MasterCard Trading forecasts and signals

Mastercard Inc. presented strong results for the second quarter, exceeding revenue expectations due to active growth in payment volumes and meeting the profit forecast. EPS exceeded the level of last year by 12.5%, amounting to $2.34. At the same time, the annual growth rate of net profit slowed markedly to 10%, from 44% in the 1st quarter. Net revenue increased by 21.4% YoY and 5.7% QoQ, reaching a record $5.49 billion. Due to slower cost growth, the operating margin improved to 54.9%.The volume of payments in global coverage increased by 17% YoY and 7% QoQ to $2.05 trillion. Foreign markets (outside the United States) still account for 67% of total turnover and demonstrate a more active growth in payments. The volume of cross-border transactions in local currencies increased by 56% in annual terms due to the intensification of tourist and business trips. The volume of consumer spending exceeded the values observed before the pandemic by 18%. But at the same time, indicators in Asian countries recovered only by 60% from the levels before Covid-19, which probably reflects a drop in demand in China under quarantine restrictions in March-April. Overall, revenue from processing international payments increased by 61% YoY and 16% QoQ to $1.6 billion.The key business line in terms of profitability (35% of gross revenue) remains payment processing, the revenue of the direction increased by 22% YoY to $3.1 billion.High inflation, the weakening of consumers' real incomes in this regard, and the slowdown in global economic growth will act as factors slowing the growth of spending. At the same time, the desire of buyers to cover the increased costs with the help of consumer loans will be reflected in an increase in credit card turnover.Mastercard's profits are supported by non-payment processing technology services, as well as cost optimization and business geography diversification. Due to this, the company continues to demonstrate high marginality, while maintaining a stable balance with a low debt ...

Southeast Asia and Latin America are regions of active growth for the Mastercard payment system after the company's withdrawal from Russia and India's ban on issuing new cards in 2021. Mastercard Co-Chairman for International Markets Lin Hai believes that these regions are interesting due to high demographic indicators, the introduction of technology and digitalization, as well as the fact that governments pay special attention to the financial accessibility of the population.Earlier, the Central Bank of India banned the use of Mastercard due to the fact that the company does not comply with the rules that require foreign payment systems to store data on Indian payments in place for unhindered access. Mastercard stated that the company is ready to comply with local data storage rules, because it considers the country to be a key growing market. Mastercard has invested about $2 billion in India since 2014 to create technology centers and support innovations in the field of digital payments.The Russian market accounted for about 4% of Mastercard's net revenue in ...

Mastercard Inc. payment system has started testing a biometric payment system for stores using facial recognition. The company said that its new project will allow the buyer to scan his face using the retailer's smartphone app and link it to a bank card. This technology is comparable to how FaceID is used in the iPhone to approve payments or unlock the device.The pilot program began this week at five St Marche supermarkets in Sao Paulo, Brazil. The stores will use an application developed by the Brazilian startup Payface.Mastercard shares on the NYSE on May 17 rose by 2.77% to $338.86 per ...

Mastercard Inc. (MA), the operator of one of the largest payment systems, has published results for the last quarter of 2021. Diluted EPS increased by 35.4% YoY, to $2.41, exceeding market expectations of $2.21. Net quarterly profit increased by 33.3% YoY, to $2.38 billion, due to strong revenue growth of 26.6% YoY, to $5.22 billion (with a consensus of $5.17 billion) and positive operating leverage: operating expenses increased by 15.8% YoY. Additional income from investments amounted to $111 million. The payment giant demonstrated the recovery of operational and financial metrics after the economic shock, exceeding the net profit and revenue figures for 2019 by 11.8% and 7%, respectively.The volume of cash on transactions carried out (Gross Dollar Volume) for the quarter amounted to $2.11 trillion, adding 20.9% year-on-year and 6.1% quarterly, indicating continued growth in the volume of transactions. In October-December 2021, 23.77 billion transactions (Switched Transactions) were processed, which is 26.72% higher than in the same period last year. The amount of cross-border payments in local currencies increased by 53% YoY, while dollar transactions in the company's domestic market (in the USA) increased by 23%. At the same time, the share of the non-American market in the total volume of serviced operations was 69%.More than 35% of MA's total revenues are still occupied by the payment processing segment, revenue from which increased by 25% YoY, to $2.98 billion. The fastest revenue growth was demonstrated by the Cross-border operations service segment (Cross-border volume fees): due to the resumption of tourist activity, this indicator increased by 59%, to $1.38 billion. Fees for servicing operations within one country (Domestic assessments) increased by 24% YoY, to $2.16 billion. Spending on card bonus programs (Rebates and incentives) increased by 37%, to $3.16 billion, due to the recovery of consumer and business activity. The business unit, specializing in data analytics, cybersecurity and software provision, increased revenues by 28% year-on-year and by 18% quarterly, to $1.84 billion. Thus, this direction ranks third in terms of its share in total revenue (21%).Our base target for the MA paper on the horizon of 12 months is $410 per share. The company surpasses industry competitors in terms of return on capital and marginality and can continue to improve financial performance due to the growth of tourism activity, as well as with further improvement of the situation in global supply chains. The long-term drivers of MA's business development are the expansion of its presence in the markets of developing countries with the potential for growth of digital payments, as well as the promotion of the corporation's services in the field of digital ...

The governor of the Bank of England, Andrew Bailey, said that bitcoin is impractical as a means of payment. While cryptocurrencies are not being calculated massively. But today, large companies not only use blockchain, but also accept crypto as payment:Coca-Cola. In 2020, the corporation's Asia-Pacific division announced that it would allow customers in Australia and New Zealand to buy drinks with bitcoin and other coins. Payment is available through devices that accept digital payments.PayPal is the first payment system to add cryptocurrency for transactions. The company acts as an intermediary: the service will exchange cryptocurrency for ordinary dollars at the internal exchange rate, which already includes the cost of conversion.Visa and Mastercard, following PayPal, thought about the possibility of conducting transactions with cryptocurrencies. The systems focus on stablecoins, which have collateral in the form of real assets.Shopify is a platform for creating online stores. Thanks to the developers, the owners of these stores can accept cryptocurrency.Emirates. The airline from the UAE intends to accept bitcoins as payment. Moreover, Emirates will add its own NFT tokens to the site. This is not the first airline operating with cryptocurrencies. Latvian airBaltic has been selling tickets for the crypt for several years.Balenciaga, Gucci, Tag Heuer are also starting to accept cryptocurrency. Moreover, the new payment method will be available not only online, but also in regular stores using QR codes. And the first major retailer that started accepting the crypt was Overstock.Brazilian developer Gafisa announced that now an apartment can be bought for bitcoins. So the company wants to attract investors from other countries, and the cryptocurrency helps to transfer funds quickly and ...