Mastercard Incorporated MA recently announced its strategic partnership with Microsoft Corporation MSFT , aimed at improving customers' way of managing and using digital identity. With this tie-up, both companies look forward to providing a safe and secure instant method of verifying identity with whoever is at any given point of time.
In the present scenario, customers have to confirm their identity online with the help of digital or physical proof like passport number, address proof, driver's license, etc. This can get really complicated for those who have to remember so many passwords at the same time. Thus, the two leading companies have come up with a service, which allows individuals to enter, control and share their identity in a manner they want and from the devices they regularly use.
Working closely with players like Microsoft, Mastercard expects that this initiative would help the duo take a step toward a globally interoperable digital identity service. Getting an easy access to a universally-recognized digital identity could enhance and enrich the experiences of people who use this for interaction with business houses, service providers, online communities, etc.
With this innovative solution, issues such as identity inclusion and identity verification can also be solved along with preventing frauds to some extent. This collaboration will serve as the foundation for new Mastercard services, powered by Microsoft Azure and partnered with leading banking and mobile network operator plus government communities. The combination of Microsoft's expertise in identity technology with Mastercard's skill in securely orchestrating digital interactions in a complex multi-stakeholder ecosystem would surely be beneficial to people.
Mastercard has been showing significant progress in its digital strategy and steadily investing in technology. With MasterPass, it became the first network to deliver a digital payment service across all devices and channels. It is also putting money on tokenization technology with its Mastercard Digital Enablement Servic, which supports contactless payments and Digital Secure Remote Payments. The company's consistent investments in technology will keep it ahead in the dynamic payments industry.
Shares of this Zacks Rank #3 (Hold) company have surged nearly 44.6%, outperforming its industry
's rally of nearly 12.3%.
Stocks to Consider
Investors interested in the financial transaction services sector can look into some better-ranked stocks like Cardtronics plc CATM , Evertec, Inc. EVTC and Green Dot Corporation GDOT .
Cardtronics plc provides automated consumer financial services via its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company sports a Zacks Rank #1 (Strong Buy) and came up with average four-quarter beat of 50.24%. You can see the complete list of today's Zacks #1 Rank stocks here .
EVERTEC engages in transaction processing business, serving financial institutions, merchants, corporations and government agencies in Latin America and the Caribbean. The stock carries a Zacks Rank #2 (Buy) and pulled off average earnings surprise of 16.99% over the last four reported quarters.
Green Dot operates as a pro-consumer bank holding company, providing personal banking for the masses. The company has a Zacks Rank of 1 and delivered average four-quarter positive surprise of 18.40%.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cardtronics PLC (CATM): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Green Dot Corporation (GDOT): Free Stock Analysis Report Mastercard Incorporated (MA): Free Stock Analysis Report Evertec, Inc. (EVTC): Free Stock Analysis Report To read this article on Zacks.com click here.