Yahoo Finance Mastercard (MA) and The Clearing House Extend Partnership
Mastercard Incorporated MA and The Clearing House (“TCH”) have extended their multi-year partnership, aiming to revolutionize the digital economy through real-time payments (“RTP”) adoption on the RTP network. This collaboration enables both entities to integrate innovative instant payment use cases across various payment flows. The extension underscores their commitment to providing consumers, businesses and governments with advanced capabilities to navigate and thrive in the rapidly evolving digital landscape.
The Impact of Real-Time Payments
Since the launch of the RTP network in 2017, instant payments have become a reality in the United States, marking the introduction of the first new payment rail powered by Mastercard in 40 years. RTP offers consumers instant access and confidence in payment receipt 24/7. For businesses, it simplifies payments, facilitates faster wage disbursements, improves liquidity management and optimizes capital workflows. Governments benefit by activating local economies through efficient disbursement and settlement processes. The extended partnership underscores the pivotal role of real-time payments in enhancing the value and efficiency of financial transactions across various sectors.
Mastercard's Commitment to RTP
Linda Kirkpatrick, president, Americas at Mastercard, emphasized the role of technology in providing greater payment choices for consumers and businesses. The extended partnership with The Clearing House supports the enablement of modern and ubiquitous real-time rails for bank-owned payments. Kirkpatrick highlighted the mutual goals of providing safety, reliability, and efficiency in real-time payments. This commitment reflects Mastercard's dedication to fostering innovation and supporting a diverse range of payment options in an ever-evolving digital landscape.
Advancing Global Real-Time Account-to-Account Technologies
Real-time payments offer speed, extensive data exchange, real-time messaging, and 24/7 availability. Mastercard and The Clearing House are actively supporting, investing in and developing real-time account-to-account technologies for the RTP network in the United States and globally. The expanded partnership aims to design the next generation of instant payment capabilities, fostering innovation for financial institutions and their customers. Lee Alexander, EVP and chief information officer at The Clearing House, highlighted the historical success of the partnership and its potential to shape the future of instant payment capabilities globally. TCH’s RTP network's faster payment capabilities are accessible to nearly 90% of U.S. demand deposit accounts, providing financial institutions of all sizes with a platform for innovation and delivery of new products and services to customers.
Zacks Rank and Price Performance
Mastercard currently carries a Zacks Rank #3 (Hold). Shares of Mastercard have gained 14.4% in the past year compared with the industry’s 13.9% rise.
Stocks to Consider
Some better-ranked stocks from the same space are Envestnet ENV, Fiserv FI and FleetCor Technologies FLT.
Envestnet delivered a trailing four-quarter average earnings surprise of 3.23%. The stock has lost 21.1% in the past year. The Zacks Consensus Estimate for ENV’s 2024 earnings has moved 3.7% higher in the past 30 days. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fiserv delivered a trailing four-quarter average earnings surprise of 0.58%. The stock has gained 35.6% in the past year. The Zacks Consensus Estimate for FISV’s 2024 earnings has moved 2 cents higher in the past 30 days. It carries a Zacks Rank #2 (Buy).
FleetCor delivered a trailing four-quarter average earnings surprise of 1.64%. The stock has gained 44.6% in the past year. The Zacks Consensus Estimate for FLT’s 2024 earnings implies a 13.7% increase from the 2023 estimated figure. The stock carries a Zacks Rank #2 currently.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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