Mastercard Incorporated MA recently announced the launch of two BMO VIPorter Mastercard credit cards in the Canadian market. The two cards launched are BMO VIPorter Mastercard and BMO VIPorter World Elite Mastercard. This exclusive collaboration with Porter Airlines and BMO enhances the travel experience by granting immediate airline loyalty benefits, reinforcing Mastercard’s strategic position in the premium travel segment.
This move bodes well for Mastercard as this launch is expected to bolster its cross-border transaction revenues and strengthen its interchange fee structure. As cardholders maximize their travel rewards, frequent transactions across airline bookings, hotels, dining and transportation will drive higher spending per user. The tiered points system, which accelerates earnings on everyday purchases, further incentivizes card usage, ensuring long-term cardholder retention and increased lifetime value. Customers will get rewarded with two points and three points for every $1 spent on Porter flights for BMO VIPorter Mastercard and BMO VIPorter World Elite Mastercard, respectively.
With more than 30,000 pre-launch applicants, the demand signals a strong consumer appetite for elevated travel perks, which will contribute to increased transaction volumes and sustained revenue growth for Mastercard. Additionally, the collaboration with Porter Airlines extends the company’s footprint in the expanding Canadian aviation market. Porter’s rapid growth provides Mastercard with access to a broader customer base. As Porter continues its expansion across North America, MA’s role in facilitating seamless, reward-driven transactions will position it as the preferred network for premium travel experiences.
Moves like these should aid Mastercard in achieving its outlook of low double-digit net revenue growth in 2025 from the 2024 figure.
Shares of Mastercard have gained 14% in the past year compared with the industry’s 17.6% growth.
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Mastercard currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Business Services space are Remitly Global, Inc. RELY, PAR Technology Corporation PAR, and Huron Consulting Group Inc. HURN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Remitly Global’s current-year earnings indicates a 110.5% improvement from the year-ago level. RELY beat earnings estimates in each of the trailing four quarters, with the average surprise being 58.8%. The consensus estimate for current-year revenues is pegged at $1.57 billion, implying 24% year-over-year growth.
The consensus estimate for PAR Technology’s current-year earnings indicates a 115.1% year-over-year improvement. PAR beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 18.6%. The consensus estimate for current-year revenues implies a 16.9% year-over-year increase.
Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 21.54%. The Zacks Consensus Estimate for HURN’s 2025 earnings indicates an improvement of 10.5% from the 2024 figure. The consensus mark for revenues implies growth of 8.9% from the 2024 figure. The consensus mark for HURN’s earnings has moved 3.5% north in the past 30 days.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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