We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mastercard (MA) Ties Up to Digitize Transit System in Pakistan
Read MoreHide Full Article
Mastercard Incorporated (MA - Free Report) recently formalized a strategic collaboration with LMK Resources Pakistan (Private) Limited ("LMKR") to supervise the application of the first open-loop payment solution to the transit industry of Pakistan. To this end, a Memorandum of Understanding was already signed last December between Mastercard and LMKR.
Developed with Mastercard’s innovative technology, the solution can be leveraged through the country’s transit infrastructure. It does away with the need to purchase separate tickets on rapid transit bus networks and e-tolling systems. Instead, travelers can benefit from easy and secure payment experiences as they can top up or pay transit fares via debit or credit cards and digital wallets.
The latest initiative reflects Mastercard’s continuous efforts to extend its digital payment solutions to accelerate the widespread adoption of online payments in Pakistan. Such a move is expected to boost MA’s presence in the country. A growing digital economy in Pakistan, driven by an increased Internet penetration and rising smartphone usage, offers the perfect ground for Mastercard to capitalize on.
According to Mastercard’s New Payments Index 2022, 89% of Pakistan’s consumers utilized at least one emerging payment method in 2021. Also, 12% people in the country used less cash last year. The survey further highlighted that 68% of the country’s consumers increasingly resorted to digital payments in 2021.
As travelers remain inclined toward using smart devices and electronic payments amid their daily journeys, the recent move of Mastercard to digitally enhance the transit infrastructure is aptly timed. Open-loop payments offer several advantages over cash usage or closed-loop payments, such as fare cards on which transport providers had traditionally depended. Fare cards are loaded with a prepaid amount, which needs to be refilled as soon as it gets exhausted. On the contrary, open-loop payments are hassle-free in nature as they remain connected to the existing accounts or the daily payment products utilized by consumers.
Mastercard follows a public-private partnerships strategy in Pakistan and works in unison with the government or private sector companies to infuse digitization across various sectors of the economy. In March 2022, MA collaborated with Bank Alfalah, one of the leading Pakistan-based private banks, to launch nationwide two of its Mastercard Payment Gateway Services-backed cutting-edge digital payment solutions, namely Tap on Phone and Simplify Commerce. An improved digital suite built through constant tie-ups and significant investments enables Mastercard to pursue digital transformation efforts globally.
Shares of Mastercard have lost 5% in a year compared with the industry’s decline of 27%.
The bottom line of Verisk Analytics outpaced estimates in three of the last four quarters and missed the mark once, the average being 3.76%. The Zacks Consensus Estimate for VRSK’s 2022 earnings suggests an improvement of 8.9% from the year-ago reported figure. The same for revenues suggests growth of 1.5% from the year-ago reported number. The consensus mark for VRSK’s 2022 earnings has moved 1.4% north in the past 30 days.
Avis Budget’s earnings outpaced estimates in each of the trailing four quarters, the average being 69.47%. The Zacks Consensus Estimate for CAR’s 2022 earnings is pegged at $46.86 per share, indicating to more than double the year-ago reported figure. The same for revenues suggests growth of 28.3% from the prior-year reading. The consensus mark for CAR’s 2022 earnings has moved 20.6% north in the past 30 days.
The bottom line of ICF International outpaced estimates in each of the last four quarters, the average being 10.03%. The Zacks Consensus Estimate for ICFI’s 2022 earnings suggests an improvement of 14.7% from the year-ago reported figure. The same for revenues suggests growth of 15.2% from the year-ago actuals. The consensus mark for ICFI’s 2022 earnings has moved 3.4% north in the past 30 days.
Shares of Avis Budget and ICF International have gained 92.1% and 12.9%, respectively, in a year. The Verisk Analytics stock has lost 1.9% in the same time frame.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Mastercard (MA) Ties Up to Digitize Transit System in Pakistan
Mastercard Incorporated (MA - Free Report) recently formalized a strategic collaboration with LMK Resources Pakistan (Private) Limited ("LMKR") to supervise the application of the first open-loop payment solution to the transit industry of Pakistan. To this end, a Memorandum of Understanding was already signed last December between Mastercard and LMKR.
