- Mastercard is one of the world's largest payment networks, but it's increasingly looking outside of its bread-and-butter businesses of processing debit and credit-card transactions.
- Its card-related revenues are down as spending slowed amid the coronavirus pandemic, according to its second-quarter earnings.
- Beyond cards, Mastercard is looking for new revenue opportunities, especially when it comes to monetizing the wealth of data it has.
- Here are the 15 execs at Mastercard leading the charge as it looks to keep up with the ever-changing world of digital payments.
- Visit Business Insider's homepage for more stories.
Mastercard is one of the largest payment networks in the world, processing billions of transactions a year. But even with its massive size, the card giant wasn't immune to the coronavirus pandemic slowing global spending. Revenue dropped 17% year-over-year at Mastercard, according to its second-quarter earnings.
To be sure, the pandemic has accelerated consumers' shift toward more digital, touch-free payments, which could benefit Mastercard in the long run.
And there are opportunities beyond just cards.
Revenue from cyber, intelligence, and data, which Mastercard reports as 'other revenue,' was up 14% year-over-year. Those business are expected to grow, especially as payments increasingly shift online.
"More digital transactions versus more cash transactions is more data," Michael Miebach, Mastercard's president and incoming CEO said during its second-quarter earnings call. "More data means more desire and more need for data analytics capabilities, but also to protect that data. So our cyber solutions are going to benefit from that in the long run."
In June, Mastercard acquired data startup Finicity, furthering its ambitions in consumer data. And its engagement with fintechs has positioned the incumbent to grow alongside disruptors in the payments space.
From working with fintechs to managing the network's global cybersecurity infrastructure, here are the 15 execs at Mastercard driving its growth both through cards and otherwise.
Have a tip? Contact this reporter via email at sbalogh@businessinsider.com, encrypted messaging app Signal (801-824-5318), or direct message on Twitter @shannen_balogh.
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Alissa (Dr. Jay) Abdullah, senior vice president and deputy chief security officer of operations and technology
Abdullah leads Mastercard's corporate security solutions, responsible for protecting the company's network and data.
And as payments become increasingly digital, the importance of protecting user identities has grown.
"With digital acceleration, network boundaries are dissolving," Abdullah said.
"The focus is turning to the protection of our data's attributes and the associated metadata. Data without the user's identity becomes less useful or valuable to the adversary."
Abdullah joined Mastercard in 2019. She previously served as deputy chief information officer in the White House under the Obama administration.
"Those experiences have increased my diversity of thought, revealed the interconnectedness between sectors, expanded my critical eye on customer needs, and enlarged my sense of emotional intelligence," Abdullah said.
Deborah Barta, senior vice president of innovation and startup engagement
Barta oversees Mastercard's innovation initiatives within Mastercard Labs, the company's R&D arm. She's led the development of products like Provenance, Mastercard's blockchain solution.
Through Provenance, Mastercard offers supply-chain transparency, both for governance and consumer use cases. Mastercard has partners in both the food and luxury goods industries, where merchants can use Provenance to authenticate where goods come from.
"COVID-19, regulation, and a trend toward nationalism are creating interest from consumers, brands, and governments around visibility and where products are from (e.g., consumers want ethically sourced foods; governments need to know where PPE is, etc.)," Barta said. "In parallel, 5G, blockchain, and IoT make tracking more feasible."
Barta also oversees Start Path, Mastercards startup incubator. More recently, Barta rolled out Sandbox, an internal innovation program where employees can pitch ideas and get sponsorship from senior leaders.
"When the COVID-19 crisis hit, Mastercard Labs adapted the Sandbox model to help spur innovation across the organization focused on helping customers, partners, and communities during the pandemic and as they recover," Barta said.
Barta joined Mastercard in 2007, after working as a strategic business consultant for several years at Deloitte and Andersen.
Ajay Bhalla, president of cyber and intelligence
Bhalla leads a team that develops products for security on Mastercard's network. Data security is a top concern, especially as consumers' daily lives become ever more digital.
"As an industry, we have a duty to innovate responsibly. We need to recognize security and privacy as core to successful technology development. For me, one of the most important factors here is that the user should control his/her data," Bhalla said.
