DUBAI - Mastercard (NYSE:MA) and Amazon (NASDAQ:AMZN) Payment Services have announced a multi-year partnership aimed at enhancing digital payment acceptance in the Middle East and Africa. The collaboration will span several key countries, including Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, South Africa, and the UAE.
Under the agreement, Amazon Payment Services will integrate Mastercard Gateway, a payment processing solution, to facilitate fast, seamless, and secure transactions for merchants. This adoption aligns with a growing trend towards digital payments in the region, as indicated by the Mastercard Payment Industry Insights Index, which reports that 95% of consumers in the Middle East and Africa are considering using emerging payment methods.
The partnership is expected to benefit thousands of merchants and enhance the shopping experience for Amazon customers in the UAE and Egypt. It also opens avenues for collaboration with entities like telecommunications companies and governments to improve their payment processes.
In addition to the payment solution, Mastercard and Amazon Payment Services will co-develop innovative payment features such as Secure Card on File, Click to Pay, and token authentication services. These advancements are designed to offer multi-rail checkout options to merchants and expedite the checkout process for consumers.
Amnah Ajmal, Executive Vice President for Market Development at Mastercard EEMEA, expressed pride in the partnership, highlighting the shared goal of advancing payment digitization and introducing innovative solutions in the region.
Peter George, Managing Director of Amazon Payment Services for the Middle East & North Africa, emphasized the strategic importance of implementing Mastercard Gateway to extend their reach as a payment service provider and simplify integration processes.
The Mastercard Gateway is recognized for its ability to provide a single connection for global payment acceptance, facilitating market expansion while safeguarding against risk and fraud. It supports a wide array of digital transactions, including all major card brands and various non-card payment options.
This partnership is part of ongoing efforts by Amazon Payment Services to power online payments in the MENA region, currently serving over 4,000 merchants and businesses. The information for this article is based on a press release statement.
In other recent news, Visa Inc (NYSE:V). is facing a potential lawsuit from the U.S. Department of Justice (DoJ) over allegations of maintaining an unlawful monopoly over the U.S. debit-card market. Equity research firm Monness, Crespi, Hardt & Co. and brokerage firm TD Cowen have expressed concerns over Visa's anti-competitive behaviors, although they anticipate a protracted resolution process.
On the other hand, MasterCard has been making strides in various areas. The company has retained its Outperform rating from Baird, following the introduction of its First-Party Trust program aimed at combating first-party fraud. MasterCard has also declared a quarterly cash dividend of 66 cents per share, a development that shareholders might find significant.
In addition, MasterCard has announced its acquisition of Recorded Future, a global leader in threat intelligence, for $2.65 billion. This move is expected to contribute to the company's revenue growth and diversification of services.
In partnership news, MasterCard and Safaricom, Kenya's leading telecommunications company, have joined forces to enhance payment acceptance and cross-border remittance services in Kenya. This collaboration aims to leverage M-PESA's extensive merchant network and MasterCard's international payment infrastructure to provide more seamless, secure, and scalable payment solutions to Kenyan merchants.
These are the recent developments for both Visa and MasterCard.
InvestingPro Insights
Mastercard's strategic partnership with Amazon Payment Services aligns well with the company's strong market position and financial performance. According to InvestingPro data, Mastercard boasts a substantial market capitalization of $455.8 billion, underscoring its prominence in the financial services industry.
The company's revenue growth of 11.87% over the last twelve months, coupled with a robust operating income margin of 58.31%, indicates Mastercard's ability to capitalize on the growing trend of digital payments in emerging markets like the Middle East and Africa.
InvestingPro Tips highlight Mastercard's strength as a dividend payer, having raised its dividend for 13 consecutive years and maintained payments for 19 years. This demonstrates the company's financial stability and commitment to shareholder returns, which could be further bolstered by the expansion into new markets through partnerships like the one with Amazon Payment Services.
The company's high return over the last decade, as noted in the InvestingPro Tips, suggests a track record of successful strategic initiatives. This bodes well for the potential success of the new partnership in driving growth and innovation in digital payment solutions.
For investors seeking a deeper understanding of Mastercard's potential, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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