In an attempt to boost its mobile money services,
) announced a strategic alliance with London-based global mobile
application provider for various banking and payment services -
Monitise Plc to accelerate mobile commerce (mCommerce) globally.
Additionally, the company also plans to buy a minority stake in
the latter, the value of which remains undisclosed.
MasterCard has been aggressively working toward developing
mCommerce for over a decade now. The company was also the leader
of digital wallet innovation for making payments from mobile
devices through applications that are secured, convenient and
Hence, MasterCard's collaboration with Monitise appears
reasonable as the latter enjoys a huge expanse of network, which
strengthens the former's competitive edge in the global market.
Armed with a strong grid of over 350 renowned banks, merchant
partners, payment processors and other financial institutions,
Monitise processes about 3.5 billion transactions and initiates
payment volumes worth $70 billion annually, serving 28 million
registered users globally.
Additionally, both MasterCard and Monitise aim at reaching out
to the remotest rural areas of the emerging markets through such
collaborative initiatives. Overall, these attempts are expected
to augment their respective core processing capabilities in an
increasingly complex payments environment, thereby reflecting
their endeavors to adapt themselves to the emerging industry
trends, while also offering a secure mobile shopping
Such partnerships are also aimed at increasing brand loyalty
while adding an incremental revenue stream, particularly, given
the regulatory cloud that burst over the card industry in
Apart from MasterCard, other card giants are also seeking
greener pastures through newer initiatives, including the
expansion into prepaid cards, mobile banking and electronic
commerce (eCommerce). In 2012,
) had also announced a joint venture with Monitise in an effort
to develop mCommerce offerings. Overall, we believe such efforts
will not only shower ample organic growth opportunities and
diversify business portfolio but will also augur long-term growth
for MasterCard going ahead.
While both MasterCard and Visa carry a Zacks Rank #3 (Hold),
some better-ranked stocks in the financial sector include
Discover Financial Services
). Both these stocks bear a Zacks Rank #2 (Buy).
DISCOVER FIN SV (DFS): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
TREE.COM INC (TREE): Free Stock Analysis
VISA INC-A (V): Free Stock Analysis Report
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