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Mastercard's (MA) New Solution to Make Crypto Purchases Safer

Mastercard Incorporated MA recently introduced an innovative technology solution, Crypto Secure, to infuse added security and reliability into crypto purchases made across a worldwide network of 2,400 exchanges.

Shares of Mastercard gained 1% on Oct 5.

The solution works by integrating insights and technology of CipherTrace, the cryptocurrency intelligence company, which Mastercard acquired last year with proprietary information. A color-coded dashboard is offered to card issuers, thanks to Crypto Secure that helps card issuers exactly identify the crypto exchanges from which the cardholders are purchasing cryptocurrency.

Subsequently, the issuers can have a clear understanding of the risk profiles of crypto exchanges or other providers and assess transaction approvals and declines. Thereafter, they can approve transactions with creditable crypto merchants and simultaneously, decline the same with merchants susceptible to fraud.

The recent initiative reinforces Mastercard’s efforts to bolster its presence in the growing crypto ecosystem. The technology company in the global payments industry makes continuous efforts to roll out services and capabilities aimed to make crypto easily accessible and more secure for consumers. In this manner, MA keeps an eye on integrating the usage of crypto accounts while incurring daily expenses.

In the meantime, Mastercard joins forces with cryptocurrency platforms, which in turn, continue to expand its crypto portfolio and tap the growing number of consumers entering the crypto space. Not a very long time ago, in June 2022, MA collaborated with the cryptocurrency exchange Young Platform and the global payments solution provider Checkout.com to introduce Mastercard Send across Italy for instant payments and easy fund transfer through digital currency wallets.

As a measure to counter risks that tag along with crypto transactions, MA has cybersecurity protection solutions in place for the seamless operation of the crypto environment. Inclusion of cutting-edge technologies following the acquisitions of Finicity, Ekata and RiskRecon further aided MA to pursue its endeavor of bridging the gap between consumers and cryptocurrencies.

The latest Crypto Secure launch seems to be a well-timed move by Mastercard, considering the fact that the digital asset sector, of which cryptocurrency is part of, holds immense growth potential amid a rapidly growing digital economy, emergence of advanced technologies and the rising Internet penetration. The global cryptocurrency market is anticipated to witness a CAGR of more than 12% over the 2022-2028 period, according to a report of Blueweave Consulting.

Shares of Mastercard have lost 14% in a year compared with the industry’s decline of 30.4%.

Zacks Investment Research
Zacks Investment Research


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Zacks Rank & Key Picks

Mastercard currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Business Services space are Inspired Entertainment, Inc. INSE, Huron Consulting Group Inc. HURN and Republic Services, Inc. RSG. While Inspired Entertainment sports a Zacks Rank #1 (Strong Buy), Huron Consulting and Republic Services carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Inspired Entertainment outpaced estimates in three of the last four quarters and missed the mark once, the average beat being 134.55%. The Zacks Consensus Estimate for INSE’s 2022 earnings is pegged at 88 cents per share. The year-ago figure was reported to be a loss of $1.09 per share. The consensus mark for INSE’s 2022 earnings has moved 18.9% north in the past 60 days.

Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average being 19.41%. The Zacks Consensus Estimate for HURN’s 2022 earnings suggests an improvement of 25.7% from the year-ago reported figure. The same for revenues suggests growth of 17.8% from the year-ago reported number. The consensus mark for HURN’s 2022 earnings has moved 0.6% north in the past 60 days.

The bottom line of Republic Services outpaced estimates in each of the last four quarters, the average being 7.30%. The Zacks Consensus Estimate for RSG’s 2022 earnings suggests an improvement of 14.6% from the year-ago reported figure. The same for revenues suggests growth of 18.8% from the year-ago actuals. The consensus mark for RSG’s 2022 earnings has moved 1.3% north in the past 60 days.

Shares of Huron Consulting and Republic Services have gained 36.2% and 7.2%, respectively, in a year. However, the Inspired Entertainment stock has lost 25.4% in the same time frame.


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Mastercard Incorporated (MA) : Free Stock Analysis Report
 
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