Tag: mastercard
After strong Q1, Mastercard looks poised to beat short-term headwinds
Credit card company Mastercard Incorporated (NYSE: MA) started the new fiscal year with a strong quarter, despite economic uncertainties, as it continues to focus on customers and strategic partnerships. The […]
The post After strong Q1, Mastercard looks poised to beat short-term headwinds first appeared on AlphaStreet.
Soroban Capital boost stake in Nutrien, exits Mastercard, Wabco, Yum
MA Stock: Mastercard looks poised to continue on the growth path this year
The sharp growth in digital transactions, which accelerated during the COVID era, has increased the adoption of credit card services significantly. While the ongoing digital shift drives growth for credit […]
The post MA Stock: Mastercard looks poised to continue on the growth path this year first appeared on AlphaStreet.
U.S. retail sales up 7.6% in holiday season as deals lure consumers – Mastercard report
FTC orders Mastercard to open debit transactions to competing payment networks
The Federal Trade Commission has ordered Mastercard to start providing competing payment networks with the information they need to process debit card payments. In a proposed enforcement action announced on Friday, the FTC said Mastercard had allegedly violated a provision of the Dodd-Frank act known as the Durbin Amendment by prohibiting merchants from routing transactions over alternative networks.
The action targets “tokenization,” the technology that underpins mobile payment applications like Apple Pay, Google Pay and Samsung Pay. When you go to make a debit or credit card purchase with your phone’s mobile wallet, the software substitutes sensitive information, including the primary number associated with your account, with a separate set of single-use “tokens.” Mastercard and Visa say the practice prevents fraud since tokens contain no exploitable information when they’re in transit. It’s only when they arrive at Mastercard or Visa’s servers, and they’re mapped back to their original account holder, that they point to someone.
According to the FTC, Mastercard has historically stopped competing networks from accessing its token vault. That means whenever consumers decided to pay with a mobile wallet, merchants had to route the transactions over Mastercard (or Visa) and pay the company’s transactions fees, which are typically higher than that of its competitors. The Durbin Amendment calls for banks to support two competing payment networks on all debit cards. It was a provision Congress introduced to promote competition among networks. The FTC didn’t say if it reached a similar agreement with Visa.
“While we are taking these steps to bring this matter to a close, there should be no question that tokenized transactions provide an increased level of protection to both consumers and merchants,” Mastercard spokesperson Seth Eisen told Bloomberg. “This focus on security guides our efforts in a highly competitive market and provides the incentive for us to continue investing in innovations that promote the peace of mind every person expects.” Eisen added Mastercard would “continue to work to update our processes to comply with the consent order and provide even greater choice.”
The FTC plans to collect comments from the public before voting to finalize the order against Mastercard.
The Ratings Game: Visa, Mastercard are ‘great defensive names’ for 2023, but PayPal and Coinbase stocks could be set for a rebound, analysts say
Beating macro issues, Mastercard stays in growth mode. Is MA a buy?
Over the years, Mastercard Inc. (NYSE: MA) has established an extensive digital payments infrastructure that helped it dominate the market. The diversified business model has enabled the credit card firm […]
The post Beating macro issues, Mastercard stays in growth mode. Is MA a buy? first appeared on AlphaStreet.
Mastercard wants to make crypto purchases less risky
Crypto is still loaded with uncertainty, but Mastercard is betting that it can assuage buyers’ minds. The credit card giant has introduced a Crypto Secure service meant to boost trust in crypto purchases. The offering uses AI from CipherTrace (a blockchain security firm Mastercard bought in 2021) to create a “risk profile” for digital asset providers and help card issuers decide whether or not to approve a transaction. Your bank might block a purchase if a merchant has significant fraud problems.
The system shows color-coded risk ratings that vary from green (safe) to red (dangerous). Mastercard also offers a “benchmark” rating to compare with a peer financial group, and helps issuers track the volume of approved and declined transactions. The company already uses a similar method for conventional currency — it’s just shifting the concept to the crypto realm.
The service might not thrill you if a seemingly innocuous crypto buy falls apart. As Mastercard’s Ajay Bhalla explains to CNBC, though, this is as much about helping companies as it is customers. Crypto Secure ideally helps card providers navigate the current regulatory maze for virtual assets. They shouldn’t run into trouble by approving a shady deal that leaves people stranded.
As it is, Mastercard has a vested interest in improving the reliability of crypto transactions. It started supporting some cryptocurrency payments in 2021, letting more retailers adopt the technology. The more trustworthy those payments are, the more Mastercard can profit from them. Regardless of the motivations, you might not mind if you find more places to spend your Bitcoin or Ethereum.
Binance and Mastercard Join Forces to Launch Crypto Cards in Argentina
Argentina is the first country to employ prepaid crypto cards in Latin America.