Mastercard Inc. MA has entered into an agreement with EnKash, a digital platform and payment solution provider, to expand the use of commercial cards in India. The agreement with allows the automation of B2B digital payment.
The platform will allow small and medium-sized businesses to pay using the Mastercard payment network.
This alliance was formed to meet the growing demand among companies of all sizes in India for the digitization of supplier payments. The digitization of payments is the need of the moment, given its many advantages. Promote savings with quick cash payments, improve checks, and simplify reconciliation, among other benefits.
Despite the need for digitization, demand has not been met given the limited penetration of card acceptance solutions among small B2B providers. For this reason, many companies have missed out on new innovative B2B payment solutions, which could have led to greater operational efficiency.
Using the EnKash digital platform and Mastercard payment network, the company can leverage its unused lines of credit to pay for multiple types of major and non-major financial transactions, including utilities, rental, GST, fuel and many other B2B providers. more efficiently.
Supply-side companies benefit from timely payment of invoices, which in turn can help improve cash flows.
Mastercard has made every effort to help small businesses in India, which have been grappling with financial uncertainties induced by the pandemic. The company has made several investments to implement cost-effective solutions to help small businesses adopt digital media. He also lent a hand to businesswomen. As an example, he recently introduced the Kirana Project. As part of the project, Mastercard partnered with the United States Agency for International Development as part of the Women’s Global Development and Prosperity Initiative.
Additionally, it’s worth mentioning that India is a big market for Mastercard, as a large chunk of its population is eager to use debit or credit cards to shop online. The high use of smartphones has also driven the growth of the e-commerce market in India. India’s e-commerce market is expected to rise to $ 200 billion by 2026 from $ 38.5 billion in 2017, according to the India Brand Equity Foundation.
These initiatives position Mastercard well for long-term growth in the Indian sub-continent, where Visa Inc. (V. – Free Report) is also actively operational.
Notably, shares of Mastercard gained 13.4% year-to-date compared to the industry’s 6.7% growth.
Among his peers, American Express company AXP decreased by 2.3%, while Find out about financial services DFS gained 6.4% over the same time period.
Notably, Mastercard currently has a Zacks Rank # 4 (Sell).
you can see the full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
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