Mastercard Incorporated (NYSE: $MA) is a global technology company that facilitates electronic payments by connecting consumers, financial institutions, merchants, governments, and businesses worldwide. The company provides a range of payment solutions and services under its brands, including MasterCard, Maestro, and Cirrus.
These services enable transactions on its core network among account holders, merchants, financial institutions, businesses, governments, and other organizations in markets around the globe. Mastercard’s product offerings encompass consumer credit, consumer debit, prepaid, commercial credit, and commercial debit.
The company also provides additional payment capabilities such as automated clearing house (ACH) transactions, including both batch and real-time account-based payments. Additionally, Mastercard offers cyber and intelligence solutions. With connections spanning over 210 countries and territories, Mastercard plays a pivotal role in the global payment ecosystem.
In August 2010, MasterCard Worldwide, under its rebranded name, expanded its e-commerce offering through the acquisition of DataCash, a UK-based payment processing and fraud/risk management provider. In March 2012, Mastercard announced the expansion of its mobile contactless payments program, extending its reach to markets across the Middle East.
During the spring of 2014, Mastercard acquired Pinpoint, Australia’s leading rewards program manager, for an undisclosed amount. In August 2017, the company further strengthened its portfolio by acquiring Brighterion, a company specializing in artificial intelligence and machine learning, holding several patents in these areas.
In April 2021, Mastercard took a proactive step toward environmental sustainability by creating a carbon footprint calculator. This tool gathers information from customers, helping them understand their contribution to carbon emissions and global warming.
In response to the 2022 Russian invasion of Ukraine, Mastercard complied with United States sanctions by prohibiting the issuance and use of cards in Russia, including foreign cards from other countries.
The company suspended all business operations in Russia, which had accounted for 4% of its revenue. However, bank cards themselves continue to function in Russia due to the transfer of internal transactions to the Russian National Card Payment System.
Here’s Why You Should Consider Investing in Mastercard (MA)
Baron Funds, an investment management firm, has released its third-quarter 2023 investor letter for the “Baron FinTech Fund.” You can download a copy of the letter here. The quarter ending on September 30, 2023, saw a 1.30% increase in Baron FinTech Fund® (Institutional Shares), in contrast to a 6.77% loss for the FactSet Global FinTech Index (the Benchmark).
Since its inception on December 31, 2019, the Fund has achieved an annualized growth rate of 6.50%, outperforming the Benchmark, which declined by 2.22%. Take a moment to review the fund’s top 5 holdings to gain insights into their primary investment choices for 2023.
In the Q3 2023 investor letter, Baron FinTech Fund discussed its insights into Mastercard Incorporated (NYSE: MA). Mastercard is a credit card company based in Harrison, New York, with a market capitalization of $369.8 billion. Mastercard has delivered a 13.42% return since the beginning of the year, with 12-month returns up by 16.21%. As of November 9, 2023, the stock closed at $394.38 per share.
Baron FinTech Fund’s Q3 2023 investor letter states the following about Mastercard Incorporated (NYSE:MA):
“The Performance in Payments was bolstered by gains from Mastercard Incorporated. Shares of the global payment network Mastercard were up modestly after reporting a continuation of double-digit earnings growth and resilient payment volumes.”
Mastercard and Consumers International Partner To Accelerate Equitable Global Consumer Protection
At the Global Congress hosted by Consumers International in Nairobi—an event held every four years to unite consumer advocates and industry leaders—the Mastercard Center for Inclusive Growth (The Center) and Consumers International unveiled a new collaboration.
This partnership aims to drive a comprehensive global initiative dedicated to enhancing protection and empowerment for vulnerable consumers within the digital finance sector.
The project’s goal is to create a community of stakeholders, including digital financial service providers, regulatory bodies, consumer advocates, and technology companies, to collectively address the growing complexity of the digital finance landscape.
Consumers International strives to establish a fair and secure global marketplace by advocating for consumer rights and promoting access to inclusive, safe, data-protected, private, and sustainable digital financial services. Over the past three years, Consumer International’s Fair Digital Finance Accelerator engaged a network of 65 consumer associations across low- and middle-income countries, impacting 1.2 million people through engagement with regulators and financial service providers.
The organization has played a pivotal role in driving regulatory changes, influencing business practices, and promoting transparency and accountability within the digital finance sector.
Mastercard now joins Consumers International’s network, which includes governments, academics, civil society, foundations, and businesses, as part of their unique multi-stakeholder impact approach to creating a fair, safe, and sustainable marketplace for all.
The philanthropic funding, facilitated by the Mastercard Impact Fund, aligns with Mastercard’s ongoing commitment to advancing equity and economic opportunities for underserved communities. This commitment also involves increasing access to and usage of digital financial services.
Is Mastercard also a bank?
Mastercard operates as a financial services entity, deriving its main revenue from gross dollar volume fees. Member banks issue Mastercard-branded cards, and these cards are classified as open loop. This designation indicates that the cardholders can use their Mastercard anywhere the brand is accepted.
Who owns Mastercard?
Mastercard (MA) stock ownership is diversified among institutional, retail, and individual investors. Institutional investors hold approximately 64.05% of the company’s stock, insiders own 10.61%, and public companies along with individual investors collectively own 25.34%.
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