Mastercard Incorporated ( MA Quick Quote MA - Free Report) recently inked a seven-year deal with LATAM Airlines Group in a bid to improve the travel experience for passengers globally via digitization. Notably, LATAM Airlines Group is the leading airline group of Latin America.
The latest agreement will see Mastercard and LATAM Airlines Group working on launching credit card solutions and benefits. This, in turn, is likely to offer safe and contactless technologies for addressing changing needs of frequent commuters.
Notably, Mastercard and the frequent flyer program of Latin America — LATAM Pass, have been working closely for quite some time. They have been working with issuing banks, and unveiled co-branded credit cards and benefits aimed at helping the loyal customers while they travel across over 115 destinations that come under the LATAM network.
Further, the new deal comprises two implementation phases. The first phase has already commenced with the extension of LATAM Pass credit cards’ benefits across Chile, Argentina, Brazil and Ecuador. The second phase that involves covering other relevant markets across Latin America will be initiated later in 2021. Several new benefits and Mastercard LATAM Pass programs, once available, will be introduced by both companies in due course of time.
Moreover, the recent move seems to be a time opportune one considering the ongoing trend of launching digital solutions by most industries worldwide. In sync with the trend, most of the travel companies, which once operated as a brick-and-mortar company, embraced technological advancements to eliminate geographical obstacles. Easier access to internet services and increased smartphone usage have paved way for travel companies to shift toward employing mobile apps rather than relying on traditional paper. These upgradations pave the way for customers to avail contactless commuting experiences amid gradual reopening of the global transportation system.
Through Mastercard Transit Partner Program, the company has been collaborating with transit operators, service providers and technology partners for launching innovative transit solutions worldwide. These persistent efforts have been bolstering Mastercard’s capabilities and strengthening its foothold across the transit space. Earlier, the company partnered with Transport for New South Wales ("NSW") for rolling out an innovative prepaid card solution for benefiting transport users of NSW. It had also forged an alliance with Department of Transport and Main Road ("TMR") Queensland in a bid to provide advanced payment technologies for transport users across the Gold Coast Light Rail network.
Other companies in the same space have also taken steps to simplify the transit experience. This year,
Visa ( V Quick Quote V - Free Report) partnered with Monterey-Salinas Transit ("MST") to launch contactless payment option and offer equitable fare payment system to California residents. Also, Global Payments Inc. ( GPN Quick Quote GPN - Free Report) utilizes its core processing platform to bring out enhanced payment technologies for customers while availing the public transport. EVO Payments, Inc. ( EVOP Quick Quote EVOP - Free Report) joined forces with On Track Innovations for providing end-to-end payment solutions with an aim to uphold the transit experience. Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 29.5% in a year compared with the
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