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Mastercard (MA) Gears Up to Extend MDES Platform in Nigeria

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·4 min read
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Mastercard Incorporated MA recently collaborated with financial services provider Providus Bank and innovative cloud solutions provider Thales in a bid to ease the extension of the tokenization and digitization solution named Mastercard Digital Enablement Service (“MDES”) throughout the Nigeria market.

The innovative solution, launched nearly a decade ago, has already established its credibility in equipping consumers, merchants, and financial institutions across various markets of the globe with convenient and secured contactless payments at the point of sale. The platform empowers cardholders to simply input their card credentials in any connected device (such as a mobile device), which eventually transforms into a payment method similar to any physical card.

Followed by the recent tie-up, Mastercard and Providus Bank will be reaching out to Nigerian cardholders with the “contactless” payment solution of MDES. Consequently, cardholders of both the companies can undertake digital tokenized transactions or else utilize their mobile devices and wearables for making hassle-free daily contactless payments with just a single tap. The contribution of Thales toward the latest collaboration is noteworthy. The TSH solution of Thales will ease the integration of the Mastercard MDES platform within the Providus Mobile application.

The recent partnership indicates Mastercard’s sincere efforts to bolster the reach of the MDES platform to tap the surge in demand for contactless payments. With digitization being infused in every sphere of life and infection risks posed by the COVID-19 pandemic, cash and checks have taken a backseat and several flexible payment options have come to the forefront. As the trend of digital payments is here to stay even in the post-pandemic era, Mastercard seems to perfectly capitalize on the prevailing scenario by rolling out a diverse range of contactless payment solutions.

Initiatives similar to the latest one are expected to boost the capabilities and presence of Mastercard in Sub-Saharan Africa. The region has been witnessing the emergence of advanced technologies. A tech-savvy population has led to an increase in the usage of Internet and mobile devices, which in turn has facilitated digital evolution across the region. This presents attractive prospects for companies attempting to bolster their digital foothold across Sub-Saharan Africa. Hence, the latest alliance of MA to extend the MDES platform in Nigeria came at an opportune time.

This technology company in the global payments industry keeps on partnering with numerous well-established organizations and delivering several innovative digital payment solutions to capitalize on the current prospects in the global digital payments space. Mastercard continues to make substantial investments and foray into underserved areas via technological offerings in order to tap on the prevailing scenario of consumer shift toward digital options.

Similar to Mastercard, other companies such as Visa Inc. V, Global Payments Inc. GPN and American Express Company AXP have resorted to launching several contactless payment solutions with the aim of strengthening their respective positions in the digital payments space.

Visa continues to utilize advanced technologies for rolling out newer payment solutions. V has been striving hard to integrate the blockchain technology with the payments platform. The launch of diversified payment alternatives, including mobile payments through Visa Checkout and Visa payWave, highlights the company’s commitment to ensure enhanced online checkout experiences for consumers.

Global Payments is a pure-play payments technology company boasting a deep expertise in payments technology. GPN continues to roll out a wide array of payments technology and software solutions for customers on a worldwide basis backed by its expertise. Global Payments has partnered with several organizations for extending its nationwide reach in the digital payments space.

American Express continues to undertake a host of measures focused on technology upgrades, the introduction of secured digital solutions and assisting businesses in regulating payments. AXP has undertaken several buyouts and partnerships in the past, aimed at bolstering digital capabilities and global presence. Last year, American Express launched its proprietary automated accounts payable (AP) solution named American Express One AP for automating the accounts payable process with an innovative, end-to-end solution and enabling businesses to simplify operations.

Price Performances

Shares of Mastercard have gained 2.8% over a year against the industry’s 21% decline. MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Zacks Investment Research

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While shares of American Express and Visa have gained 36.4% and 0.6%, respectively, in a year, Global Payments stock has lost 34.5% in the same time frame.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

Visa Inc. (V) : Free Stock Analysis Report

American Express Company (AXP) : Free Stock Analysis Report

Global Payments Inc. (GPN) : Free Stock Analysis Report

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