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Mastercard Incorporated MA recently announced its partnership with MoneyGram in a bid to transform the digital payment landscape. This collaboration is set to enhance cross-border money transfers, offering Mastercard a strong near-term growth opportunity while reinforcing its position as a leader in digital financial services.
This move bodes well for Mastercard, as MoneyGram is implementing Mastercard Move, which will provide direct access to MoneyGram’s vast network spanning over 200 countries and territories, with nearly 450,000 retail locations. This means increased transaction volume and a stronger foothold in the booming remittance market. With MoneyGram processing over $200 billion annually, Mastercard stands to benefit from a growing customer base eager for efficient, real-time payments.
Digital money transfers are expected to witness continued growth, with consumers increasingly opting for digital-first solutions over traditional banking methods. By facilitating secure, low-cost, and near-instant payments through MoneyGram, Mastercard can capitalize on a lucrative revenue stream driven by both consumer demand and global remittance flows. This partnership reinforces Mastercard’s commitment to secure and seamless financial transactions. By backing MoneyGram’s services, MA enhances its brand reliability and customer retention, ensuring sustained market influence.
With Mastercard Move reaching more than 95% of the world’s banked population, this partnership supports financial inclusion by bridging gaps in emerging economies. As more consumers gain access to cross-border payment solutions, Mastercard strengthens its long-term prospects while delivering immediate value in the near term. Moves like these should aid management in achieving its adjusted net revenue growth outlook of low-double-digit in 2025 from the 2024 figure.
MA’s Price Performance
Over the past three months, MA’s shares have gained 6.9% compared with the industry’s growth of 4.9%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
MA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Financial Transaction Services space are OppFi Inc. OPFI, PagSeguro Digital Ltd. PAGS and Sezzle Inc. SEZL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OppFi’s current-year earnings of $1.07 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. OPFI beat earnings estimates in each of the trailing four quarters, with the average surprise being 73.01%. The consensus estimate for current-year revenues is pegged at $576.7 million, implying 9.7% year-over-year growth.