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Mastercard (MA) Brighterion Solution Shields Over 60K Merchants
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Mastercard Incorporated (MA - Free Report) recently announced that the company has extended its Brighterion fraud prevention solution through its strategic partnership with Network International to more than 60,000 merchants. The artificial intelligence-powered Brighterion fraud prevention solution aims to safeguard and advance the payments industry by offering merchant monitoring services and transaction fraud screening to different businesses.
Early last year, Network International, which has a strong presence across the Middle East and Africa, launched Mastercard’s Brighterion Artificial Intelligence technology, which has helped in loss reduction and boosted fraud detection. The companies being able to extend the benefits to more than 60,000 merchants further strengthen their existing partnership.
The companies started their partnership in 2019. They have collaborated on various initiatives, including affordable point-of-sale and e-commerce acceptance solutions, along with offerings for commercial, fintech and banking partners interested in card issuance. Their focus on fraud solutions with machine learning algorithms is expected to continue witnessing growing demand as the rapid digitalization of economies also brings growing cyber threats.
MA stated that per Cybersecurity Ventures’ data, the cost of cybercrime is anticipated to reach $10.5 trillion per annum by 2025. A prediction from the Nilson Report states that global loss to card fraud alone will hit $408 billion within the 2020-2030 period. All of these further point to the importance of state-of-the-art fraud solutions.
The growing demand for Mastercard’s services offerings, including cybersecurity and data analytics capabilities, is boosting its Service Business. Its net revenues from Value-added Services and Solutions grew 13.5% and 17.7% in 2022 and 2023, respectively.
Mastercard acquired Brighterion in 2017 and continues to build on its capabilities. This shows MA’s ability to use strategic acquisitions to supplement its organic efforts. This helps the company to expand its addressable markets, drive new revenue streams and strengthen core product solutions.
Price Movements
Shares of Mastercard have gained 38.6% in the past year compared with the industry’s 29.9% growth.
The Zacks Consensus Estimate for MoneyLion’s current-year bottom line indicates a 98.7% year-over-year improvement. The consensus estimate for ML’s current-year top line is pegged at $518.9 million, suggesting 22.6% year-over-year growth.
The Zacks Consensus Estimate for Flywire’s current year earnings is pegged at 4 cents per share, which indicates a 157.1% year-over-year improvement. FLYW beat earnings estimates in two of the past four quarters, met once and missed on the other occasion, with an average surprise of 33.1%. The consensus estimate for current-year revenues suggests 30.8% year-over-year growth.
The Zacks Consensus Estimate for Cantaloupe’s current-year earnings is pegged at 17 cents per share, which indicates significant growth from breakeven earnings in the year-ago period. CTLP beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 61.7%. The consensus mark for current-year revenues predicts a 13.2% year-over-year gain.
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Mastercard (MA) Brighterion Solution Shields Over 60K Merchants
Mastercard Incorporated (MA - Free Report) recently announced that the company has extended its Brighterion fraud prevention solution through its strategic partnership with Network International to more than 60,000 merchants. The artificial intelligence-powered Brighterion fraud prevention solution aims to safeguard and advance the payments industry by offering merchant monitoring services and transaction fraud screening to different businesses.
Early last year, Network International, which has a strong presence across the Middle East and Africa, launched Mastercard’s Brighterion Artificial Intelligence technology, which has helped in loss reduction and boosted fraud detection. The companies being able to extend the benefits to more than 60,000 merchants further strengthen their existing partnership.
The companies started their partnership in 2019. They have collaborated on various initiatives, including affordable point-of-sale and e-commerce acceptance solutions, along with offerings for commercial, fintech and banking partners interested in card issuance. Their focus on fraud solutions with machine learning algorithms is expected to continue witnessing growing demand as the rapid digitalization of economies also brings growing cyber threats.
MA stated that per Cybersecurity Ventures’ data, the cost of cybercrime is anticipated to reach $10.5 trillion per annum by 2025. A prediction from the Nilson Report states that global loss to card fraud alone will hit $408 billion within the 2020-2030 period. All of these further point to the importance of state-of-the-art fraud solutions.
The growing demand for Mastercard’s services offerings, including cybersecurity and data analytics capabilities, is boosting its Service Business. Its net revenues from Value-added Services and Solutions grew 13.5% and 17.7% in 2022 and 2023, respectively.
Mastercard acquired Brighterion in 2017 and continues to build on its capabilities. This shows MA’s ability to use strategic acquisitions to supplement its organic efforts. This helps the company to expand its addressable markets, drive new revenue streams and strengthen core product solutions.
Price Movements
Shares of Mastercard have gained 38.6% in the past year compared with the industry’s 29.9% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mastercard currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are MoneyLion Inc. (ML - Free Report) , Flywire Corporation (FLYW - Free Report) and Cantaloupe, Inc. (CTLP - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for MoneyLion’s current-year bottom line indicates a 98.7% year-over-year improvement. The consensus estimate for ML’s current-year top line is pegged at $518.9 million, suggesting 22.6% year-over-year growth.
The Zacks Consensus Estimate for Flywire’s current year earnings is pegged at 4 cents per share, which indicates a 157.1% year-over-year improvement. FLYW beat earnings estimates in two of the past four quarters, met once and missed on the other occasion, with an average surprise of 33.1%. The consensus estimate for current-year revenues suggests 30.8% year-over-year growth.
The Zacks Consensus Estimate for Cantaloupe’s current-year earnings is pegged at 17 cents per share, which indicates significant growth from breakeven earnings in the year-ago period. CTLP beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 61.7%. The consensus mark for current-year revenues predicts a 13.2% year-over-year gain.