We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Mastercard's VAS Business Sustain Its Double-Digit Growth?
Read MoreHide Full Article
Key Takeaways
Mastercard's VAS revenues rose 20% year over year in Q2 2026, reaching 41.2% of net revenues.
Security, AI, cybersecurity and fraud prevention remain key drivers of VAS growth and customer engagement.
Around 60% of Mastercard's VAS net revenues are linked to its payment network, supporting service expansion.
Mastercard Incorporated (MA - Free Report) continues to strengthen its Value-Added Services and Solutions (VAS) business, making it an increasingly important part of the company’s growth strategy. VAS’ net revenues increased 20% year over year in the second quarter of 2026, accounting for 41.2% of total net revenues and underscoring its growing contribution to the company’s top line.
Security remains a key growth driver for the VAS business as payment fraud and digital threats become more sophisticated. MA is expanding its capabilities across cybersecurity, authentication and fraud prevention while using data and artificial intelligence to address evolving risks. Its Merchant Trust Services offering, for example, uses AI to help identify potentially fraudulent merchants, adding another opportunity to deepen customer relationships.
MA is also broadening VAS through consumer engagement, personalization, digital services and data-driven solutions. Around 60% of VAS net revenues are linked to the company’s payment network, allowing Mastercard to combine its transaction infrastructure with additional services. Its Advantage Partner program, which has more than 200 partners, further expands the range of solutions available to customers.
However, sustained growth will likely depend on continued demand for cybersecurity, data and AI solutions, along with Mastercard’s ability to expand cross-selling opportunities across its customer base. With VAS already rising at a double-digit rate and benefiting from several structural trends, the business could remain a key source of revenue growth while supporting MA’s broader strategy of increasing the value generated from each relationship. We expect VAS net revenues to rise 17% year over year in 2026.
How Are Competitors Faring?
Some of MA’s competitors in the value-added services include Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .
Visa is also expanding its VAS portfolio across issuing, acceptance, risk and security, and advisory services. V continued investing in AI, cybersecurity and digital solutions to broaden its services opportunity. In the third quarter of fiscal 2026, VAS revenues rose 34% year over year in constant dollars and now account for roughly one-third of total company revenues.
American Express is steadily strengthening its value-added services through fraud protection, merchant analytics, digital payments, loyalty programs and AI-enabled tools. AXP’s closed-loop network provides rich transaction data, helping deepen customer engagement, improve merchant outcomes and reinforce its differentiated payments ecosystem.
In the year-to-date period, MA’s shares have risen 1.8% against the industry’s fall of 3.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 26.54, above the industry average of 19.18. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 16.8% growth from the year-ago period.
View the Zacks #1 Rank List
Image: Bigstock
Can Mastercard's VAS Business Sustain Its Double-Digit Growth?
Key Takeaways
Mastercard Incorporated (MA - Free Report) continues to strengthen its Value-Added Services and Solutions (VAS) business, making it an increasingly important part of the company’s growth strategy. VAS’ net revenues increased 20% year over year in the second quarter of 2026, accounting for 41.2% of total net revenues and underscoring its growing contribution to the company’s top line.
Security remains a key growth driver for the VAS business as payment fraud and digital threats become more sophisticated. MA is expanding its capabilities across cybersecurity, authentication and fraud prevention while using data and artificial intelligence to address evolving risks. Its Merchant Trust Services offering, for example, uses AI to help identify potentially fraudulent merchants, adding another opportunity to deepen customer relationships.
MA is also broadening VAS through consumer engagement, personalization, digital services and data-driven solutions. Around 60% of VAS net revenues are linked to the company’s payment network, allowing Mastercard to combine its transaction infrastructure with additional services. Its Advantage Partner program, which has more than 200 partners, further expands the range of solutions available to customers.
However, sustained growth will likely depend on continued demand for cybersecurity, data and AI solutions, along with Mastercard’s ability to expand cross-selling opportunities across its customer base. With VAS already rising at a double-digit rate and benefiting from several structural trends, the business could remain a key source of revenue growth while supporting MA’s broader strategy of increasing the value generated from each relationship. We expect VAS net revenues to rise 17% year over year in 2026.
How Are Competitors Faring?
Some of MA’s competitors in the value-added services include Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .
Visa is also expanding its VAS portfolio across issuing, acceptance, risk and security, and advisory services. V continued investing in AI, cybersecurity and digital solutions to broaden its services opportunity. In the third quarter of fiscal 2026, VAS revenues rose 34% year over year in constant dollars and now account for roughly one-third of total company revenues.
American Express is steadily strengthening its value-added services through fraud protection, merchant analytics, digital payments, loyalty programs and AI-enabled tools. AXP’s closed-loop network provides rich transaction data, helping deepen customer engagement, improve merchant outcomes and reinforce its differentiated payments ecosystem.
Mastercard’s Price Performance, Valuation & Estimates
In the year-to-date period, MA’s shares have risen 1.8% against the industry’s fall of 3.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 26.54, above the industry average of 19.18. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 16.8% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.