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Mastercard Ties Up With University Fancards for Expansion


Mastercard Incorporated MA recently collaborated with Birmingham-based University Fancards, a financial technology company wherein, the latter works as the exclusive network brand for the former. However, financial terms of the transaction were not disclosed.

The alliance is currently in effect and prepaid Mastercard gift cards are now available across stores. This partnership comes as another Mastercard’s strategy initiative for expansion. Organic growth through tie-ups and acquisitions has always been a key strength at Mastercard, evident from a revenue CAGR of 11% during the 2012-2017 period. The momentum continued into the first nine months of 2018 as well.

The leading financial transactions provider has many ongoing measures on its agenda, which would help boost its portfolio and also expand its geographic footprint. The company has been making a significant progress in its digital strategy and consistently investing in technology as well.

Meanwhile, this teamwork is the latest of University Fancards’ series of deals, which secured $2.5 million earlier this year in its most recent funding round. The company thinks that the deal would bring impressive Mastercard benefits to millions of fans, which would fuel its growth.

The market at Birmingham with its affordable technological infrastructure provides ample opportunities for players like Mastercard. The company is poised for growth, given its solid market position, ongoing expansion and digital initiatives plus significant prospects from the secular shift toward electronic payments.

Shares of this Zacks Rank #3 (Hold) company have surged nearly 40.2%, outperforming its industry’s increase of nearly 23%.

Stocks to Consider

Investors interested in the financial transaction services sector can look into some better-ranked stocks like Cardtronics plc CATM, Evertec, Inc. EVTC and Green Dot Corporation GDOT.

Cardtronics plc provides automated consumer financial services via its network of automated teller machines (ATMs) and multi-function financial services kiosks. The company sports a Zacks Rank #1 (Strong Buy) and came up with average four-quarter beat of 50.24%. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVERTEC engages in transaction processing business, serving financial institutions, merchants, corporations and government agencies in Latin America and the Caribbean. The stock carries a Zacks Rank #2 (Buy) and pulled off average earnings surprise of 16.99% over the last four reported quarters.

Green Dot operates as a pro-consumer bank holding company, providing personal banking for the masses. The company has a Zacks Rank of 1 and delivered average four-quarter positive surprise of 18.40%.

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