Mastercard Incorporated (NYSE:MA) MA recently collaborated with FrenchSys in a bid to accelerate the launch of Mastercard’s enhanced card payment technologies across the French market. Established two years back, FrenchSys intends to roll out and facilitate hassle-free deployment of enhanced electronic payment solutions across France.
Through the newly formed alliance, the advanced payment solutions of Mastercard, ranging from using the PIN code entry for making contactless payments with no limit to immediate card refunds credited to an account, can easily be availed and implemented across the country in compliance with European payment regulations.
Also, Mastercard’s innovations including the sound identity feature integrated into the payment process will be made available in France through the latest tie-up. While Mastercard’s innovative solutions will benefit several consumers, the merchant banks integrating the same into their system will also have sound business growth prospects.
With an established presence across Europe, the abovementioned move highlights Mastercard’s efforts to strengthen foothold in France. And FrenchSys seems to be a suitable partner for complementing Mastercard’s endeavors. It is worth mentioning that FrenchSys, powered by its advanced technologies and multi-channel strength, has been collaborating with payment acceptance solution developers to cater to the French market, which has access to over 2 million acceptance points.
Prior to the latest move, Mastercard has been striving to penetrate further into the French market through constant tie-ups. Last year, the company joined forces with the leading banking-as-a-service (BAAS) platform of France – Treezor, which has been serving the French mobile payments market through Mastercard’s digital platform (MDES).
Shares of Mastercard have gained 3.6% in the past six months compared with the industry’s growth of 1.4%. Notably, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Robust Digital Payment Ecosystem in France
It is worth mentioning that France is a big market for Mastercard given the widespread usage of debit and credit cards for making payments across the country’s e-commerce market. With one of the most rapidly expanding e-commerce markets in the world according to Research and Markets, people in France constantly seek hassle-free instant payment and alternative payment options for enhanced check out experiences. While digital wallets have received widespread acceptance as a popular payment method in the market, accelerated bank transaction volumes highlight the use of French electronic banking services by over 130 million French and international consumers every year.
Other companies such as PayPal PYPL has one of the most popular digital wallets in France. Meanwhile, Amazon AMZN with a well-established marketplace in the country provides an enhanced online shopping experience. Also, Visa’s V co-branded cards can be used for making seamless payments in the country.
Coming back, elevated usage of mobile phones backed with integrated contactless payment technologies by French consumers has also fueled e-commerce market growth. Moreover, the evolving consumer behavior of inclining toward online shopping in a bid to curb the virus spread has led to substantial growth in the global contactless payment market, which is expected to witness a CAGR of 11.7% over the 2020-2025 period per MarketsandMarkets. Thereby, this is the most opportune time for Mastercard to foray further into the French market, considering the COVID-19 pandemic induced massive shift from physical to digital mode in the payments industry.
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