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Mastercard (MA) Approved to Process Domestic Payments in China
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Mastercard Incorporated’s (MA - Free Report) joint venture (“JV”) entity in China, Mastercard NUCC Information Technology (Beijing) Co., Ltd., obtained formal consent from the People’s Bank of China ("PBOC") and the National Administration of Financial Regulation to establish a domestic bankcard clearing institution in the country. Per sources, the JV was set up between Mastercard and China’s Nets Union Clearing Corp. back in 2019, with MA holding a 51% stake in the JV.
The PBOC gave principal approval to Mastercard NUCC’s application in Feb 2020, which signaled the JV to commence with formal arrangements for setting up the institution in the country. In this time span of more than three years, the JV has set standards, rules, structures and infrastructure that comply with the local regulatory requirements and also gathered the necessary certificates.
The latest announcement marks Mastercard’s debut in the domestic payment processing space of China. Mastercard NUCC will also steadily work to boost the issuance and acceptance of MA-branded products throughout the country. The tech giant’s JV will make use of innovative technologies to bring about enhanced everyday payment experience for its cardholders.
In addition to benefiting the local businesses and consumers of China, the tech giant is also expected to gain from the latest announcement. The increased utilization of Mastercard-branded cards implies greater purchase volumes for it. This, in turn, is likely to boost MA’s gross dollar volume. A solid foothold of Mastercard in the Chinese market and an expanding nationwide customer base may also be the resultant benefit of the recent move.
With domestic payment processing capabilities being the latest addition, Mastercard has continued to benefit China with its efficient cross-border services for quite some time. It has an extensive network of bank cards and acceptance points across the country that spur cross-border and inbound commerce. This year, MA collaborated with China’s leading digital payment platform, Alipay, to ease digital payments for the country’s visitors. MA cardholders can go cashless and transact by linking their debit or credit card with the Alipay wallet.
Mastercard intends to delve and establish a solid presence in nations with promising digital growth prospects and China is one such country. China has been witnessing widespread digital penetration and a rising number of Internet users, thus providing the tech giant with the perfect ground to capitalize on via partnerships with financial service providers or substantial investments.
Shares of Mastercard have gained 17.2% in the past year compared with the industry’s 13.3% growth. MA currently carries a Zacks Rank #3 (Hold).
The bottom line of Huron Consulting outpaced estimates in each of the last four quarters, the average beat being 25.69%. The Zacks Consensus Estimate for HURN’s 2023 earnings suggests an improvement of 36.2% from the year-ago reported figure. The same for revenues suggests growth of 20.4% from the year-ago reported number. The consensus mark for HURN’s 2023 earnings has moved 3.3% north in the past 30 days.
SPS Commerce’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.34%. The Zacks Consensus Estimate for SPSC’s 2023 earnings and revenues suggests an improvement of 18.7% each from the year-ago reported figures. The consensus mark for SPSC’s 2023 earnings has moved 3% north in the past 30 days.
The bottom line of Parsons outpaced estimates in two of the last four quarters, matched the mark once and missed the same once on the remaining one occasion, the average beat being 9.95%. The Zacks Consensus Estimate for PSN’s 2023 earnings suggests an improvement of 31.5% from the year-ago reported figure. The same for revenues suggests growth of 25.4% from the year-ago reported number. The consensus mark for PSN’s 2023 earnings has moved 6.7% north in the past 30 days.
Shares of Huron Consulting, SPS Commerce and Parsons have gained 38.1%, 30.8% and 29%, respectively, in the past year.
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Mastercard (MA) Approved to Process Domestic Payments in China
Mastercard Incorporated’s (MA - Free Report) joint venture (“JV”) entity in China, Mastercard NUCC Information Technology (Beijing) Co., Ltd., obtained formal consent from the People’s Bank of China ("PBOC") and the National Administration of Financial Regulation to establish a domestic bankcard clearing institution in the country. Per sources, the JV was set up between Mastercard and China’s Nets Union Clearing Corp. back in 2019, with MA holding a 51% stake in the JV.
The PBOC gave principal approval to Mastercard NUCC’s application in Feb 2020, which signaled the JV to commence with formal arrangements for setting up the institution in the country. In this time span of more than three years, the JV has set standards, rules, structures and infrastructure that comply with the local regulatory requirements and also gathered the necessary certificates.
The latest announcement marks Mastercard’s debut in the domestic payment processing space of China. Mastercard NUCC will also steadily work to boost the issuance and acceptance of MA-branded products throughout the country. The tech giant’s JV will make use of innovative technologies to bring about enhanced everyday payment experience for its cardholders.
In addition to benefiting the local businesses and consumers of China, the tech giant is also expected to gain from the latest announcement. The increased utilization of Mastercard-branded cards implies greater purchase volumes for it. This, in turn, is likely to boost MA’s gross dollar volume. A solid foothold of Mastercard in the Chinese market and an expanding nationwide customer base may also be the resultant benefit of the recent move.
With domestic payment processing capabilities being the latest addition, Mastercard has continued to benefit China with its efficient cross-border services for quite some time. It has an extensive network of bank cards and acceptance points across the country that spur cross-border and inbound commerce. This year, MA collaborated with China’s leading digital payment platform, Alipay, to ease digital payments for the country’s visitors. MA cardholders can go cashless and transact by linking their debit or credit card with the Alipay wallet.
Mastercard intends to delve and establish a solid presence in nations with promising digital growth prospects and China is one such country. China has been witnessing widespread digital penetration and a rising number of Internet users, thus providing the tech giant with the perfect ground to capitalize on via partnerships with financial service providers or substantial investments.
Shares of Mastercard have gained 17.2% in the past year compared with the industry’s 13.3% growth. MA currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Business Services space are Huron Consulting Group Inc. (HURN - Free Report) , SPS Commerce, Inc. (SPSC - Free Report) and Parsons Corporation (PSN - Free Report) . While Huron Consulting sports a Zacks Rank #1 (Strong Buy), SPS Commerce and Parsons 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 Huron Consulting outpaced estimates in each of the last four quarters, the average beat being 25.69%. The Zacks Consensus Estimate for HURN’s 2023 earnings suggests an improvement of 36.2% from the year-ago reported figure. The same for revenues suggests growth of 20.4% from the year-ago reported number. The consensus mark for HURN’s 2023 earnings has moved 3.3% north in the past 30 days.
SPS Commerce’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.34%. The Zacks Consensus Estimate for SPSC’s 2023 earnings and revenues suggests an improvement of 18.7% each from the year-ago reported figures. The consensus mark for SPSC’s 2023 earnings has moved 3% north in the past 30 days.
The bottom line of Parsons outpaced estimates in two of the last four quarters, matched the mark once and missed the same once on the remaining one occasion, the average beat being 9.95%. The Zacks Consensus Estimate for PSN’s 2023 earnings suggests an improvement of 31.5% from the year-ago reported figure. The same for revenues suggests growth of 25.4% from the year-ago reported number. The consensus mark for PSN’s 2023 earnings has moved 6.7% north in the past 30 days.
Shares of Huron Consulting, SPS Commerce and Parsons have gained 38.1%, 30.8% and 29%, respectively, in the past year.