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Mastercard (MA) Teams Up to Boost Somalia's Digital Growth

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Mastercard Incorporated (MA - Free Report) recently collaborated with MyBank and Network International to introduce a Mastercard debit card that will enable consumers in Somalia to opt for hassle-free digital payments.

With the new physical card, consumers of the country will not only be able to utilize e-commerce channels for making online payments but also undertake digital payments at stores through several points-of-sale and at ATMs.

The latest initiative highlights Mastercard’s sincere efforts to roll out innovative card offerings for easing transactions and enhancing the efficiency of the payments process in Somalia. This, in turn, is expected to upgrade the digital payments landscape of the nation. People and businesses of the country will benefit from easier access to enhanced financial services. By offering more transaction terminals, MA intends to penetrate into the underserved sectors of Somalia and bring more parts of the country under the ambit of a growing digital space.

Additionally, customers, business clients and other users of MyBank will be able to avail faster and reliable payments at all Mastercard-accepting locations across the world as a result of the recent move. This is likely to provide a boost to the customer base of MA.

The latest partnership is expected to strengthen Mastercard’s presence in Somalia. MA already boasts of a strong base in the country as it was the first international payments network to issue and accept card payments across the country back in 2015. Since then, Mastercard continues to make constant efforts to upgrade the utilization benefits of cards and promote popularity of digital payments throughout the country.

Initiatives similar to the latest one underscore Mastercard’s focus on infusing digitization across every sphere of life. This leader in the payments technology industry pursues rampant digital transformation efforts to build a strong worldwide digital economy. Recently, MA collaborated with Trinidad & Tobago International Financial Centre (“TTIFC”) with an aim to roll out solutions for boosting digital growth across Trinidad & Tobago and more broadly in the Caribbean. The recent move will also help Mastercard in moving a step closer to its global target of bringing 1 billion people and 50 million micro and small businesses under the ambit of a digital economy within 2025.

Mastercard, which carries a Zacks Rank #3 (Hold), remains the preferred choice for partners owing to its strong brand name, local knowledge, expanded capabilities, extensive network and global presence. Hence, MA keeps on collaborating with several renowned organizations and pursues significant investments to upgrade digital capabilities. This, in turn, has led to creation of a robust digital services portfolio on the back of which Mastercard has facilitated enhanced management of global payments.

Apart from Mastercard, other companies like Visa Inc. (V - Free Report) , American Express Company (AXP - Free Report) and The Western Union Company (WU - Free Report) have also resorted to several digital transformation efforts for capitalizing on a growing digital era.

Visa continues to launch innovative and secured digital payment solutions amid the payments industry and replace age-old processes. V has several programs in place for aiding fintechs, including an accelerator program, Visa Fintech Partner Connect and Fast Track program. Visa pursues collaboration with several fintechs for enhancing its digital capabilities and penetrating further into the underserved areas through technological offerings.

American Express has been committed to launching secured digital payment solutions and technology upgradations to cater to the growing adoption of digital means. AXP has also pursued several buyouts and partnerships in the past, which were aimed at solidifying its digital capabilities. American Express also launches tools for assisting businesses in regulating payments.

Western Union boasts of a robust digital arm, which it has built on the back of several digital partnerships and significant investments. WU has been teaming up with global and local financial service providers for building a solid digital services portfolio, and digitizing the money movement process for consumers and businesses.

Shares of Mastercard have lost 6.2% in a year compared with the industry’s decline of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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While shares of American Express has gained 42% in a year, stocks of Visa and Western Union have lost 6.7% and 24.2%, respectively, in the same time frame.