stockrowWhat it does
Mastercard is a technology company in the global payments industry. It operates a network that connects financial institutions, merchants, consumers, businesses, governments and digital partners. Founded in 1979, it is headquartered in Purchase and led by chief executive Michael Miebach.
When a customer pays a merchant, Mastercard’s network routes the transaction to the customer’s financial institution for approval, exchanges the information needed to process it and helps move funds between the institutions. Its network supports credit, debit and prepaid products under brands including Mastercard, Maestro and Cirrus. Mastercard does not issue cards or lend to cardholders; those relationships generally belong to its financial institution customers.
The company also operates account-based payment capabilities, including real-time payments between bank accounts. Its Mastercard Move platform enables money transfers and disbursements across borders and within countries. Commercial offerings include virtual cards that businesses can use to pay suppliers and manage spending.
Alongside payments, Mastercard sells services that help customers prevent fraud, authenticate users, market to consumers, manage loyalty programs and use business insights. These services can be combined with its network products or used to address other customer needs. Its franchise model establishes operating standards and rules for participants in the network.
How it makes money
In 2025, Payment Solutions revenue was $32.8 billion; in Q3 2026, adjusted net revenue grew 14% year over year on a currency-neutral basis.
Mastercard reports one Payment Solutions segment. Within it, payment network revenue was $19.5 billion in 2025, while value-added services and solutions revenue was $13.3 billion.
The network earns charges tied to payment activity. Domestic assessments are primarily driven by domestic dollar volume or the number of cards issued; cross-border assessments are primarily driven by the value of transactions where the merchant and card issuer are in different countries. Transaction processing assessments are primarily driven by the number of transactions Mastercard switches. Other network charges include licensing, implementation and franchise fees. These assessments are standard charges and do not themselves represent net revenue.
The company also sells fraud and cybersecurity tools, authentication, marketing, loyalty, consulting and other services. In Q3 2026, Mastercard said 60% of its services were linked to its network. Payment activity can therefore support service revenue as customers use those services with network transactions.
Mastercard provides rebates and incentives to customers, including under agreements tied to volume thresholds or other performance measures. These reduce reported network revenue. The company does not receive cardholder interest or the fees issuers charge account holders. Interchange fees are generally collected from merchant financial institutions and paid to card issuers; Mastercard administers their collection and remittance through settlement.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Payment network | $19.5 billion | 59.4% | 12.4% |
| Value-added services and solutions | $13.3 billion | 40.6% | 22.9% |
Customers and how it sells
Mastercard serves issuing and acquiring financial institutions, merchants, businesses, governments, fintechs and digital partners. Account holders use its payment products, but their relationships are generally managed by the issuing institutions. Mastercard sells services through a dedicated sales force and global account teams and also embeds them with partners such as technology platforms, processors and other networks.
Its network enabled transactions in more than 150 currencies and in more than 220 countries and territories. In 2025, Asia Pacific, Europe, the Middle East and Africa generated $18.7 billion of revenue, while the Americas generated $14.0 billion. No individual country other than the United States generated more than 10% of net revenue in the periods discussed.
Mastercard’s five largest customers generated approximately $6.9 billion, or 21%, of 2025 net revenue. The company renewed relationships with Handelsbanken and Swedbank and signed a small-business deal with HDFC Bank in 2026. It expects the HDFC Bank deal to add 3 million cards to its network. Mastercard also said Pinnacle Financial Partners’ combined issuing portfolio will move to its network starting in 2027.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Asia Pacific, Europe, Middle East and Africa | $18.7 billion | 57.2% | 18.7% |
| Americas | $14.0 billion | 42.8% | 13.5% |
Suppliers and costs
Mastercard’s costs include personnel, technology, marketing and the fulfillment of services such as consulting. Its operating expenses increased 10% in 2025. General and administrative expenses rose as the company spent more on staff supporting its payments and services initiatives and on providing marketing and consulting services.
Advertising and marketing expenses increased 14% in 2025, including spending on sponsorships and campaigns. Depreciation and amortization rose as acquisitions and capitalized software contributed to the increase. Mastercard also recorded $504 million in litigation charges in 2025, primarily related to U.S. merchant and other legal matters.
