AUS
NZ
UK
CA
USA
IND
Highlights
- Mastercard (NYSE:MA) has launched the BNPL program to enable consumers to pay for their online or in-store purchases later in interest-free instalments.
- The company operates in more than 200 countries and accepts over 150 currencies.
- Mastercard has a P/E ratio of 48.92, with a dividend yield of 0.49%.
Mastercard Incorporated (NYSE:MA) on Tuesday launched a buy now, pay later (BNPL) service for its customers. The stock, however, fell 1.57% to US$351.18 at the market close.
The New York-based business service provider drew massive attention after the BNPL news.
The scheme allows consumers to pay for their online or in-store purchases later in interest-free instalments. It will be an additional choice besides debit cards, credit cards, and prepaid cards.
Mastercard was founded in 1966 and went public in 2006. It is one of the world’s largest payment processors and operates in over 200 countries. It also accepts over 150 currencies.
Also Read: Crypto companies that have become unicorns in 2021
Source – Pixabay
Image Description: Mastercard has launched its Buy Now, Pay Later (BNPL) program to boost its payment solutions business.
Also Read: Red Cat (RCAT) stock rides high after NASA contract, stock jumps 50%
How does the BNPL scheme benefit customers?
Consumers can use the scheme after purchasing goods from a trusted vendor. Moreover, it can be availed immediately after the purchase or later without having to pay any interest. In short, it gives the flexibility to consumers to choose how and when to pay for the purchased items.
How it benefits merchants?
Merchants can use the BNPL service to boost sales. As per a study of Mastercard transaction data conducted in October 2020, merchants registered an average 45 percent increase in sales and a 35 percent reduction in cart abandonment. In addition, banks can offer this service to merchants with a simple integration process.
Also Read: 10 reasons why US should plan for a digital currency
How it benefits lenders?
Lenders can offer BNPL services to their existing and new customers to boost their presence. Thus, it offers a huge opportunity for lenders to expand their customer base. Besides, digital wallets can easily integrate the instalment API and deploy the solutions to benefit consumers and merchants.
Also Read: Five financial stocks that may benefit from Fed's tapering plan
Mastercard has a market cap of US$347.5 billion and a P/E ratio of 48.92. Its current dividend yield is 0.49%, and the annualized dividend is US$1.76.
Mastercard’s revenue was US$4.5 billion, and net income was US$2.07 billion in the June quarter of 2021.
Also Read: Explore seven healthcare stocks that are under US$50
The stock's 52-week highest and lowest prices were US$401.50 and US$281.20, respectively. The stock was up 0.12% to US$351.585 at 4:41 pm ET in after-hours. The stock raked in a 7.53% return in one year.
Also Read: Ford (F), Toyota (TM) stocks in focus after positive business update
Bottomline
With the changing spending habits of consumers and the reach that Mastercard holds, the BNPL program would be a boon to the company and its consumers. However, investors should evaluate the companies carefully before investing in stocks.