Developed with Mastercard’s innovative technology, the solution can be leveraged through the country’s transit infrastructure. It does away with the need to purchase separate tickets on rapid transit bus networks and e-tolling systems. Instead, travelers can benefit from easy and secure payment experiences as they can top up or pay transit fares via debit or credit cards and digital wallets.
The latest initiative reflects Mastercard’s continuous efforts to extend its digital payment solutions to accelerate the widespread adoption of online payments in Pakistan. Such a move is expected to boost MA’s presence in the country. A growing digital economy in Pakistan, driven by an increased Internet penetration and rising smartphone usage, offers the perfect ground for Mastercard to capitalize on.
According to Mastercard’s New Payments Index 2022, 89% of Pakistan’s consumers utilized at least one emerging payment method in 2021. Also, 12% people in the country used less cash last year. The survey further highlighted that 68% of the country’s consumers increasingly resorted to digital payments in 2021.
As travelers remain inclined toward using smart devices and electronic payments amid their daily journeys, the recent move of Mastercard to digitally enhance the transit infrastructure is aptly timed. Open-loop payments offer several advantages over cash usage or closed-loop payments, such as fare cards on which transport providers had traditionally depended. Fare cards are loaded with a prepaid amount, which needs to be refilled as soon as it gets exhausted. On the contrary, open-loop payments are hassle-free in nature as they remain connected to the existing accounts or the daily payment products utilized by consumers.
Mastercard follows a public-private partnerships strategy in Pakistan and works in unison with the government or private sector companies to infuse digitization across various sectors of the economy. In March 2022, MA collaborated with Bank Alfalah, one of the leading Pakistan-based private banks, to launch nationwide two of its Mastercard Payment Gateway Services-backed cutting-edge digital payment solutions, namely Tap on Phone and Simplify Commerce. An improved digital suite built through constant tie-ups and significant investments enables Mastercard to pursue digital transformation efforts globally.
Shares of Mastercard have lost 5% in a year compared with the industry’s decline of 27%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mastercard currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Business Services space are Verisk Analytics, Inc. (VRSK - Free Report) , Avis Budget Group, Inc. (CAR - Free Report) and ICF International, Inc. (ICFI - Free Report) . While Avis Budget sports a Zacks Rank #1 (Strong Buy), Verisk Analytics and ICF International carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Verisk Analytics outpaced estimates in three of the last four quarters and missed the mark once, the average being 3.76%. The Zacks Consensus Estimate for VRSK’s 2022 earnings suggests an improvement of 8.9% from the year-ago reported figure. The same for revenues suggests growth of 1.5% from the year-ago reported number. The consensus mark for VRSK’s 2022 earnings has moved 1.4% north in the past 30 days.
Avis Budget’s earnings outpaced estimates in each of the trailing four quarters, the average being 69.47%. The Zacks Consensus Estimate for CAR’s 2022 earnings is pegged at $46.86 per share, indicating to more than double the year-ago reported figure. The same for revenues suggests growth of 28.3% from the prior-year reading. The consensus mark for CAR’s 2022 earnings has moved 20.6% north in the past 30 days.
The bottom line of ICF International outpaced estimates in each of the last four quarters, the average being 10.03%. The Zacks Consensus Estimate for ICFI’s 2022 earnings suggests an improvement of 14.7% from the year-ago reported figure. The same for revenues suggests growth of 15.2% from the year-ago actuals. The consensus mark for ICFI’s 2022 earnings has moved 3.4% north in the past 30 days.
Shares of Avis Budget and ICF International have gained 92.1% and 12.9%, respectively, in a year. The Verisk Analytics stock has lost 1.9% in the same time frame.