Mastercard, a major force in the global payment sector, provides a broad array of financial services to businesses and individuals across industries. It handles a diverse set of transaction types, supported by its strong data analytics and stringent security protocols.

Mastercard generated $32.8 billion in revenue in 2025, indicating strong business performance despite an uncertain economic environment. However, its reach and capabilities have limitations, especially in markets where local payment systems dominate.

Below, we’ll discuss how Mastercard works, where it operates, who it serves, and which products and services it offers. Whether you’re considering local payment processing, global transactions, or any other aspect of payment operations, here’s what you need to know.

What’s in this article?

• What is Mastercard?
  
• Where is Mastercard used?
  
• What is Mastercard’s payment gateway service?
  
• What industries use Mastercard?
  
• What customer segments use Mastercard
  
• Overview of Mastercard’s services for businesses
  
• Overview of Mastercard as a card network
  
• Business benefits of accepting Mastercard
  
• Mastercard costs and fees
  
• Mastercard security measures
  
• Requirements for businesses that accept Mastercard payments
  
• Alternatives to Mastercard
  
• How Stripe Payments can help
  

What is Mastercard?

Mastercard is a company that operates a payment network. (The payment network is known as the Mastercard payment network.) This network facilitates the transport of money between a customer and the businesses and organizations they pay.

Debit, credit, and prepaid cards with Mastercard branding are issued by a bank, not Mastercard itself. The cards use Mastercard’s network to facilitate customers’ electronic funds transfers (EFTs) instead of other card companies’ networks. As an intermediary between financial institutions and businesses, Mastercard supports payment processing by authorizing, clearing, and settling transactions.

Mastercard’s network is a key part of global commerce infrastructure. It can handle a wide range of payment types—from business-to-business (B2B) to person-to-person (P2P) payments—across borders and currencies. Mastercard also offers advanced analytics, payment gateway solutions, and antifraud systems, catering to the diverse needs of everyone from individual customers to global accounts, enterprises, and platforms that handle high transaction volume.

Mastercard’s services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. The network also extends its functionality through strategic partnerships, bringing value-added services such as rewards programs, supply chain financing, and digital identity verification.

What is Mastercard Send?

Mastercard’s P2P offering, Mastercard Send, is a push payment platform that enables fast transfers between peers by pushing funds directly to a recipient's debit card, bank account, or digital wallet, often within seconds.

Along with individuals, Mastercard Send is also used by businesses and governments to disburse funds—such as insurance payouts, gig work earnings, or disaster relief payments—directly to recipients' cards. The service works across Mastercard's global network. It supports domestic and cross-border transfers in multiple countries and partners with financial technology companies (fintechs), banks, and payment apps to power their money-transfer features behind the scenes.

Where is Mastercard used?

Mastercard holds a substantial global footprint: it facilitates transactions in more than 210 countries and territories. The network’s reach also spans a variety of financial environments, including retail, ecommerce, governmental organizations, and financial institutions. Businesses across sectors—from hospitality to health care—accept Mastercard-branded payment options. While it initially gained prominence through point-of-sale (POS) terminals, its scope has broadened considerably with the rise of digital payments.

Mastercard’s global payment network is used extensively for both personal and commercial transactions. With more than 1.1 billion credit cards actively in circulation, it ranks among the most used payment systems worldwide. Here’s an overview of its presence around the world:

• North America and Europe: Mastercard is heavily used in the United States, Canada, the United Kingdom, and several countries in Europe. The network handles a wide variety of transaction types, from buying groceries to settling multimillion-dollar B2B contracts.

• Asia-Pacific: Mastercard is a popular choice for payments in Australia, Japan, and Singapore. In China and India, both of which have strong domestic payment networks, Mastercard often is used for international transactions.

• Latin America: In countries such as Brazil, Argentina, and Mexico, Mastercard is a standard payment method. The company partners with local banks to offer specialized products customized to the financial needs of these countries.

• Middle East and Africa: Mastercard is growing in popularity in places such as the United Arab Emirates and South Africa. The network is also expanding into less mature financial markets in sub-Saharan Africa.

What is Mastercard’s payment gateway service?

Mastercard Payment Gateway Services (MPGS) is a cloud-based payment gateway that allows merchants to securely accept online and in-person payments across multiple channels. It acts as the bridge between a merchant's website or app and the payment networks or banks, handling transaction routing, authorization, fraud screening, and tokenization. MPGS supports a wide range of payment methods—cards, digital wallets, and local payment options—across more than 200 countries. Developers can integrate it using a REST-based API. Mastercard provides official API documentation through its developer portal at developer.mastercard.com, covering authentication, session management, hosted payment pages, and direct card capture.

