Mastercard Inc. (MA - Free Report) recently entered into a partnership with Cubic Transportation Systems and Miami-Dade County Department of Transportation and Public Works (DTPW) to allow tap-and-go payments at Metrorail stations. The solution will likely cover the Metrobus service in late 2019.
With this transaction mode, travelers using the public transit system will be able to use easy and innovative payment methods. Riders will gain traction from this unique contactless payment system.
In line with Mastercard’s strategic aim to simplify transaction procedures, the launch goes beyond ticketing technology upgrade. The company is also coordinating with the agency to figure out how transit tap-and-go payments can support seamless alliance with ride share services. This unique tie-up is intended to optimize connections to and from train stations and bus stops.
The introduction of this contactless payment technique in Miami further strengthens the work the company is doing to alter transit ticketing across more than 20 U.S. cities.
Transit serving is a primary driver to boost contactless payments in the United States and the company’s continues efforts to back the same bode well for this transformation. Per the company, contactless transactions momentum in the United States is hurtling towards a high point. 60% of the total US Mastercard volume is generated by contactless-enabled merchants. Customers are now making the most of these fast and efficient contactless payment modes for their regular purchases.
The company has earlier launched contactless solutions in cities like London, Vancouver, Singapore and Sydney, etc. It has also combined payments with transit acceptance in places like Bogotá and Medellín.
Mastercard has been showing significant progress in its digital policies and consistently investing in technology. With MasterPass, the company became the first network to deliver a digital payment service across all devices and channels. It is also pumping resources into tokenization technology with its Mastercard Digital Enablement Service (MDES), which provide a cushion to contactless and Digital Secure Remote Payments.
The company also plans to offer token services on all its cards by 2020, thereby allowing consumers to store credentials with merchants without exposing their actual card details. It will also roll out a Secure Remote Commerce framework (SRC) in the second half of 2019, which will provide all its key stakeholders with a safe, streamlined and standardized online checkout experience. The company’s continuous investments in technology will keep it ahead of the rest in the dynamic payments industry.
Shares of this Zacks Rank #3 (Hold) company have surged 37.4% in a year’s time, outperforming its industry’s rally of 23.8%.
Stocks to Consider
Investors interested in the finance sector may consider some better-ranked stocks like Visa Inc. (V - Free Report) , Cardtronics PLC (CATM - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Visa works as a payments technology company worldwide. It pulled off average four-quarter positive surprise of 3.4% and has a Zacks Rank #2 (Buy).
Cardtronics offers automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company came up with average four-quarter beat of 37.5% and sports a Zacks Rank #1.
PayPal works as a technology platform and digital payments company. It delivered average four-quarter positive surprise of 10.4% and carries a Zacks Rank of 2.
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