Credit cards is what comes to mind when one thinks of company greed. With their high interest rates. Imagine, you go into Starbucks to buy a cup of coffee and you pay with your credit card. Actually you are not paying at all, you are taking out a loan. You are borrowing money to buy a cup of coffee and will pay interest on that coffee. Many people, who use these cards do not have the money to pay on these cards.
Along comes the latest fad. Where former companies known for their only intent to be greed and profit for shareholders, now they are joining the concept of share value. For example, Master Card had joined in a partnership with the South African government to distribute social benefits on debit cards to more than 10 million recipients. The switch to electronic payments reduced fraud and has saved the South African government more than $250 million in the past two years.
The billions of people around the world ,85% of the population, who still pay for goods with cash are vulnerable to everything from predatory interest rates to outright theft. A cash economy also costs governments billions of dollars in uncaptured tax revenue. Mastercard has so many projects going on throughout this planet to solve some of these problems. At the same time, this has proven to be very profitable for Mastercard. In the last two years, Mastercard has signed on over 150 million people.
This is an example how share value works. A company using its expertise has teamed up with a government to help society while at the same time as a result increased its own profit. A win all around.
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