HomeMost PopularInvestingMastercard (MA) & HSBC Middle East to Boost Travel Payments

Mastercard (MA) & HSBC Middle East to Boost Travel Payments

Actionable Trade Ideas

always free

Mastercard Incorporated MA recently introduced the Mastercard Wholesale Program, a B2B payment product, in the Middle East region in partnership with HSBC Middle East. With the help of the virtual card-based program, HSBCโ€™s travel merchant clients will see smooth automation of buyer and supplier payments.

This initiative extends the steady partnership between the two companies. Utilizing virtual cards, travel organizations will be able to digitize their payment process, which will likely enhance security in the travel value chain and improve liquidity. This move is expected to support the local travel industry, which significantly depends on manual payment methods.

The move is expected to bring more merchants to its network, boosting transactions. Its multi-rail strategy already boasts more than 400,000 travel merchants around the globe.

With eased pandemic restrictions, more and more people have increased spending on travel and entertainment. In fact, the International Air Transport Association (IATA) expects 4.7 billion people to travel by air this year, up from 4.5 billion recorded in 2019, the pre-pandemic high.

Crypto Platform

In other news, the company expanded its Crypto reach with a peer-to-peer (P2P) platform launched for users in Europe and Latin America. The โ€œCrypto Credentialโ€ service will enable users to use a simple username rather than typical long and complex blockchain addresses.

The pilot ecosystem will enable users in 13 countries to conduct cross-border and domestic transfers in multiple currencies and across various blockchains. The ease of transaction through the exchange of metadata will likely bring more trust to these transactions.

Price Movements

Shares of Mastercard have gained 20.4% in the past year compared with theย industryโ€™s 18% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Mastercard currently carries a Zacks Rank #3 (Hold). Investors interested in the broader Business Services space can look at some better-ranked stocks like Global Payments Inc. GPN, Paysafe Limited PSFE and WEX Inc. WEX, each carrying a Zacks Rank #2 (Buy) at present. You can seeย the complete list of todayโ€™s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Global Paymentsโ€™ 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 GPNโ€™s revenues of $9.2 billion suggests a 6.4% increase from the year-ago level.

The Zacks Consensus Estimate for Paysafeโ€™s current-year earnings is now pegged at $2.47 per share, indicating 6% year-over-year growth. It beat earnings estimates thrice in the past four quarters and missed once, with an average surprise of 18.3%. The consensus mark for PSFEโ€™s revenues of $1.7 billion suggests a 6.5% increase from the year-ago level.

The Zacks Consensus Estimate for WEXโ€™s 2024 earnings of $16.26 per share suggests 9.8% 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 WEXโ€™s current year revenues is pegged at $2.7 billion, indicating a 7.6% increase from a year ago.

Research Chief Names โ€œSingle Best Pick to Doubleโ€

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks arenโ€™t winners but this one could far surpass earlier Zacksโ€™ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

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

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

WEX Inc. (WEX) : Free Stock Analysis Report

Paysafe Limited (PSFE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.