Send me real-time posts from this site at my email
Zacks

Mastercard (MA) Ties Up to Explore Digital Options in Saudi Arabia

Mastercard Incorporated MA recently inked a cooperation deal with Resal, a leading eGift Cards and digital rewarding solutions provider. The move is intended to tap the growing trend of digital shopping and evolving payment habits of consumers across Saudi Arabia.

Through the collaboration, customers of Mastercard will have access to Resal Digital Cards store without any charge. They will be able to shop seamlessly from the online store, which has a collection of over 400 brands.

The recent move seems to be a win-win situation for both the companies, as their customer base across the eGift Cards and digital rewards space will benefit from cutting-edge services and solutions. Mastercard customers will also be offered exclusive promotions. This, in turn, is expected to drive its customer base across Saudi Arabia.

Besides boosting the customer base, the tie-up reinforces Mastercard’s strategy of bringing about innovations and entering into strategic partnerships to revolutionize payments capabilities across Saudi Arabia. Through such measures, the company intends to promote rapid adoption of digital means and cater to the country’s varied consumer needs.

Consequently, Mastercard looks well-poised to tap robust prospects present in the card payments market of Saudi Arabia. Despite being a cash-dominated economy, the country has witnessed a surge in hassle-free, speedier and safer card payments for shopping online. Saudi Arabian consumers, much like other parts of the world, preferred electronic modes of payments amid the pandemic due to fears of contracting the virus and enhanced payment frameworks. Case in point, per the data and analytics company GlobalData, the country’s card payments market is expected to witness a solid CAGR of 21% over the 2021-2025 period.

A study conducted by Mastercard in late 2020 on consumer spending further highlights the growing inclination of Saudi Arabian consumers toward digital means. Per the survey, 77% of the country’s consumers stated that they transitioned to online methods since the coronavirus outbreak.

Mastercard has been joining forces with well-established organizations across the globe and undertaking considerable investments to upgrade its digital capabilities. It has left no stone unturned to ease the payment experience worldwide and offer secured payment gateways for its massive customer base. The company has been the preferred choice of partner for companies owing to its strong brand name, local knowledge, extensive network and global presence.

Zacks Rank & Price Performance

Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 2.6% in a year against the industry’s decline of 8.5%.


Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks in the financial transaction services space include EVERTEC, Inc. EVTC, Green Dot Corporation GDOT and Equifax Inc. EFX, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EVERTEC, Green Dot and Equifax have a trailing four-quarter earnings surprise of 28.42%, 64.53% and 17.71%, on average, respectively.


Tech IPOs With Massive Profit Potential

In the past few years, many popular platforms and like Uber and Airbnb finally made their way to the public markets. But the biggest paydays came from lesser-known names.

For example, electric carmaker X Peng shot up +299.4% in just 2 months. Think of it this way…

If you had put $5,000 into XPEV at its IPO in September 2020, you could have cashed out with $19,970 in November.

With record amounts of cash flooding into IPOs and a record-setting stock market, this year’s lineup could be even more lucrative.

See Zacks Hottest Tech IPOs Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Mastercard Incorporated (MA): Free Stock Analysis Report
 
Equifax, Inc. (EFX): Free Stock Analysis Report
 
Green Dot Corporation (GDOT): Free Stock Analysis Report
 
Evertec, Inc. (EVTC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue