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Mastercard (MA), 4thWave to Streamline EEMEA's B2B Payments
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Mastercard Incorporated (MA - Free Report) recently collaborated with the finance and Banking-as-a-Service digital platform provider, 4thWave, to ease business-to-business (B2B) payments for MA’s commercial client base. This will be made possible by leveraging the credible supply-chain finance platform of 4thWave, which will assure the seamless management of B2B payments and bring about improved cash flows for corporate buyers and suppliers.
The resultant benefit of the tie-up will be reaped by Mastercard in the form of an advanced InControl for Commercial Payments (“ICCP”) solution, which in turn, is expected to boost the latter's usage and grow the revenues that MA earns from providing value-added services and solutions suite to customers. ICCP is a virtual card solution that makes use of virtual account numbers to pave the way for hassle-free and safe supplier payments.
A Virtual Card Number (“VCN”) is dynamically generated from a real card and serves the role of a unique identifier for each business payment. The VCN also acts as a shield to the real card number that allocates funds to the virtual card. Further, the straight-through processing capability of Mastercard gets activated on receiving card payment requests from the buyer to a transaction and subsequently, enables easy sending of virtual card number payments directly to the supplier’s bank account devoid of any manual intervention.
The recent partnership bears testament to one of Mastercard’s investments directed to build capabilities for better serving the commercial B2B payments space. The same move also aims to minimize the operational and financial headwinds encountered across B2B payments as a result of ineffective processes and diverse point-of-origin payment systems. Particularly, the B2B businesses of the small and medium enterprises, and micro, small and medium enterprises segment, grapple with the delayed collection of receivables and lead to insufficient funds. This, in turn, throws a significant roadblock to the survival prospects of these businesses.
Such collaborations also reflect Mastercard’s aim to carve a solid presence in the thriving commercial payments market of the Eastern Europe, Middle East and Africa ("EEMEA") region, estimated at $7 trillion. B2B account payables and receivables represent more than 85% of these payment flows, thereby substantiating the timeliness of the MA-4thWave alliance. A rapidly expanding digital economy of the region is likely to provide a perfect ground for MA to capitalize on with its suite of advanced payment solutions that promise safe and seamless transactions for businesses.
The tech giant has remained active for quite some time in aiding EEMEA’s B2B payments landscape. In November 2023, Mastercard joined forces with the UAE-based financial corporate spending management solutions provider, Pluto, to enable the widespread uptake of MA’s B2B payment solutions and infuse greater security in business payments across the Gulf Cooperation Council.
Shares of Mastercard have gained 11.8% in the past three months compared with the industry’s 12.9% growth. MA currently carries a Zacks Rank #2 (Buy).
The bottom line of Envestnet outpaced estimates in three of the last four quarters and matched the mark once, the average beat being 3.23%. The Zacks Consensus Estimate for ENV’s 2024 earnings suggests an improvement of 24.8% from the 2023 estimate. The consensus estimate for revenues suggests growth of 9.8% from the 2023 estimate. The consensus mark for ENV’s 2024 earnings has moved 3.7% north in the past seven days.
Shift4 Payments earnings' outpaced estimates in each of the trailing four quarters, the average surprise being 25.03%. The Zacks Consensus Estimate for FOUR’s 2024 earnings suggests an improvement of 32% from the 2023 estimate. The consensus estimate for revenues suggests growth of 36.9% from the 2023 estimate. The consensus mark for FOUR’s 2024 earnings has moved 1.3% north in the past 30 days.
The bottom line of Gartner outpaced estimates in each of the last four quarters, the average beat being 34.43%. The Zacks Consensus Estimate for IT’s 2024 earnings suggests an improvement of 9.3% from the 2023 estimate. The consensus estimate for revenues suggests growth of 7.7% from the 2023 estimate. The consensus mark for IT’s 2024 earnings has moved 0.9% north in the past 60 days.
Shares of Envestnet, Shift4 Payments and Gartner have gained 17.6%, 39.8% and 21.1%, respectively, in the past three months.
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Mastercard (MA), 4thWave to Streamline EEMEA's B2B Payments
Mastercard Incorporated (MA - Free Report) recently collaborated with the finance and Banking-as-a-Service digital platform provider, 4thWave, to ease business-to-business (B2B) payments for MA’s commercial client base. This will be made possible by leveraging the credible supply-chain finance platform of 4thWave, which will assure the seamless management of B2B payments and bring about improved cash flows for corporate buyers and suppliers.
The resultant benefit of the tie-up will be reaped by Mastercard in the form of an advanced InControl for Commercial Payments (“ICCP”) solution, which in turn, is expected to boost the latter's usage and grow the revenues that MA earns from providing value-added services and solutions suite to customers. ICCP is a virtual card solution that makes use of virtual account numbers to pave the way for hassle-free and safe supplier payments.
A Virtual Card Number (“VCN”) is dynamically generated from a real card and serves the role of a unique identifier for each business payment. The VCN also acts as a shield to the real card number that allocates funds to the virtual card. Further, the straight-through processing capability of Mastercard gets activated on receiving card payment requests from the buyer to a transaction and subsequently, enables easy sending of virtual card number payments directly to the supplier’s bank account devoid of any manual intervention.
The recent partnership bears testament to one of Mastercard’s investments directed to build capabilities for better serving the commercial B2B payments space. The same move also aims to minimize the operational and financial headwinds encountered across B2B payments as a result of ineffective processes and diverse point-of-origin payment systems. Particularly, the B2B businesses of the small and medium enterprises, and micro, small and medium enterprises segment, grapple with the delayed collection of receivables and lead to insufficient funds. This, in turn, throws a significant roadblock to the survival prospects of these businesses.
Such collaborations also reflect Mastercard’s aim to carve a solid presence in the thriving commercial payments market of the Eastern Europe, Middle East and Africa ("EEMEA") region, estimated at $7 trillion. B2B account payables and receivables represent more than 85% of these payment flows, thereby substantiating the timeliness of the MA-4thWave alliance. A rapidly expanding digital economy of the region is likely to provide a perfect ground for MA to capitalize on with its suite of advanced payment solutions that promise safe and seamless transactions for businesses.
The tech giant has remained active for quite some time in aiding EEMEA’s B2B payments landscape. In November 2023, Mastercard joined forces with the UAE-based financial corporate spending management solutions provider, Pluto, to enable the widespread uptake of MA’s B2B payment solutions and infuse greater security in business payments across the Gulf Cooperation Council.
Shares of Mastercard have gained 11.8% in the past three months compared with the industry’s 12.9% growth. MA currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks in the Business Services space are Envestnet, Inc. (ENV - Free Report) , Shift4 Payments, Inc. (FOUR - Free Report) and Gartner, Inc. (IT - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Envestnet outpaced estimates in three of the last four quarters and matched the mark once, the average beat being 3.23%. The Zacks Consensus Estimate for ENV’s 2024 earnings suggests an improvement of 24.8% from the 2023 estimate. The consensus estimate for revenues suggests growth of 9.8% from the 2023 estimate. The consensus mark for ENV’s 2024 earnings has moved 3.7% north in the past seven days.
Shift4 Payments earnings' outpaced estimates in each of the trailing four quarters, the average surprise being 25.03%. The Zacks Consensus Estimate for FOUR’s 2024 earnings suggests an improvement of 32% from the 2023 estimate. The consensus estimate for revenues suggests growth of 36.9% from the 2023 estimate. The consensus mark for FOUR’s 2024 earnings has moved 1.3% north in the past 30 days.
The bottom line of Gartner outpaced estimates in each of the last four quarters, the average beat being 34.43%. The Zacks Consensus Estimate for IT’s 2024 earnings suggests an improvement of 9.3% from the 2023 estimate. The consensus estimate for revenues suggests growth of 7.7% from the 2023 estimate. The consensus mark for IT’s 2024 earnings has moved 0.9% north in the past 60 days.
Shares of Envestnet, Shift4 Payments and Gartner have gained 17.6%, 39.8% and 21.1%, respectively, in the past three months.