) will soon introduce a contemporary mobile wallet service in
Japan, which is based on near-field communication (NFC). The
company will launch this service by integrating its next
generation digital service - PayPass - with DNP's mobile wallet
and C-SAM's secure turnkey mobile transaction software technology
The latest ultra-modern digital service platform will
facilitate customers with quicker, secured and relaxed mode of
payments for their purchases. It will also allow smart and simple
checkout services. In August last year, MasterCard had launched a
similar mobile wallet, in association with DNP and C-SAM, in
Further, the NFC process enables bar codes scanning and
contactless payments through mobile devices, while also making
point of sale transactions easy and secure. The contactless
payment business has immense scope for growth in the upcoming
years. Moreover, the latest smartphones these days are mostly
equipped with NFC technology, laying ample scope of growth for
Additionally, the new mobile wallet in Japan will offer other
value-added services like customized coupons and offers based on
customer's historical purchase preferences, alerts on discount
offers and loyalty programs. These facilities further add to the
consumers' shopping experience. On the other hand, a secure and
user-friendly contactless payments service also smoothens the
operations of the merchants and retailers.
We believe the new technologies are also aiding MasterCard to
channelize its resources in order to adapt to the changing market
dynamics and better penetrate into the global markets. MasterCard
benefits from strong secular demand growth, meaningful
international exposure, high barriers, excellent pricing power
and impressive operating leverage.
Such long-term organic growth strategies are also crucial and
should prove beneficial for sustaining competitive pressures and
boosts management's optimism of delivering earnings growth of
over 20% in the next two to three years.
Along with MasterCard, other strong performers such as
Official Payments Holdings Inc.
) carry a Zacks Rank #2 (Buy). Another outperformer in the
electronic payments services sector -
Total System Services Inc.
) - carries a Zacks Rank #1 (Strong Buy).
MASTERCARD INC (MA): Free Stock Analysis
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