Mastercard (MA) Brings Latest Payment Solutions to Saudi Arabia
MasterCard Incorporated MA introduced payment flows and leveraged its Mastercard Payment Gateway Services (“MPGS”) technology to enhance online payment solutions across Saudi Arabia. The power of MA’s payment gateway technology enables organizations to adopt current digital payment methods without suffering the intricacies of adopting new payment technologies.
Mastercard’s drive to simplify the digital payments landscape in Saudi Arabia is supported by two other companies that have significant presences in the country’s payments industry – Amazon Payment Services and Checkout.com. Their joint efforts aim to extend improved payment solutions to domestic e-commerce merchants.
The new solutions are likely to prove a godsend for Saudi Arabia’s domestic payments network – mada, which is operated by Saudi Payments. Merchants can conduct a wide range of recurring transactions through the network, ranging from membership payments, subscriptions, and automated bill payments to other business operations.
Since recurring payments need to be made at regular intervals, MA technology-backed solutions will automate payments and eliminate the need for the payer to be present on the website or app. This, in turn, should result in an accelerated checkout experience for consumers.
The strength of MPGS will enable merchants to comply with Saudi payment rules, allowing all domestic transactions to be processed through mada. With MPGS’ innovative payment processing and fraud prevention, merchants who accept Mada cards benefit from reduced risk of fraud, higher approval rates and fewer avoidable payment declines. All of these factors will help increase the revenue of traders.
For use in future transactions, merchants are equipped with the ability to store consumers’ Mada card credentials, which remain confidential even in the event of a potential breach.
The latest move reflects Mastercard’s ongoing efforts to expand digital payment options to simplify payments for merchants and consumers in Saudi Arabia. Mastercard’s broader motive to build a strong presence across the Middle East region is clearly reflected by its recent move to delve into one of the region’s countries.
The Middle East continues to witness a booming digital economy, fueled by factors such as increasing internet penetration and greater use of smartphones. In doing so, Mastercard, supported by an innovative digital suite, is keeping an eye on capitalizing on the region’s digital growth prospects.
Mastercard shares are up 3.2% over the year while the industry is down 2.7%. MA currently carries a Zacks Rank #3 (Hold).
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Stocks to consider
Some better-ranked stocks in the business services space are The Interpublic Group of Companies, Inc. ipg, Omnicom Group Inc. OMC and Fisherv, Inc. FISV. While Interpublic Group and Omnicom both have a Zacks rank #1 (Strong Buy), Fiserv currently has a Zacks rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks can be found here.
Interpublic Group’s bottom line beat estimates in three of the last four quarters, hitting the mark once, with an average increase of 8.23%. The Zacks Consensus estimate for IPG’s 2023 earnings points to a 0.7% improvement from the figure reported last year. The same can be said for revenue, which indicates a 9% growth from the number reported last year. The consensus level for IPG’s 2023 earnings has moved up 2.6% over the past 30 days.
Omincom’s earnings beat estimates in each of the last four quarters, averaging 7.99%. Zacks consensus estimate for OMC’s 2023 earnings points to a 3.2% improvement over the figure reported last year. The same for revenue points to a 2.7% growth from the number reported last year. The consensus level for OMC earnings in 2023 has moved up 11.1% over the past 30 days.
Fiserv’s bottom line beat estimates in two of the last four quarters, hitting once and missing the remaining once for an average hit of 0.22%. Zacks consensus estimate for FISV revenue in 2023 points to a 12.6% improvement over the figure reported last year. The same can be said for revenue, which indicates a 6.3% growth from the number reported last year. The consensus level for FISV earnings in 2023 has moved up 1.1% over the past 30 days.
Omnicom and Fiserv shares are up 8.2% and 16.6%, respectively, over the year. However, Interpublic Group’s stock is down 2.4% over the same period.
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