Mastercard's Crypto Expansion: A Right Global Bet on Digital Assets?

In Mastercard Incorporated’s MA determination to grow, it is dipping its toes in the world of crypto. This is a strategic move aimed at redefining the company’s role in the digital finance landscape. In its effort to stay ahead of the market, MA is forming partnerships and developing the necessary infrastructure to facilitate crypto payments and drive blockchain innovation on a global scale.

The company is collaborating with cryptocurrency platforms to enable customers to spend their cryptocurrencies at over 150 million locations worldwide that accept Mastercard. A key component of Mastercard’s strategy is its adoption of stablecoins. By understanding how these digital currencies can make real-time, cross-border transactions possible, the company has teamed up with platforms that support stablecoin payments. MA supports merchant settlement in USDC and enhances cross-border transfers with Crypto Credential for secure transactions. Its Multi-Token Network boosts real-time, on-chain settlements with partners like J.P. Morgan and Standard Chartered.

Wirex, Bit2Me, Lirium, Notabene, Coins.ph and Mercado Bitcoin have also joined the Mastercard Crypto Credential ecosystem. Some of MA’s card issuance partners, like Kraken, OKX and Bleap, are playing a key role in bridging the gap between the crypto economy and everyday spending. The company is positioning itself to lead future advancements, such as Agentic AI in crypto.

Even though there are still hurdles like regulatory uncertainty, Mastercard’s proactive strategy focused on security, trust and global flexibility might be the right long-term choice.

How Are Competitors Faring?

Some of MA’s competitors in the digital assets space include Visa Inc. V and PayPal Holdings, Inc. PYPL.

Visa has been expanding its footprint in the crypto space through fintech partnerships and pilot programs. Visa has collaborated with crypto platforms like Crypto.com and Coinbase to issue crypto-linked cards and enable direct crypto payments.

PayPal is among the pioneers in the fintech space when it comes to cryptocurrency adoption. It has allowed users in some markets to buy, sell and hold cryptocurrencies on its platform. PayPal introduced its own stablecoin, PYUSD, which is designed to facilitate quick and affordable digital payments within its ecosystem.

Mastercard’s Price Performance, Valuation & Estimates

In the year-to-date period, MA’s shares have gained 6.7% compared with the industry’s rise of 3.5%.

From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 32.66, above the industry average of 22.57. MA carries a Value Score of D.

The Zacks Consensus Estimate for Mastercard’s 2025 earnings implies 9.5% growth from the year-ago period. It witnessed one upward estimate revision in the past month against no movement in the opposite direction.

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

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

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