Mastercard (MA) partners to facilitate loans in Asia-Pacific
Mastercard Incorporated MA recently partnered with renowned Singapore-based enterprise software company Eureka AI to provide MA customers in Asia-Pacific with enhanced analytics and technology solutions. As a result, clients will benefit from better credit and risk scoring and faster loan decisions.
With the latest tie-up, Mastercard customers can take advantage of Eureka Al’s industry-leading portfolio of products and solutions, where credit scoring and location verification solutions use telecommunications records and help identify risk of default of payment.
The recent partnership may prove beneficial for small and medium-sized enterprises (“SMEs”), which can now seamlessly benefit from the credit facilities necessary to maintain business operations. In addition, Eureka AI offers unique credit risk assessment tools to creditors, of which SME Score is one, which can help reduce risk components. This decision comes at an opportune time, as SMEs are grappling with insufficient resources and financial uncertainties due to the COVID-19 pandemic and urgently need credit to recover from it.
The latest tie-up reinforces Mastercard’s sincere efforts to capitalize on the growing demand for real-time, structured decision-making within the lending ecosystem, which can actually make the lending process easier. This, in turn, will help both lenders and recipients of credit facilities. Lenders can easily check creditworthiness while granting loans, which will reduce instances of default. At the same time, customers in urgent need of credit can receive the same without hassle and focus on the prospects for business growth. In addition, customers seeking credit facilities for the first time as well as under-banked customers will benefit from the latest decision.
What makes the recent initiative remarkable is the region in which it was undertaken. While only 15% of micro, small and medium enterprises (“MSMEs”) in Asia can access formal credit, small businesses and women entrepreneurs across the region clearly need credit facilities. Given that SMEs in Asia-Pacific make up the majority of total businesses in the region and contribute substantially to its economic growth, the latest initiative is of great significance.
Initiatives similar to the last should also strengthen Mastercard’s presence in the Asia-Pacific region. Eureka AI appears to be the perfect partner to complement MA’s efforts, as the former has strong advanced analytical expertise on account aggregator data that provides a better understanding of client needs and risk profiles.
This Zacks Tier 3 (Hold) technology company in the global payments industry continues to partner with many well-established organizations and deliver several innovative digital payment solutions to bring more SMBs into the economy. growing digital. Among several other measures to complement the small business digitization motive, Mastercard partnered with HDFC Bank, US International Development Finance Corporation (“DFC”) and US Agency for International Development (“USAID”) in October 2021 to introduce a $100 million credit facility. By 2025, MA aims to include 50 million micro and small businesses in the digital economy.
Like Mastercard, other companies making concerted efforts to help SMBs include American Express Company AXP, visa inc. V and Global Payments Inc. GPN.
For the benefit of SMEs, American Express continues to undertake a series of measures focusing on technology upgrades, the introduction of secure digital solutions and helping businesses with payment regulations. AXP’s Global Commercial Services segment offers a diverse range of cards and payment, expense management and commercial finance solutions to help small businesses.
Visa has always been committed to providing the support small businesses need, from technology support to providing enhanced payment solutions. V serves the unique needs of small and medium-sized businesses through the Small Business Hub, which launched in 2020.
Global Payments works closely with over 3.5 million small and medium businesses and helps them by deploying enhanced and secure payment technology solutions. GPN offers these businesses seamless payment acceptance across all business channels, resulting in better and secure outcomes for customers.
Mastercard shares gained 2.6% year-on-year against a 20% decline in the sector. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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While shares of American Express and Visa have gained 36.9% and 0.8% respectively in one year, shares of Global Payments have lost 34.2% over the same period.
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