Mastercard Pushes Boundaries With Move Commercial Payments: Details
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 21 2024
0mins
Source: Benzinga
Mastercard Move Commercial Payments Launch: Mastercard has introduced a new solution called Mastercard Move Commercial Payments, aimed at enabling banks to provide near real-time, transparent cross-border payments, addressing challenges like slow transactions and lack of pricing transparency.
Pilot Program and Market Impact: A pilot program in the U.K. with Lloyds Banking Group and UBS is facilitating 24/7 cross-border transfers, while Mastercard's innovations are expected to enhance liquidity and reduce risks for banks and their corporate clients.
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Analyst Views on MA
Wall Street analysts forecast MA stock price to rise
28 Analyst Rating
25 Buy
3 Hold
0 Sell
Strong Buy
Current: 498.930
Low
500.00
Averages
660.00
High
739.00
Current: 498.930
Low
500.00
Averages
660.00
High
739.00
About MA
Mastercard Incorporated is a technology company in the global payments industry. The Company connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide by enabling electronic payments and making those payment transactions secure, simple, smart and accessible. It provides a range of payment solutions and services using its brands, including Mastercard, Maestro and Cirrus. It operates a payments network that provides choice and flexibility for consumers, merchants and its customers. Through its proprietary global payments network, it switches (authorizes, clears and settles) payment transactions. Its additional payments capabilities include automated clearing house (ACH) transactions (both batch and real-time account-based payments). It offers security solutions, consumer acquisition and engagement, business and market insights, gateway, processing and open banking, among other services and solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Growth Dominance: Between 2015 and 2025, Mastercard's diluted earnings per share (EPS) surged by 393%, indicating robust earnings power, with consensus estimates projecting a 16% compound annual growth rate for EPS over the next three years.
- Limited Valuation Changes: Despite a modest 8% increase in Mastercard's price-to-earnings (P/E) ratio over the past decade, currently at 29.7 times and 25% cheaper than six months ago, this has not significantly impacted investment returns, reflecting market confidence in its future growth.
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See More
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- Significant Investment Returns: As of March 19, Mastercard achieved a total return of 461% over the past decade, transforming a $10,000 investment into $56,150, significantly outperforming the S&P 500's 283% return, highlighting its strong investment appeal.
- Earnings Growth Dominance: Between 2015 and 2025, Mastercard's diluted earnings per share (EPS) surged by 393%, indicating robust earnings power, with consensus estimates projecting a 16% compound annual growth rate for EPS over the next three years.
- Limited Valuation Changes: Despite a modest 8% increase in Mastercard's price-to-earnings (P/E) ratio over the past decade, currently at 29.7 times and 25% cheaper than six months ago, this has not significantly impacted investment returns, reflecting market confidence in its future growth.
- Market Competition Analysis: Although Mastercard has performed exceptionally well, analysts caution that now may not be the best time to buy the stock, as the Motley Fool's analyst team has identified 10 other stocks with potentially higher returns in the coming years.
See More
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- Surge in Gilt Yields: Following the U.S. and Israel's attacks on Iran, the yield on the UK 10-year gilt skyrocketed from 4.3% to 5.115% in just days, reflecting heightened market concerns regarding the UK economy's outlook as it added over 80 basis points.
- Increased Fiscal Pressure: The independent Office for Budget Responsibility forecasts that the UK will spend £109.7 billion ($147 billion) servicing its debt in 2025-26, and the current rise in yields complicates the government's ability to meet fiscal targets, especially if the conflict persists.
- Comparison with Peers: In the same timeframe, yields on 10-year German bunds, U.S. Treasuries, and French OATs rose by only 42, 48, and 64 basis points respectively, indicating that UK gilts carry a significantly higher risk premium compared to other G7 nations, with only Australia having a higher yield on its 10-year debt.
- Political Uncertainty Impact: Growing market unease regarding UK politics, particularly concerns over the upcoming local elections potentially challenging Prime Minister Keir Starmer's leadership, has further exacerbated investors' demand for a premium to hold UK gilts.
See More
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- Growth of Autonomous Threat Operations: Recorded Future reports that in the first month of availability, users significantly expanded their threat-hunting programs without increasing analyst workload, indicating the effectiveness and demand for ATO in cybersecurity.
- Transformation to Intelligent Defense: A global biotechnology company noted that ATO significantly reduced manual effort by turning relevant intelligence into actionable outcomes, allowing analysts to focus on critical tasks, thereby accelerating response times and enhancing proactive defense capabilities.
- Necessity of Threat Hunting: Only 1 in 5 Security Operations Centers (SOCs) conduct regular threat hunts, and the implementation of ATO changes this dynamic, enabling organizations to proactively detect and eradicate adversary activity across the enterprise, raising the standard for security defenses.
- Automation Advantage: Recorded Future's ATO allows security teams to automate detection and defense, reducing the time spent manually looking up and blocking IPs, thereby enhancing operational efficiency and helping organizations effectively combat complex cyber threats in the digital economy.
See More
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- Growth of ATO: Recorded Future reports that in the first month of availability, users of Autonomous Threat Operations (ATO) significantly expanded their threat-hunting programs without increasing analyst workload, demonstrating ATO's effectiveness and necessity in cybersecurity.
- Intelligent Threat Hunting: ATO transforms real-time threat intelligence into continuous threat hunts, enabling security teams to defend proactively, thus changing the traditional reliance on alerts and periodic investigations and enhancing response capabilities against sophisticated attacks.
- Raising Industry Standards: With only 20% of Security Operations Centers (SOCs) conducting regular threat hunts, the implementation of ATO allows organizations to hunt adversaries more frequently, significantly improving defensive capabilities and reducing potential risks.
- Automation Advantage: The automation features of ATO enable security teams to focus on investigating strategic threats, reducing the time spent manually looking up IPs, thereby enhancing overall efficiency and driving the transformation of security teams.
See More
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- European Sales Rebound: Tesla recorded nearly a 12% increase in monthly new car registrations in Europe, ending a 14-month sales slump, which demonstrates its adaptability in the face of competition from Chinese EV rivals and may bolster investor confidence.
- Strong Chinese Market: Recent data shows Tesla's retail sales in China surged over 42% year-over-year, indicating robust demand in the global EV market, which could positively impact future revenue growth.
- Intensifying Market Competition: Despite the sales rebound, competitor BYD saw registrations nearly triple in February, highlighting the fierce competition in the EV market, necessitating Tesla's continuous innovation to maintain market share.
- Analyst Rating Adjustments: HSBC analyst lowered Tesla's price target to $119 while maintaining a 'reduce' rating, reflecting market concerns over future demand, which may exert short-term pressure on the stock price.
See More
Mastercard Partners with Ripple to Boost XRP Adoption
- Blockchain Payment Initiative: Mastercard has launched a new blockchain payment initiative featuring 85 crypto industry partners, including Ripple, aimed at making payments faster, cheaper, and more efficient by integrating blockchain technology with its existing payment infrastructure.
- Pilot Projects Launch: Mastercard will conduct blockchain payment pilots with top fintech companies like Ripple and PayPal, and if successful, more transaction volume will run on blockchain rails, significantly enhancing efficiency in cross-border and global payments.
- Long-term Outlook for XRP: Ripple's five-year strategy aligns well with the partnership with Mastercard, as over 300 banks and financial institutions currently utilize the XRP blockchain for cross-border payments, indicating strong potential for institutional adoption.
- Market Opportunities and Risks: While future price predictions for XRP are optimistic, with some estimates reaching $100, investors should remain cautious due to XRP's history of overpromising and underdelivering, although the partnership with Mastercard signals positive institutional adoption trends.
See More
