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Retail sales are expected to score points this holiday season, with shoppers buying from both online and offline channels. Mastercard Inc. MA being one of the leading payment companies, is expected to benefit from the increase in transactions processed, as cards, mobiles and other electronic modes become a preferred means of payment.
The economy opened up and people started to venture into stores to shop. But the convenience of shopping online has kept shoppers intact.
According to MastercardSpendingPulse, which measures retail sales for all payment types, including cash and checks, retail sales in the United States are expected to increase 7.4% excluding auto and gasoline. Consumers are expected to spend online at even higher rates (+ 7.6%) than last year’s levels, while in-store sales are also expected to rebound with growth of 6.6% from last year. 2020 level.
The finding indicated that, with the start of holiday shopping set to resume in October of this year, retail sales for the “75 Days of Christmas” are expected to increase 6.8% excluding automobiles and gasoline, while sales are expected to increase by 6.8%. of e-commerce are forecast to increase 7.5% from last year’s tally in the same period.
Whether for online or offline sales, the preferred payment method remains digital and cards, which places companies like Visa Inc. (V) and
Mastercard in a great location. These companies are present at the forefront of the payments ecosystem facilitating the transfer of funds from buyers’ bank to merchant bank. Other companies, which provide software services like Global Payments Inc. GPN and some like PayPal Holdings, Inc. PYPL and Square, Inc. The SQ, which facilitates payments between parties by online transfer, has everything to gain.
Speaking specifically of Mastercard, the company is the second largest payment processor in the world after Visa. North America contributes 35% of the company’s total turnover.
Mastercard has a brand name that swears. The company is always active in adopting new technologies and processes to stay at the forefront of the rapidly changing payments industry.
The company has shown remarkable operational performance in the past and will continue to do so in the future. Its strong balance sheet, global operations, cryptocurrency allocation through its network, foray into open banking, buy now pay later, and more.
The stock has fallen 1.1% year-to-date compared to its industry’s 14.6% drop. He currently wears a Zacks Rank # 3 (Hold). You can see The full list of today’s Zacks # 1 Rank (Strong Buy) stocks here.
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