Mastercard Incorporated †MA † Free Report) recently inked a five-year global collaboration with the modern, cloud-native, and fully API-ready credit processing stack possessor, Zeta. As an effort to further strengthen the partnership, MA made a financial investment in Zeta.
The tie-up paves the way for the integration of Mastercard’s prowess in digital issuance, fraud and risk as well as loyalty solutions within Zeta’s cutting-edge credit card processing platform. By doing so, the partners tend to jointly extend enhanced credit card processing capabilities to issuing banks and fintechs. The beneficiaries spread across the globe will be empowered to seamlessly design and accelerate the launch of tailored card programs, thereby boosting their customer base and geographical footprint.
The latest move seems to align with Mastercard’s sincere efforts to pursue digital transformation efforts worldwide and thereby usher in a cashless society. MA’s underlying motive behind the collaboration is to ensure that e-commerce, online banking and contactless transactions are made safe, secured and hassle-free with the help of the improved credit card processing capabilities extended as a result of the recent partnership. Zeta, which has shared a strong relationship with Mastercard since 2018, appears to be an apt partner for complementing MA’s endeavor.
Another significant aim expected to be fulfilled through the tie-up between Mastercard and Zeta is that of bringing about an evolution in the credit card processing industry. The industry has been grappling with fragmented and multi-vendor systems. Such a partnership will pave the way for composable and single-vendor systems capable of addressing evolving cardholder needs and preferences.
Partnerships similar to the latest one reinforce the trust that financial services providers have on Mastercard’s innovative capabilities, extensive network and global presence.
Mastercard’s digital transformation efforts reflected through its collaboration with Zeta seem to be well-timed as the world has been witnessing a growing digital economy buoyed by rising smartphone usage and increased Internet penetration. For harnessing such solid digital growth prospects, MA has devised a solid digital suite on the back of continuous tie-ups and significant investments. While partnerships with several organizations have introduced cost-effective solutions throughout the globe, the investments reflect Mastercard’s endeavor to modernize the global digital payments landscape. Mastercard thus remains well equipped to cater to the growing demand for cashless payments worldwide, probably an everlasting trend set by the COVID-19 pandemic.
Shares of Mastercard have lost 10.9% in the past six months compared with the industry’s decline of 25.5%. MA currently carries a Zacks Rank #3 (Hold). you can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here†
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Similar to Mastercard, other companies such as Visa Inc. †V † FreeReport) , Global Payments Inc. †GPN † Free Report) and American Express Company †AXP † Free Report) have also been pursuing digital transformation efforts. They have resorted to either tie-ups or launched several contactless payment solutions from time to time.
Visa makes use of advanced technologies for rolling out newer payment solutions. V has been strving hard to integrate blockchain technology with the payments platform. The launch of diversified payment alternatives, including mobile payments through Visa Checkout and Visa payWave, highlights the company’s commitment to ensure enhanced online checkout experiences for consumers.
Global Payments is a pure-play payments technology company boasting deep expertise in payments technology. GPN continues to roll out a wide array of payments technology and software solutions for customers on a worldwide basis backed by its expertise. Global Payments has joined forces with several organizations to extend its nationwide reach in the digital payments space.
American Express pursues a series of measures focused on technology advancements, the introduction of secure digital solutions and assistance in businesses to regulate payments. To bolster its fraud detection capabilities, AXP partnered with online fraud prevention companies, namely Accertify, Microsoft and Riskified, in June 2021. These initiatives bolstered the digital suite and the global foothold of American Express.
Shares of Visa, Global Payments and American Express have lost 16.2%, 28.7% and 0.2%, respectively, in the past six months.