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MasterCard (MA) Continues to Invest in Growth Amid Headwinds
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MasterCard Inc. (MA - Free Report) , one of the most recognized names in the payments and card services industry, is continuously investing in digital platform and transaction security.
Shares of the company have performed strongly over the last one year gaining 23% higher than the 22% gain for the Zacks categorized Financial Transaction Services industry.
Its technological advancements include the expansion of the availability of Masterpass™, its global digital payments ecosystem. Masterpass provides an easy and secure way to shop by storing payment information in a secure connected wallet of consumers’ choice and giving them access to information for payment with a simple click or touch. The company continued to use its digital technologies and security protocols to enhance the suite of digital token services available through its MasterCard Digital Enablement Service (MDES).
The company also re-launched Mastercard Developers, and expanded Mastercard Send™, connecting more consumers, businesses and governments to facilitate the transfer of funds via financial institutions quickly and securely.
Along with investing continuously in technology, the company is making aggressive efforts to shore up security of payments made via its network. To this end, in 2016, MasterCard launched Decision Intelligence™. The company has also expanded Mastercard Identity Check™. It continues to lead migration to EMV to bring its fraud prevention benefits to its U.S. customers, consumers and merchants.
The company’s pending acquisition of VocaLink of U.K. (to be sealed by the middle of 2017) is expected to expand its ability to offer more electronic payment options to consumers, businesses and governments, and capture more payment flows.
Nevertheless, MasterCard’s U.S business has been soft, particularly the higher-profit consumer credit business. This is primarily due to the loss of its 30-year old key client, United Services Automobile Association (USAA), one of the largest issuers of credit and debit cards in the country to Visa. The loss of this client is a huge blow to MasterCard and is likely to put pressure on its domestic credit business through 2017. It is also facing regulatory as well as economic challenges in Europe.
Envestnet carries a VGM score of B and surpassed earnings estimates in the last reported quarter by 12.5%.
Fiserv beat estimates in two of the last four reported quarters with an average surprise of 1.2%.
Visa beat earnings estimates in each out of the last four quarters with an average surprise of 5.8%.
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MasterCard (MA) Continues to Invest in Growth Amid Headwinds
MasterCard Inc. (MA - Free Report) , one of the most recognized names in the payments and card services industry, is continuously investing in digital platform and transaction security.
Shares of the company have performed strongly over the last one year gaining 23% higher than the 22% gain for the Zacks categorized Financial Transaction Services industry.
Its technological advancements include the expansion of the availability of Masterpass™, its global digital payments ecosystem. Masterpass provides an easy and secure way to shop by storing payment information in a secure connected wallet of consumers’ choice and giving them access to information for payment with a simple click or touch. The company continued to use its digital technologies and security protocols to enhance the suite of digital token services available through its MasterCard Digital Enablement Service (MDES).
The company also re-launched Mastercard Developers, and expanded Mastercard Send™, connecting more consumers, businesses and governments to facilitate the transfer of funds via financial institutions quickly and securely.
Along with investing continuously in technology, the company is making aggressive efforts to shore up security of payments made via its network. To this end, in 2016, MasterCard launched Decision Intelligence™. The company has also expanded Mastercard Identity Check™. It continues to lead migration to EMV to bring its fraud prevention benefits to its U.S. customers, consumers and merchants.
The company’s pending acquisition of VocaLink of U.K. (to be sealed by the middle of 2017) is expected to expand its ability to offer more electronic payment options to consumers, businesses and governments, and capture more payment flows.
Nevertheless, MasterCard’s U.S business has been soft, particularly the higher-profit consumer credit business. This is primarily due to the loss of its 30-year old key client, United Services Automobile Association (USAA), one of the largest issuers of credit and debit cards in the country to Visa. The loss of this client is a huge blow to MasterCard and is likely to put pressure on its domestic credit business through 2017. It is also facing regulatory as well as economic challenges in Europe.
MasterCard carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks in the space are Envestnet, Inc. (ENV - Free Report) , Fiserv, Inc. and Visa Inc. (V - Free Report) . Each of these stock carries a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Envestnet carries a VGM score of B and surpassed earnings estimates in the last reported quarter by 12.5%.
Fiserv beat estimates in two of the last four reported quarters with an average surprise of 1.2%.
Visa beat earnings estimates in each out of the last four quarters with an average surprise of 5.8%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>