Cards Yield ''Transformational Effects'' in Public Sector Payments, Say Attendees at MasterCard International Forum

Business Wire, May 4, 2005

PURCHASE, N.Y. -- Annual Event Brings Together Payments Professionals from Asia-Pacific, Europe, Latin America and North America to Discuss Future of Public Sector Payments

Nearly 150 public sector payments professionals from organizations worldwide recently met in Washington, D.C., at the Ronald Reagan Building and International Trade Center, to attend the annual MasterCard International Public Sector Forum. The executives resoundingly reported that payment cards have yielded "transformational effects" so much so that card-based payments are now indispensable to the way public sector entities worldwide acquire the goods and services they need to meet their responsibilities to the constituents they serve.

"The 2005 MasterCard International Public Sector Forum provided an unprecedented opportunity for those involved in administering public sector payment card programs to meet, learn from, and share experiences and best practices with their colleagues from around the world," said Eva Robinson, Vice President, Global Public Sector Business Development at MasterCard International. "While public sector payment needs and requirements may differ from country to country, the fundamentals such as transparency, control, auditability, and good stewardship of public funds are the same everywhere."

Attendees comprised a cross-section of U.S. federal government agencies, U.S. state and local governments, and, for the first time, international public sector entities from countries including Argentina, Australia, Belgium, Brazil, Canada, Chile, the Dominican Republic, England, Mexico, Singapore and Taiwan.

The desire of public sector entities to make better use of data analysis and information management tools to track spending, improve transparency, ensure strategic procurement, and control waste, fraud, and card misuse was one of the strongest messages conveyed at the event.

In fact, the results of an informal qualitative survey of attendees revealed that:

--Overwhelmingly, respondents agreed that payment cards deliver greater insight into their organization's spending habits and give them the "feeling of control." Eight out of 10 strongly agreed or agreed that such "spending control" would be enhanced through additional utilization of business intelligence tools.

--Nearly all respondents believe cards streamline payment processes, thereby improving productivity and efficiency. Four out of 10 identified "payments streamlining" as their most important business consideration when implementing a card program, while one-third cited "greater payment policy compliance" as their most important consideration.

Featured speakers included representatives from the U.S. General Services Administration (GSA), U.S. Defense Logistics Agency (DLA), Manchester (U.K.) City Council, Canadian National Defense, Banco Nossa Caixa (Brazil), JPMorgan Chase, Commonwealth Bank (Australia), and Fairfax County, VA.

Among the presenters:

--G. Martin Wagner, Associate Administrator, Government Wide Policy, GSA. Mr. Wagner pointed to payment card usage for government purchases as an example of how effective commercial practices from the private sector were adapted successfully and have since transformed the way public sector entities manage their funds. He described how government entities have in turn been driving payment card innovations in areas such as improved spending transparency and financial controls that are now being converted back into private sector commercial practice.

--Neal Fox, Assistant Commissioner for Commercial Acquisition, GSA. Mr. Fox noted that the next generation of GSA SmartPay(R), the U.S. federal government-wide payment card program, will require even more powerful payment monitoring tools and electronic systems that will enable government agencies to gain a clearer understanding of what, where, and how they are buying. The enhanced information will be used to initiate strategic sourcing programs that will allow the government to become a "smarter buyer" of the goods and services it purchases regularly.

"In a time of contracting budgets, all public sector entities must work as hard as they can to get the most out of the funds that are entrusted to them," said Ms. Robinson. "Based on the dialogue and information sharing that took place at the MasterCard Public Sector Forum, it's clear that public sector entities see their payment card programs as an important tool to help them accomplish that goal."

About MasterCard Public Sector Payment Programs

MasterCard meets the payments needs of the public sector by offering three unique payment card platforms: Purchasing, Travel, and Fleet. MasterCard also offers an all-in-one Multi Card and a Debit card.

All MasterCard public sector card programs provide payment advantages, including:

--Unsurpassed global merchant acceptance;

--Enhanced transaction data and authorization controls;

--Comprehensive reporting (with added capabilities for state and local governments);

--Increased savings and efficiency; and

--Unified data capture.