Mastercard Incorporated MA recently entered into a strategic alliance with PayTabs Group, a payment infrastructure company, to offer a white-labeled digital payments platform for small and medium-sized enterprises (SMEs) in Egypt. The platform will be built by harnessing the expansive global network and advanced digital payment technologies of MA. 

The platform is designed to provide fast, safe and cost-effective solutions that can be customized for digital payment acceptance. It features an intuitive user interface that enables merchants to swiftly create payment links, significantly reducing the time and manual effort involved in payment processing. By integrating seamlessly with existing business operations, the platform enhances efficiency and provides additional functionalities such as QR codes. 

Furthermore, the platform ensures a frictionless payment experience, particularly optimized for mobile users. The platform plays a crucial role in bringing more businesses and consumers into the formal financial ecosystem by enhancing cash flow management and decreasing reliance on cash transactions. 

The latest move reinforces Mastercard’s efforts to promote the widespread use of contactless payments and accelerate Egypt’s digital transformation goals. And PayTabs seems to be the apt partner to complement MA’s endeavor since the former boasts a record of providing seamless and secure B2B ecommerce solutions to SMEs in the MENA region and bringing out hassle-free digital transactions. 

The newly unveiled white-labelled payment orchestration platform is expected to boost digital transaction volumes, extend the reach of online payments and improve the overall experience for both merchants and consumers in Egypt.

Benefits of the Recent Move to Mastercard

For MA, the tie-up is likely to expand the presence of the tech giant across Egypt and broadly in the MENA region. Increased adoption of Mastercard’s digital payment capabilities is expected to boost revenues that it derives from value-added services and solutions. This revenue component reported 17% year-over-year growth during 2024.

The MENA region seems to be a key area of focus for Mastercard to capitalize on its promising digital growth prospects, attributable to increased Internet penetration and higher usage of smartphones. In fact, MA makes steadfast efforts to infuse greater digitization into the daily lives of people across different corners of the globe through several partnerships or technology investments. Recently, Mastercard teamed up with Nomba, a prominent provider of payment solutions in Nigeria, to enhance payment experiences for businesses nationwide. This will be made possible by the integration of Mastercard Gateway into the Checkout solution of Nomba.

MA’s Share Price Performance & Zacks Rank

Shares of Mastercard have gained 2.8% in the past year compared with the industry’s 6.5% increase. 

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MA currently has a Zacks Rank #4 (Sell).

Stocks to Consider

Some better-ranked stocks in the Business Services space are OppFi Inc. OPFI, Fiserv, Inc. FI and SPX Technologies, Inc. SPXC. While OppFi sports a Zacks Rank #1 (Strong Buy), Fiserv and SPX Technologies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of OppFi outpaced estimates in each of the last four quarters, the average surprise being 73.01%. The Zacks Consensus Estimate for OPFI’s 2025 earnings suggests an improvement of 12.6% from the year-ago reported figure. The same for revenues suggests growth of 9.7% from the year-ago reported number. The consensus mark for OPFI’s 2025 earnings has moved 10.3% north in the past 60 days. 

Fiserv’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.89%. The Zacks Consensus Estimate for FI’s 2025 earnings suggests an improvement of 16.4% from the year-ago reported figure. The same for revenues suggests growth of 9.3% from the prior-year reading. The consensus mark for FI’s 2025 earnings has moved 0.1% north in the past 30 days.

The bottom line of SPX Technologies outpaced estimates in each of the last four quarters, the average surprise being 8.00%. The Zacks Consensus Estimate for SPXC’s 2025 earnings suggests an improvement of 10.2% from the year-ago reported figure. The same for revenues suggests growth of 8.7% from the year-ago actuals. The consensus mark for SPXC’s 2025 earnings has moved 0.5% north in the past 60 days.

Shares of OppFi, Fiserv and SPX Technologies have gained 158.2%, 31.5% and 4.1%, respectively, in the past year. 

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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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