"Technology has the power to do so much good. But, put simply, if people don't trust it, they won't use it."
And while privacy and security are key, they can't come with interruptions to the consumer experience.
"This is crucial: no trade-off between security and convenience. Increasingly, our security is silent, invisible and part of what we call a frictionless consumer experience," Bhalla said.
From biometric authentication to behind-the-scenes fraud prevention, Mastercard's approach to cybersecurity ensures that the card network is able to keep transactions and user data secure without limiting the consumer experience.
Bhalla joined Mastercard in 1993, and became president of cyber and intelligence solutions in 2018.
Bricklin Dwyer, chief economist
Dwyer leads Mastercard's Economics Institute. His team uses Mastercard's data platforms, like SpendingPulse and Recovery Insights to analyze macroeconomic trends from a consumer perspective.
"The COVID-19 outbreak has accelerated the digitization of how we work, live, and shop. While this may be surprising in terms of the speed or pervasiveness, this has had roots in behaviors and innovations seen before the pandemic," Dwyer said.
"For instance, the share of online sales doubled in April and May compared to the previous year. This rapid increase is unlikely to have occurred without the impetus of the pandemic, but the shift to digital had been persistent over the past decade plus."
While some spending behavior has been temporarily changed by the coronavirus pandemic, Dwyer expects some trends, like touch-free retail, to stick around. And Dwyer's research informs Mastercard's strategy when it comes to engaging with customers.
Dwyer joined Mastercard in 2019 after several years as head economist at the French bank BNP Paribas.
Sherri Haymond, executive vice president of digital partnerships in North America
Haymond leads the team responsible for partnerships with fintechs like Brex, Ellevest, Revolut, and Robinhood.
"When working with our fintech partners, we've always taken a co-creation approach from day one. We recognized early on that joining forces would ultimately make the entire ecosystem stronger and more resilient," Haymond said.
Mastercard has various engagement channels with fintechs, including Start Path, its incubator, and Accelerate, through which fintechs can tap into Mastercards network.
"Looking to the future, we see our open banking strategy as being key to working with fintechs," Haymond said. "Open banking is all about making our information work harder and better for us, and today plays a significant role in ensuring that the apps, banks, and fintechs that power our daily lives do so in a way that meets our needs."
In June, Mastercard acquired financial data startup Finicity, furthering its ambitions to connect fintechs, banks, and lenders through open banking.
Haymond joined Mastercard in 2010, and became EVP of digital partnerships in 2016.
Read more: We talked to Mastercard's incoming CEO about why the card giant is spending $825 million to buy financial-data startup Finicity and how it compares to the Visa-Plaid deal
Jorn Lambert, chief digital officer
Lambert leads Mastercard's digital strategy, which covers the company's card and non-card payments, as well as Mastercard Labs, the company's R&D arm.
He was appointed to his role in July with a broad remit leading all of Mastercard's digital solutions globally. And digital payments have become increasingly critical amid the coronavirus pandemic, as consumers shy away from cash.
"Consumers are increasingly moving away from cash and embracing digital payments experiences – they will not revert to old payment habits after the pandemic," Lambert said.
"As chief digital officer, I'm laser-focused on driving our strategy to deliver seamless, secure and differentiated solutions as consumers increasingly embrace these digital payments experiences."
From contactless cards to blockchain solutions, Lambert will drive all of Mastercard's initiatives when it comes to digital payments. He joined Mastercard in 2002.
Read more: A Mastercard exec lays out how a surge in contactless payments is giving the company an unexpected boost as people rethink touching cash
Ed McLaughlin, president of operations & technology
McLaughlin leads close to half of Mastercard's employees across operations and technology. He launched Mastercard's first technology hub in New York in 2014, and has since added seven more hubs globally.
Overseeing Mastercard's tech means McLaughlin is responsible for keeping its global payments network up and running 24/7, ensuring speed and efficiency.
"Mastercard's technology is designed digital-first – it's API-based and enabled for hybrid cloud environments," McLaughlin said. "This, combined with our applied research and agile development capabilities, has delivered a series of industry leading innovations."
