Trade in MasterCard shares!
MASTERCARD

Analysis before buying or selling Mastercard shares

Trade in MasterCard shares!
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To be able to understand the Mastercard share and what influences its movements on the stock market, we suggest that you find, in this page, all the information useful for your analyzes of this security. We will provide detailed information on the activities of this company and the sources of its revenue. We will then examine its direct environment together with its major competitors and the most recent partnerships implemented by the group. And finally, we will explain how to complete a comprehensive fundamental analysis of this company so you can monitor the most influential publications and announcements.

Elements to consider before selling or buying Mastercard shares

Analysis N°1

We would also monitor the general growth of different methods of payment throughout the world with an increasingly cashless economy that is promoted through an increase in the number of online digital payments.

Analysis N°2

The economic policies implemented worldwide can also hinder the growth of the MasterCard Company or, on the contrary, stimulate sales.

Analysis N°3

We would obviously also monitor the competition in this sector through major news and announcements relating to this sector’s principal players which are also the direct competitors of MasterCard.

Analysis N°4

Finally, we would of course monitor the financial results of this company as well as the analysts’ predictions and internal objectives that we would compare to the group’s balance sheets in order to determine the most probable upcoming trends.

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General presentation of Mastercard

Possessing a clear understanding of the MasterCard Company and its activities in detail together with its sources of revenue is necessary if you wish to implement a high quality trading strategy on this asset. Here therefore is a detailed presentation of this company.

MasterCard Inc. is an American group that operates in the financial services sector. More precisely, this company is specialised in the production and marketing of credit and debit cards.

To better understand the activities of this group it is possible to divide them into two major categories in the following manner:

  • Firstly, the sale of payment methods represents the largest part of this group’s revenue. MasterCard actually issues and markets credit cards and debit cards, travellers cheques, online payment cards and other similar payment methods. The brands owned and operated by this group include MasterCard, Maestro and Cirrus.
  • The second major activity sector of this group is that of the provision of services such as advice, assistance and information services and the management of partners’ networks.

Although MasterCard is based in the United States the group actually achieves over 64.4% of its turnover internationally.

Analysis before buying or selling Mastercard shares
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The major competitors of Mastercard

Apart from possessing a good knowledge of the MasterCard Group and its activities it is essential to understand the economical environment in which it operates. This is why we will now examine the major competitors of this company that currently operate in this market.

Visa 

Of course, the Visa Group is the principal competitor of MasterCard. This company is also specialised in the issue and marketing of payment cards such as credit and debit cards as well as online payment cards, prepaid cards and others. It also offers advice, assistance, and information services as well as partnership network management. Visa achieves 55.3% of its turnover internationally.

American Express Company

The other major competitor to MasterCard is the American Express Company which is specialised in the issue and sale of credit and debit cards particularly in the travel sector for the payment of expenses such as hotel rooms, tickets, and restaurants among other things. The major part of this group’s revenue is from sales using this means of payment to individuals but this company also provides the same payments service to small and large businesses as well as management services to partners’ networks.


The major partners of Mastercard

The MasterCard Group does not only have adversaries, it also has a number of allies with which it regularly implements strategic partnerships and joint ventures. Here we offer you the opportunity to learn about their most recent partnership ventures:

Bunq

In 2019 MasterCard and Bunq announced a strengthening of their partnership aimed at promoting the Bunq Green Card through the MasterCard network. This particular card has a strong ecological aspect in that for every €100 spent a tree is planted. This offer was enlarged to include 30 European countries.

Treezor

Another recent partnership to note is that implemented between Treezor and MasterCard. Treezor is a fintech subsidiary of the Société Générale and the leader in the ‘Bank as a service’ platforms. Treezor attained its position as leader in mobile payments through the MasterCard MDES digital platform on the French financial market. The recent strengthening of this partnership will enable fintechs to improve their reputation in reliability, rapidity and innovation through their development in Europe.

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Positive factors for Mastercard shares
The factors in favour of a rise in the Mastercard share price:

In order to have the best chance of anticipating future changes in the Mastercard share price, it is essential to know what the advantages and disadvantages of this stock are, in other words, what the strong and weak points of this company are. This is what we propose to find out in detail right now.

Let's start this comparative analysis by looking at the various strengths of the Mastercard group and its current strengths.

  • First of all, let's remember that the Mastercard group is currently one of the two leaders in the world payment market together with the Visa group. The company has more than 23 billion transactions per year.
  • Mastercard also stands out for the quality of its communication and its marketing strategy. It invests a lot of money in advertising in order to constantly improve its brand image among users.
  • The group also benefits from a very strong international presence, which enables it to market its products and services all over the world. Indeed, Mastercard is present in around 100 countries and has more than 5,600 employees.
  • Mastercard can also rely on the diversity of its revenue sources, as it currently operates several different platforms.
  • Similarly, Mastercard maintains its popularity in the eyes of the public by sponsoring various sporting events such as the World Cup and other major international events and meetings around the world.
  • Another major advantage of the Mastercard group is the current trend in the world's economies towards cashless systems, which should enable it to increase its sales and income.
  • Finally, it should also be noted that digital money and the use of bank cards has been trending upwards for several years thanks to significant technological advances.
Negative factors for Mastercard shares
The factors in favour of a drop in the Mastercard share price:

As we have just seen, the Mastercard group has many advantages at the moment. But it also has some weaknesses, which we will now explore with the main drawbacks of this stock.

  • First of all, and in view of its particularly sensitive activities in the banking sector, the Mastercard group suffers from a very high exposure to risks and fraud, which could weaken its brand image and its growth capacities.
  • Similarly, the credit system integrated into the majority of the cards marketed by the group presents more or less significant litigation risks.
  • Another important risk factor for Mastercard concerns the European Union, which is increasingly concerned about Mastercard's domination of the global market and wishes to implement local competition for payment solutions.
  • As for Mastercard's weaknesses, it is also worth noting that the group is faced with increasingly strict economic policies throughout the world, which can be a serious brake on its profits.
  • Competition is also one of the major problems facing the Mastercard group. Indeed, the economic environment in which the group operates is a highly competitive one, even if the barriers to entry remain high.
  • There is also the risk of the current economic crisis caused by the Covid pandemic, which could lead to a drop in purchasing power and, in the long term, a drop in payments.
  • Finally, a new form of competition is now facing Mastercard with crypto-currencies which are constantly growing.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

Who are the principal shareholders of the MasterCard Group?

The major shareholders of the MasterCard Company are as follows: 11.20% is held by The MasterCard Foundation, 7.02% The Vanguard Group, 4.83% by Hotchkis & Wileu Capital Management, 4.02% by Fidelity Management & Research, 3.96% is held by SSgA Funds Management, 3.02% T Rowe Price Associates IM, 2.31% by BlackRock Fund Advisors, 2.13% by Capital Research & Management XI, 1.78% by Capital Research Management GI and 1.50% is held by Third Point.

On which stock market indices are MasterCard shares quoted?

MasterCard shares are sold through the American stock markets where this company boasts one of the largest stock market capitalisations. This asset is quoted on the American NYSE, or New York Stock Exchange, on its Main Market as well as being included in the American S&P 100 stock market Index which is composed of the 100 top American companies with the highest stock market capitals.

How to trade Mastercard shares?

You have the possibility to speculate now and directly online on the price of the Mastercard share thanks to the trading platforms and then to take a position on the rise or fall of the price of this security. To buy the Mastercard share, you can also purchase a traditional stock market investment product through your bank.

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