Mastercard Incorporated ( MA Quick Quote MA - Free Report) recently joined forces with the renowned consumer electronics manufacturer, Xiaomi, in a bid to roll out an upgraded version of Mi Smart Band 6. The tie-up, now extended to 19 European countries, is expected to broaden its reach in the coming months.
The wearable device is equipped to provide accelerated and secured contactless payments. The band is also armed with features to offer enhanced communication capabilities and navigate the personal health of individuals. The partnership is aimed at offering increased options and convenience to consumers and concurrently making payments hassle-free.
The recent move reinforces Mastercard’s sincere efforts to tap robust prospects prevailing in the global contactless payments market. Though such payments have been in use for quite some time, it was the coronavirus pandemic that highlighted the risks associated with physical handling of cash or checks. This, in turn, swayed people toward digital payment options and compelled most businesses to rethink about devising payment methods to catering to the evolving needs of consumers. As a result, innovation and technology became crucial to businesses and their endeavors.
The alliance seems to be a time opportune one as well, considering the growing contribution of smartphones and wearable devices toward the global digital boom. Along with credit or debit cards, mobile wallets or wearables now form an integral part of the payment ecosystem.
Case in point, the global wearable payment device market is anticipated to witness a CAGR of 13.6% over the 2021-2026 period, per MarketsandMarkets. Increased usage of contactless cards and wearable devices, higher demand for safe and contactless payments, and integration of advanced technologies into wearables are likely to drive demand for the wearable device market in the days ahead. These devices also owe its popularity to features that monitor one’s personal health on a daily basis, a crucial factor especially amid rising health concerns in a post-COVID-world.
Time and again, Mastercard has left no stone unturned to bring about innovations and enter into digital partnerships to revolutionize payments capabilities. Recently, it tied up with TNM Mpamba. As a result of the partnership, a Mastercard solution has been rolled out that is aimed at offering seamless e-commerce transactions for mobile money wallet users of Malawi.
The company remains focused on pursuing several digital transformation efforts globally. Mastercard has invested significantly to upgrade its digital capabilities through which the company offers secured payment gateways for its massive customer base and paves the way for easier payment experience worldwide. The company remains the preferred choice of partner for companies owing to its strong brand name, local knowledge, expanded capabilities, extensive network and global presence.
Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 1.3% in a year against the
industry’s decline of 8.5%. Image Source: Zacks Investment Research Stocks to Consider
Some better-ranked stocks in the financial transaction services space include
EVERTEC, Inc. ( EVTC Quick Quote EVTC - Free Report) , Global Payments Inc. ( GPN Quick Quote GPN - Free Report) and Visa Inc. ( V Quick Quote V - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
EVERTEC, Global Payments and Visa have a trailing four-quarter earnings surprise of 28.42%, 4.02% and 9.03%, on average, respectively.