Mastercard Incorporated MA recently teamed up with Abu Dhabi Commercial Bank and Delivery Hero’s talabat UAE, an online food ordering company, to introduce the talabat ADCB Mastercard Credit Card. MA’s shares declined 0.7% on Sep 14, replicating declines in broader markets.
The cobranded credit card can be easily applied digitally via the talabat app. Such card launches by Mastercard are meant to offer increased benefits and choices to its cardholders. Benefits in the form of lucrative rewards for day-to-day delivery orders can be obtained by the users of the newly launched card.
The recent partnership reflects Mastercard’s sincere efforts to pave the way for safe and seamless digital transactions and thereby, provide an impetus to the shift to ecommerce on delivery of food and grocery items across the Middle East and North Africa (MENA) region. The support of a tech giant like Mastercard, whose digital arm is built with the help of partnerships and substantial technology investments, infuses a sense of confidence and security to MENA’s consumers, riders and restaurants in the greater adoption of digital payments.
Moves similar to the latest one are means to expand the payment network of Mastercard, which is integral to its aim of providing greater choice and flexibility in transactions using multiple payment rails, such as cards, real-time payments, account-to-account transactions and crypto. Increased utilization of its card offerings may boost transaction volumes and fetch greater revenues to the tech giant.
Apart from infusing greater digitization within the MENA region’s payments landscape, the card launch may strengthen the ties shared between Mastercard and Delivery Hero. The collaboration between the companies was announced in 2020 and Mastercard was entrusted with the responsibility to digitize the payment chain of Delivery Hero’s brands operating across the MENA region. Food order transactions on Delivery Hero’s apps using Mastercard-branded cards have more than doubled over the 2020-2022 period in the region.
MA’s keen eye to establish a solid footprint in the MENA region is due to its rapidly growing digital economy, spurred by increased Internet penetration and higher usage of smartphones, thereby providing a perfect ground for MA to capitalize on with its suite of affordable payment solutions.
Just a day before the recent move was announced, MA partnered with Somalia's Amal Bank, one of the largest in the country in terms of branch network and customers, to launch Classic and Platinum debit cards. The tie-up is meant to promote widespread adoption of digital means across the MENA nation.
Shares of Mastercard have gained 31.2% in the past year compared with the industry’s 17.1% growth. MA currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Business Services space are SPX Technologies, Inc. SPXC, APi Group Corporation APG and Trane Technologies plc TT. While SPX Technologies sports a Zacks Rank #1 (Strong Buy), APi Group and Trane Technologies carry a Zacks Rank #2 (Buy). 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 beat being 30.83%. The Zacks Consensus Estimate for SPXC’s 2023 earnings suggests an improvement of 37.4% from the prior-year reported figure. The consensus estimate for revenues suggests growth of 18.9% from the prior-year reported figure. The consensus mark for SPXC’s 2023 earnings has moved 2.7% north in the past 30 days.
APi Group’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average surprise being 4.27%. The Zacks Consensus Estimate for APG’s 2023 earnings suggests an improvement of 13.5% from the prior-year reported figure. The consensus estimate for revenues suggests growth of 7.9% from the prior-year reported figure. The consensus mark for APG’s 2023 earnings has moved 0.7% north in the past 60 days.
The bottom line of Trane Technologies outpaced estimates in each of the last four quarters, the average beat being 7.30%. The Zacks Consensus Estimate for TT’s 2023 earnings suggests an improvement of 19.8% from the prior-year reported figure. The consensus estimate for revenues suggests growth of 10% from the prior-year reported figure. The consensus mark for TT’s 2023 earnings has moved 0.6% north in the past 30 days.
Shares of SPX Technologies, Api Group and Trane Technologies have gained 43.1%, 79.6% and 30.7%, respectively, in the past year.
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