Customer rebates and incentives are recorded against revenue rather than as operating expenses. Payment network net revenue included $20,522 million of rebates and incentives in 2025, reflecting activity levels and new and renewed deals. The company also uses third-party providers and works with partners to deliver services and connect participants to its network.
- Revenue$32.8B
- Selling, general and administrative−$12.2B
- Other operating costs−$1.6B
- Operating income$18.9B
Competitive position
Mastercard competes worldwide with general-purpose payment networks including Visa, American Express, JCB, China UnionPay and Discover. These networks offer a range of card-based products, and some have more market share than Mastercard in certain jurisdictions. Financial institutions can issue products from Mastercard and competing networks, so Mastercard competes for individual customer portfolios and programs.
Competition also comes from other forms of payment, including paper-based and electronic payments, and from providers in the categories where Mastercard sells services. Some competitors use different business models that can affect pricing, technology or regulatory burdens. Domestic networks and account-based payments can provide alternatives to Mastercard’s card network.
Our reading: Mastercard’s network reach is a strong competitive asset because it connects issuers and merchants across countries and supports acceptance at many locations, although customers can also work with competing networks. Our reading: Its services and transaction data reinforce that position by giving customers additional reasons to use the network, but these offerings also face competition. Our reading: Its franchise rules help coordinate participants and support interoperability, although those rules and related fees remain subject to regulatory scrutiny.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Visa | Worldwide general-purpose payment networks and card products | High |
| American Express | Worldwide general-purpose payment networks and card products | High |
| JCB | General-purpose payment networks and card products | Medium |
| China UnionPay | General-purpose payment networks and card products | Medium |
| Discover | General-purpose payment networks and card products | Medium |
Growth opportunities
Mastercard’s strategy is to expand consumer payments, commercial and new payment flows, and services. It seeks to replace cash with electronic payments, increase merchant acceptance and extend its reach into uses such as bill payments and real-time account-based transactions. For businesses, it is pursuing invoice payments, virtual cards, disbursements and remittances.
In 2026, Mastercard said it had signed 15 essential debit programs across seven markets. The company said those programs give partners tools to address up to 70 million unbanked adults in those markets. It also expects its Q3 2026 travel-related wins to generate more than $20 billion in incremental network spending over the lives of the agreements.
Mastercard is developing services for AI-assisted commerce. Its Agent Pay framework supports agent-based payments, and its Agent Connect offering is intended to help merchants become discoverable to AI agents. Shopify’s Shop Pay uses Agent Pay and network tokens, and Mastercard signed a partnership with OpenAI that includes Agent Pay.
The company also acquired BVNK and launched the Global Money Platform, which enables financial institutions and fintechs to offer accounts for holding, converting, sending and receiving fiat currencies and stablecoins. Mastercard expects full-year 2026 net revenue growth at the high end of the low double digits range on a currency-neutral basis, excluding inorganic activity.
- $18.9BFY2021
- $22.2BFY2022
- $25.1BFY2023
- $28.2BFY2024
- $32.8BFY2025
Structural risks
- Regulation and litigation: Payments regulation, including limits on interchange fees, can affect Mastercard’s business. Litigation can result in liabilities or restrictions, and privacy, data, AI and security rules can increase costs or lead to claims and fines.
- Competition and disintermediation: Rival networks, domestic payment initiatives and technological change can affect Mastercard’s results. Merchants or processors may seek to route transactions directly between financial institutions instead of through its network.
- Customer concentration: Losing a significant portion of business from a large customer could reduce revenue over time. Large merchants can also negotiate incentives and seek pricing concessions from issuing and acquiring institutions.
- Security and operations: Cyberattacks, information security incidents or compromised account data can disrupt operations, damage the brand and cause losses. Mastercard also faces risks associated with services provided by third parties.
- Settlement and economic conditions: Mastercard guarantees settlement of many transactions between customers, exposing it to potential loss or illiquidity. Weaker spending, geopolitical events and other economic disruptions can also reduce domestic or cross-border activity.
Bottom line
Our reading
Our reading: Mastercard is a payment-network business whose revenue depends on activity across its network and on services sold alongside and beyond payments. Its reach and relationships support that model, while incentives, competing payment options and customer concentration can affect its economics. Regulation, litigation, security and settlement exposure remain central risks as it expands into new payment flows.