Back to top

Analyst Blog

Zacks Equity Research

MasterCard Partners DOCOMO

MA DCM

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

MasterCard Incorporated (MA - Analyst Report) announced a partnership with NTT DOCOMO, Inc. (DCM) to expand their contactless payment services to new markets. Per the deal, users of DOCOMO’s iD mobile credit payments will be able to make contactless payments in any part of the world where MasterCard’s PayPass contactless payment network is present. Currently, users can only employ iD for contactless payments within Japan, using DOCOMO’s domestic payment network.

The partnership should be beneficial for both the companies. While MasterCard’s PayPass users will have one more option for contactless payment, DOCOMO’s 17 million iD users will not be restricted from using the service by geographical boundaries. MasterCard has merchant locations in 41 countries, including the US, Korea and Taiwan, which are popular with Japanese tourists. This should expand the usage of the iD mobile payment solution.

The contactless payment business has immense scope for growth in the upcoming years. According to a senior MasterCard official, the worldwide network of near-field communication (NFC)-ready point-of-sale terminals is estimated to expand to 43.4m units by 2017, as per independent industry growth projections.

However, the partnership is expected to become active in the first half of Japanese fiscal year 2013 (The Japanese fiscal year 2013 runs from April 1, 2013 to March 31, 2014). Thereafter, DOCOMO’s customers who use iD with an NFC compatible DOCOMO smartphone will be able to use PayPass for contactless payment in all 500,000 merchant locations where PayPass is accepted. These customers will also be able to use MasterCard’s Tap & Go feature to make payments through their mobile phones. Moreover, the alliance will add two DOCOMO smartphones to MasterCard’s list of Mobile PayPass compatible devices, which currently comprises about 70 phone models.

MasterCard currently carries a Zacks #3 Rank (Short term Hold). We maintain a long-term ‘Neutral’ recommendation on the stock. Meanwhile, DOCOMO carries a Zacks #4 Rank (Sell).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%