Mastercard (MA) is growing its involvement in the crypto business, signing Binance and Bitso as its new crypto card partners. Although Mastercard stock may not yet fit the label of a crypto stock like Coinbase (COIN) or Riot Blockchain (RIOT), it is increasingly on the radar of investors seeking crypto exposure.
Crypto Card Deals with Binance and Bitso
Mastercard’s deal with Binance involves support for a prepaid crypto card. Binance is a leading provider of crypto services, including crypto trading. The Binance card lets people pay with cryptocurrencies at stores that accept Mastercard. The card is initially being launched in Argentina and will be rolled out to additional markets in the future.
With the card, you can make everyday purchases with Bitcoin (BTC-USD), Ethereum (ETH-USD), or other cryptocurrencies. The card can be used at more than 90 million merchant locations worldwide. When paying with the card, your crypto is converted into fiat money to settle the bill.
In another important crypto deal, Mastercard has partnered with Bitso on a credit card service. Bitso is a Mexican crypto platform that supports trading and other transactions. Bitso’s crypto credit card, powered by Mastercard, will be offered in Mexico.
The deals with Binance and Bitso expand Mastercard’s crypto exposure. The company’s other major crypto partners include Coinbase, Gemini, Nexo, and BitPay. Mastercard’s crypto business has been fairly successful so far and the company sees more growth opportunities ahead, Mastercard CFO Sachin Mehra told Bloomberg.
Is Mastercard a Good Stock to Buy?
Wall Street professionals are bullish on Mastercard. According to TipRanks’ analyst rating consensus, MA stock is a Strong Buy based on 19 Buys, one Hold, and one Sell. The average Mastercard stock forecast of $412.24 implies over 21% upside potential.
Moreover, MA stock seems to be a favorite of Wall Street elites. TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Mastercard is currently Very Positive. Some 68 hedge funds increased their cumulative holdings of the stock by 7.2 million shares in the last quarter.
Final Thoughts
The growing adoption of crypto in investment and payment presents a great opportunity for Mastercard. As a highly regarded global payment brand, Mastercard’s entry into crypto could bring more credibility to the space. That could lead to more business for the company. While Mastercard may not yet fit the crypto stock tag, it certainly should be watched closely by those interested in crypto exposure.
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