As for pricing, costs are typically negotiated directly with Mastercard or through a licensed acquirer or reseller, varying by transaction volume, region, and merchant type. Using a direct-to-network gateway like MPGS has several advantages, such as strong global reach, enterprise-grade security, and the trust that comes with a major network brand. Disadvantages are pricing that can lack transparency, and it’s more difficult to set up compared to all-in-one solutions. Smaller merchants may find better value with simpler gateways that bundle acquiring, processing, and support into one package.

What industries use Mastercard?

While exact market shares fluctuate, Mastercard’s is influential in most global markets. Mastercard is especially strong in Europe and North America for payment and receipt purposes. Here are some of the major sectors where Mastercard has a strong presence:

• Retail and ecommerce: Mastercard is accepted at a wide range of retail establishments, from local shops to global retail chains. Online platforms also favor it for its speed and security features.

• Hospitality and travel: International travelers, as well as hotels and airlines, heavily rely on Mastercard. Its global presence makes it a preferred choice for making reservations and completing payment processes.

• Utilities and services: Telecom operators, water and electric utility companies, and other service providers accept Mastercard for one-time and recurring payments.

• Public sector and institutions: Government agencies and educational institutions use Mastercard for high-volume purchases. These transactions often include Level 3 data, which provides an extensive set of transaction details such as specific items purchased, tax amounts, and other particulars. Providing this level of detail can often reduce transaction costs.

• B2B transactions: Mastercard is also prominent in the B2B sector, supporting varied payment options such as virtual cards that are specifically made for bulk payments and vendor settlements.

• Emerging payment technologies: Digital wallets and mobile payment apps often use Mastercard as a primary network for tokenized transactions, and offer features such as digital identity verification to make the process more secure.

• Cross-border transactions: Mastercard is proficient in handling international transactions, offering multicurrency support and favorable currency conversion rates.

• Subscription models: Software-as-a-service (SaaS) platforms and other businesses that rely on subscription revenue streams often use Mastercard for recurring billing.

• Financial services and fintech companies: Asset managers, hedge funds, and other financial organizations use Mastercard for fund transfers, investment activities, and liquidity management. API-based integrations offer extra flexibility for custom financial solutions.

• Health care: Many patients and health care providers turn to specialized health-focused payment options that improve management of medical expenses.

• Education: Parents, students, and educational institutions might prefer prepaid cards or specialized credit options for tuition payments and other education-related fees.

What customer segments use Mastercard

In addition to its popularity in these markets, Mastercard is a mainstay for certain customer segments and businesses, including:

Personal use cardholders

• Young adults: Young adults often rely on basic credit or debit cards. Accessibility and ease of use are top concerns, and they frequently use their cards for online shopping, ridesharing services, and food delivery apps.

• Middle-income families: With a more established financial standing, middle-income families often opt for cards that offer rewards or cash back. This segment is likely to use their cards for larger expenses such as vacations or home improvements.

• High-net-worth individuals: Wealthier customers usually opt for premium or luxury cards. These cards charge higher fees but offer extensive benefits, such as exclusive travel perks and concierge services.

• Travelers: Frequent fliers and international tourists often prioritize cards that offer no foreign transaction fees, global acceptance, and travel rewards.

• Online gamers and digital content customers: These customers are commonly interested in prepaid or digital wallet solutions that make in-app purchases or subscription payments easier.

Businesses and organizations

• Small and midsize businesses (SMBs): SMBs commonly use specialized business credit cards to manage operating expenses and often look for cards that offer reward points or cash-back incentives.

• Large enterprises: Enterprise companies require sophisticated payment solutions that allow for bulk transactions and in-depth reporting features. Fraud prevention and data analytics are key considerations for this type of business, and Mastercard has a lot to offer in those areas.

• Nonprofits and foundations: Often focused on strict budgeting, nonprofits may use prepaid or low-fee cards to manage operational expenses.

Overview of Mastercard’s services for businesses

Mastercard offers a wide range of products to meet the varied needs of businesses, whether they are small operations, large corporations, or digital platforms. Mastercard plays a significant role in cross-border transactions, supporting businesses that operate in multiple markets. Multicurrency functionalities allow for transactions across different currency zones, simplifying international trade and ecommerce.

