Mastercard Targets Over a Billion Users in China - Joins with Alibaba's Ant Group Affiliate Alipay for Instant Cross-Border Payments
Portfolio Pulse from Anusuya Lahiri
Mastercard Inc (NYSE:MA) partners with Alibaba's Ant Group affiliate Alipay to enhance cross-border remittance services, targeting over a billion users in China. This collaboration expands Mastercard's presence in the Chinese market, where it also formed a joint venture with NetsUnion Clearing Corp, receiving a bank-card clearing license. Mastercard's Q4 fiscal 2023 net revenues were $6.55 billion, up 13% Y/Y, with an adjusted EPS of $3.18. MA stock gained over 37% last year, and investors can also gain exposure through IShares U.S. Financial Services ETF (NYSE:IYG) and SPDR Select Sector Fund – Financial (NYSE:XLF).
March 19, 2024 | 1:42 pm
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POSITIVE IMPACT
Investors can gain exposure to Mastercard's growth through IYG, which may see positive movement due to MA's strong performance and strategic partnerships.
As IYG includes Mastercard in its holdings, the ETF stands to benefit from Mastercard's positive performance and strategic initiatives in China, potentially leading to an uptick in its value.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Mastercard's partnership with Alipay and strategic moves in China signal strong growth potential, backed by impressive Q4 fiscal 2023 results.
The partnership with Alipay, a major player in China, and the strategic joint venture highlight Mastercard's commitment to expanding its global footprint, especially in a lucrative market like China. The positive Q4 fiscal 2023 results further support the bullish outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
SPDR Select Sector Fund – Financial (XLF) may experience positive impact from Mastercard's recent achievements and expansion in China.
Given that XLF holds Mastercard among its assets, the ETF is likely to benefit from the positive developments surrounding Mastercard's strategic partnerships and financial performance, potentially leading to an increase in its value.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70