(by G.Andersen)

MasterCard sees the Latin American/Caribbean region as having the best growth potential in the world for its business, given the low bank penetration, growing card culture and improving economies. The LAC region currently accounts for 12 per cent of MasterCard's total billing volume, but this share is expected to grow strongly to 2006. Latin America's card fraud rate, which is lower than MasterCard's world average, is also seen as a positive indication for future growth. Increasing bank penetration is a short-term goal for MasterCard, which is planning to give low-income individuals greater access to credit and bank services.

Cross-border money transfers between the US and the LAC region will be a similar focus for MasterCard, according to the BN Americas news site. On a global basis, MasterCard's credit card billing volume grew by 31 per cent in Q1, 2004 to about USD 15 billion, compared to the same period in 2003, while its debit card issuing rose by 100 per cent, to about 68.3 million cards. With BID, the Inter-American Development Bank, predicting Latin America's remittances market to be worth USD 30 billion in 2004, many US-based and Spanish banks are tapping into this market as a way to attract new customers to their retail services.

The inter-country remittances market however ⌠requires a more centralized model for money transfers, JosИ Mario аlvarez Novales, a professor at the Instituto de Empresa business school, recently wrote in the Wharton Business Journal. If MasterCard leverages its global payments network to offer cost-effective funds transfer services, it will be a strong contender against players like Western Union and MoneyGram. The Wong Interbank Visa card launched in 2001 by Peru's Interbank and local eCommerce firm, E Wong, also supports online remittances at reduced fees, and can be used for purchases anywhere in the world.