Mastercard's tokenization tech, for example, replaces sensitive card information with one-time codes used for payments on mobile and wearables like smart watches.
"A big focus for my team has been our API transformation, which encourages novel and different types of services," McLaughlin said.
Mastercard's API-based tech not only enables internal teams to plug into its platforms, it also facilitates more seamless partnerships with fintechs.
McLaughlin serves on Harvard's Kennedy Business School's Council on the Responsible Use of Artificial Intelligence. He joined Mastercard in 2005, and became president of operations and technology in 2017.
Carlos Menendez, president of enterprise partnerships
Menendez leads Mastercard's Global Cities team, which manages the firm's relationships with governments and community leadership.
"Mastercard works with its city and industry partners to improve safety and efficiency, promote economic growth, and ensure inclusion by focusing on three main areas: mobility, data analytics, and expanding access to essential services," Menendez said.
Menendez oversees partnerships with organizations like OnwardUS, for example, which provides retraining and upskilling resources and connects workers with employers that are hiring right now. During the pandemic, Mastercard has also partnered with Uber Eats to deliver meals to National Health Services workers in the UK.
"By developing partnerships with government and community leaders, Mastercard's Global Cities team is focused on driving commercially sustainable social impact," Menendez said.
Menendez joined Mastercard in 2010, and previously was COO of Citi's retail banking business in Western Europe.
Read more:We talked to Mastercard's incoming CEO about why the card giant is spending $825 million to buy financial-data startup Finicity and how it compares to the Visa-Plaid deal
Laura Quevedo, executive vice president of decision and transaction solutions
Quevedo manages Mastercard's decision-making tech, which runs behind the scenes to approve or decline transactions. And a large part of that remit is keeping Mastercard's fraud monitoring systems up-to-date with the latest tech.
And at the onset of the coronavirus pandemic, credit-card fraud was rising.
"When speaking to our customers, we're hearing about a variety of types of fraud happening since the start of COVID: account opening, phishing/smishing attacks, account takeover attempts, cyber-related attacks, ransomware and BIN attacks, to name just a few," Quevedo said.
"As we move deeper into digital payments, validating the cardholder's identity becomes increasingly more important."
Mastercard's fraud monitoring tech, which it calls Connected Intelligence, was built out a few years ago to collect payment-activity data and learn as it authenticates and manages disputes.
"When we look at any type of payment, we must examine data sets and behaviors. ACH, real-time payments, cross-border, and card are all unique, which means that we need to train models on their distinctive data features and behaviors to detect different types of fraudulent activity," Quevedo said.
Quevedo joined Mastercard in 2000 and was named EVP in May 2020.
Tara Nathan, executive vice president of humanitarian and development
Nathan oversees Mastercard's digital solutions aimed at marginalized communities globally. She leads Mastercard's partnerships with development organizations and NGOs to introduce digitally-enabled solutions for those communities.
"There are 3.4 billion people around the world struggling to meet their basic needs, such as access to food and life-saving healthcare. Many live in remote areas and have no formal way to identify who they are, no records, and inconsistent (or no) connectivity; providing government or NGO services, or aid, can be very challenging," Nathan said. "Our team at Mastercard has developed the digital rails that allows service providers to reach people safely and efficiently."
Mastercard's Community Pass, for example, is a digitally-enabled ID credential that those in remote areas can use to transact digitally and access healthcare.
"We're focused on building a more inclusive digital economy and to get there we need to make commercially-sustainable social impact business as usual," Nathan said.
Nathan joined Mastercard in 2013, and has been in her current role since 2016.
Chris Reid, executive vice president of global identity solutions
Reid leads all of Mastercard's identity products, which includes digital IDs and biometric data.
As physical identity markers like fingerprints and face scans become more prevalent in consumers' daily lives, Mastercard is developing the tech to enable people to authenticate payments using biometrics. Mastercard is running pilot programs with fingerprint scanners embedded in cards, for example.
"We're exploring new biometric technologies, including eye movement, heartbeat, and pulse, as we consider what the future of retail and digital identity will be," Reid said.
And to get consumers comfortable, securing data while keeping the user experience as seamless as possible is key, Reid said.
