Morningstar | MA Updated Star Rating from 10 Apr 2019
In our view, the Mastercard network is a key intermediary between banks around the world, generating a small amount of revenue from every transaction that uses its network and every dollar of payments made using the Mastercard brand. Though alternative payment methods and international competition could result in some share loss over time, the global electronic payment pie should expand fast enough to ensure double-digit revenue growth for years to come. In fact, we think the transition to mobile payments will only increase the volume running through Mastercard's network. In our opinion, the digital wallet is a vehicle for marketing more so than payments. Numerous companies are fighting to connect merchants and consumers for this purpose, but this does not mean that all are anxious to enter the highly regulated (and smaller) market for payments. Apple, for instance, has found initial success by cooperating with networks and issuers. Mastercard itself is strengthening its capabilities in data analytics, and we think these ancillary offerings are fast becoming a valuable intangible asset for the company--alongside its well-regarded brand and global network.Payment market share, due to powerful network effects and resulting "winner take all" economics, is quite concentrated. Given Mastercard's dominance and impressive profitability, we believe it could attract the attention of regulators. We don't see regulation as a game-changer, though. Instead, we believe changes to the regulatory environment will primarily affect issuers, while admittedly opening the door for low-cost payment providers to take market share. We think the proliferation of payment options has in some ways strengthened Mastercard's moat. The company and its large competitors are increasingly setting security and technology standards for the entire payment industry. We see few other firms capable of taking on this necessary role. Whether payment information is exchanged via mail, telephone, magnetic stripe, computer chip, or entirely digital means, Mastercard seems sure to be involved.Mastercard is a technology company in the global payments industry. The company's solutions enabling consumers to use electronic forms of payment instead of cash and checks. The company provides a range of payment solutions and services using its brands, including Mastercard?, Maestro? and Cirrus?. The company is a multi-rail network that provides customers one partner to turn to for their domestic and cross-border payment needs. The company has additional payment capabilities that include automated clearing house transactions. The company also provides offerings such as cyber and intelligence products, information and analytics services, consulting, loyalty and reward programs and processing.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.