You talk about competitive differentiators like that, but that message isn't going to consumers, who use the cards. So does that networking innovation message go to the banks?

We obviously talk to banks and then we'll do pilots [with them]. For example, we just introduced our card we call PayPass that leverages contactless technology. We did a pilot with the New York Transit System and the bank that supports the transit system. So people take their PayPass card, touch it against the entry device or turnstile, and get into the subway, passing through very quickly.

So it's a combination: We'll work with banks and merchants, and with banks on programs they want to introduce to cardholders. Leveraging the data warehouse, we do help banks do targeted marketing and targeting rewards programs, for example, if a bank wants to do a special deal with a big electronics merchant to incent customers to use their card there. We may help them segment a portion of their portfolio that we believe, based on the data, would be interested in that kind of service.

When a consumer uses a MasterCard in a store, the transaction is usually seamless and fast. So what networking things happen in those seconds that I'm standing there at the counter?

It's pretty interesting, because like you said, the vast majority of all payments you never really think about. It always works. It's like turning on the tap and expecting water to come out.

But what really happens is: You're at the hotel, and they have a card reader on their desk when you check out. That card reader is swiped or in the case of PayPass [is used as] contactless payment, and it transmits information off your card to the merchant. The merchant is then connected to their acquiring bank, and their acquiring bank takes that transaction, knows it's a MasterCard transaction and gives it to us. We take the transaction, look at how do we best route this transaction to get it approved and send the routing information off.

The routing between the acquiring bank and the issuing bank, which is what MasterCard does, we typically call that "switching the transaction." That happens in a 140 milliseconds. An eye blink takes about 400 milliseconds. So about three transactions go through every time you blink your eyes.

At the other end of the network, as we switch to the issuer, they take it and look at your account. They'll look at things like how much room do you still have on your card. If it's a debit card: Is your debit account OK to take this [charge]. We have fraud tools that get involved to look at it to try to make sure it is not a fraudulent transaction.

And then they pass back the approval to us, and we give it back to acquirer, who gives it back to the merchant. All that happens in just a few seconds -- just a tremendous amount of processing.

How big will contactless payment become?

It's actually rolled out now. You'll see terminals at different places and devices, like in movie theaters, and fast-food restaurants that accept PayPass.