Mastercard (MA), Spire team up to make financial management easier

Mastercard Incorporated MA has recently collaborated with Gulf Cooperation Council (GCC) open banking provider – Spire with the aim of combining the latter’s “Ingage” platform with MA’s Merchant Identifier solution to improve user experiences. of digital banking services in the region.

When integrating Mastercard’s Merchant Identifier solution with Spire “Ingage”, which is an AI-powered financial wellness platform, real-time data on merchants in diverse categories recognized at once by banks and customers will be offered. With customers gaining a seamless and complete understanding of their banking transaction details through the latest integration, banks could save a lot of time due to reduced need to verify statements due to minimal demands made by customers.

Mastercard appears to have made a prudent choice in selecting Spire to make digital banking hassle-free for 65 million GCC consumers. Indeed, Spire is focused on simplifying the management of consumer finances and facilitating seamless decision-making through personalized financial services and a suite of information for retail banking customers. Mastercard and Spire share the common effort to improve consumer financial management and have therefore joined forces.

Besides boosting its presence in the GCC, the latest move also highlights two other notable Mastercard targets. The first is to bring more people and businesses into the burgeoning digital economy to keep up with the trend. Meanwhile, the second effort is to expand its presence in the growing Open Banking space.

Mastercard is committed to continuing its strategy of working with renowned organizations and making significant investments to drive digitalization across the world. Meanwhile, MA is making continuous efforts to encourage more individuals and businesses to seamlessly adopt Open Banking payments, due to the many benefits it offers in the form of a diverse set of choices, services improved and consistent results. Mastercard already boasts a strong presence in the Open Banking market, and the technology leader in the global payments industry employs continuous efforts to maintain its position in the space.

As a testament to this, Mastercard acquired leading European Open Banking technology provider Aiia last year. Aiia, a Mastercard company now, has powered the innovative Open Banking payment feature called Pay by link, which MA launched in June 2022. The feature is already available in the Nordics and is expected to reach all of Europe by 2022. In addition to the Aiia takeover, Mastercard acquired Finicity in 2020, which connects users’ bank accounts with other payment apps.

Mastercard shares are down 12% year-to-date compared to industrydecrease of 15%.

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Zacks ranking and key picks

Mastercard currently carries a Zacks rank #3 (Hold). Some top-ranked stocks in the Business services space includes Huron Consulting Group Inc. HURN, FTI Consulting, Inc. FCN and Automatic Data Processing, Inc. ADP. While Huron Consulting currently has a Zacks Rank of #1 (Strong Buy), FTI Consulting and Automatic Data Processing have a Zacks Rank of 2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

Huron Consulting’s net income has exceeded estimates in each of the past four quarters, with the average surprise being 29.97%. Zacks’ consensus estimate for HURN’s revenue in 2022 suggests a 22.6% improvement from the figure reported a year ago. The same for revenue suggests 13.5% year-over-year growth. Huron Consulting’s earnings consensus mark for 2022 has moved north 5.3% in the past 60 days.

FTI Consulting’s earnings beat estimates in three of the past four quarters and fell short once, with the average surprise being 24.40%. The Zacks consensus estimate for FCN earnings in 2022 suggests a 1.6% improvement from the figure released a year ago. The same goes for revenues which suggest a growth of 6.2%. FTI Consulting’s earnings consensus mark for 2022 has moved north 0.9% in the past 60 days.

Automated data processing net income exceeded estimates in three of the last four quarters and fell short once, with the average surprise being 6.23%. The Zacks consensus estimate for ADP earnings in 2022 suggests a 15.8% improvement from the figure released a year ago. The same for revenue suggests growth of 9.5% from a year ago. The 2022 Automatic Data Processing earnings consensus mark has moved 2.2% north in the past 60 days.

Shares of Huron Consulting and FTI Consulting have gained 25.9% and 11.6% respectively since the start of the year. Meanwhile, automatic data processing stock fell 15.4% over the same period.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Geraldine L. Melton