We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mastercard (MA) Scales Click to Pay to Prevent Payment Fraud
Read MoreHide Full Article
Mastercard Incorporated (MA - Free Report) recently announced that it is expanding the use of its Click to Pay solution in Australia. Click to Pay is a tokenized way of transacting online, which enhances the checkout experience and security for customers. This solution is compatible with the majority of credit and debit cards in Australia, and users can avail this option by visiting MA’s website. Click to Pay is expected to aid MA in combating online payment fraud in Australia.
The company also partnered with Worldpay in an attempt to reduce chargebacks by offering merchants its Ethoca Alerts solution. This solution would help warn merchants to prevent a dispute from becoming a chargeback and aid in reducing possible financial losses due to fraudulent activities. Industry-wide chargeback volumes are expected to rise 42% to 337 million by 2026.
Moves like this should help Mastercard provide flexible and seamless ways to prevent fraud. Per AusPayNet data, Australians lost $608.1 million in 2023 due to card-not-present frauds. Hence, MA’s new solution, which eliminates the need to manually enter card details, aims to tackle 90% of payment card frauds. Cardholders can access their cards at the checkout with the help of an email lookup and two-factor authentication before the payment is made.
Retailers experience reduced checkout time and higher checkout conversion rates, while financial institutions benefit from better fraud decisions and higher transaction approvals. This move is expected to act as a moat for Mastercard and aid in retaining its clients. MA aims to enhance the online customer experience with Click to Pay the same way it introduced the contactless payments concept in offline stores. Merchants like Reading Cinemas, Skip, Dominos and many others have started using this solution and MA currently has this solution live in more than 30 countries with plans of expansion in the future.
Shares of Mastercard have gained 34.9% in the past year compared with the industry’s 26.2% growth. MA currently carries a Zacks Rank #3 (Hold).
The bottom line of Duolingo outpaced estimates in each of the last four quarters, the average surprise being 111.5%. The Zacks Consensus Estimate for DUOL’s 2024 earnings is pegged at $1.38 per share, which increased nearly four-fold from the year-ago reported figure. The consensus estimate for revenues suggests growth of 36.5% from the year-ago reported number. The consensus mark for DUOL’s 2024 earnings has moved 48.4% north in the past 30 days.
PagSeguro Digital’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 10.1%. The Zacks Consensus Estimate for PAGS’ 2024 earnings indicates an improvement of 17.4% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 2.4% from the year-ago reported number. The consensus mark for PAGS’ 2024 earnings has moved 5.8% north in the past 30 days.
CompoSecure’s earnings outpaced estimates in three of the trailing four quarters, matching the mark once, the average surprise being 8%. The Zacks Consensus Estimate for CMPO’s 2024 earnings indicates an improvement of 12.4% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 6.5% from the year-ago reported number. The consensus mark for CMPO’s 2024 earnings has moved 0.9% north in the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Mastercard (MA) Scales Click to Pay to Prevent Payment Fraud
Mastercard Incorporated (MA - Free Report) recently announced that it is expanding the use of its Click to Pay solution in Australia. Click to Pay is a tokenized way of transacting online, which enhances the checkout experience and security for customers. This solution is compatible with the majority of credit and debit cards in Australia, and users can avail this option by visiting MA’s website. Click to Pay is expected to aid MA in combating online payment fraud in Australia.
The company also partnered with Worldpay in an attempt to reduce chargebacks by offering merchants its Ethoca Alerts solution. This solution would help warn merchants to prevent a dispute from becoming a chargeback and aid in reducing possible financial losses due to fraudulent activities. Industry-wide chargeback volumes are expected to rise 42% to 337 million by 2026.
Moves like this should help Mastercard provide flexible and seamless ways to prevent fraud. Per AusPayNet data, Australians lost $608.1 million in 2023 due to card-not-present frauds. Hence, MA’s new solution, which eliminates the need to manually enter card details, aims to tackle 90% of payment card frauds. Cardholders can access their cards at the checkout with the help of an email lookup and two-factor authentication before the payment is made.
Retailers experience reduced checkout time and higher checkout conversion rates, while financial institutions benefit from better fraud decisions and higher transaction approvals. This move is expected to act as a moat for Mastercard and aid in retaining its clients. MA aims to enhance the online customer experience with Click to Pay the same way it introduced the contactless payments concept in offline stores. Merchants like Reading Cinemas, Skip, Dominos and many others have started using this solution and MA currently has this solution live in more than 30 countries with plans of expansion in the future.
Shares of Mastercard have gained 34.9% in the past year compared with the industry’s 26.2% growth. MA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Business Services space are Duolingo, Inc. (DUOL - Free Report) , PagSeguro Digital Ltd. (PAGS - Free Report) and CompoSecure, Inc. (CMPO - Free Report) . Duolingo and PagSeguro Digital currently sport a Zacks Rank #1 (Strong Buy), while CompoSecure carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Duolingo outpaced estimates in each of the last four quarters, the average surprise being 111.5%. The Zacks Consensus Estimate for DUOL’s 2024 earnings is pegged at $1.38 per share, which increased nearly four-fold from the year-ago reported figure. The consensus estimate for revenues suggests growth of 36.5% from the year-ago reported number. The consensus mark for DUOL’s 2024 earnings has moved 48.4% north in the past 30 days.
PagSeguro Digital’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 10.1%. The Zacks Consensus Estimate for PAGS’ 2024 earnings indicates an improvement of 17.4% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 2.4% from the year-ago reported number. The consensus mark for PAGS’ 2024 earnings has moved 5.8% north in the past 30 days.
CompoSecure’s earnings outpaced estimates in three of the trailing four quarters, matching the mark once, the average surprise being 8%. The Zacks Consensus Estimate for CMPO’s 2024 earnings indicates an improvement of 12.4% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 6.5% from the year-ago reported number. The consensus mark for CMPO’s 2024 earnings has moved 0.9% north in the past 30 days.