Time to Get Serious about Smart Cards: So Says MasterCard's New Strategist, Christian Fredrick

By Arend, Mark | ABA Banking Journal, March 1994 | Go to article overview

Time to Get Serious about Smart Cards: So Says MasterCard's New Strategist, Christian Fredrick


Arend, Mark, ABA Banking Journal


Last month, A. Christian Fredrick started work at MasterCard International as senior vice-president, strategic planning, which is a new position for the card association. (Exiting the association is Alex "Pete" Hart, president and CEO of MasterCard International. Hart's replacement is Eugene Lockhart, formerly of First Manhattan Consulting Group and Midland Bank, London.)

Fredrick comes from Fleet Financial Group, Providence, where he managed the banking company's credit-card business and managed the organization's automated teller machine (ATM) program.

Reporting to Peter Dimsey, president of MasterCard's U.S. region, Fredrick will offer strategic planning support for the region's three primary business lines: credit services, debit services, and remote banking.

Expanding the functionality of card-based products and offering consumers additional payment options are among Fredrick's goals.

The following are excerpts from a recent interview with Fredrick, conducted by Technology Editor Mark Arend.

Q.What is the gist of your role at MasterCard as director of strategic planning?

Fredrick: MasterCard is evolving from a credit card company to a payment services company. Broadly defined, that means giving the consumer payment services alternatives to pay before, pay now, and pay later for goods and services. Pay later is the credit card; pay now is the debit card. What's missing in the United States is the electronic pay before alternative. One of my assignments at MasterCard is to work on a pay-before product and introduce a service that is compatible with such products in the rest of the world so that we're not reinventing the wheel and having to fix problems later.

This means deciding what the technology will be--it may be a magnetic stripe-based card or a microchip-based one. We'll also have to define some standards to allow whatever technology is used to become generally accepted. Pay-before cards in existence today tend to be proprietary, such as those on some college campuses.

Q.What other projects do you have in mind?

Fredrick: Strategic planning for MasterCard involves looking two and three years out to see what the market for MasterCard's products looks like, what the association's membership will look like, its marketing strategy, and its market share--and to do that on an international basis. However, about 75% of my responsibilities will be focused in the U.S.

Q.Is criticism that the card associations have been reactive, not proactive, in smart-card development justified?

Fredrick: I don't think it's entirely justified. The card associations over the past few years have been very much involved in developing the debit products. Had I been directing MasterCard's strategy over the past few years, the debit card would have been at the top of my priority list, and I'd have taken a wait-and-see attitude on "chip" or smart cards. There is the feeling now in the industry that the time has come to begin some serious work on chip cards, and frankly, that's what I've been hired to do.

Q. Will you be involved in The Smart Card Forum, the group established last year to develop standards and sponsor smart-card projects?

Fredrick: I hope to be a key participant in that group, because they're doing some of the things that I've been asked to do. (See ABA BJ, July 1993, p. 70.)

Q. For all the marketing efforts of

the card associations, debit cards seem slow to catch on. To what do you attribute this?

Fredrick: The battle on the debit card front needs very much to be fought in the merchant community. The battle isn't MasterCard versus Visa, but rather it's convincing the merchants that direct debit at the point of sale is a service the consumer wants and should be available to them when the customer gets to the register.

Debit card usage is very spotty around the country. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Time to Get Serious about Smart Cards: So Says MasterCard's New Strategist, Christian Fredrick
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.