"But broad adoption of biometrics via connected devices or integrated onto cards cannot happen without scaling industry authentication standards, such as EMV3DS," Reid said. "This is critical to reduce fraud and increase approval rates, while delivering less friction at the checkout, whether that is in store or online."
Reid joined Mastercard in 2008, and has been in his current role since May 2020.
Read more:We went to Mastercard's tech showcase, which featured biometric sensors and shrimp-tracking blockchain. It's part of a push to embrace a future without cards.
Raj Seshadri, president of data and services
Seshadri oversees all of Mastercard's data initiatives, offering its customers analytics, loyalty, and consulting services.
"We've always worked to help businesses answer their most pressing questions, but with the pandemic, the need to get it right — and right now — has never been greater," Seshadri said.
She led Mastercard's Recovery Insights, a suite of data-driven products meant to help Mastercard customers — like retailers, grocers, and governments — react and adapt quickly to the ever-changing impacts of the coronavirus pandemic.
"When a large US grocery store chain wanted to understand decline and recovery curves for supermarkets and restaurants to help them better forecast and plan for impacts to their own stores, we jumped right in," Seshadri said. "We worked with them to develop a new Daily Market Trend Index, which is now available for other customers and other markets."
Seshadri serves on the firm's management committee, and joined Mastercard in 2016. She previously worked at BlackRock, Citi, and McKinsey.
Ronald Shultz, executive vice president of new payments business in North America
Shultz oversees all of Mastercard's new payment products, primarily outside of its bread-and-butter card network.
With a focus on digitizing cash and check transactions globally, Shultz leads the company's business-focused payments innovation through products like Mastercard Track.
"As the pandemic continues to amplify the pain points associated with traditional payment methods, businesses are realizing that digitized and automated payments are no longer nice to haves – they're absolute must haves," Shultz said.
"The continued use of slow, costly, paper B2B payment methods essentially boils down to habit — and the best way to break a habit is to replace it with a better one."
Shultz spent more than a decade at American Express before joining Mastercard in 2018.
Jess Turner, executive vice president of products and innovation in North America
Turner leads Mastercard's product development across its card and non-card payments platforms. She also manages the relationships with Mastercard's key card issuers, working with them to push product innovation forward.
"Digital payments are on the rise, and as we continue to see this shift to digital, all types of payments will be an increased source of revenue," Turner said.
From the industry-wide Click to Pay checkout solution to Mastercard Send, which enables real-time payments between businesses, consumers, and governments, Turner is leading the card giant's strategy to facilitate more than credit and debit-card transactions.
"We are now tapping into new segments such as governments, treasury banks, and small businesses as we innovatively solve for the demand for push payments to hundreds of millions of US consumers and small business debit and prepaid cards," Turner said.
"In particular, this solves for needs specific to the gig economy, on-demand payroll, government disbursements, and more."
Turner joined Mastercard in 2006, and has been in her current role since June of last year.
Stephane Wyper, senior vice president of retail innovation
Wyper is responsible for Mastercard's retail-related initiatives. And while changes in retail were underway before the coronavirus pandemic, it's prompted an accelerated shift in the way retailers operate.
"It's clear that we're entering a new phase for brick and mortar — one where stores will be smaller in size, digitally wired day one, and designed around consumer segments at specific locations," Wyper said. "Online retail is also being forced to adapt to an ever more digitally sophisticated and connected consumer."
For Mastercard, that means keeping up with the changes in consumer and merchant behavior, like an increased preference for contactless transactions and the need to streamline in-store and online sales.
And data, Wyper said, is becoming increasingly important for retailers.
"Through our data and services business, we aim to create meaningful insights to improve a retailer's operations or sales performance, from historical spend patterns to location-based insights," Wyper said.
Mastercard is also eyeing ways to apply AI to retail intelligence in pricing and shopper promotions.
Wyper joined Mastercard in 2012, and has led retail innovation since 2016.
Have a tip? Contact this reporter via email at sbalogh@businessinsider.com, encrypted messaging app Signal (801-824-5318), or direct message on Twitter @shannen_balogh.