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Mastercard (MA) Partners to Boost Digital Growth in Pakistan

Mastercard (MA) ties up with RUDA for offering the facility of seamless digital payments in Pakistan. The move reflects MA's sincere efforts to infuse digitization throughout the country.

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This story originally appeared on Zacks

Mastercard Incorporated MA recently inked a strategic collaboration with the Pakistan-based Ravi Urban Development Authority (“RUDA”) in a bid to boost digital evolution throughout the country. It is worth mentioning that MA has been pursuing digital transformation efforts across the globe, and the latest deal is a testament to that.

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Shares of Mastercard lost 1% on Dec 17, replicating declines in broader markets.

The latest move intends to usher in a cashless society, and thus Mastercard will extend its smart city solutions to the urban development project supervised by RUDA. Consequently, citizens of Pakistan will be able to utilize digital channels for undertaking daily payments and pay for bills and utility services.

Consequently, the recent alliance with Mastercard will enhance RUDA’s processes of fee collection and other administrative services.

Initiatives similar to the latest one underscore Mastercard’s sincere efforts to boost presence in Pakistan. It seems to be the apt time for accelerating digitization efforts in the country, which has been witnessing a growing digital economy buoyed by rising smartphone usage and increased Internet penetration. MA continues to follow its public-private partnerships strategy in Pakistan and works in unison with the government to infuse digitization across various sectors of the economy. In October 2021, the company collaborated with Special Technology Zones Authority with an intention to establish Pakistan’s first cash-free zone and simultaneously bring about advancements in the nation’s technology space.

Apart from strengthening presence in Pakistan, the recent tie-up aims to harness the robust digital growth prospects prevailing amid the Middle East and North Africa (“MENA”) region (Pakistan is part of the same). MA keeps on partnering with several organizations and rolls out cost-effective solutions throughout the region. The company has been undertaking significant investments aimed at modernizing the digital payments space of the MENA region.

With enhanced digital capabilities in place developed through tie-ups and investments, Mastercard continues to cater to the growing demand for cashless payments worldwide amid the coronavirus outbreak. The pandemic compelled people globally to transition to contactless payments as it minimizes contact. And when it comes to partnerships, MA remains the preferred choice of governments and private institutions owing to its strong brand name, local knowledge, expanded capabilities, extensive network and global presence.

Similar to Mastercard, other companies such as Visa Inc. V, Global Payments Inc. GPN and PayPal Holdings, Inc. PYPL have also been pursuing digital transformation efforts and launching several contactless payment solutions from time to time.

Visa makes use of advanced technologies for rolling out newer payment solutions. V has been striving hard to integrate blockchain technology with the payments platform. The launch of diversified payment alternatives, including mobile payments through Visa Checkout and Visa payWave, highlights the company’s commitment to ensure enhanced online checkout experiences for consumers.

Global Payments is a pure-play payments technology company boasting deep expertise in payments technology. GPN continues to roll out a wide array of payments technology and software solutions for customers on a worldwide basis backed by its expertise. Global Payments has joined forces with several organizations for extending its nationwide reach in the digital payments space.

PayPal offers cost-effective digital payment solutions equipping customers and merchants to access and move their money anywhere, anytime and through any connected device. PYPL enables customers to trade cryptocurrencies, which can be done through the company’s digital wallet. Being a secure gateway, PayPal provides for biometric and QR-based payments to its customers.

Shares of Mastercard have gained 4.5% in a year against the industry’s decline of 19.3%. MA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Investment ResearchImage Source: Zacks Investment Research

While Visa stock has gained 1.4% in a year, shares of Global Payments and PayPal have lost 36.1% and 21.7%, respectively, in the same time frame.



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