Mastercard (MA) and Corpay have entered a partnership to strengthen cross-border payment capabilities for businesses. As part of the deal, Mastercard will invest $300 million in Corpay’s cross-border business, acquiring a 3% equity stake. This investment values Corpay’s cross-border operations at $10.7 billion. Importantly, the deal comes just ahead of the company’s Q1 earnings report, due Thursday, May 1.
Currently, analysts expect Mastercard to report Q1 earnings per share (EPS) of $3.58, up 8.2% from the prior-year quarter. Also, the company’s revenue is expected to increase 12.3% to $7.13 billion in the first quarter.
Mastercard & Corpay Strike Exclusive Deals
According to the deal terms, Corpay will serve as the exclusive provider of high-value cross-border payments and currency risk management for Mastercard’s financial institution clients.
At the same time, Mastercard will be the exclusive virtual card solution provider for Corpay’s customer base. Further, Mastercard Move, a service focused on small-ticket transactions, will expand its reach to more small and mid-sized businesses through Corpay’s network.
Overall, this partnership allows Mastercard to diversify its payment solutions, improve its competitive edge in B2B transactions, and drive revenue growth in cross-border payments.
Mastercard Launches New AI Payment System
Recently, Mastercard launched Agent Pay, a new payment system that allows AI agents to make secure transactions on behalf of users. It must be noted that Mastercard is working with Microsoft (MSFT), IBM (IBM), Braintree, and Checkout.com to expand the program, making AI-driven payments more accessible to users.
This move boosts Mastercard’s role in digital payments and fraud prevention. By integrating AI into its network, the company makes transactions faster and more secure. Also, partnering with major tech firms helps Mastercard grow its reach.
Is MA Stock a Good Buy?
On TipRanks, MA stock has a Strong Buy consensus rating based on 25 Buys and three Holds assigned in the last three months. The average Mastercard stock price target of $54.91 suggests an upside potential of 16.84% from its current price. Year-to-date, shares of the company have gained about 3%.
