Mastercard (NYSE:MA) sees its value-added services business as a durable source of growth, with artificial intelligence, security products and agentic commerce creating opportunities to expand, Chief Services Officer Linda Kirkpatrick said.
The Value-Added Services and Solutions business accounts for 40% of Mastercard’s revenue and is growing in the high teens, Kirkpatrick said during a company discussion. The business includes consulting and insights, security services, and cardholder engagement offerings such as marketing, rewards and loyalty.
Kirkpatrick said the services help Mastercard win payments business as well as support customers beyond payments. She pointed to the company’s transaction, open finance and real-time payments data, along with its relationships with banks, merchants and digital partners, as advantages in a competitive market that includes consulting, media and cybersecurity companies.
Recurring Revenue and Growth Plans
About 60% of the services business is driven by activity connected to Mastercard’s network, while 85% of overall services revenue is recurring, Kirkpatrick said. She described a cycle in which network activity generates data and insights that help attract more business.
Mastercard plans to grow by selling more services to existing customers, reaching smaller businesses through partners such as processors and acquirers, and developing new capabilities organically and through acquisitions, she said.
Kirkpatrick also said the company’s geographic, customer and product diversity helps it navigate different economic conditions. During downturns, customers may seek help stimulating a portfolio, preventing fraud or developing marketing campaigns, she said.
AI and Security Demand
Kirkpatrick characterized AI as a tailwind for Mastercard, while noting that the technology also makes fraud more accessible. More than a third of Mastercard’s services capabilities already have AI embedded, she said, and revenue from AI-enabled services is growing faster than revenue from services without it.
She cited Decision Intelligence Pro, a risk-scoring product for merchants and issuers, as an example. Mastercard raised pricing for the product last year after improving fraud detection by 300%, Kirkpatrick said.
Security remains central to customer discussions, Kirkpatrick said, spanning fraud management, identity verification and cybersecurity. Mastercard is combining payment insights with capabilities from its acquisition of threat intelligence company Recorded Future, she said. Recorded Future also works with more than a dozen governments, offering Mastercard opportunities to reach customers beyond issuers and merchants.
Agentic Commerce Still Small
Kirkpatrick said Mastercard views agentic commerce, in which AI agents can search and transact on behalf of users, as another potential growth driver. The company has launched Agent Pay for payment credentials, Agent Connect to help merchants become discoverable to agents, and an Agent Trust Indicator to score transaction risk, she said.
Mastercard has also launched Agent Suite, which gives customers access to its agents with security, insights and marketing capabilities, and has consulting engagements with issuers and merchants using agentic solutions.
Asked about timing, Kirkpatrick said the opportunity is currently small and that adoption will depend on consumer and business trust, not just technology availability. She did not give a timetable for broader adoption.
Services Support Customer Wins
Kirkpatrick said services can open doors with prospective customers even before Mastercard wins their core payments business. She cited Pinnacle Bank, health technology company evermore, Scotiabank and Turkey’s Yapı Kredi as examples where services contributed to customer relationships or new business.
Mastercard recently extended its work with Scotiabank into Chile, Uruguay and Mexico, building on relationships in Peru and the Caribbean, she said. The bank valued Mastercard’s consulting and loyalty capabilities, according to Kirkpatrick.
On acquisitions, Kirkpatrick said Mastercard evaluates potential targets for strategic fit, customer demand, scalability, sustainable growth and operating leverage. She cited Recorded Future and BVNK as recent acquisitions and said deals complement partnerships and internal innovation.
About Mastercard (NYSE:MA)
Mastercard Incorporated is a global payments technology company that operates a network connecting consumers, merchants, financial institutions, businesses and governments. Its network supports electronic payments, including transactions made with Mastercard-branded credit, debit and prepaid cards, as well as digital payment methods. The company provides technology for authorizing, clearing and settling transactions. It also offers services related to cybersecurity, identity verification, data analytics, fraud prevention and payment consulting.
