Mastercard (MA), Dapi to Unveil A2A Payment Solution in UAE
Mastercard Incorporated MA recently teamed up with a UAE fintech, Dapi, to launch an account-to-account (A2A) payment solution within the Mastercard Payment Gateway Services ecosystem.
The solution, which is expected to be officially launched soon, will leverage the comprehensive payment options of Mastercard along with the open banking prowess of Dapi. This, in turn, is likely to enable the A2A payment solution to support the seamless processing of a significant number of financial transactions as well as infuse higher security within the transactions.
The solution, which will be devised considering the evolving needs of consumers, also aims to improve the payment experience for UAE merchants.
The latest move reflects Mastercard’s continuous efforts to strengthen its footprint as a leading provider of innovative payment solutions across the globe, for which it has frequently resorted to the help of fintechs. Such partnerships enable MA to capture a significant share of the booming digital payments market of the UAE and broadly, throughout the MENA region.
Also, the collaboration with Dapi reflects a time-opportune move on the part of Mastercard, considering the widespread benefits provided by A2A payments and the open banking industry.
A2A payments, which are transferred directly from the bank account of a consumer to a merchant’s account devoid of any intermediary’s need, lower the cost of payment acceptance for merchants. It also settles funds in near real time and boosts the cash flow of merchants. Additionally, consumers benefit from a speedy, safe and seamless checkout experience on selecting A2A payments.
Therefore, the latest tie-up bears testament to Mastercard’s sincere efforts in integrating hassle-free A2A payments and subsequently, infuse greater digitization within the everyday lives of consumers.
Mastercard boasts a solid presence in the open banking industry, that puts intensified focus on bringing about an innovative financial landscape and an accelerated digital transformation journey across different parts of the globe.
In fact, Dapi’s open banking capabilities received an impetus with the opportunity to be a part of the inaugural cohort of the Mastercard Start Path Open Banking program last year. Thereafter, the well-known open banking expertise of Mastercard and the opportunity to work together with the tech giant’s worldwide ecosystem of banks, merchants, partners, and digital players imparted the ability to Dapi to devise advanced open banking solutions for the MENA region and further.
Shares of Mastercard have gained 6.5% year to date, compared with the industry’s 6% growth. MA currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Business Services space are SPX Technologies, Inc. SPXC, Barrett Business Services, Inc. BBSI and Omnicom Group Inc. OMC. While SPX Technologies currently sports a Zacks Rank #1 (Strong Buy), Barrett Business Services and Omnicom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of SPX Technologies outpaced estimates in each of the last four quarters, the average beat being 28.38%. The Zacks Consensus Estimate for SPXC’s 2023 earnings suggests an improvement of 26.5% from the 2022 reported figure. The same for revenues suggests growth of 11.7% from the 2022 figure. The consensus mark for SPXC’s 2023 earnings has moved 4.3% north in the past 30 days.
Barrett Business Services’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 74.03%. The Zacks Consensus Estimate for BBSI’s 2023 earnings suggests an improvement of 7.5% from the 2022 reported figure. The same for revenues suggests growth of 6.1% from the 2022 figure. The consensus mark for BBSI’s 2023 earnings has moved 0.5% north in the past 60 days.
The bottom line of Omnicom outpaced estimates in each of the last four quarters, the average beat being 9.10%. The Zacks Consensus Estimate for OMC’s 2023 earnings suggests an improvement of 6.9% from the 2022 reported figure. The same for revenues suggests growth of 3% from the 2022 figure. The consensus mark for OMC’s 2023 earnings has moved 0.4% north in the past 30 days.
Shares of SPX Technologies and Omnicom have gained 24.6% and 11.6%, respectively, year to date. However, the Barrett Business Services stock has declined 6.3% in the same time frame.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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