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Mastercard Deepens Corpay Alliance to Boost Cross-Border Flows
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Key Takeaways
Mastercard is bringing near-real-time cross-border payments to 22 new markets.
Cross-border payments are projected to reach $250 trillion by 2027.
MA's Cross-border volumes grew 15% YoY in Q2, showing momentum in international transactions.
Mastercard Incorporated (MA - Free Report) has recently expanded its partnership with Corpay, a payments software and services provider, to bring its near real-time cross-border payments into 22 additional markets in Asia, Africa, Europe, Latin America and the Middle East. This isn’t just about expanding geographic reach; it’s a strategic step into the heart of the rapidly expanding global B2B money movement. With cross-border payments projected to top $250 trillion by 2027, the stakes are enormous.
At the end of April, Mastercard deepened the alliance by investing about $300 million for a roughly 3% stake in Corpay’s cross-border business. The move provided not only equity exposure but also a tighter operational link to a trusted partner. This aligns with Mastercard’s increasing focus on international transactions, which are becoming a stronger driver of growth. In the second quarter alone, its cross-border volumes climbed 15% year over year on a local currency basis, signaling strong momentum.
Businesses today demand faster settlement, better transparency on fees and more predictability on currency conversions. Traditionally, international wire transfers are slow and costly. By offering near real-time options through Corpay, Mastercard is directly addressing a pain point that affects enterprises of all sizes, from small merchants to large corporations. That builds loyalty and positions Mastercard as a solutions provider rather than just a network.
Cross-border flows yield higher margins than domestic transactions, and every new market adds profitable scale. Corpay’s institutional clients further boost Mastercard Move volumes, while exclusivity in large-ticket and risk-management services ensures sticky, high-value revenue streams. This partnership strengthens Mastercard’s control of a lucrative, underpenetrated market while steadily enhancing recurring income.
How Are Peers Playing the Cross-border Game?
Major rival Visa Inc. (V - Free Report) is building infrastructure to facilitate instant money transfers for both businesses and consumers, while The Western Union Company (WU - Free Report) is modernizing its remittance stronghold and digitizing its network.
Visa is leveraging its global payment rails, especially through Visa Direct, which enables real-time push payments to cards, bank accounts and wallets. This has become a key driver for cross-border person-to-person and business-to-consumer payouts. Meanwhile, Western Union’s deep physical presence in emerging markets and growing digital footprint make it resilient in person-to-person transfers. Last month, WU agreed to acquire Intermex for around $500 million to boost its capabilities.
Mastercard’s Price Performance, Valuation and Estimates
Shares of Mastercard have gained 7.3% year to date, outperforming the broader industry’s 0.1% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, Mastercard trades at a forward price-to-earnings ratio of 30.85X, higher than the industry average. Mastercard carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2025 earnings implies an 11.8% rise year over year, followed by 16.5% growth next year.
Image: Bigstock
Mastercard Deepens Corpay Alliance to Boost Cross-Border Flows
Key Takeaways
Mastercard Incorporated (MA - Free Report) has recently expanded its partnership with Corpay, a payments software and services provider, to bring its near real-time cross-border payments into 22 additional markets in Asia, Africa, Europe, Latin America and the Middle East. This isn’t just about expanding geographic reach; it’s a strategic step into the heart of the rapidly expanding global B2B money movement. With cross-border payments projected to top $250 trillion by 2027, the stakes are enormous.
At the end of April, Mastercard deepened the alliance by investing about $300 million for a roughly 3% stake in Corpay’s cross-border business. The move provided not only equity exposure but also a tighter operational link to a trusted partner. This aligns with Mastercard’s increasing focus on international transactions, which are becoming a stronger driver of growth. In the second quarter alone, its cross-border volumes climbed 15% year over year on a local currency basis, signaling strong momentum.
Businesses today demand faster settlement, better transparency on fees and more predictability on currency conversions. Traditionally, international wire transfers are slow and costly. By offering near real-time options through Corpay, Mastercard is directly addressing a pain point that affects enterprises of all sizes, from small merchants to large corporations. That builds loyalty and positions Mastercard as a solutions provider rather than just a network.
Cross-border flows yield higher margins than domestic transactions, and every new market adds profitable scale. Corpay’s institutional clients further boost Mastercard Move volumes, while exclusivity in large-ticket and risk-management services ensures sticky, high-value revenue streams. This partnership strengthens Mastercard’s control of a lucrative, underpenetrated market while steadily enhancing recurring income.
How Are Peers Playing the Cross-border Game?
Major rival Visa Inc. (V - Free Report) is building infrastructure to facilitate instant money transfers for both businesses and consumers, while The Western Union Company (WU - Free Report) is modernizing its remittance stronghold and digitizing its network.
Visa is leveraging its global payment rails, especially through Visa Direct, which enables real-time push payments to cards, bank accounts and wallets. This has become a key driver for cross-border person-to-person and business-to-consumer payouts. Meanwhile, Western Union’s deep physical presence in emerging markets and growing digital footprint make it resilient in person-to-person transfers. Last month, WU agreed to acquire Intermex for around $500 million to boost its capabilities.
Mastercard’s Price Performance, Valuation and Estimates
Shares of Mastercard have gained 7.3% year to date, outperforming the broader industry’s 0.1% growth.
From a valuation standpoint, Mastercard trades at a forward price-to-earnings ratio of 30.85X, higher than the industry average. Mastercard carries a Value Score of D.
The Zacks Consensus Estimate for Mastercard’s 2025 earnings implies an 11.8% rise year over year, followed by 16.5% growth next year.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.