Mastercard (MA) & DTS Unite to Minimize Digital Frauds in Japan
Mastercard Incorporated MA recently partnered with DTS Corporation to provide cybersecurity-enhancing solutions in Japan. DTS Corporation can leverage MA’s cybersecurity solutions and improve fraud detection for its customers. Mastercard’s shares rose 0.5% on Jul 14, implying investors’ confidence in the company’s prospects.
This move bodes well for Mastercard as it aims to expand its product portfolio to new services and geographic locations. This alliance will boost MA’s value-added service revenues in the future. The company’s solutions will be integrated into DTS Corporation’s system integration and consulting services, further strengthening its existing offerings in connection with cybersecurity.
With the world coming closer to one another through evolving technologies, greater convenience and improving opportunities, rising cybersecurity threats are becoming important areas of concern. Per Juniper Research, e-commerce fraud is expected to cost merchants more than $48 billion in 2023, an increase of 17% from 2022. DTS Corporation acts as a comprehensive system integrator to its customers in the manufacturing, financial, telecommunication sectors etc. Through this partnership, DTS Corporation is expected to provide its customers with safe IT services and an improved user experience.
Mastercard will benefit from a diversified revenue base as it aims to expand its product suite. Moreover, this move should act as a catalyst for advancing digital payments in the country, thereby increasing the demand for MA’s payment processing capabilities in the future. Mastercard’s data assets and infrastructure are aiding the formation of new products and services to help reduce fraud, improve security and develop new business opportunities. MA’s NuData Security and RiskRecon are the two capabilities to be added to the Japanese market in early August 2023.
Zacks Rank and Price Performance
Mastercard currently carries a Zacks Rank #3 (Hold). Shares of Mastercard have gained 15.8% in the year-to-date period compared with the industry’s 13.8% growth.
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Stocks to Consider
Some better-ranked stocks from the same space are DLocal Limited DLO, Visa Inc. V and WEX Inc. WEX. Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLO’s 2023 and 2024 earnings per share (EPS) indicates a year-over-year increase of 54.1% and 40.4%, respectively. The consensus estimate has moved north by 5.6% and 2.6%, respectively, for 2023 and 2024 in the past 60 days. Year to date, DLO shares have lost 12.7%.
Visa delivered an average four-quarter earnings surprise of 8%. The Zacks Consensus Estimate for V’s 2023 and 2024 EPS indicates a year-over-year increase of 14.5% and 12.8%, respectively. Year to date, Visa’s shares have gained 17%.
WEX delivered an average four-quarter earnings surprise of 5.4%. The Zacks Consensus Estimate for WEX’s 2023 EPS indicates a year-over-year increase of 3.8% on 5.8% higher revenues. Year to date, WEX shares have gained 18.3%.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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DLocal Limited (DLO) : Free Stock Analysis Report
