Mastercard Incorporated ( MA Quick Quote MA - Free Report) recently collaborated with Jordan-based real-time payment solutions company, ProgressSoft, in a bid to enhance processing of cross-border payments by banks throughout the Middle East and North Africa (MENA) region. Consequently, MA intends to jointly ease and accelerate cross-border remittances throughout the MENA region with the partnership.
This will be made possible via integration of the Mastercard Cross-Border Services platform within the banks.
Shares of Mastercard gained 1.9% on Dec 7.
The MA platform paves the way for seamless processing of digital payments resulting in fast and secured cross-border payments globally. These payments will also not require any back-end charges.
Once the Mastercard platform gets successfully implemented across the region’s well-established banks, the partnership between MA and ProgressSoft will play a crucial role. The tie-up intends to reduce the time (by at least 50% when compared to before) required for integrating the Mastercard platform within banks. The banks, which will be part of the platform, will be relieved of the stress of remittance certification process.
Coming back, the latest alliance will also be beneficial to this Zacks Rank #3 (Hold) technology company in the global payments industry. If the onboarding process by banks continue to progress at a rapid pace, MA will be able to more effectively expand its Cross-Border Services network across the MENA region. ProgressSoft seems to be an apt partner for complementing Mastercard’s endeavor of bolstering presence in the MENA region.
The latest partnership can be deemed as a time opportune one as well. The COVD-19 pandemic made digital money transfers the need of the hour for addressing emergency needs. Consequently, Mastercard remains focused on promoting digitization of the money movement process.
Given robust consumer demand for faster remittances, the Mastercard Cross-Border Services platform is apt for capitalizing on the prevailing scenario. The platform continues to roll out innovative digital offerings aimed at facilitating cross-border payments across even the most inaccessible regions of the globe.
Mastercard has been focused on collaborating with global and regional financial service providers in a bid to upgrade the money movement process for consumers and businesses. In November 2021, MA expanded ties with
Western Union ( WU Quick Quote WU - Free Report) for addressing domestic and international money transfer needs of clients. One month prior to that, Mastercard collaborated with Previse in a bid to accelerate cross-border payments of businesses to suppliers.
Mastercard has been resorting to a digital partnership strategy and undertaking significant investments to upgrade its digital capabilities. MA remains the preferred choice of fintechs owing to its strong brand name, local knowledge, expanded capabilities, extensive network and global presence.
Similar to Mastercard, other companies such as Western Union,
Visa Inc. ( V Quick Quote V - Free Report) and MoneyGram International, Inc. ( MGI Quick Quote MGI - Free Report) have also resorted to digital partnerships for capitalizing on the solid demand for hassle-free cross-border payments.
Western Union was able to build a robust digital arm through several digital tie-ups and substantial investments. WU has been entering into several collaborations with global and local financial service providers, which are aimed at bolstering digital services portfolio, facilitating enhanced management of global payments and bolstering customer experience. In November 2021, Western Union teamed up with Metrobank so that inbound money transfer receivers in the Philippines can directly receive money into bank accounts.
Visa facilitates seamless and secure transfer of funds on a real-time basis worldwide. For complementing its endeavor, V pursues collaborations to aid the cross-border payments industry with innovative digital solutions to replace age-old processes. Visa B2B Connect delivers innovative B2B cross-border payments and keeps on adding partners to its network.
MoneyGram has been expanding its digital money transfer business rapidly via constant partnerships and significant investments. MGI has a solid pipeline of new digital partners in place in an effort to bolster growth prospects of this arm. As a result, MoneyGram anticipates its digital business to cross over 50% of all money transfer transactions in 2024.
Shares of Mastercard have inched up 0.7% in a year against the
industry’s decline of 22%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Image Source: Zacks Investment Research
While MoneyGram stock has gained 18.7% in a year, shares of Visa and Western Union have lost 1% and 22.3%, respectively, in the same time frame.