Expanding its mobile commerce (m-commerce) initiatives,
) announced its intention to acquire a globally leading
mobile-device payment technology developer - C-SAM Inc. for
undisclosed terms and value. The deal is scheduled to culminate
by Mar 2014, upon the receipt of regulatory approvals.
C-SAM offers software and other services to mobile-device
wallets across the US, Japan, Vietnam, India, Singapore and
Mexico, based on near-field communication (NFC). These include
device application and infrastructural software services
customized coupons, loyalty incentives, banking, bill-pay options
and non-financial secure transactions.
Subsequently, the acquisition will equip MasterCard customers
with the latest ultra-modern digital service platform that offers
quick, secured and relaxed mode of payments for their purchases.
The company has had operational alliances with C-SAM since Dec
2012, when the former had investment in a minority share of the
MasterPass Blends with Mobile Apps
Foraying into the innovative digital payment services space
and simplifying payments for customers, MasterCard concurrently
unveiled its latest next generation digital service - MasterPass
for mobile applications.
Accordingly, MasterCard provided a very compact digital
wallet. MasterPass will now allow smart and simple checkout
services by using the NFC process to scan bar codes and pay
through application within mobile devices. This will make point
of sale transactions much more easy and secure, thereby enhancing
the consumers' shopping experience. MasterPass for mobile
applications is expected to be rolled out in second-quarter
Such long-term organic growth strategies are crucial and
should prove beneficial for sustaining competitive pressures.
Top-line growth from mobile applications are estimated to
escalate more than five-fold from the 2011 equivalent of $8.5
billion to about $46 billion by 2016, according to ABI Research.
Hence, the market acceptance for mobile payments boost
management's optimism of delivering strong financial and
operating growth in this field in the near future.
MasterCard curently carries a Zacks Rank #3 (Hold).
Better-ranked financial service providers include
Global Payments Inc.
Verifone Systems Inc.
). All these stocks carry a Zacks Rank #2 (Buy).
ENVESTNET INC (ENV): Free Stock Analysis
GLOBAL PAYMENTS (GPN): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
VERIFONE SYSTMS (PAY): Free Stock Analysis
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