Mastercard’s (NYSE:MA), just released its second quarter earnings, and today the stock was up 4% in trading.
As consumers spent more during the third quarter, both revenue and earnings per share were higher.
Investors who had been worried by the steady decline in stock price following the previous earnings announcement will be relieved to see that both top and bottom lines grew at double-digit rates.
Our business has delivered a strong performance in all areas, with net revenues and earnings growing by double-digits.
CEO Michael Miebach
Revenue for the third quarter was $6.96 Billion, compared to estimates of $6.85 Billion. The EPS came in at $3.59 and comfortably beat estimates of $3.51. This is the fourth quarter in a line that the company beat analyst expectations.
Payments in the future
Mastercard, a solid company in the US marketplace. It has been offering annualized returns over 30% since 2006.
The growth of the company is only possible due to a management style which embraces change, and uses new technologies for payment processing.
Embedded finance is one such example. The integration of financial platforms with payment systems is embedded finance. This allows users to avoid the inefficiency of traditional payment methods.
Jennifer Marriner is EVP of the EVP and she believes that embedded finance will be the future for commerce.
The people want modernized and integrated financial services that are digitized. Mastercard wants to lead the charge in this change.
On the B2B front, we’re seeing a growing realization of how embedded finance can help streamline their businesses.
Marriner believes that the efforts of his company to simplify financial transactions for business are being well received by businesses.
It is not just the company that benefits from its partnerships with SAP or Oracle, but it also realizes that this future has arrived.
According to her, small businesses and medium-sized enterprises stand to gain the most by things such as tokenization and payment via contactless technology.
Mastercard is making life easier for businesses around the globe by integrating financial transactions in applications that are already used for accounting, inventory control and other business functions.
Mastercard can continue to grow in the future by offering additional services, such as customizations and rewards programs.
What is the meaning of this chart?
The chart shows that just prior to the earnings, the stock traded at a key support level.
The traders were eagerly awaiting the earnings report, and now they will be happy that one more variable is not present to cause another downward movement.
Investors who buy the stock now, if the stock maintains this level of support and the firm continues performing at a high level on a basic level, will have a great opportunity to profit from the embedded finance revolution.
The future of embedded finance? This post may change as new information becomes available.
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