Mastercard Inc. (MA - Free Report) has been picked by Diebold Nixdorf, a world leader in driving connected commerce, to enhance consumers’ experience at ATMs.
Mastercard will be providing two services — Mastercard Cash Pick-Up and Cardless ATM — to make withdrawal from ATMs easier.
These services will do away consumers’ requirement of holding any bank account and carrying any card for that matter.
Mastercard Cash Pick-Up allows any authenticated consumer, whether having a bank account or not, to avail cash via ATMs. This service will help unbanked customers to enjoy the benefits of ATMs. At the same time, ATM operators and financial institutions stand to gain from increased transaction which would translate into increased business volumes and consequently revenue growth.
Another service by Mastercard — Cardless ATM (as the name implies) — allows banked customers to use ATMs without their cards. Via mobile banking application, accountholders will be able to withdraw cash, by just moving through the authentication process. These transactions hold additional attractiveness given their very secured nature. Since these transactions will be done on banking apps via phone and cloud, customers’ credentials will not be exposed for hacking and fraud. Thus security, transparency and convenience offered by the Cardless ATM are expected to make this service a superhit.
These services by Mastercard are the next wave of digital products to the ATM channel aimed at driving innovation. Given the increased usage of mobile phones in our everyday lives from making online purchases, bill payments, online banking and much more, this technology is now being applied to ATMs to make cash transactions easy for consumers. In essence, mobile payment methods hold the centre stage in the redesigning of traditional ATMs to one that can provide innovative services as per changing needs.
Mastercard senses huge opportunity in mobile technology and the recent pact is in sync with the company’s goal of making it big in this burgeoning space.
In a year’s time the stock has gained 57% outperforming the industry’s growth of 35%.
Another company in the same space Visa Inc. (V - Free Report) is continuously investing in the mobile technology space. Last month, the company announced its investment in YellowPepper to accelerate mobile payments’ adoption.
Mastercard carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same space are FleetCor Technologies, Inc. (FLT - Free Report) and WEX Inc. (WEX - Free Report) .
Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WEX Inc. beat estimates in each of the four reported quarters, with an average positive surprise of 2.56%.
FleetCor Technologies beat estimates in each of the four reported quarters, with an average positive surprise of 2.94%.
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