Public-Private Dialogue on Cost of Cash Progresses in D.C.

  Public-Private Dialogue on Cost of Cash Progresses in D.C.

MasterCard convenes cashless conversation with government, academia and other
                                     NGOs

      To tweet this news, copy and paste: #MasterCard Continues Cashless
           Conversation Series http://bit.ly/13Mh3Yn #CashlessConvo

Business Wire

WASHINGTON -- January 18, 2013

As part of its ongoing effort to advance a public-private dialogue on the cost
of cash and the benefits of electronic payments, MasterCard convened
representatives from governments, academia and other NGOs to share insights
and new research on this topic at a Public Sector Payments Forum here in
Washington D.C. this week. Among the participants were World Bank, Universal
Postal Union, The Fletcher School at Tufts University and the Southeastern
Pennsylvania Transit Authority (SEPTA).

MasterCard convened a cost of cash, public-private dialogue with
representatives from governments, a ...

MasterCard convened a cost of cash, public-private dialogue with
representatives from governments, academia and other NGOs to share insights
and new research at its Public Sector Payments Forum in Washington D.C. Among
the participants were World Bank, Universal Postal Union, The Fletcher School
at Tufts University and the Southeastern Pennsylvania Transit Authority
(SEPTA).

“Eighty-five percent of the world’s transactions are still being conducted in
cash and checks,” said Ed Brandt, EVP, Managing Director, Government Services
and Solutions at MasterCard. “Promoting a dialogue with governments, merchants
and consumers is critical to creating greater shared value– greater
efficiency, transparency and safety – as we move toward a world beyond cash.”

This public dialogue is gaining traction worldwide as the costs of cash become
clearer:

  *Last year, the U.S. budgeted $750 million dollars just to print and
    deliver money. It costs the US Treasury $1.03 to issue a federal benefits
    check, with electronic transfers costing 10 cents.
  *Europe spends 60 billion-100 billion Euros per year just processing cash
    payments
  *At least $8 trillion is spent in cash every year in black and informal
    economies globally – cash that is untaxed and untraceable.
  *According to a forthcoming study by the Institute for Business in the
    Global Context (IBGC) at The Fletcher School at Tufts University, cash is
    a major vector for tax evasion in the U.S., likely costing the government
    more than $75 billion in missing tax revenue. The Fletcher School’s
    research also indicated that U.S. households invest $31 billion worth of
    time annually accessing cash, while businesses lose $40 billion worth of
    cash to theft, counterfeit and accident.

Governments in partnership with the private sector are spurring greater
financial inclusion, improving access to the economic mainstream. This trend
is evident especially in examples of how wages and benefits are being
distributed:

  *South Africa is delivering benefits to social grant recipients on debit
    cards and is on track to meet or exceed its target of 10 million citizens
    by this March.
  *In the U.S., nearly 85 percent of all federal benefit payments are already
    electronic with a commitment by this March to increase that to 100
    percent.
  *The United Arab Emirates has mandated that all wages to laborers be paid
    electronically through the Wages Protection System (WPS) regulation
    enacted to ensure all laborers receive not just a portion of their pay but
    100 percent of their pay.

About MasterCard

MasterCard (NYSE: MA), www.mastercard.com, is a global payments and technology
company. It operates the world’s fastest payments processing network,
connecting consumers, financial institutions, merchants, governments and
businesses in more than 210 countries and territories. MasterCard’s products
and solutions make everyday commerce activities – such as shopping, traveling,
running a business and managing finances – easier, more secure and more
efficient for everyone. Follow us on Twitter @MasterCardNews, join the
conversation on The Cashless Conversations Blog and subscribe for the latest
news.

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Contact:

MasterCard
Marcy Cohen, 914-249-2214
or
Beth Kitchener, 914-249-2058