MasterCard had its origins in the late 1940s when several U.S. banks started giving their customers specially-issued paper that could be used like cash in local stores. The Franklin National Bank in New York formalized the practice by introducing the first real credit card in 1951.

Over the next decade, several franchises evolved where a single bank in each major city would accept cards as payment with certain merchants they'd chosen to work with. On August 16, 1966, one of these groups formed the Interbank Card Association (ICA) which later became MasterCard International.

Unlike other similar organizations, ICA was not dominated by a single bank. Member committees were established to run the association. They established rules for authorization, clearing, and settlement. They also handled marketing, security, and legal aspects of running the organization.

Once the organization was well underway, it was time to expand globally. In 1968, ICA began what is now a huge global network by forming an association with Banco Nacional in Mexico. Later that year, they formed an alliance in Europe with Eurocard. The first Japanese members also joined that year.

Many countries followed close behind the early international members and by the late 1970s, ICA had members from as far as Africa and Australia. To reflect the commitment to international growth, ICA changed its name to MasterCard International. In the 1980s, there was further expansion into Asia and Latin America. In 1987, MasterCard became the first payment card to be issued in the People's Republic of China. In 1988, the first MasterCard card was issued in the Soviet Union.

By 2005, MasterCard had committed itself to a new, customer-focused strategy that aligned its advisory and processing capabilities with its long-standing role as a franchisor. This three-tiered business model crystallized the company's positioning as a franchisor, processor, and advisor, and laid the groundwork for its transition to a more transparent governance model and initial public offering. Today and beyond, MasterCard continues to innovate and grow the range of products and services the company brings to market through our strong partnerships with our customers.