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Mastercard (MA) Collaborates to Digitize Maldives' Transit System

Mastercard Incorporated MA recently launched a multi-model, open-loop transit payment and digital ticketing system across South Asia. For complementing this move, the tech giant has collaborated with Maldives Transport & Contracting Company ("MTCC") and Bank of Maldives ("BML").

The innovative solution has been devised with the help of MA’s technology, Mastercard Payment Gateway Services, and thereby, will enable seamless digital payments throughout the public transport network of Maldives.

All a commuter in the country needs to do is place a debit or credit card on the ticketing device of a bus or ferry terminal and subsequently, make seamless payments for their journey. The new solution also enables passengers to purchase online tickets in advance through the Raajje Transport Link (“RTL”) mobile app. Additionally, the launch also remains equipped to help commuters without a credit or debit card. All they need to do is claim an RTL-Mastercard co-branded prepaid card.

In addition to benefiting the country’s residents, the transit solution is expected to be of great help to overseas tourists visiting Maldives as well. The visitors can enjoy a hassle-free journey with their credit or debit cards, and thereby, do away with the hassles of currency exchange.

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The recent launch reinforces Mastercard’s sincere efforts to extend modernized payment solutions in order to boost the uptake of digital payments across the globe. And this time, the focus of MA remains to simplify a commuter’s journey and infuse digitization within the transit system of Maldives.

Mastercard has often partnered with government and private sector entities of different countries in order to complement the abovementioned endeavor. As an example of the same, MA took the help of LMK Resources Pakistan (Private) Limited for rolling out an open-loop payment solution to digitize the transit system of the country.

In this manner, an enhanced digital suite of Mastercard, built through constant tie-ups and significant investments, is likely to help in establishing a solid presence across the globe.

The rollout of the open-loop payment system is also aptly timed owing to its several benefits over cash usage or closed-loop payments. In such time-consuming payment systems, fare cards need to be loaded with a prepaid amount, which have to be refilled as soon as it gets exhausted. But open-loop payments are hassle-free in nature as they remain connected to the existing accounts or the daily payment products of the consumers.

Shares of Mastercard have gained 19.1% in a year, compared with the industry’s 10.3% growth. MA currently carries a Zacks Rank #3 (Hold).

Zacks Investment Research
Zacks Investment Research


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Stocks to Consider

Some better-ranked stocks in the Business Services space are SPX Technologies, Inc. SPXC, Envestnet, Inc. ENV and The Interpublic Group of Companies, Inc. IPG. While SPX Technologies sports a Zacks Rank #1 (Strong Buy), Envestnet and Interpublic Group 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 SPX Technologies outpaced estimates in each of the last four quarters, the average surprise being 28.38%. The Zacks Consensus Estimate for SPXC’s 2023 earnings suggests an improvement of 21.3% from the year-ago reported figure. The same for revenues suggests growth of 9% from the year-ago reported number. The consensus mark for SPXC’s 2023 earnings has moved 7.7% north in the past seven days.

Envestnet’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.72%. The Zacks Consensus Estimate for ENV’s 2023 earnings suggests an improvement of 12.9% from the year-ago reported figure. The same for revenues suggests growth of 2.3% from the year-ago reported number. The consensus mark for ENV’s 2023 earnings has moved 0.5% north in the past 30 days.

The bottom line of Interpublic Group outpaced estimates in three of the last four quarters and met the mark once, the average surprise being 9.50%. The Zacks Consensus Estimate for IPG’s 2023 earnings suggests an improvement of 5.5% from the year-ago reported figure. The same for revenues suggests growth of 3.1% from the year-ago actuals. The consensus mark for IPG’s 2023 earnings has moved 1.8% north in the past 30 days.

Shares of SPX Technologies and Interpublic Group have gained 58.6% and 15%, respectively, in a year. However, the Envestnet stock has lost 14% in the same time frame.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report

Envestnet, Inc (ENV) : Free Stock Analysis Report

SPX Technologies, Inc. (SPXC) : Free Stock Analysis Report

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