MasterCard, which yesterday beat Wall Street earnings expectations with a 21% increase in second quarter profits, has put some more heft behind its innovation strategy. The credit card company rededicated itself to innovation yesterday, saying it expects a clearly defined portion of its future revenue growth to come from new products and services. Ajay Banga, president and chief executive of MasterCard, was asked how much of the company’s future growth “is going to be attributable to some sort of innovation that MasterCard is developing today”? Banga said that over the next three years, MC innovation will be responsible for 2%, 3% and 4% of the company’s growth per annum. Those hard numbers imply a cycling up of innovation activities and revenue at MasterCard over the next three years. Banga was more specific than he has been in the past about where MasterCard would find that innovation: [I]f you think about our three year projection on revenue growth, those 2, 3, 4 percentage points at the end that [MasterCard's CFO] was talking about are from innovation in new products from things like data analytics, which to me is a relatively new product all the way to the changes in market share and [...]
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