Mastercard Incorporated (MA Quick QuoteMA ) recently inked a cooperation deal with Resal, a leading eGift Cards and digital rewarding solutions provider. The move is intended to tap the growing trend of digital shopping and evolving payment habits of consumers across Saudi Arabia.
Through the collaboration, customers of Mastercard will have access to Resal Digital Cards store without any charge. They will be able to shop seamlessly from the online store, which has a collection of over 400 brands.
The recent move seems to be a win-win situation for both the companies, as their customer base across the eGift Cards and digital rewards space will benefit from cutting-edge services and solutions. Mastercard customers will also be offered exclusive promotions. This, in turn, is expected to drive its customer base across Saudi Arabia.
Besides boosting the customer base, the tie-up reinforces Mastercard’s strategy of bringing about innovations and entering into strategic partnerships to revolutionize payments capabilities across Saudi Arabia. Through such measures, the company intends to promote rapid adoption of digital means and cater to the country’s varied consumer needs.
Consequently, Mastercard looks well-poised to tap robust prospects present in the card payments market of Saudi Arabia. Despite being a cash-dominated economy, the country has witnessed a surge in hassle-free, speedier and safer card payments for shopping online. Saudi Arabian consumers, much like other parts of the world, preferred electronic modes of payments amid the pandemic due to fears of contracting the virus and enhanced payment frameworks. Case in point, per the data and analytics company GlobalData, the country’s card payments market is expected to witness a solid CAGR of 21% over the 2021-2025 period.
A study conducted by Mastercard in late 2020 on consumer spending further highlights the growing inclination of Saudi Arabian consumers toward digital means. Per the survey, 77% of the country’s consumers stated that they transitioned to online methods since the coronavirus outbreak.
Mastercard has been joining forces with well-established organizations across the globe and undertaking considerable investments to upgrade its digital capabilities. It has left no stone unturned to ease the payment experience worldwide and offer secured payment gateways for its massive customer base. The company has been the preferred choice of partner for companies owing to its strong brand name, local knowledge, extensive network and global presence.
Zacks Rank & Price Performance
Shares of Mastercard, which carries a Zacks Rank #3 (Hold), have gained 2.6% in a year against the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the financial transaction services space include EVERTEC, Inc. (EVTC Quick QuoteEVTC ) , Green Dot Corporation (GDOT Quick QuoteGDOT ) and Equifax Inc. (EFX Quick QuoteEFX ) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EVERTEC, Green Dot and Equifax have a trailing four-quarter earnings surprise of 28.42%, 64.53% and 17.71%, on average, respectively.