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Mastercard (MA), Salesforce Unite to Aid Transaction Disputes

Mastercard Incorporated MA recently unveiled a new integration with Salesforce, Inc. CRM, a Customer Relationship Management technology provider, aimed at bolstering trust across the payments ecosystem. This partnership is designed to expedite the resolution of transaction disputes for customers and decrease the costs related to their resolution.

The move is expected to provide consumers with an easier and safer shopping experience. Consumers identifying unrecognized transactions and requests for chargebacks from their banks often pose a considerable challenge to the payments industry. MA stated that by 2026, annual chargebacks may reach 337 million, rising 42% from 2023 levels.

The integration of Salesforce’s Financial Services Cloud with MA’s dispute resolution services is expected to enable financial institutions to provide a more transparent response to dispute inquiries in an efficient manner. The Financial Services Cloud is driven by the Einstein 1 Platform that integrates CRM technology, AI, merchant and consumer data, development and security capabilities into a unified and comprehensive platform.

The partnership underscores Mastercard's commitment to enhancing its technological prowess, service offerings and data analytics capabilities. The diverse service portfolio of the company offers revenue diversification advantages, a feature that became especially evident during the COVID-19 pandemic. There is a growing demand for its service offerings, which include cybersecurity and other capabilities.

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Increased transaction volume drives growth in service revenues. Therefore, the ongoing momentum in the payments business is expected to result in revenue growth in this business as well. Mastercard continues to expand its service portfolio through new partnerships and acquisitions.

Price Movements

Shares of Mastercard have gained 18.6% in the past year compared with the industry’s 16.9% growth.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Mastercard currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Business Services space are Global Payments Inc. GPN and WEX Inc. WEX, 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 Global Payments’ 2024 earnings is currently pegged at $11.63 per share, indicating 11.6% year-over-year growth. It beat estimates in each of the past four quarters with an average surprise of 1.1%. The consensus mark for GPN’s revenues of $9.2 billion suggests a 6.4% increase from the year-ago level.

The Zacks Consensus Estimate for WEX’s 2024 earnings of $16.25 per share suggests 9.7% year-over-year growth. It beat earnings estimates thrice in the past four quarters and missed once, with an average surprise of 3.3%. The consensus estimate for WEX’s current year revenues is pegged at $2.7 billion, a 7.6% increase from a year ago.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

Salesforce Inc. (CRM) : Free Stock Analysis Report

Global Payments Inc. (GPN) : Free Stock Analysis Report

WEX Inc. (WEX) : Free Stock Analysis Report

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Zacks Investment Research