MasterCard to sell card use data to retailers

Posted by Jessica Searle in Personal Finance on 1 March 2013 - Jessica worked as a Credit Analyst at checkmyfile until 2013

As larger commercial businesses are looking to diversify in an ever-competitive business market, MasterCard has recently realised the opportunities available with the data it can collate through your use of its cards.

A division of the company, MasterCard Advisor (MA), has announced a new partnership with analytics firm Mu Sigma. It aims to provide a combination of MA's aggregated and anonymous purchase behaviour and Mu Sigma's analytical expertise to companies in the retail market.

Retailers are able to search their own records to understand what their customers buy, but are currently unable to predict the customers overall shopping habits. With 1.8 billion people using MasterCards in over 34 million stores worldwide, it is this gap in the information market which this partnership aims to fill – a market already estimated to be worth around $5 billion.

“The data analytics market is rapidly growing as customers seek real time insight allowing them to better connect with their consumers through highly relevant products, offers and services,” says Gary Kearns, Executive Vice President, Information Services for MasterCard Advisors. “We went through an extensive process to choose the right partner and Mu Sigma’s innovation labs and capabilities make them stand out as best-in-class in this field. By combining MasterCard Advisors’ purchase behaviour insights with Mu Sigma’s expertise we will be able to drive faster innovations in data analytics solutions and deliver them on a broader scale, globally.”

MasterCard has confirmed, for the benefit of all of us data-protection fanatics, that the information to be sold will not contain any personal information, but instead will be an anonymous report and insight into the buying habits of its customers.

Products include benchmarking reports (how is my business performing compared to other merchants?), and analytics (how can I better understand what my customers might want to purchase?), for which there is no need for transaction details to be included.

Information can also be sector specific, for example the statistics each week regarding the sales of women’s clothing can help a retailer to benchmark its performance, and what products will sell well, or not so well.

Gary Kearns has described part of the service as giving a large retailer the ability “to understand, at an aggregated and anonymous level, what its customers do before and after they shop there. This large retailer would then be able to offer its customers certain incentives to come to its store and spend more on the items that they may have purchased before and after visiting them.”

The information available to be purchased by companies will not contain any personal information.. It will also not specify any purchases you make as an individual.

It will instead be aggregation of information from many consumers. If the product is one you already consume you might be able to obtain a better deal, or alternatively you can always say 'no'.

The end release of data is ultimately very general in nature and can have positive effects for both the company and customers alike.

MasterCard will simply by 'recycling' the information it already gathers when you utilise one of its products, although it can be assumed that many campaigners will still not agree with this point of view.

Jessica Searle is a Credit Analyst at checkmyfile and has a degree in English Literature from the University of Exeter. You can contact her at jessica.searle@checkmyfile.com

The Cost of Incorrect Information on Your Credit Report

Your credit file is compiled from a number of different sources, including payment history from each of your lenders (past and present) and public data as reported by local authorities and courts. The majority of people find that everything held about them is correct, but due to the large amount of information being shared, errors in the information reported can happen, which can lead to issues when you go to apply for credit.

Published on 2 Feb 2018 by Tom Blandford

Full Article

Your Guide to Open Banking

On 13 January, the UK banks embarked upon arguably one of the biggest changes to personal finances since the introduction of computers. Open Banking is aiming to make it easier for banks, lenders and consumers to access and share information, with a view to creating new products and opportunities through innovation and increased competition.

Published on 15 Jan 2018 by Jamie Mackenzie Smith

Full Article

HMRC Bans Credit Card Tax Payments

From 13 January 2018, it will no longer be possible for consumers to use a personal credit card to make a payment on HMRC’s Self-Assessment tax portal. Historically, this has been a popular option as it allows what is often a considerable sum to be deferred.

Published on 12 Jan 2018 by Tom Magor

Full Article

How to Get the Best Deal When Buying a New or Used Car

Buying a new car is both exciting and expensive, but if you know where to look and when, you can grab yourself a bargain. If you take a little time to look into finance or loan deals as well, you can bring down the overall costs significantly.

Published on 11 Jan 2018 by Kevin Pearce

Full Article

Are football clubs exploiting their fans

With Premier League teams under huge pressure to remain in the top flight of English football, the amount lavished on transfer fees and player wages have soared in recent years.

Published on 8 Jan 2018 by Sam Twyford

Full Article

What The 2017 Autumn Budget Means For First-Time Buyers

Wednesday’s autumn budget brought great news to would be first-time homeowners: if you’re buying a home up to the value of £300,000, you won’t have to pay stamp duty for the property. This, the Conservative Party estimate, will benefit 80% of first-time buyers, saving them potentially thousands of pounds on the total cost.

Published on 28 Nov 2017 by Jamie Mackenzie Smith

Full Article

Blacklists - Ten things you probably didn't know

1. Blacklists are not unlawful. No lender is compelled by law to give credit or to give any reason when declining credit. Each may consult several sources of information before making a decision, including any form of list that may exist. Any list containing personal data is automatically regulated by the Data Protection Act 1998.

Published on 9 Oct 2017 by Barry Stamp

Full Article

Is a credit building card a good idea

A credit building credit card is most often used by people that are either looking to improve their credit rating or take out their first credit card.

Published on 24 Mar 2017 by Kelly Luff

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 7 Mar 2017 by Kevin Pearce

Full Article

Impacts of late payment on your credit card agreement

We’ve all done it before – had that mad panic when we’ve forgotten to pay a bill. But what happens if you do forget to pay your credit card by the monthly repayment date?

Published on 20 Feb 2017 by Kelly Luff

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews