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Mastercard (MA), urpay Unite for Seamless Cross-Border Payments

Mastercard Incorporated MA recently inked a strategic deal with the fintech, urpay, in a bid to provide the former’s enhanced suite of cross-border payment solutions to the latter’s consumers in the Kingdom. The collaboration will make use of MA’s extensive money transfer capabilities, Mastercard Move, and technology expertise to enable the vast client base of urpay to engage in seamless and safe cross-border remittances.

The Mastercard Move portfolio comprises Mastercard Cross-Border Services and Mastercard Send. These offerings suite facilitate various payment experiences such as person-to-person payments, business transactions and disbursements.

With the help of such innovative services, urpay customers will be empowered to make international payments to more than 180 countries through the urpay digital wallet. Additionally, the customers can also opt for cash pick-up and bank deposits, tailored to their preferences.

The recent partnership reflects Mastercard’s sincere efforts to drive the digital transformation of Saudi’s financial services and minimize headwinds encountered while making cross-border payments. Also, the Kingdom’s digital growth prospects may have propelled MA to sign the agreement with urpay.

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With the increased usage of Mastercard Move, the tech giant is likely to derive higher revenues from the utilization of its value-added services and solutions. This revenue component witnessed a 16% year-over-year improvement in the first quarter of 2024.

Through urpay, which has an impressive track record of gaining more than 5 million customers in less than two years, Mastercard will be able to significantly expand the reach of its cross-border services suite. In addition to this, the partners share an aim of fostering a booming digital economy and addressing the increasing demand for modern solutions that meet consumer preferences for quick and secure global money transfers.

Per Mastercard’s latest Borderless Payments research, three-quarters of consumers desire faster international payments, and one in three seeks more choice of payout options to suit the preferences of recipients. Therefore, Mastercard Move will be able to perfectly capitalize on this consumer demand with its extensive suite of money transfer solutions.

Shares of Mastercard have gained 21.1% in the past year compared with the industry’s 17.4% 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 RB Global, Inc. RBA, Envestnet, Inc. ENV and Omnicom Group Inc. OMC. While RB Global currently sports a Zacks Rank #1 (Strong Buy) at present, Envestnet and Omnicom carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of RB Global outpaced estimates in each of the last four quarters, the average surprise being 23.18%. The Zacks Consensus Estimate for RBA’s 2024 earnings indicates an improvement of 10% from the year-ago reported figure. The consensus mark for revenues implies growth of 16.8% from the year-ago reported number. The consensus mark for RBA’s earnings has moved 3.1% north in the past 30 days.

Envestnet’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average surprise being 9.36%. The Zacks Consensus Estimate for ENV’s 2024 earnings indicates an improvement of 23.6% from the year-ago reported figure. The consensus mark for revenues implies an improvement of 9.6% from the year-ago reported figure. The consensus mark for ENV’s earnings has moved 1.2% north in the past 60 days.

The bottom line of Omnicom outpaced estimates in each of the last four quarters, the average surprise being 3.21%. The Zacks Consensus Estimate for OMC’s 2024 earnings indicates an improvement of 5.8% from the year-ago reported figure. The consensus mark for revenues implies growth of 6.2% from the year-ago reported number. The consensus mark for OMC’s earnings has moved 0.4% north in the past 60 days.

Shares of RB Global and Envestnet have gained 36.1% and 11.5%, respectively, in the past year. However, the Omnicom stock has lost 5.4% in the same time frame.

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Mastercard Incorporated (MA) : Free Stock Analysis Report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Envestnet, Inc (ENV) : Free Stock Analysis Report

RB Global, Inc. (RBA) : Free Stock Analysis Report

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Zacks Investment Research