Yahoo Finance Mastercard (MA), Algoan Unite to Accelerate Use of Open Banking
Mastercard Incorporated MA announced an innovation in the open banking space called Account Owner Verification (AOV) in Europe. This solution will help businesses verify their customers’ bank accounts in a seamless way. This innovation is expected to automate and simplify the process of verifying bank accounts. Shares of Mastercard lost 2.3% on Jun 7, replicating a decline in the broader markets.
Mastercard entered a partnership with Algoan, a French open banking credit specialist, to accelerate open banking adoption in Europe. This partnership will help solidify MA’s position in smarter lending decision making and driving financial inclusion.
Mastercard’s strength lies in its technology and ability to connect consumers with businesses, governments, digital partners etc. Through this partnership, MA is expanding its reach by making credit decisions easier for top lenders across Europe. This should boost the top line in the future.
Algoan will be using MA’s open banking connectivity to gain insights on credit scores, payment score products, etc. Mastercard expects to further solidify its foothold in Europe by increasing open banking adoption.
With AOV in Europe, users will benefit from innovative payment methods without compromising the security of their financial data. Users will also save ample time and money through a seamless account verification process, thereby retaining customers for financial institutions. Moreover, businesses will save time as verifying their customers is made hassle free through MA’s open banking connectivity in Europe.
Over the years, Mastercard used partnerships to supplement its organic efforts and diversify its revenues. This has helped expand its addressable markets, drive new revenue streams and strengthen core product solutions. Mastercard’s partnership with Algoan is likely to add value to the company’s existing offerings in Europe.
Price Performance
Shares of Mastercard have gained 6.4% in the past year compared with the industry’s growth of 1.6%.
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Zacks Rank & Key Picks
Mastercard currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Financial Transaction Services space are Usio, Inc. USIO, Remitly Global, Inc. RELY and Paysafe Limited PSFE. Each of these companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Usio 2023 earnings indicates a 140.7% increase from the prior-year reported number. Also, the consensus mark for 2023 revenues indicates 19.1% growth.
The consensus estimate for earnings witnessed one upward estimate revision over the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for Remitly Global’s 2023 earnings indicates a 7.4% increase from the prior-year reported number. Also, the consensus mark for 2023 revenues indicates 36.8% growth.
The Zacks Consensus Estimate for Paysafe’s 2023 earnings is pegged at $2.2 per share, which witnessed two upward estimate revisions over the past 60 days against none in the opposite direction.
PSFE’s earnings beat estimates in three of the last four quarters and met the mark once, the average surprise being 190.5%.
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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Paysafe Limited (PSFE) : Free Stock Analysis Report
