May 27, 2018
Fintech startups won’t oust the big names in finance. However, they attack some of the institutional shortcomings when it comes to cost, convenience and access. Both fintech startups and established companies in the space stand to benefit from working together. This symbiotic relationship can manifest itself through partnerships or acquisitions.
The latest move by the omnipresent credit card company is simply another formal acknowledgment of the financial sector’s current trajectory.
Mastercard’s Market Share
Second to Visa, Mastercard holds just over 22% of the market share for US credit card purchases at $170 billion just in Q1 last year. Over 600 million Mastercards exist in circulation in 210 countries globally. Needless to say, the company corners a significant portion of the world’s payments.
Purpose Behind Accelerate
With Accelerate, Mastercard aims to utilize its existing substantial platform to propel fintech growth startups. Accelerate will operate in parallel to its existing program, Start Path, a fintech accelerator.
Accelerate will focus on the payments sector of fintech. The program will include access to Mastercard licensing specialists which will open up in-house access to data and analytics with the hopes of expediting the pace to market. The program also supports market-based resources for strategic investing with flexible early-stage collateral requirements.
Mastercard vice-chairman Ann Cairns states in the Accelerate press release, “Globally, the FinTech community is one of the most vibrant and fast-paced, and Mastercard is committed to help[ing] these fast-growing businesses unleash their full potential. With extensive experience in supporting growth of the financial services industry, Mastercard is uniquely positioned to provide the platform [that] can propel FinTech businesses along increasingly ambitious growth paths.”
The company prides itself as an early supporter of fintech innovation and will continue to foster continual growth in the payments space with Accelerate.