Mastercard Incorporated MA partnered with Loop, a Saudi Arabian digital payments technology startup, to launch credit cards and payment solutions in the Kingdom. Partners signed an exclusive issuing contract to do this. Its shares rose 0.4% on March 1.
Mastercard will issue Bank Identification Number (“BIN”) ranges using its proven technology and experience as part of the agreement. A BIN identifies a credit card's issuing bank. They speed up bank transactions and protect cardholders from identity theft and fraud.
Thus, the novel payment solutions are intended to enable customers, merchants, and fintechs across the Kingdom to make secure, frictionless digital payments and embrace digitization in daily life. Given the Kingdom's booming SME and fintech communities, the decision appears timely.
Mastercard and Loop seem to benefit from the partnership. It should help MA gain market share in the Kingdom's digital payments business. The Middle East's digital economy thrives. Loop's products and services will benefit from the relationship.
A potential digital economy drives Mastercard's digital transformation efforts in the Kingdom. MA upgraded Saudi Arabia's online payment solutions in 2023 with new payment flows using Mastercard Payment Gateway Services. Businesses may implement modern digital payment methods without the hassles of new payment systems with Payment Gateway technology.
Mastercard wants to create a significant presence in the Middle East, which has traditionally been a popular area for digitization. Partnerships or investments in the Kingdom reflect this. Internet adoption and smartphone use drive digital progress in the region.
Business Services equities like PagSeguro Digital Ltd. PAGS, Barrett Business Services, Inc. BBSI, and ICF International, Inc. ICFI are higher-ranked. PagSeguro Digital is a Zacks Rank #1 (Strong Buy), while Barrett Business Services and ICF International are #2 (Buy). Complete list of today's Zacks #1 Rank stocks here.
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Barrett Business Services' earnings above projections in all four quarters, averaging 77.67%. The Zacks Consensus Estimate for BBSI's 2024 earnings is 5.3% higher than the year-ago figure. The consensus revenue estimate is 6.8% higher than last year. In the previous week, BBSI's 2024 earnings consensus rose 1.4%.
ICF International's bottom line surpassed projections in all four quarters, averaging 6.02%. The Zacks Consensus Estimate for ICFI's 2024 earnings is 3.7% higher than the year-ago figure. The consensus revenue estimate is 5.6% higher than last year. In the previous week, ICFI's 2024 earnings consensus rose 0.3%. PagSeguro Digital, Barrett Business Services, and ICF International shares rose 51%, 30.8%, and 35.8% last year.
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