Is Mastercard's Open Finance Push Redefining Cash Flow Tools for SMEs?

Mastercard Incorporated MA recently teamed up with Obol to introduce AI-powered cash flow management for businesses in Australia. This move marks another significant step in the payments giant’s steady expansion beyond transaction processing. By backing Obol’s launch through its Open Finance framework, MA is positioning itself closer to the daily financial decision-making of small and mid-sized enterprises (SMEs).

For Obol, Australia represents more than geographic expansion. By leveraging MA’s open finance capabilities and enabling secure and reliable access to financial information, the company aims to help businesses get a clearer and more timely view of their cash positions, which are often spread out across various banks, ERPs and payment platforms, while reducing integration complexity as it expands beyond the United States.

For Mastercard, this partnership marks a significant shift from being just a transaction network to becoming a key player in providing access to financial data and analytics. With open finance, the company can get involved earlier in the financial decision-making process, rather than only at the payment stage. By supporting platforms like Obol, it is strengthening its ecosystem relevance while creating opportunities beyond card transactions.

The key question is scale. If adoption occurs at scale, this collaboration could signal growing demand for AI-led cash flow tools in open banking markets. Over time, such collaborations may redefine how SMEs interact with financial data and how MA positions itself within that workflow.

How Are Competitors Faring?

Some of MA’s competitors in the fintech space include Visa Inc. V and American Express Company AXP.

Visa has positioned itself as a key fintech enabler by backing APIs, open banking platforms and digital identity tools that support fintech innovation. Instead of creating consumer-facing apps, Visa focuses on providing the essential infrastructure that helps fintech companies grow securely in various markets.

American Express participates in fintech through partnerships and in-house innovation, embedding digital payments, analytics and financing tools within its platform. AXP’s fintech strategy remains ecosystem-driven, focusing on enhancing customer engagement rather than acting as a pure infrastructure provider.

Mastercard’s Price Performance, Valuation & Estimates

Over the past year, MA’s shares have gained 14% against the industry’s fall of 4.4%.

From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 30.08, above the industry average of 20.95. MA carries a Value Score of D.

The Zacks Consensus Estimate for Mastercard’s 2025 earnings implies 12.5% growth from the year-ago period.

Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research