Mastercard Incorporated MA recently signed a Customer Business Agreement with Kenya-based Equity Bank, a subsidiary of Equity Group Holdings, the country’s leading financial services provider. The deal will last for 10 years.
The partnership aims to make a diverse range of Mastercard’s advanced payment solutions available in the six countries where Equity operates: Kenya, Uganda, Rwanda, Tanzania, South Sudan, and DRC. These solutions include World and World Elite cards, corporate cards, and virtual cards.
As part of the agreement, Mastercard and Equity will collaborate to develop innovative payment solutions in areas such as e-commerce, cross-border payments, and segment-based value propositions, catering to the evolving needs of consumers. This means that customers will have the option to choose cross-border remittance, e-commerce, QR, and Tap on phone payments.
The partners will also implement strategies to counter cybercrimes. The deal is expected to bring various benefits to different customer segments.
In addition, Mastercard and Equity will work together to enhance digitization within the underserved community of small, mid-sized, and micro businesses. They will develop community pass solutions that enable farmers and traders to access services using QR, biometric, and facial recognition methods.
The recent agreement is beneficial for both Mastercard and Equity, as it addresses the payment needs of consumers with diverse lifestyles and business requirements. Mastercard will extend advanced payment capabilities across Equity’s areas of operation, which may increase its revenues and establish a strong presence in Africa.
Mastercard’s focus on digitization and building a robust payment ecosystem in Africa is evident from this partnership. Equity Group, one of East Africa’s largest financial institutions, is the perfect partner to support Mastercard’s efforts. Mastercard has frequently collaborated with financial institutions and made significant investments to capture a significant share of the thriving digital payments market in Africa.
Shares of Mastercard have gained 33.2% in the past year compared to the industry’s 18.2% growth. MA currently holds a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the Business Services space are Huron Consulting Group Inc. HURN, Paysafe Limited PSFE, and FirstCash Holdings, Inc. FCFS. Huron Consulting has a Zacks Rank #1 (Strong Buy), while Paysafe and FirstCash have a Zacks Rank #2 (Buy) at present.
The bottom line of Huron Consulting has exceeded estimates in each of the last four quarters, with an average surprise of 21.75%. The Zacks Consensus Estimate for HURN’s 2023 earnings suggests a 31.8% improvement from the previous year. The consensus estimate for revenues indicates a 17% growth from the previous year, and the consensus mark for HURN’s 2023 earnings has increased by 9.4% in the past 60 days.
Paysafe has beaten earnings estimates in three of the last four quarters, with an average surprise of 153.96%. The Zacks Consensus Estimate for PSFE’s 2023 earnings suggests a 5.8% improvement from the previous year. The consensus mark for PSFE’s 2023 earnings has increased by 4.4% in the past 30 days.
The bottom line of FirstCash has exceeded estimates in each of the last four quarters, with an average surprise of 7.31%. The Zacks Consensus Estimate for FCFS’s 2023 earnings suggests a 6.7% improvement from the previous year. The consensus estimate for revenues indicates a 15.5% growth from the previous year, and the consensus mark for FCFS’s 2023 earnings has increased by 0.4% in the past 30 days.
Shares of Huron Consulting and FirstCash have gained 53.2% and 18% respectively in the past year. However, the PaySafe stock has declined by 31.6% in the same time frame.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.
