Mastercard (MA) & Amal Bank Team Up to Launch Debit Cards
Mastercard Incorporated MA announced that the company is partnering with Amal Bank of Somalia to launch Classic and Platinum debit cards. In terms of branch network and customers, Amal Bank is one of the largest in the country, which will likely create a huge market for MA.
The move is expected to expand Mastercard’s footprint in the growing economy in Africa, which is expected to witness massive growth in digital transactions in the coming days. The new products will enable consumers to make safer global transactions and access the global marketplace. Moves like this are likely to boost transaction volumes for the company.
The partnership is expected to play a significant role in bringing the consumers of Somalia into the digital space. It is likely to serve both the banked and underbanked consumers in the country, taking a prominent step toward financial inclusion.
The deal is expected to boost Mastercard’s card issuance numbers and gross dollar volume (GDV), and bring more people to its vast and growing network. Such moves are crucial for positioning the company for long-term growth in the payment space. In the second quarter, MA’s GDV rose 12% on a local-currency basis to $2,267 billion.
The latest deal signals MA’s continued focus on expanding business in growing economies. Last month, it collaborated with the Zanzibar e-Government Agency for three years to bring about digital transformation under eGaz’s Digital Government Strategy. Along with Africa, it is also focused on regions like Asia Pacific and Latin America.
Price Movements
Shares of Mastercard have gained 28% in the past year compared with the industry’s 14.7% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mastercard currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services sector are Paysafe Limited PSFE, PagSeguro Digital Ltd. PAGS and FirstCash Holdings, Inc. FCFS. While Paysafe currently sports a Zacks Rank #1 (Strong Buy), PagSeguro and FirstCash carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Paysafe’s current year bottom line suggests 5.8% year-over-year growth. Headquartered in London, PSFE beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 154%.
The Zacks Consensus Estimate for PagSeguro’s current year bottom line suggests 13% year-over-year growth. Based in Sao Paulo, Brazil, PAGS beat earnings estimates in all the past four quarters, with an average surprise of 9.3%.
The Zacks Consensus Estimate for FirstCash’s current year earnings indicates a 6.4% year-over-year increase. Fort Worth, TX-based FCFS beat earnings estimates in all the past four quarters, with an average surprise of 7.3%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mastercard Incorporated (MA) : Free Stock Analysis Report
FirstCash Holdings, Inc. (FCFS) : Free Stock Analysis Report
PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report
Paysafe Limited (PSFE) : Free Stock Analysis Report
