Mastercard Incorporated MA recently teamed up with the renowned German automaker, Mercedes-Benz, in a bid to make use of its cutting-edge payments technology to launch native in-car payments across 3,600-plus cooperating gas stations in Germany.
In order to avail the new payments facility, customers need to use current Mercedes-Benz models and German-issued Mastercard credit or debit cards. The card needs to be registered in the Mercedes me user account, consequent to which customers can leverage a fingerprint sensor, which will be integrated into the Mercedes-Benz User Experience (MBUX) infotainment system. The MBUX display has been built with the power of innovative technologies and serves as a means to ensure seamless interaction between the users and vehicles.
Therefore, fingerprints can now be put to use for completing hassle-free and safe digital fuel bill payments across Germany. The reach of such convenient payments is likely to be expanded to other vehicle-related services and across other European markets in the days ahead. The removal of the need to feed a PIN or authenticate payments through mobile device at the point of sale ensures a hassle-free in-vehicle experience.
And this lucrative opportunity to make online payments from cars has been made possible by the integration of Mastercard Secure Card on File for Commerce Platforms technology into the automaker's car models. The technology makes use of uniquely assigned cryptograms to encrypt transaction data, thereby assuring the confidentiality of sensitive payment information.
The recent launch reinforces Mastercard’s sincere efforts to extend modernized payment solutions to boost the uptake of digital payments in the everyday lives of its consumers. And this time, the focus of MA remains to simplify the car driver’s journey across several European markets.
In this manner, an enhanced digital suite of Mastercard, built through constant tie-ups and significant investments, is likely to help in establishing a solid presence across the digitally booming continent. And the presence of a worldwide trusted company like MA will encourage more consumers to adopt newer forms of digital payments in their daily experiences and activities.
The increased uptake of Mastercard’s solutions may fetch higher revenues to the tech giant. Also, attaching a highly beneficial contactless payment facility to the tech giant’s card offerings suite in Germany is expected to prompt more nationwide customers to opt for MA’s cards and subsequently, expand its cardholder base.
Shares of Mastercard have gained 40.5% in the past year compared with the industry’s 24.8% growth. MA currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Business Services space are Trane Technologies plc TT, APi Group Corporation APG and FirstCash Holdings, Inc. FCFS. While Trane Technologies sports a Zacks Rank #1 (Strong Buy), APi Group and FirstCash carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Trane Technologies outpaced estimates in each of the last four quarters, the average surprise being 7.30%. The Zacks Consensus Estimate for TT’s 2023 earnings suggests an improvement of 20.4% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 10% from the year-ago reported number. The consensus mark for TT’s 2023 earnings has moved 4.9% north in the past 60 days.
APi Group’s earnings outpaced estimates in three of the trailing four quarters and matched the mark once, the average surprise being 4.27%. The Zacks Consensus Estimate for APG’s 2023 earnings suggests an improvement of 13.5% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 7.9% from the year-ago reported number. The consensus mark for APG’s 2023 earnings has moved 0.7% north in the past 60 days.
The bottom line of FirstCash outpaced estimates in each of the last four quarters, the average surprise being 7.31%. The Zacks Consensus Estimate for FCFS’s 2023 earnings suggests an improvement of 6.7% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 15.5% from the year-ago actual. The consensus mark for FCFS’s 2023 earnings has moved 0.9% north in the past 60 days.
Shares of Trane Technologies, APi Group and FirstCash have gained 36.9%, 89.2% and 32.1%, respectively, in the past year.
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