketing Collateral Development• Training• Lead Generation / Bus. Dev.• Sales Incentive ProgramsCapturing the Opportunity –MasterCard Support & Focus2012 2013StrategicTacticalPage 13• Smart Data Pre-configuration• Business Controller Hosted SolutionMarch 19, 2013ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and Confidential$4.6TValue of Middle Market Spend CorridorsMiddle Market Spend CorridorsVertical analytics –Focusing limited resources7,225Less than 1% of total buyer-supplier relationshipsdrive >57% of all Middle Market segment spend621%$2.6T57%Page 14Sources: Oxxford Analytics, 2012; MasterCard Analysis, 2012March 19, 2013ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and ConfidentialLarge MarketGraduation0.3% 20.1% 337.2% 21.4%Consolidation16.8% 0.0% 2Key Segment DriversCompanies $Small BusinessReversion20.1% 1.3% 1Company needs change over time and arestrongly linked to company growth trajectoriesPage 15Sources: D&B, 2012; MasterCard Analysis, 2012Middle Market110M | $2.6TResupply4290M$9.8TMarch 19, 2013ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and Confidential55%17%21%13%12%13%7%21%3%16%2%20%0%10%20%30%40%50%60%70%80%90%100%Companies Revenues$500MM-$1B$250MM-$500MM$100MM-$250MM$50MM-$100MM$25MM-$50MM$5MM-$25MMThe Business Banking segment containsthe majority of High-Growth companiesPage 16Distribution of High-Growth Companies byAnnual Company Revenue SegmentCommercialBankingBusinessBankingSources: D&B, 2012; MasterCard Analysis, 2012March 19, 2013ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and ConfidentialThe impact of company growth on the$5MM-$25MM segment over 5 yearsPage 175-Year Growth Trajectory of $5MM-$25MM SegmentSources: D&B, 2012; MasterCard Analysis, 201229%64%6%1% 0% 0% 0% 0%5%58%16%7% 5% 3% 3% 3%0%10%20%30%40%50%60%70%Companies RevenuesAfter 5 years, 37% of companyrevenues are concentratedamong 7% of companiesMarch 19, 2013ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • MasterCard SME Solutions
    • ©2013 MasterCard.Proprietary and ConfidentialThe MasterCard Product AdvantagePage 19March 19, 2013Smart DataSuiteMasterCard’s Suite of datasolutions that include CardReporting and InformationSolutions.EasySavingsMerchant funded,MasterCard-managed,automatic rebate program.BusinessNetworkAn integrated onlinebuying, selling and T&Emanagement tool that’sfaster, better, cheaper.BusinessController™Provides Authorization,Control, and Alert capabilitiesto Small Businesses, while alsooffering Virtual Card Numbers.Value added services enable differentiated solutions andprofitable growth on core products.ADVANCING RELATIONSHIPS ADVANCING COMMERCE
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCEToday’s SME Breakout SessionsPage 202. MasterCard Business Network1. Small Business Insights3. Business ControllerMarch 19, 20134. Branch & Portfolio Optimization5. Distributor Network Solutions
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCE©2013 MasterCard. The information provided herein is strictly confidential. It isintended to be used internally within your organization and cannot be distributed norshared with any other third party without MasterCard’s prior approval. Information inthis presentation or in any associated deliverable provided by MasterCard relating tothe projected impact on either MasterCard’s or your financial or operating performance,as well as the results that you may expect, may constitute forward-looking statementsand are subject to risks and uncertainties. No assurances are given that any of theseconcepts, projections, estimates or expectations will be achieved, that the analysisprovided is error-free or that a particular asset, offer or benefit will be available. Theinformation, including all forecasts, projections, or indications of financial opportunities,is provided to you on an "AS IS" basis for use at your own risk. You acknowledge andagree that MasterCard’s models, associated data and analysis may containinaccuracies and inconsistencies, and MasterCard will not be responsible for anyaction you take as a result of this presentation, or any such inaccuracies orinconsistencies. In addition, you acknowledge and agree that MasterCard is under noobligation to update the information or provide notice if it discovers errors or omissionsat any time. This information shall not create a legally binding or enforceableagreement or offer.Page 21March 19, 2013
    • ©2013 MasterCard.Proprietary and ConfidentialADVANCING RELATIONSHIPS ADVANCING COMMERCE