Below are some of Mastercard’s offerings for businesses:

• Mastercard business cards: Include a standard credit card offering with expense management features
  
• Mastercard corporate cards: Cards designed for larger organizations, offering centralized billing options
  
• Mastercard Corporate Fleet Card: A specialized card for companies with vehicle fleets that provides detailed reporting on fuel and maintenance expenses
  
• Mastercard Send: A service that facilitates fast and secure payment disbursements to various endpoints
  
• Mastercard B2B Hub: An automated accounts payable solution that simplifies payments and integrates with existing software
  
• Mastercard Track: A secure, digital ledger that facilitates the exchange of transaction data and payments between buyers and suppliers
  

Mastercard also supports a variety of specialized transactions beyond traditional retail settings. These include B2B payments, digital wallets, and mobile payment systems. Global enterprises often use Mastercard’s capabilities for disbursement solutions and treasury operations, making it a versatile provider for handling complex financial activities.

Overview of Mastercard as a card network

In addition to the services and products it offers to businesses, Mastercard operates a huge network for facilitating payment transactions, bringing together financial institutions, businesses, and customers. It acts as an intermediary that authorizes, clears, and settles transactions. Here’s how it works:

• Authorization: When a Mastercard is swiped, dipped, or entered online, the transaction details are sent to the business’s bank, then forwarded to the cardholder’s issuing bank for approval. Mastercard’s network is the conduit for this data exchange.

• Clearing: After the authorization, the issuing bank transfers the funds to the acquiring bank through the Mastercard network, and the transaction details are recorded and reconciled.

• Settlement: Funds are deposited from the acquiring bank into the business’s bank account. This usually occurs within a couple of business days.

Mastercard primarily makes money through fees charged to financial institutions for the use of its branded cards and network. Additionally, it charges for other services such as data processing and cross-border transactions, and these fees can vary depending on the jurisdiction and specific services used.

Mastercard’s role in transaction processing demonstrates its broad influence within the global financial system. And with ongoing advancements in payment technology, Mastercard continues to adapt.

Business benefits of accepting Mastercard

Accepting Mastercard offers customer-facing businesses multiple advantages that can directly impact customer experience and the efficiency of financial operations. As one of the most recognized payment networks, Mastercard allows businesses to access a widespread customer base that trusts this form of payment. And B2B businesses in most industries are also highly likely to benefit from accepting this leading international card network.

Here are a few highlights that illustrate how businesses benefit from accepting Mastercard:

• Global reach: Mastercard is accepted in more than 210 countries and territories, which means accepting Mastercard gives businesses instant international relevance and market access.

• Speed and convenience: Transactions are quick and usually require only a tap or swipe, which makes this card network an easy choice for businesses that want to provide a smooth payment experience for customers and increase the efficiency of their checkout operations.

• Advanced security features: Mastercard uses sophisticated security measures—such as tokenization and biometric authentication—to safeguard transactions, reducing the risk of fraud.

• Data analytics: Mastercard offers businesses access to valuable insights through data analytics, enabling them to make informed decisions on inventory management, pricing strategies, and more.

• Flexible payment options: With Mastercard, businesses can offer various payment solutions—including contactless payments, mobile transactions, and ecommerce capabilities—to accommodate a diverse range of customer preferences.

These advantages make it easier for businesses to adapt to market changes, meet customer expectations, and preserve trust with customers, partners, and vendors.

Mastercard costs and fees

Using Mastercard as a payment method incurs fees that vary based on location, business sector, the specific Mastercard product used, and other factors. In general, card interchange rates often range from around 1% to 3% of a transaction and also include a flat fee. The fee you can expect from Mastercard depends on your specific situation. Here’s an overview of the types of fees you might encounter when using Mastercard products.

For businesses

• Transaction fees: These charges occur per transaction and are typically a percentage of the transaction amount plus a fixed fee. The exact amount can depend on your merchant account provider.

• Monthly and annual fees: Some Mastercard products have monthly or annual subscription charges. This is particularly true for premium business services that offer additional features such as advanced data analytics.

• Cross-border fees: Transactions involving foreign currencies usually incur additional costs, which can be higher for businesses compared to individual customers.

• Sector-specific fees: Businesses in certain sectors (e.g., travel or luxury goods) may encounter specialized fee structures.

For customers

• Annual fees: Depending on the card, annual fees can range from zero to several hundred dollars.

• Interest rates: Mastercard’s interest rates can vary and depend on the customer’s credit history and the issuing bank’s policies.

• Foreign transaction fees: While typically lower than the foreign transaction fees charged to businesses, these can still add up for frequent travelers or online shoppers buying from international websites.

Regional variations do exist; for example, fees can differ significantly in emerging markets compared to established ones due to the risks and operational costs associated with those regions.

Mastercard security measures

Mastercard takes a multifaceted approach to maintaining transaction safety across its global network. Like other global payment networks, it continually adapts and improves its security mechanisms. The company commits significant resources to maintaining a reputable, resilient security strategy amid the complexities of global payment processing.

