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Mastercard's (MA) Tie-Up to Digitalize Global B2B Market

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Mastercard Incorporated (MA - Free Report) and JAGGAER have entered into a partnership to jointly launch Mastercard Track, a new trade platform designed to streamline and boost its global commercial business interactions.

This new platform targets the international B2B (Business to Business) market, which still works manually and incurs around $500 billion of annual administrative expenses. Track is powered by an array of Mastercard innovation and B2B assets, such as account-to-account and card payment solutions, data analytics, fraud management, payment gateway services, etc.

Mastercard believes that this deal would help the B2B market, involving around $58 trillion of global business transactions. Despite the evolving market and technology-driven changes, this segment somehow still involves a lot of manual work, which Track intends to change by providing convenient and easier onboarding of suppliers, efficient risk management and better payment visibility.

Meanwhile, JAGGAER joined forces with Mastecard for introducing Track because of its own geographic expansion and as well as its strong portfolio of digital conversion programs including Source to Pay solutions.

When it comes to coping with market demands and investing in technology, Mastercard has always been extremely active. With MasterPass, the company became the first network to provide a digital payment service across all devices and channels.

The company is also consistently investing in tokenization technology with its Mastercard Digital Enablement Service (MDES) for contactless payments and Digital Secure Remote Payments. Earlier, it boosted the rollout of tokenization adding 500 new issuers and 21 markets over the course of 2017.

Mastercard has also unveiled artificial intelligence and the world's first authentication technology using iris scanning to verify online purchases on a mobile phone. Also, it recently announced the first biometric card, combining chip technology with fingerprint scans directly on the card to validate a cardholder’s identity. The company’s continuous investments in technology will keep it ahead in the dynamic payments industry.

Shares of this Zacks Rank #3 (Hold) company have soared 55.6%, outperforming the industry’s surge of 37.1%.


Stocks to Consider

Investors interested in the financial transaction services sector can look into some better-ranked stocks like Cardtronics plc , Evertec, Inc. (EVTC - Free Report) and WEX Inc. (WEX - Free Report) .

Cardtronics plc provides automated consumer financial services via its network of automated teller machines (ATMs) and multi-function financial services kiosks. Sporting a Zacks Rank #1 (Strong Buy,) the company came up with an average four-quarter beat of 27.17%. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVERTEC engages in transaction processing business, serving financial institutions, merchants, corporations and government agencies in Latin America and the Caribbean. Carrying a Zacks Rank #2 (Buy), the company pulled off an average earnings surprise of 11.84% over the last three of four quarters.

WEX provides corporate card payment solutions in North and South America, the Asia Pacific as well as Europe. The company has a Zacks Rank of 2 and managed to deliver an average trailing four-quarter positive surprise of 2.97%.

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