Mastercard (MA) to Boost Mobile Money Wallets Use in Africa

Mastercard Incorporated MA recently inked a multi-market deal with MTN Group Fintech, in a bid to offer enhanced digital solutions for African consumers and small businesses, and make way for them to safely transact through mobile.

The partnership aims to solidify the local infrastructure for digital payments and boost access to digital commerce across 13 markets in Africa, which are Benin, Cameroon, Cote d’Ivoire, Eswatini, Ghana, Liberia, Nigeria, Republic of Congo, Republic of Guinea, Rwanda, South Africa, Uganda and Zambia. Rolling out a wide variety of benefits for MTN’s subscriber and mobile wallet customers will be made possible by leveraging the credible technology and capabilities of Mastercard.

Delving deep into the benefits, a virtual and physical Mastercard companion card will be integrated within each mobile money (“MoMo") wallet of MTN. This, in turn, will provide users access to more than 100 million acceptance locations across the globe. MTN has 60 million active monthly MoMo wallets and boasts a subscriber base of 290 million. MTN’s operations will also benefit from the opportunity to utilize the well-established cybersecurity solutions of Mastercard and infuse greater security in mobile payments, thereby allowing customers to widely embrace digital means.

Under the new agreement, affordable acceptance payment solutions of MA will be made available to the SME clients of MTN. As a result, they can integrate digitization within their operations and accept a range of digital payments using QR codes, Tap on Phone and cards. Mobile money solutions can be of great use for SMEs by bringing wider payment acceptance, simplified business operations, greater customer trust and a decline in business costs.

Expanded mobile money remittance services in the form of both inward and cross-border remittances will be made possible by consumers in Africa as a result of the recent partnership. International remittances using mobile money wallets continue to be on the rise, thereby substantiating the timeliness of the move.

The latest deal is expected to solidify ties between Mastercard and MTN, who have joined forces over the past five years to support several mobile money programs across Africa. The continent has a population of more than 1.3 billion people, 45% of whom have mobile money accounts. The digitally booming continent provides Mastercard the perfect opportunity to capitalize on its easy and secure solutions, platforms and tools.

Partnerships similar to the latest one result in the increased usage of Mastercard’s solutions and fetch higher value-added services and solutions net revenues . The helping hand from MA will also support MTN’s mission to emerge as the largest fintech platform in Africa.

Shares of Mastercard have gained 35.4% in the past year compared with the industry’s 25.5% growth. MA currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks in the Business Services space are Duolingo, Inc. DUOL, Huron Consulting Group Inc. HURN and SPX Technologies, Inc. SPXC. While Duolingo currently sports a Zacks Rank #1 (Strong Buy), Huron Consulting and SPX Technologies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Duolingo outpaced estimates in each of the last four quarters, the average surprise being 111.47%. The Zacks Consensus Estimate for DUOL’s 2024 earnings is pegged at 91 cents per share, which indicates an increase of nearly three-fold from the year-ago reported figure. The consensus mark for revenues suggests growth of 29.1% from the year-ago reported number. The consensus mark for DUOL’s 2024 earnings has moved 12.3% north in the past seven days.

Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 25.91%. The Zacks Consensus Estimate for HURN’s 2024 earnings suggests an improvement of 13.7% from the year-ago reported figure. The consensus mark for revenues suggests growth of 9.8% from the year-ago reported number. The consensus mark for HURN’s 2024 earnings has moved 0.7% north in the past seven days.

The bottom line of SPX Technologies outpaced estimates in three of the last four quarters and matched the mark once, the average surprise being 23.19%. The Zacks Consensus Estimate for SPXC’s 2024 earnings suggests an improvement of 16.7% from the year-ago reported figure. The consensus mark for revenues suggests growth of 13.1% from the year-ago reported number. The consensus mark for SPXC’s 2024 earnings has moved 5.5% north in the past seven days.

Shares of Duolingo, Huron Consulting and SPX Technologies have gained 111.7%, 17.5% and 62.8%, respectively, in the past year.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

Huron Consulting Group Inc. (HURN) : Free Stock Analysis Report

SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report

Duolingo, Inc. (DUOL) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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