STRATEGIC PARTNERS
Globally, MasterCard's Cirrus network has now surpassed Visa's Plus in ATM connections. And in the U.S., both networks are now on virtually equal footing in offering account access to debit cardholders.
August 20, 2002
Reprinted with permission from ATM&Debit News, a weekly electronic newsletter based in Chicago. Subscriptions available at 212-631-9780 or go to thisWeb site.
MasterCard International's Cirrus network historically has trailed Visa International's Plus network in connections to ATMs. But the image of Cirrus as the smaller of the two global ATM networks, both known commonly as networks of last resort, is changing.Globally, Cirrus has now surpassed Plus in ATM connections. And in the U.S., both networks are on virtually equal footing in offering account access to debit cardholders.
Both Visa and MasterCard say their ATM network marks are on nearly all U.S. ATMs and on the majority of ATMs globally. MasterCard claims that more than 790,000 ATMs in 100 countries carried the Cirrus mark as of June, while Visa says Plus is connected to 785,000 ATMs in 139 counties.
Visa says 356,000 ATMs are connected to the Plus network in the U.S., up 16 percent from 307,000 connections a year ago. MasterCard claims 325,000 Cirrus ATM connections in the U.S. as of the end of 2001, up a dramatic 90 percent from 171,000 connections in 1998.
However, Cirrus' and Plus' near universal coverage means little to deployers looking to offer value-added services on their machines such as shared deposits. While regional networks generally support such functions, Cirrus and Plus do not. For that reason, both networks now say adding functionality will become a top priority.
Indeed, with two regional electronic funds transfer networks -- Star and NYCE -- now offering coast-to-coast ATM connections, some industry observers question the value of universal Cirrus and Plus connections in the U.S.
"It's good for public relations, but if I were serious about taking some actions as a deployer, I'm certainly going to look at functionality, too," says George Albright, chairman of the Atlanta-based Speer & Associates consultancy.
Pending legislation, for example, would allow instant posting of ATM deposits through electronic check imaging. Star, which has at least five times the switch volume as Plus in the U.S. but 132,000 fewer ATM connections, and NYCE also have virtually matched MasterCard's and Visa's issuer-paid interchange rate of 50 cents per withdrawal.
But both associations plan to better leverage their ATM marks. Visa early in 2003 will begin supporting shared deposits through Plus, says John Brinnon, Visa vice president of ATM products. "We are in the process of finalizing that function as we speak," Brinnon tells ATM&Debit News.
MasterCard also intends to expand Cirrus' functionality, says Rick Lyons, MasterCard senior vice president of North America deposit access. But Lyons would not say what type of added functions Cirrus may support.
