Yahoo Finance Mastercard (MA) Partners to Digitize Hungary's Marketplace
Mastercard Incorporated MA recently joined forces with Hungary-based traditional yet a modernized retail hub Czako Farmers’ Market to extend MA’s cost-effective solution Telefonterminal to the market traders.
The solution, primarily intended to ramp up the small business units’ digital transformation, was successfully unveiled to maximum traders in the Czako Farmers’ Market. The newly-forged alliance aims to orient 100% sellers to contactless dealings at their stalls in the long haul.
To avail the easily implemented Telefonterminal solution, an app merely needs to be downloaded by traders on their smartphones, post which the device will be powered to accept cashless payments instantly.
Customers just need to touch their phone, card or other electronic devices on the smartphone of a trader on which the app is downloaded. This, in turn, will enable customers to make cashless payments in the form of instant transfers, QR code payments, mobile payments and payments through traditional bank cards at several stalls of the Czako Farmers’ Market.
Through similar partnerships, Mastercard visualizes a cashless society through widespread adoption of digital payments. The diversified digital payment solutions suite, among which Telefonterminal is one, has always played a vital role in complementing MA’s endeavor.
As Czako Farmers’ Market plays host to a lot of farmers — inclined to adopt cashless payments — in conducting businesses, utilization of Mastercard’s Telefonterminal solution is likely to fetch greater revenues for the technology company in the global payments industry and bolster its presence across Hungary where the market is located.
The recent tie-up also remains noteworthy since this collaboration paves the way for customers to make use of electronics payment methods and shop seamlessly at a hub like the Czako Farmers’ Market, which was predominated by cash transactions. However, owing to several benefits of digital payment options, such as speed and convenience, the attitude of traders noticeably changed for the better toward accepting digital means.
At Czako Farmers’ Market, even though bulk of traders currently align with electronic payment, the ulterior aim remains to promote complete cashless shopping over the passage of time.
The help extended by Mastercard to small businesses through the latest initiative is aptly timed. Amid a growing digital era in which businesses were compelled to infuse digitization into their operations, large businesses did not face any such significant obstacles while going digital since they usually possess sufficient amount of resources.
A contrary situation could be observed for small and medium businesses, which grappled with inadequate resources and financial uncertainties due to the COVID-19 pandemic. To rescue such businesses from crisis, Mastercard remains steadfast in partnering with numerous well-established organizations, delivering several innovative digital payment solutions and pursuing significant investments to bring more small and medium businesses under the ambit of a rising digital economy.
Shares of Mastercard have lost 8.5% in the past six months compared with the industry’s decline of 19.7%. MA 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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Like Mastercard, other companies making concerted efforts to help small businesses include American Express Company AXP, Visa Inc. V and Global Payments Inc. GPN.
To aid small businesses, American Express continues to chase technological upgrades, launch secure digital solutions and provide assistance to businesses in regulating payments. The Global Commercial Services segment of AXP issues an array of small business cards across the globe.
Visa frequently resorted to providing necessary help to small business units, ranging from technological assistance to empowering the same with enhanced payment services. Launched in 2020, V has been catering to the unique needs of small and medium-sized businesses for a while through the Small Business Hub.
Global Payments works closely with several small and midsize businesses, and helps the same with enhanced and secure payment technology solutions. GPN equips these businesses with widespread acceptance of payments across varied channels, thus paving the way for operational efficiency.
Shares of American Express, Visa and Global Payments have lost 10%, 9.3% and 11.2%, respectively, in the past six months.
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