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Mastercard (MA) Deepens Ties to Aid Denmark's Fintech Arena

·4 min read

Mastercard Incorporated MA recently cemented its ties with Denmark-based fintech start-up Copenhagen Fintech to extend multiple programs and services. These include open-banking and start-up programs to strengthen the booming fintech economy across Copenhagen.

Mastercard remains well-equipped to provide the above-mentioned programs and services to the fintech community of the Scandinavian country. MA boasts a solid presence in the rapidly-growing open-banking space, offering numerous benefits through varied choices, enhanced services and seamless outcomes. MA continues to be active in pursuing efforts either via collaborations or acquisitions to maintain its dominance in the space.

For offering necessary assistance to fintechs and startups, Mastercard has a Fintech Express program and an Accelerate portfolio in place. The assistance ranges from offering technological support to aiding them in rolling out products and improved payments solutions. MA also invested substantially in fueling prospects of fintechs and startups.

Mastercard remains the preferred option for fintechs owing to its strong brand name, local knowledge, expanded capabilities, extensive network and solid global presence. A robust regional base and a wide international reach (likewise Mastercard) are required to reinforce Denmark’s fintech ecosystem, as cited by Copenhagen Fintech management.

MA follows a strategy to build partnerships with fintechs to accelerate digitization worldwide. Teaming up with fintechs expanded its overseas footprint.

With this latest initiative, Mastercard’s endeavor to boost its presence throughout Denmark, that seems to be brewing for quite a long time, is highlighted.

As a testament to the same, MA purchased the country’s open-banking platform Aiia in 2021. Also, last year, Mastercard bought the Corporate Services business of Denmark-based Nets. Such concerted efforts underline MA’s aim to establish a solid customer base as well as improve the existing solutions and unveil new ones across Denmark and broadly, in the Nordics.

Moreover, Mastercard shows prudence in expanding collaborations with Copenhagen Fintech and effectively serving the Danish fintech community. Notably, the count of startups, new jobs, partnerships and investments in fintech continues to get a boost every year owing to the founding of the Copenhagen Fintech back in 2016.

Shares of Mastercard have lost 5.6% in a year compared with the industry’s decline of 25%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Mastercard currently carries a Zacks Rank #3 (Hold).  Some better-ranked stocks in the Business Services space are The Interpublic Group of Companies, Inc. IPG, Avis Budget Group, Inc. CAR and Sterling Check Corp. STER. While Avis Budget sports a Zacks Rank #1 (Strong Buy), Interpublic Group and Sterling carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Interpublic Group outpaced estimates in each of the last four quarters, the average beat being 14.30%. The Zacks Consensus Estimate for IPG’s 2022 earnings suggests an improvement of 4.2% from the year-ago reported figure. The same for revenues suggests growth of 11.5% from the year-ago reported number. The consensus mark for IPG’s 2022 earnings has moved 0.7% north in the past 60 days.

Avis Budget’s earnings outpaced estimates in each of the trailing four quarters, the average being 69.47%. The Zacks Consensus Estimate for CAR’s 2022 earnings is pegged at $47.02, indicating to more than double the year-ago reported figure. The same for revenues suggests growth of 28.3% from the prior-year reading. The consensus mark for CAR’s 2022 earnings has moved 0.3% north in the past 30 days.

The bottom line of Sterling outpaced estimates in each of the last four quarters, the average being 28.32%. The Zacks Consensus Estimate for STER’s 2022 earnings suggests an improvement of 22.7% from the year-ago reported figure. The same for revenues suggests growth of 23.4% from the year-ago actuals. The consensus mark for STER’s 2022 earnings has moved 5.3% north in the past 60 days.

The Avis Budget stock has gained 81.6% in a year. However, shares of Interpublic Group and Sterling have lost 26.4% and 18.2%, respectively, in the same time frame.


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Mastercard Incorporated (MA) : Free Stock Analysis Report
 
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