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Mastercard and Safaricom Partner to Enhance Digital Payments in Kenya
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Mastercard Incorporated (MA - Free Report) recently announced its partnership with Safaricom to expand payment acceptance and cross-border remittance services to over 636,000 merchants in Kenya through M-PESA, Safaricom’s mobile money platform. This collaboration is expected to unlock substantial benefits for Mastercard, as Kenya’s digital payment landscape experiences rapid growth. The initial initiatives are set to launch in the coming months, furthering Safaricom’s journey to obtain its acquiring license and offering merchants advanced digital payment solutions.
M-PESA’s mobile wallet payments have witnessed a CAGR of 12.7% between 2020 to 2024. This bodes well for Mastercard as it can tap into M-PESA’s vast merchant network and provide seamless and secure payment solutions.
MA also aims to enhance cross-border remittance service for M-PESA merchants. This move should enable merchants to offer more payment options to customers and accept cross-border payments. Enhanced reach and frictionless payments are expected to boost merchant revenues and enhance customer satisfaction. Mastercard will benefit from improved transaction volumes, aiding its top line in the future.
Tie-ups similar to the latest one should provide MA with a significant advantage in establishing a solid footprint in the EEMEA region. It can tap into new markets, increase its market share, and foster a deeper connection with consumers. Through similar partnerships, it is strategically positioning itself to harness the promising growth prospects of the region, which witnesses a booming digital economy spurred by increased Internet penetration and higher usage of smartphones.
With Kenya’s evolving digital economy and Mastercard’s ability to offer cutting-edge payment solutions, the partnership will position the company to leverage future growth opportunities and reinforce its brand as a leader in the global payments industry.
MA Stock’s Price Performance
Shares of Mastercard have gained 15.6% in the past six months compared with the industry’s 10.6% growth.
The Zacks Consensus Estimate for Fidelity National’s current-year earnings indicates a 50.7% year-over-year jump. FIS beat earnings estimates in two of the trailing four quarters and missed twice. The consensus estimate for current-year revenues is pegged at $10.2 billion.
The Zacks Consensus Estimate for Paysign’s current-year bottom line indicates 75% year-over-year growth. The consensus estimate for PAYS’ current-year top line is pegged at $58 million, suggesting 22.6% year-over-year growth.
The Zacks Consensus Estimate for Remitly Global’s current-year earnings indicates a 53.9% year-over-year improvement. RELY beat earnings estimates in two of the trailing four quarters and missed twice, with an average surprise of 8%. The consensus estimate for current-year revenues suggests 31.8% year-over-year growth.
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Mastercard and Safaricom Partner to Enhance Digital Payments in Kenya
Mastercard Incorporated (MA - Free Report) recently announced its partnership with Safaricom to expand payment acceptance and cross-border remittance services to over 636,000 merchants in Kenya through M-PESA, Safaricom’s mobile money platform. This collaboration is expected to unlock substantial benefits for Mastercard, as Kenya’s digital payment landscape experiences rapid growth. The initial initiatives are set to launch in the coming months, furthering Safaricom’s journey to obtain its acquiring license and offering merchants advanced digital payment solutions.
M-PESA’s mobile wallet payments have witnessed a CAGR of 12.7% between 2020 to 2024. This bodes well for Mastercard as it can tap into M-PESA’s vast merchant network and provide seamless and secure payment solutions.
MA also aims to enhance cross-border remittance service for M-PESA merchants. This move should enable merchants to offer more payment options to customers and accept cross-border payments. Enhanced reach and frictionless payments are expected to boost merchant revenues and enhance customer satisfaction. Mastercard will benefit from improved transaction volumes, aiding its top line in the future.
Tie-ups similar to the latest one should provide MA with a significant advantage in establishing a solid footprint in the EEMEA region. It can tap into new markets, increase its market share, and foster a deeper connection with consumers. Through similar partnerships, it is strategically positioning itself to harness the promising growth prospects of the region, which witnesses a booming digital economy spurred by increased Internet penetration and higher usage of smartphones.
With Kenya’s evolving digital economy and Mastercard’s ability to offer cutting-edge payment solutions, the partnership will position the company to leverage future growth opportunities and reinforce its brand as a leader in the global payments industry.
MA Stock’s Price Performance
Shares of Mastercard have gained 15.6% in the past six months compared with the industry’s 10.6% growth.
Image Source: Zacks Investment Research
MA’s Zacks Rank & Key Picks
MA currently carries a Zacks Rank #3 (Hold).
Investors can look at some better-ranked stocks from the broader Business Services space like Fidelity National Information Services, Inc. (FIS - Free Report) , Paysign, Inc. (PAYS - Free Report) and Remitly Global, Inc. (RELY - Free Report) , 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 Fidelity National’s current-year earnings indicates a 50.7% year-over-year jump. FIS beat earnings estimates in two of the trailing four quarters and missed twice. The consensus estimate for current-year revenues is pegged at $10.2 billion.
The Zacks Consensus Estimate for Paysign’s current-year bottom line indicates 75% year-over-year growth. The consensus estimate for PAYS’ current-year top line is pegged at $58 million, suggesting 22.6% year-over-year growth.
The Zacks Consensus Estimate for Remitly Global’s current-year earnings indicates a 53.9% year-over-year improvement. RELY beat earnings estimates in two of the trailing four quarters and missed twice, with an average surprise of 8%. The consensus estimate for current-year revenues suggests 31.8% year-over-year growth.