“Blockchain use is far beyond cryptocurrencies”

With new forms of digital payments, is card payment expected to take a back seat?

The card business has plenty of room to grow, both in terms of distribution of more cards, expenses on cards, loyalty programs and transactions that can be put on cards. But if we go further, we are also looking at blockchain, open banking services and new types of payments.

Do you expect a decline in contactless payments as economic activities resume and people return to work?

Two things happened in payment, and it also happened in India. Contactless payments grew 15 times in India in 18 months. What we see is that when the economy opens up, the transition to digital holds. It will be omnichannel. In categories such as groceries and food, the transition to digital is more sticky as more people shop online than before the pandemic. In other categories such as department stores where people want to touch and feel, we see an omnichannel approach, but the digital is much higher.

How has data analytics helped make digital payments secure?

We have card and bank portfolio data, but we also have macroeconomic insight into location, tourism and travel. We use this insight into marketing services to build targeting models to help customers figure out what their target audience wants. We also use them in our cyber intelligence. We have implemented machine learning in our network. If you have a Mastercard transaction, we can detect fraud much faster. We have fraud, risk scores and credit risk insight. All these secure transactions.

Has the recent crypto bear market influenced interest in the underlying blockchain technology?

We do not send crypto on our networks. But we have 60 programs where we can help consumers with crypto to convert to a fiat currency. If a consumer thinks of crypto, we want to be there with them, but in the right way. We work with customers who are thinking about using blockchain and crypto. We cooperate with central banks on central banks’ digital currencies (CBDC).

There are many fascinating blockchain applications that have nothing to do with crypto. NFT is another example of blockchain. We are in the early stages of blockchain technology. There is a lot of hype around it. What is important is to identify where the long-term value and benefits lie.

How is India different from other markets?

Each market is unique, based on how the authorities in that country want to develop the market. In India, the focus on made-in-India is amazing to see. During the pandemic, when payments went digital, our data services helped many businesses. We went beyond payments and did things that had nothing to do with payments.

We set up digital emergency diagnostics to help small businesses go digital, and partnered with a grocery chain to manage the supply chain. We work with a number of airlines to find out which routes should be opened first, which consumers should be targeted with what kind of offer in a personal way. We also worked with tourism companies in the US, Europe and India to provide tourist insights to help them maximize the value of attracting tourists to the market. If you go to McDonald’s and order from kiosks, it is our intelligence that adapts the menu for customers.

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