U.S. Bancorp’s ( USB Quick Quote USB - Free Report) primary subsidiary, U.S. Bank, has collaborated with Mastercard ( MA Quick Quote MA - Free Report) , a global payment solution company, to offer enhanced fleet management solutions through the new U.S. Bank VoyagerMastercard.
This builds on the company’s U.S. Bank Voyager Fleet Card that can be used at more than 320,000 locations across the United States to pay for fuel, maintenance and other expenses, using the proprietary Voyager Network.
The new U.S. Bank VoyagerMastercard fleet card will be accepted on both Voyager and Mastercard networks, with wider geographical coverage in domestic remote locations as well as Canada and Mexico.
In addition to fuel and maintenance, drivers can use the card for numerous other fleet-related purchases, including toll roads or parking fees, emergency tows or repairs, and emergency or on-demand travel expenses. Thus, by expanding the utility of the card and making it a dual network solution, the company has eased fleet-related expense management for users, eliminating the need to maintain numerous cards.
By collaborating with Mastercard, The U.S. Bank Voyager Mastercard will offer other perks and Mastercard services like MasterRental Insurance, Purchase Assurance, Extended Warranty and travel assistance through MasterAssist Services.
U.S. Bank’s management informed, “having the capability to cover and control unexpected and planned purchases on two major networks delivers unprecedented flexibility to support fleet operations and productivity.”
By offering higher flexibility and ease to manage fleet-related expenses, the company is likely to see notable transaction growth, which will propel it to capture additional overall revenues.
Erika Gamboa, vice president, account management at Mastercard, noted, “together, we are able to provide an enhanced payment experience for fleet drivers with enhanced safety, security and travel benefits.”
Shares of this Zacks Rank #3 (Hold) company have gained 13.6% over the past six months, underperforming the
industry’s 13.9% rally.
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The COVID crisis accelerated the use of electronic forms of payments, with much greater adoption of digital and contactless solutions. The digital form of payments is expected to sustain beyond the pandemic. Key trends include a preference for contactless transactions and the rapid adoption of e-commerce. Aversion to cash, merchant requirements for omnichannel acceptance and a need to automate business-to-business payments are catching up fast.
Hence, the company has been focusing on enhancing digital payment solutions. Earlier this month, U.S. Bank entered an agreement to acquire fintech company Bento Technologies. The transaction is anticipated to close in September and underlines the company’s efforts to scale digital payment capabilities.
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