Mastercard Incorporated MA recently welcomed the payment processor platform, Paymentology, to the Mastercard Fintech Express and Mastercard Engage programmes. Notably, these two programs are part of Mastercard Accelerate, which was launched in 2019 to enable the company to work closely with fintechs spanning across all stages of growth and transformation.
Time and again, Mastercard has selected fintechs to be part of Mastercard Accelerate portfolio, which comprises two other programs namely Start Path and Developers apart from Fintech Express and Engage. By joining the programs, selected fintechs get an opportunity to work closely with Mastercard’s broad and diversified network, which in turn, is likely to help them in rolling out cutting-edge solutions and ramping up business prospects.
Notably, Mastercard boasts of a robust network, which has been continuously expanding to address the ever-changing needs of consumers. Triggered by the COVID-19 pandemic, the world witnessed growing popularity of contactless payments and rising adoption of hassle-free and cost-effective digital transactions globallly. The scenario triggered the need for devising innovative solutions in order to bring more people under the ambit of digital economy.
The latest move not only caters to the abovementioned need but also is a win-win situation for both Mastercard and Paymentology. While the move reinforces Mastercard’s commitment to help emerging businesses in faster adoption of digital means, collaboration with several fintechs have helped the company in enhancing its capabilities and penetrating further into the underserved areas through technological offerings. This, in turn, has led to strengthening of the company’s global presence.
Meanwhile, the latest move will aid Paymentology in developing innovative banking technology solutions across the world. With the help of Mastercard, Paymentology intends to provide banks with greater control over cardholders’ transactions at point of spend and relieve the processing pressure. It also strives to help its Digital Wallets, Commercial Payments and speed to market customers. Through its open API, multi-currency wallet dedicated platform, the company has been offering new product offerings for their cardholders.
Shares of this Zacks Rank #3 (Hold) company have gained 4.1% in a year against the industry’s decline of 5.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other companies in the same space, namely, Discover Financial Services DFS has rallied 19.4% in a year’s time, while American Express Company AXP has lost 1.2% in the same time period.
Notably, Mastercard has been the preferred choice of partners for fintechs owing to its strong brand name, vast business network, global presence, investment in technology, several partnerships and acquisition. Case in point, the company has been focusing on providing necessary assistance in the form of higher funding and investments for supporting growth prospects of fintechs. Bringing more fintechs under Mastercard Accelerate portfolio seems to be time opportune since the global fintech market, which has been more resilient to the impact of the COVID-19 pandemic compared with the others, remains well-poised for growth. Per a report by The Business Research Company, the global Fintech market is expected to witness a CAGR of 9.2% and 11.1% by 2023 and 2030, respectively.
Another company in the same space, Visa Inc. V has launched an accelerator program, which gives opportunity to participating startups to progress with their expansion plans.
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