Home Most Popular The European Payment Revolution: Mastercard (MA) and Nexi Pioneer New Era in Digital Transactions

The European Payment Revolution: Mastercard (MA) and Nexi Pioneer New Era in Digital Transactions


A Bold Partnership for a Seamless Future

Mastercard Incorporated (MA) and Nexi, two powerhouses in the payments realm, are teaming up to transform the payment landscape in Europe. Nexi, known as the top PayTech player in Europe, has strategically selected Mastercard as its collaborator to enhance open banking account-based payments across the continent. Through this partnership, Mastercard’s cutting-edge Open Banking technology aims to streamline e-commerce payments within Nexi’s vast network, promising fluid and secure transactions for both merchants and consumers.

Advancing Secure and Effortless Payment Experiences

This alliance is geared towards creating an integrated digital payment ecosystem that values security, smoothness, and choice for consumers. By leveraging Mastercard’s Open Banking-powered solutions, the initiative targets to elevate payment experiences by providing consumers with a wider array of options for online purchases. Unlike traditional payment methods, open banking allows for swift digital transactions directly from a consumer’s bank account, amplifying efficiency and convenience through existing authentication protocols.

Empowering Merchants with Real-Time Benefits

Merchants are poised to reap substantial benefits from this collaboration, including real-time payment authorization and settlement. With improved access to funds and enhanced cash flow management, merchants can better cater to evolving customer expectations for rapid and seamless payment experiences. By harnessing innovative technologies and payment methods, businesses can maintain a competitive edge in the digital arena while ensuring smooth transactions for their clientele.

Leadership in Innovation and Customer-Centric Solutions

Bart Willaert, EVP of International Open Banking at MA, expresses enthusiasm about leading the charge in developing account-based payment methods alongside Nexi. This collaboration underscores Mastercard’s dedication to providing innovative payment experiences while upholding security and convenience for consumers and businesses throughout Europe. Similarly, Omar Haque, Head of eCommerce at Nexi, highlights the strategic collaboration’s potential to enhance customer convenience and expedite the shift to a digital-first payments landscape in Europe. Together, MA and Nexi, with their combined expertise and resources, are set to reshape the future of payments on the continent.

Price Performance and Market Position

Mastercard’s stock has seen a 10.8% increase year to date, outpacing the industry’s 8.3% growth. Currently holding a Zacks Rank #3 (Hold), MA continues to be a strong player in the market. For investors seeking other opportunities, consider stocks like Envestnet (ENV), Fidelity National Information Services (FIS), and International Money Express (IMXI), each carrying a Zacks Rank #2 (Buy).

Envestnet has shown a trailing four-quarter average earnings surprise of 7.72% and has gained 11.4% year to date. Fidelity National has delivered positive earnings surprises in two of the last four quarters and has seen a 15.7% increase in its stock this year. International Money Express, despite experiencing positive earnings surprises in two of the last four quarters (alongside missing expectations in the other two), has seen an 8.1% decline in its stock this year. The future outlook remains optimistic for these players, with growth estimates in earnings for the coming years.

As the European payment landscape undergoes this transformation, the collaboration between Mastercard and Nexi heralds a new era of efficiency and seamlessness in digital transactions, benefitting consumers and businesses alike. Investors, take note of the changing tides in the payments industry as opportunities for growth and innovation are on the horizon.