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Mastercard (MA) Ties Up to Ease Credit Lending in Asia Pacific
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Mastercard Incorporated (MA - Free Report) recently partnered with Singapore-based renowned enterprise software company Eureka AI in a bid to benefit MA’s Asia Pacific customers with enhanced analytics and technology solutions. Consequently, customers will gain from better credit and risk scoring, and accelerated lending decisions.
With the latest tie-up, Mastercard customers can avail the cutting-edge products and solutions portfolio of Eureka Al, within which Credit Score and Location Check solutions make use of telco records and aid in identifying loan default risks.
The recent partnership can prove to be beneficial to small and medium enterprises ("SMEs"), which can now seamlessly receive credit facilities required for sustaining business operations. Also, Eureka AI offers unique credit risk assessment tools to creditors with SME Score being one, which can help in reducing the risk components. This move comes at an opportune time since SMEs have been grappling with inadequate resources and financial uncertainties due to the COVID-19 pandemic and are in dire need for credit to recover from the same.
The latest tie-up reinforces Mastercard’s sincere efforts to capitalize on the growing demand for real-time structured decision-making amid the lending ecosystem, which can actually ease the credit lending process. This, in turn, will help both lenders and receivers of credit facilities. Lenders can easily check the credit worthiness while providing loans, which in turn will reduce the cases of loan default. At the same time, customers in dire need of credit can receive the same in a hassle-free manner and focus on business’ growth prospects. Also, customers keen to avail credit facilities for the first time as well as the underbanked ones will benefit as a result of the latest move.
What makes the recent initiative noteworthy is the region in which it has been undertaken. While only 15% of Asia’s micro, small and medium enterprises (“MSMEs”) can access formal credit, small businesses and women entrepreneurs throughout the region are clearly in need of credit facilities. As Asia Pacific SMEs account for a majority of the region’s total businesses and contribute substantially to its economic growth, the latest move is of great significance.
Initiatives similar to the latest one are expected to boost Mastercard’s presence across the Asia-Pacific region as well. Eureka AI seems to be the apt partner for complementing MA’s endeavor since the former has sound advanced analytics expertise on account aggregator data that offers a better understanding of customer needs and risk profiles.
This Zacks Rank #3 (Hold) technology company in the global payments industry keeps on partnering with numerous well-established organizations and delivering several innovative digital payment solutions to bring more SMEs under the ambit of a growing digital economy. Among several other moves to complement the motive of digitizing small businesses, Mastercard joined forces with HDFC Bank, U.S. International Development Finance Corporation (“DFC”) and U.S. Agency for International Development (“USAID”) in October 2021 to introduce a credit facility of $100 million. By 2025, MA targets to include 50 million micro and small businesses within the digital economy.
Similar to Mastercard, other companies making concerted efforts to help SMEs include American Express Company (AXP - Free Report) , Visa Inc. (V - Free Report) and Global Payments Inc. (GPN - Free Report) .
For benefiting SMEs, American Express continues to undertake a host of measures focused on technology upgradations, the introduction of secured digital solutions and assisting businesses in regulating payments. The Global Commercial Services segment of AXP offers a diverse array of cards, and payment, expense management and commercial financing solutions in a bid to assist small businesses.
Visa has always been committed to providing necessary help to small businesses, ranging from technological assistance to empowering them with enhanced payments solutions. V has been catering to the unique needs of small and medium-sized businesses through the Small Business Hub, which was launched in 2020.
Global Payments works closely with over 3.5 million small and midsize businesses, and helps them by rolling out enhanced and secured payments technology solutions. GPN equips these businesses with seamless acceptance of payments in all commerce channels, thereby resulting in better and secured outcomes for customers.
While shares of American Express and Visa have gained 36.9% and 0.8%, respectively, in a year, Global Payments stock has lost 34.2% in the same time frame.
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Mastercard (MA) Ties Up to Ease Credit Lending in Asia Pacific
Mastercard Incorporated (MA - Free Report) recently partnered with Singapore-based renowned enterprise software company Eureka AI in a bid to benefit MA’s Asia Pacific customers with enhanced analytics and technology solutions. Consequently, customers will gain from better credit and risk scoring, and accelerated lending decisions.
With the latest tie-up, Mastercard customers can avail the cutting-edge products and solutions portfolio of Eureka Al, within which Credit Score and Location Check solutions make use of telco records and aid in identifying loan default risks.
The recent partnership can prove to be beneficial to small and medium enterprises ("SMEs"), which can now seamlessly receive credit facilities required for sustaining business operations. Also, Eureka AI offers unique credit risk assessment tools to creditors with SME Score being one, which can help in reducing the risk components. This move comes at an opportune time since SMEs have been grappling with inadequate resources and financial uncertainties due to the COVID-19 pandemic and are in dire need for credit to recover from the same.
The latest tie-up reinforces Mastercard’s sincere efforts to capitalize on the growing demand for real-time structured decision-making amid the lending ecosystem, which can actually ease the credit lending process. This, in turn, will help both lenders and receivers of credit facilities. Lenders can easily check the credit worthiness while providing loans, which in turn will reduce the cases of loan default. At the same time, customers in dire need of credit can receive the same in a hassle-free manner and focus on business’ growth prospects. Also, customers keen to avail credit facilities for the first time as well as the underbanked ones will benefit as a result of the latest move.
What makes the recent initiative noteworthy is the region in which it has been undertaken. While only 15% of Asia’s micro, small and medium enterprises (“MSMEs”) can access formal credit, small businesses and women entrepreneurs throughout the region are clearly in need of credit facilities. As Asia Pacific SMEs account for a majority of the region’s total businesses and contribute substantially to its economic growth, the latest move is of great significance.
Initiatives similar to the latest one are expected to boost Mastercard’s presence across the Asia-Pacific region as well. Eureka AI seems to be the apt partner for complementing MA’s endeavor since the former has sound advanced analytics expertise on account aggregator data that offers a better understanding of customer needs and risk profiles.
This Zacks Rank #3 (Hold) technology company in the global payments industry keeps on partnering with numerous well-established organizations and delivering several innovative digital payment solutions to bring more SMEs under the ambit of a growing digital economy. Among several other moves to complement the motive of digitizing small businesses, Mastercard joined forces with HDFC Bank, U.S. International Development Finance Corporation (“DFC”) and U.S. Agency for International Development (“USAID”) in October 2021 to introduce a credit facility of $100 million. By 2025, MA targets to include 50 million micro and small businesses within the digital economy.
Similar to Mastercard, other companies making concerted efforts to help SMEs include American Express Company (AXP - Free Report) , Visa Inc. (V - Free Report) and Global Payments Inc. (GPN - Free Report) .
For benefiting SMEs, American Express continues to undertake a host of measures focused on technology upgradations, the introduction of secured digital solutions and assisting businesses in regulating payments. The Global Commercial Services segment of AXP offers a diverse array of cards, and payment, expense management and commercial financing solutions in a bid to assist small businesses.
Visa has always been committed to providing necessary help to small businesses, ranging from technological assistance to empowering them with enhanced payments solutions. V has been catering to the unique needs of small and medium-sized businesses through the Small Business Hub, which was launched in 2020.
Global Payments works closely with over 3.5 million small and midsize businesses, and helps them by rolling out enhanced and secured payments technology solutions. GPN equips these businesses with seamless acceptance of payments in all commerce channels, thereby resulting in better and secured outcomes for customers.
Shares of Mastercard have gained 2.6% in a year against the industry’s decline of 20%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While shares of American Express and Visa have gained 36.9% and 0.8%, respectively, in a year, Global Payments stock has lost 34.2% in the same time frame.