Mastercard (MA), PayPal extend their card offer across Europe

Embedded Mastercard MA recently revealed that with PayPal Holdings, Inc. PYPL, it continues to expand the global presence of PayPal Business Debit Mastercard. The debit card offer has now been extended to four new countries in Europe: Belgium, Finland, the Netherlands and Portugal. The card is already in use in the United States and several European countries.

Mastercard shares fell 2.4% on September 2, replicating declines in broader markets.

Coming back, the card, which was first launched in the United States almost two decades ago, has no monthly fees, no exchange fees, and low ATM withdrawal fees.

The PayPal Business Debit Mastercard allows small businesses to make eligible expenses and earn cash back rewards. In addition, small businesses can take advantage of quick access to their PayPal funds available through online means or at stores accepting Mastercard.

This recent decision reinforces Mastercard’s continued efforts to strengthen its presence across Europe. Mastercard and PayPal have been working hard to roll out their debit card offering over the past two years with the goal of benefiting small businesses in Europe. The card is primarily used to purchase digital marketing services and retail products for inventory and supplies in European markets, where it is currently used.

Mastercard has been the business partner of choice because of its strong brand, local knowledge, extensive network and global presence. The aforementioned factors are primarily the reason why PayPal chose Mastercard to issue debit cards to PayPal business customers around the world. The partnership with Mastercard will allow PayPal’s business customers to incur spending from PayPal accounts in over 52 million Mastercard acceptance locations around the world.

The latest partnership reflects another major effort by Mastercard to help small businesses. This initiative comes at the right time as the COVID-19 pandemic has affected the smooth running of small business operations. The PayPal Business Debit Mastercard can exploit the prevailing scenario as it provides small business owners with accelerated and transparent access to funds and enables them to earn money, which improves the prospects for growth of the business.

Mastercard has always been committed to providing the necessary support for small businesses, ranging from technology support to help with the deployment of new products and improved payment solutions. He has also partnered with several financial institutions and made substantial investments to support the growth prospects of small businesses. Through these initiatives, the company aims to integrate more small businesses into a growing digital economy.

Zacks Rank and Price Performance

Shares of Mastercard, which carries a Zacks Rank # 3 (Hold), gained 1.9% in one year against the industry6.1% decrease.

Image source: Zacks Investment Research

Actions to consider

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EVERTEC and Equifax have a surprise earnings for the last four quarters of 28.42% and 17.71%, on average, respectively.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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