By investing in protecting its own brand reputation, Mastercard passes along the benefit of strong security standards to the businesses and customers using its products. Here’s a quick overview of Mastercard’s approach to security:

• Advanced encryption and tokenization: Mastercard uses encryption technologies that go beyond standard SSL/TLS protocols, applying specific methods to data at rest and in transit. Its tokenization goes further than simple card data substitution—it often combines card data with transactional history and behavioral data to create a multifaceted token, making unauthorized access more challenging. The token is unique and transaction-specific. If it’s intercepted, fraudulent actors can’t use it without decryption keys that are securely stored by Mastercard.

• Authentication and biometric support: Multifactor authentication is employed for transactions, especially higher-value ones, using not just SMS-based codes but also application-based and hardware-based authenticators like security tokens. Beyond facial and fingerprint recognition, Mastercard is also investigating voice recognition and behavioral patterns to authenticate customers.

• Artificial intelligence and real-time fraud detection: Machine learning algorithms scan transactions in real time to assess risk and flag suspicious activities. These algorithms are trained on large, diverse data sets and continuously improve their detection capabilities over time.

• EMV chips and Mastercard Identity Check: For physical cards, EMV chips generate a unique code per transaction, making skimming or replication difficult. For online purchases, Mastercard Identity Check (also known as SecureCode) provides an added layer of security similar to a PIN.

• Geographic, sectoral and customized security: Security measures vary by location and business sector. Regions with higher fraud rates may require dynamic authentication, and high-risk sectors face additional identity checks and transaction scrutiny. Mastercard also offers tailored solutions such as corporate cards with elaborate spending controls and real-time alerts.

• Regulatory compliance and zero liability: Mastercard complies with international standards including PSD2 and PCI DSS, and adapts to local regulations in countries such as Singapore and Australia. Cardholders are further protected by Mastercard's zero liability policy, meaning they won't be held responsible for unauthorized transactions provided reasonable care has been taken.

Requirements for businesses that accept Mastercard payments

If your business is already set up to accept credit and debit card payments, it can probably accept Mastercard payments. Most payment processing providers have software and hardware equipped to accept it.

The exact process of getting set up to accept Mastercard payments will vary depending on how you plan to process transactions (in person, online, etc.), where you’re located, and who your payment processing provider is. But the process looks like this in most cases:

• Open a merchant account (or use a provider such as Stripe): A merchant account is a specialized bank account that businesses need in order to accept credit and debit card payments. However, if you accept payments using Stripe, you don’t need to open a merchant account since Stripe provides that functionality.

• Choose a Mastercard-compatible payment processor: Choose a payment processor that’s compatible with Mastercard. This processor will handle the technical aspects of the transaction. Again, most payment processors are compatible with Mastercard and other leading card networks.

• Set up card terminals and transaction software: Businesses need hardware for card swiping or dipping, as well as software for online transactions. Payment processors often provide both, but businesses can also purchase their own as long as they are compliant with Mastercard’s specifications.

• Meet PCI DSS compliance requirements: Mastercard requires that businesses adhere to PCI DSS, which is a set of compliance requirements for businesses accepting card payments. Regular audits might be required based on the volume of transactions.

• Complete contracts and agreements with your processor: Contracts and agreements outlining terms and conditions, fee structures, and other liabilities should be completed with the payment processor or acquiring bank.

• Activate your merchant account and verify details: After fulfilling all the technical and regulatory requirements, the business can set up its merchant account to start accepting payments. This involves verifying bank details and testing the payment system to ensure it operates correctly.

• Display Mastercard branding for customer awareness: Displaying Mastercard decals and signage at physical locations and digital touchpoints indicates to customers that Mastercard payments are accepted. This is optional, not a requirement.

Alternatives to Mastercard

Mastercard is just one option among a variety of global payment solutions accessible to both businesses and customers. The choice of payment network can depend on location, transaction types, and associated fees, among other factors. For those operating or residing in the US, several other major card networks offer distinct advantages:

• Visa: As a chief competitor to Mastercard, Visa has a comparable global reach and offers a range of benefits. It also provides specialized services for businesses, including data analytics.

• American Express: This network is not as widely accepted as Mastercard or Visa, but it compensates with a range of perks, such as strong rewards programs and purchase protection.

• Discover: Primarily used in the US, Discover distinguishes itself with strong customer service and often has lower fees compared to other networks.

There are many other payment methods globally—such as local bank networks, digital wallets, and even cryptocurrency options—that are alternatives to Mastercard.

To explore alternatives to Mastercard, learn more about US card networks, and read more about other types of payment networks.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.