Mastercard Inc. (MA, Financial) reported last week that retail sales in December closed out the year on a high note - and executives expect the trend to continue.
The robust holiday season saw retail sales grow 8.5%, excluding auto, the company reported. The results came via Mastercard SpendingPulse, which reports on national retail sales across all payment types in select markets around the world. The findings are based on aggregate sales activity in the Mastercard payments network, coupled with survey-based estimates for certain other payment forms, such as cash and check.
Mastercard also announced on Friday that it is collaborating with Saudi Arabia-based commercial banking services provider Banque Saudi Fransi in a bid to introduce the Mastercard Banque Saudi Fransi Lifestyle credit card across the region.
Yahoo reported the customizable cash-back credit card, which the company said seems to be a first of its kind in Saudi Arabia, “is equipped with cash-back features and caters to the diversified needs of the region’s consumers. From eight personalized cash-back categories powered within the card, cardholders can avail immediate and seamless cash-back benefits.”
Executives of the global technology company that specializes in the payments industry noted in a recent report that in 2022, "innovation will be amplified with retailers looking at different platforms and tactics for connecting with hyper-connected and, frankly, overwhelmed consumers.”
With 2022 underway, the company pointed to its SpendingPulse results and noted that “there are a number of trends to watch that build on December momentum — including new ways people are shopping and paying and innovative strategies for how retailers are reaching consumers and providing different experiences for them.”
As detailed in a new Mastercard report, these trends include buying with a purpose. “Consumers are looking for retailers that share their values, creating and delivering products in a sustainable and inclusive way,” Mastercard said. “Across the world, 85% of adults say they’re willing to take personal action to combat environmental and sustainability challenges. And 62% say it’s now more important that companies behave in sustainable and eco-friendly way.”
Another trend is commerce e-volution. Retailers and brands spent much of the pandemic shifting or expanding their digital channels, resulting in strong online sales in December. In 2022, the company expects "innovation will be amplified, with retailers looking at different platforms and tactics to reach hyper-connected consumers."
The third trend is experiential retail. Innovation has been vital as retailers began to recognize the need for cohesion between their digital and physical stores. Mastercard noted this trend resulted in “phygital” innovation in how retailers engage with customers digitally as well as in person. According to a consumer impact study, the ability to make purchases “how I want” is expected to continue, requiring retailers to offer hybrid models.
The final trend identified was "consumer privacy gets real." The demand for a personalized experience “must be met by a heightened focus on consumer privacy. ” As a result, Mastercard noted that “retailers will need to find new ways to understand and engage their digital consumers effectively.”
Despite seeing a slight increase in price after publishing the report last Thursday, shares of Mastercard were down over 1.5% on Monday at $363.84. The stock has gained approximately 4.25% over the past year.
