Mastercard Incorporated MA recently solidified ties with a worldwide leader in identity-focused security solutions, Entrust, as a result of which Mastercard Identity insights, driven by Ekata, will be integrated into the Entrust Identity Verification Security Platform. It will provide affordable, risk-based verification by automating processes with real-time fraud scores.
Organizations benefit from smarter and earlier fraud prevention, with machine learning models analyzing key details such as name, phone number, address and email to identify inconsistencies and suspicious behavior. This enables companies to block fraudulent attempts before they advance.
Low-risk customers enjoy faster onboarding, as Entrust adapts verification requirements to each user’s risk profile. During the onboarding process, users provide their basic information, which Entrust securely handles before connecting with Mastercard Identity’s network to produce a fraud risk score. Unlike traditional solutions that rely solely on authoritative records, Mastercard Identity employs a layered approach that combines trusted data sources, historical usage patterns and machine learning to provide deeper insights.
Using these insights, Entrust Identity Verification directs individuals through the most suitable onboarding path. Applicants with low-risk scores move forward with little resistance, while those identified as higher risk are required to complete extra verification steps.
The recent initiative seems to be a time-opportune one since identity fraud is on the rise and fraud tactics have become more sophisticated. Increased usage of Mastercard fraud detection solutions is expected to fetch greater revenues from the increased utilization of its value-added services and solutions suite. Its net revenues improved 17% year over year in the second quarter of 2025.
How are Competitors Faring?
Some of Mastercard’s competitors with enhanced fraud detection tools are American Express Company AXP and Visa Inc. V.
American Express offers fraud detection solutions that leverage AI, machine learning, predictive analytics and behavioral analysis to monitor transactions in real time. These tools work with its global detection platforms and merchant partnerships to identify and prevent suspicious or fraudulent activity. Total revenues, net of interest expense, rose 9% year over year in the second quarter of 2025.
Visa uses AI-driven fraud detection tools like Visa Advanced Authorization, which scores transactions in real time, and Visa Risk Manager, enabling issuers to set tailored controls. It also provides Visa Consumer Authentication Service to verify customers securely. Net revenues advanced 14% year over year in the third quarter of fiscal 2025.
Mastercard’s Price Performance, Valuation & Estimates
Shares of Mastercard have gained 20.2% in the past year compared with the industry’s 14.6% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 32.3, above the industry average of 21.74.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2025 earnings implies a 11.7% rise from the year-ago period. The consensus mark for revenues indicates 15.1% year-over-year growth.
Image Source: Zacks Investment Research
MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>Mastercard Incorporated (MA) : Free Stock Analysis Report
Visa Inc. (V) : Free Stock Analysis Report
American Express Company (AXP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
