Mastercard Incorporated MA recently collaborated with Geidea to cater to businesses and consumers with advanced payment solutions and cards. Geidea will expand its suite of products and services and operate as an issuer for Mastercard.
This move bodes well for Mastercard as it aims to expand its product portfolio to new services and geographic locations. This alliance will boost MA’s transaction processing revenues in the future. The company is delivering well on promoting inclusivity in the digital economy by empowering customers, fintechs and merchants to leverage innovative payment solutions.
Geidea will leverage Mastercard’s technology and issue BIN ranges, empowering users. This partnership will result in the development of Geidea and transform Saudi Arabia into an innovation hub, boosting fintech enablement across the country. As individual companies benefit from innovative payment methods, Saudi Arabia and the Middle East/North Africa digital economies will prosper.
Geidea’s advanced card solutions will help businesses start, manage and expand their operations along with taking advantage of payment solutions. This partnership follows a previous collaboration in 2021 wherein Geidea began accepting Mastercard payments in its unique Tap-on-Phone solutions. This highlights Mastercard’s unwavering focus on diversifying its revenues geographically. The current partnership between the two companies is favorable as Geidea is a leading fintech company in Saudi Arabia with approximately 800,000 payment terminals.
Zacks Rank and Price Performance
Mastercard currently carries a Zacks Rank #3 (Hold). Shares of Mastercard have gained 15.7% in the year-to-date period compared with the industry’s 13.8% growth.
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Stocks to Consider
Some better-ranked stocks from the Financial Transaction Services space are DLocal Limited DLO, Visa V and WEX WEX. Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DLO’s 2023 and 2024 earnings per share (EPS) indicates a year-over-year increase of 54.1% and 40.4%, respectively. The consensus estimate has moved north by 5.6% and 2.6%, respectively, for 2023 and 2024, in the past 60 days. Year to date, DLO shares have lost 9.2%.
Visa delivered an average four-quarter earnings surprise of 8%. The Zacks Consensus Estimate for V’s 2023 and 2024 EPS indicates a year-over-year increase of 14.5% and 12.8%, respectively. Year to date, Visa’s shares have gained 17.4%.
WEX delivered an average four-quarter earnings surprise of 5.4%. The Zacks Consensus Estimate for WEX’s 2023 EPS indicates a year-over-year increase of 3.8% on 5.7% higher revenues. Year to date, WEX shares have gained 17.9%.
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