Mastercard (MA) and digital payments provider ACI Worldwide have announced that they are teaming up to provide a wide range of real-time payment solutions globally.
They will initially collaborate on central infrastructure, payments localization and access solutions to central banks, scheme operators, financial institutions, payment service providers, and other organizations launching real-time payments initiatives.
The real-time account-to-account payments market continues to quickly expand, say the companies. A recent study analyzing real-time account-to-account payments across 30 global markets, predicts a Compound Annual Growth Rate (CAGR) of 23.4% from 2019 to 2024.
“With more countries and regions embarking on the modernization of their payments systems to capitalize on real-time technologies and customer demand, the market opportunity is significant,” said Paul Stoddart, President of New Payment Platforms, Mastercard.
“Working together with ACI (ACIW), we will explore a wide range of opportunities to accelerate the development and usage of real-time and multi-channel payment platforms, driving choice and innovation to market participants and end customers.”
Shares in Mastercard are up 13% year-to-date, and the stock scores a bullish Strong Buy consensus from the Street. That’s with 22 recent buy ratings vs 4 hold ratings. Meanwhile the average analyst price target of $361 indicates 7% upside potential from current levels.
“We reiterate our Strong Buy rating on MA as the long-term secular shift to electronic payments overcomes near-term COVID-19 pandemic driven weakness, creating long-term market opportunities” cheered Tigress Financial analyst Ivan Feinseth on September 15.
Noting that MA further enhances shareholder value through ongoing dividend increases and share repurchases, the analyst told investors: “We believe further upside in the shares exists from current levels and continue to recommend purchase.” (See MA stock analysis at TipRanks)
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