Mastercard (MA) Extends Help to Launch Telda's Prepaid Card
Mastercard Incorporated MA recently backed the rapidly-expanding fintech start-up of Egypt Telda to launch its prepaid card, which is anticipated to provide several unbanked Egyptians with an entry to the financial ecosystem. Along with Telda, the card issuer will be one of the country’s leading banks, Banque du Caire.
Shares of Mastercard lost 1.1% on Aug 31, replicating the decline in broader markets.
A mere click of a button on the Telda mobile App is required to issue the Mastercard-powered prepaid card. The above-mentioned mobile App was launched last year by MA through its partnership with Telda to extend a banking experience better than the traditional payment system for the millennials and Gen-Z customers. The App comprises user-friendly features and enables customers to seamlessly manage their accounts and transfer money.
With the help of such an efficient mobile App, the Egyptians who do not even have a bank account can issue payment cards and enjoy a hassle-free onboarding experience.
The latest help extended to Telda reinforces Mastercard’s continuous efforts to strengthen its footprint as a leading technology provider in rolling out innovative payment solutions across Egypt. The move highlights one of MA’s key investments to upgrade digital payments and virtual banking experience, and subsequently, bring the unbanked community within the ambit of a booming digital economy.
Mastercard’s solid digital suite built through several collaborations with renowned financial service providers and substantial investments is expected to position it well in the growing digital payments space across Egypt.
The African nation seems to be an attractive market for investments by global digital payment processors like Mastercard. The country continues to witness a flourishing digital economy, attributable to increased internet usage, a rapidly-growing young population and higher usage of smartphones.
The Egyptian Government made constant efforts to boost Egypt’s digital footprint. It opted for several investments, conducted training programs and planned to digitize core government services.
Shares of Mastercard have lost 5% in a year compared with the industry’s decline of 27.9%.
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Zacks Rank & Key Picks
Mastercard currently carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the Business Services space are ICF International, Inc. ICFI, Avis Budget Group, Inc. CAR and Sterling Check Corp. STER. While Avis Budget sports a Zacks Rank #1 (Strong Buy), ICF International and Sterling carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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