Identify key competitors with the industry and utilize the SWOT analysis information to discuss and critically analyze Strengths, Weaknesses, Opportunities and Threats.

 

Company Background
      According to Mastercard website, establishing the company's origins began in the 1940's from the idea of banks giving choice members special paper certificates that could be used like cash at local stores. With several local banks banding together, Interbank Card Association was created and the company has continued to grow since that time in 1966.   Within five years of launching, the company grew to form alliances with Eurocard, Japanese, African and Australian members as well.  Within five years Interbank Card Association was changed to reflect a new logo and name as Mastercard (MasterCard Brand Center, 2023)   Despite competitors such as Visa, Discover and American Express continuing to grow, Mastercard has been able to sustain.

SWOT Analysis
     This post will highlight key elements from Business Source SWOT Analysis, how I processed the information and address my observation from connecting to research literature.  In review, Mastercard Inc SWOT Analysis listed the following:
--Strengths- Broad Payment Solutions, Cost Efficiency, Operational Framework
--Weakness- Working Capital Surplus
--Opportunities- Growing Cards and Payments Channel: The US New Services, Emergence of         FinTech
--Threats- Competition, Risks Related to Online Identity Theft and Hacking, Technological Changes
      After reading the SWOT, I immediately thought Zelle and such payment apps would be a threat to Mastercard, however research listed these things as fintech, which was listed as an opportunity. Investopedia defined Fintech as "technology looking to improve automated delivery or uses of financial services.  While it was intended for established financial businesses, it is now convenient for other areas like education, fundraising and investment management.  (Investopedia, 2023).  Further research showed Mastercard partners with Venmo for debit cards and on the website (https://developer.mastercard.com/solutions/fintech-express/Links to an external site.) they invite new fintech developers to partner with them for cards. 

Fintech Opportunity Pros and Cons
     My ending opinion of fintech such as Venmo, Klarna, and others is there will always be a downside to a collaborative opportunity depending on your resources and perception.  The SWOT analysis showed Mastercard has a strength with cost efficiency.  This gives them an advantage over visa who showed cost efficiency as a weakness.  It gives them the competitive advantage to invest more frequently or largely as fintech continues to change.

 

References
Kagan, J. (2023, May 24). Financial Technology (Fintech): Its uses and impact on our lives.

Investopedia. https://www.investopedia.com/terms/f/fintech.asp

Mascarenhas, A. B., Perpetuo, C. K., Barrote, E. B., & Perides, M. P. (2021). The Influence of Perceptions of Risks and Benefits on the Continuity of Use of Fintech Services. Brazilian Business Review, 18(1), 1. https://doi.org/10.15728/bbr.2021.18.1.1