Mastercard is investing $200m in a US store for the first time in years to boost its overseas presence.
Key points:Mastercard says it will open an online shop in the UK to help shoppers access its Visa debit cardThe company says it has “long-standing relationships” with retailers in the United States and EuropeThe online store will be located at a number of the UK’s key tourist destinations, including Brighton, London and ParisIn an effort to broaden its customer base, Mastercard will open its first UK-based shop in Brighton on Wednesday, as part of a plan to boost overseas spending.
The company said it would be the first retailer in the world to open an outlet in the U.K. since the Visa card, introduced in the late 1980s, was introduced in 2010.
“With the introduction of the Visa debit, our customers in the first three years of the rollout were able to shop with confidence and confidence that our payment technology would support them to complete transactions in a timely fashion,” Mastercard said in a statement.
“Mastercard UK will be a catalyst for growth for our business in the long term.”
The company added that its US-based US online shop would be a “great place to start” and would have a presence across the country, including “in a number, if not most, major tourist destinations.”
The launch comes after Mastercard’s chief executive officer, John Rydstrom, told a British newspaper that the company’s global business would be hit hard by the UBS report.
He said the impact on the company was “incredibly serious”.
“It’s a significant blow to the company, it’s a huge blow to our business, it has a huge impact on our brand and our ability to do business,” he said.
“The global impact is going to be massive.”
Rydstrom said that Mastercard was “working hard” to ensure the financial services industry would be “in the driver’s seat” of the future.
“We have long-standing relations with a number [of] retailers in Europe and the United Kingdom,” he added.
“Our retail partners in those markets are seeing the impact and they are responding accordingly.”
He said there was a “fairly broad range” of retailers, including a number in the country’s tourist markets.
“But we also have some who have long established relationships with retailers who have very significant relationships with us,” he told the Times newspaper.
“And we’re also in those locations that are really popular with tourists.”
In May, MasterCard announced plans to open a number U.S. stores, including its first online store, in New York, California, and Las Vegas, Nevada.
It has been trying to sell the card in the Middle East, Asia and Africa for a number years, as the market in the region has remained relatively undeveloped.
The US and Europe have seen a number high-profile card failures over the past year.
Mastercard has also struggled to maintain its reputation in China, where the company has seen a wave of consumer-led boycotts.
In January, the bank admitted to having been involved in a $2.4 billion fraud scheme with a Chinese customer, which it described as a “very significant failure”.
In March, the regulator announced it was launching a probe into the company after it emerged that MasterCard had not properly accounted for $6.2 billion of foreign currency it had spent on credit cards in the year ending March.