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.
Here's How Mastercard's SoFi Deal Expands Its Stablecoin Opportunity
Read MoreHide Full Article
Key Takeaways
Mastercard is using SoFiUSD to settle SoFi's debit and credit card transactions on its network.
SoFi's card program is expected to process more than $25 billion in annualized volume.
Mastercard and SoFi are exploring stablecoin uses in cross-border payments and remittances.
MastercardIncorporated (MA - Free Report) is positioning the SoFi launch as a move from testing stablecoin settlement to using it in a live payments environment. SoFi Bank is now settling debit and credit card transactions on Mastercard’s network with SoFiUSD, using MA’s existing payment infrastructure. The idea is simple: add stablecoins as another settlement choice rather than replace traditional payment rails. This gives the company a real example of how stablecoin settlement can work as banks evaluate digital settlement.
The size of the rollout makes the launch notable. SoFi is moving its entire card program, expected to process more than $25 billion in annualized volume, to SoFiUSD settlement, with transactions already live on the blockchain. SoFiUSD is redeemable 1:1 for U.S. dollars and backed primarily by cash. Through SoFi’s Big Business Banking platform, merchants can receive funds instantly and withdraw cash around the clock at zero cost.
The near-term financial impact for Mastercard is hard to measure as no revenue or earnings details were disclosed. The bigger point is that Mastercard is showing it can support blockchain-based settlement without replacing its existing payment infrastructure. If more issuers, acquirers and merchants adopt stablecoins, the company could capture more settlement activity and strengthen its role in connecting traditional finance with digital assets.
SoFi is already in discussions with large U.S. merchants, including multinational retailers and technology platforms, about stablecoin settlement. Mastercard and SoFi are also exploring cross-border payments, remittances and other money-movement uses, giving Mastercard another avenue to expand payment flows as businesses seek faster, more flexible settlement.
How Are Competitors Faring?
Some of MA’s competitors in the payment space are Visa Inc. (V - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Visa is expanding its stablecoin capabilities through the Visa Stablecoin Platform, launched in July. The platform helps financial institutions and fintechs mint, move and manage stablecoins. Stablecoin settlement volume recently surpassed a $20 billion annualized run rate, while more than 160 stablecoin-linked card programs operate on its network.
PayPal is expanding PYUSD’s role in merchant payments. In August, PYPL introduced PYUSD settlement for eligible U.S. merchants, allowing them to convert part of their PayPal balances into PYUSD and earn 4% rewards. PayPal also supports crypto payments with settlement in local currency.
In the year-to-date period, MA’s shares have lost 2.6% compared with the industry’s decline of 11.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 25.14, above the industry average of 17.15. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 17% growth from the year-ago period’s level.
View the Zacks #1 Rank List
Image: Bigstock
Here's How Mastercard's SoFi Deal Expands Its Stablecoin Opportunity
Key Takeaways
MastercardIncorporated (MA - Free Report) is positioning the SoFi launch as a move from testing stablecoin settlement to using it in a live payments environment. SoFi Bank is now settling debit and credit card transactions on Mastercard’s network with SoFiUSD, using MA’s existing payment infrastructure. The idea is simple: add stablecoins as another settlement choice rather than replace traditional payment rails. This gives the company a real example of how stablecoin settlement can work as banks evaluate digital settlement.
The size of the rollout makes the launch notable. SoFi is moving its entire card program, expected to process more than $25 billion in annualized volume, to SoFiUSD settlement, with transactions already live on the blockchain. SoFiUSD is redeemable 1:1 for U.S. dollars and backed primarily by cash. Through SoFi’s Big Business Banking platform, merchants can receive funds instantly and withdraw cash around the clock at zero cost.
The near-term financial impact for Mastercard is hard to measure as no revenue or earnings details were disclosed. The bigger point is that Mastercard is showing it can support blockchain-based settlement without replacing its existing payment infrastructure. If more issuers, acquirers and merchants adopt stablecoins, the company could capture more settlement activity and strengthen its role in connecting traditional finance with digital assets.
SoFi is already in discussions with large U.S. merchants, including multinational retailers and technology platforms, about stablecoin settlement. Mastercard and SoFi are also exploring cross-border payments, remittances and other money-movement uses, giving Mastercard another avenue to expand payment flows as businesses seek faster, more flexible settlement.
How Are Competitors Faring?
Some of MA’s competitors in the payment space are Visa Inc. (V - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Visa is expanding its stablecoin capabilities through the Visa Stablecoin Platform, launched in July. The platform helps financial institutions and fintechs mint, move and manage stablecoins. Stablecoin settlement volume recently surpassed a $20 billion annualized run rate, while more than 160 stablecoin-linked card programs operate on its network.
PayPal is expanding PYUSD’s role in merchant payments. In August, PYPL introduced PYUSD settlement for eligible U.S. merchants, allowing them to convert part of their PayPal balances into PYUSD and earn 4% rewards. PayPal also supports crypto payments with settlement in local currency.
Mastercard’s Price Performance, Valuation & Estimates
In the year-to-date period, MA’s shares have lost 2.6% compared with the industry’s decline of 11.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 25.14, above the industry average of 17.15. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 17% growth from the year-ago period’s level.
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.