MasterCard (MA)

MasterCard bank payment system is one of the most famous in the world. She is a direct competitor to Visa and American Express. The system is used in many countries of the world. It began its work in 1966. The system now serves over 850 million cards. The global market share occupied by the company is 22%. The securities of the corporation are included in the category of blue chips. The company's shares are popular among both traders and investors.

Main characteristic

MasterCard Corporation is a leader in the American and global banking payments market. This is a large-scale brand with great potential for revenue growth and profitable acquisitions. The company has distinct advantages due to its popularity, and many benefits associated with business feedback. The more MasterCard card users appear, the more businesses start accepting them. This model allows you to create a long cycle of profit increment.

Surveys conducted in the United States indicate that the use of cash is declining every year. In 2013, their share in payments was 16% of the country’s GDP. In 2018, it fell to 13%. It should be borne in mind that the US economy is characterized by heavy use of cash. Nevertheless, the use of bank cards is continuously growing.

The increase in online purchases has significantly accelerated the transition of many users to cashless payments. Most buyers are well motivated to shop at online stores. This further increases the demand for the use of payment cards.

The corporation demonstrates excellent financial performance and a stable operating condition. The company’s assets are continually growing. MasterCard systematically introduces innovative technologies and conducts excellent acquisitions.

The company has a debt of 6.3 billion dollars. For such a large-scale corporation, it is not critical. The company can fully cover such liability with operating financial flow. Notable is the fact that MasterCard does not issue loans, unlike American Express. The company’s profit is formed solely due to the commission charged for money transfers. It is transferred by institutions issuing cards of this payment system. Thus, MasterCard is not exposed to the risks associated with the issuance of credit funds.

The company’s shares can not be called highly volatile. This is a stable asset, which is slightly affected by the risks associated with the current state of the financial system. MasterCard is much better protected from crisis phenomena than its competitors are.

The shares of the corporation are of interest to many investors around the world. They represent an asset with a high potential for increasing value. For traders, these stocks are also of interest. A key advantage of MasterCard Securities is predictability. Shares are growing steadily, and are well protected from most risks.

It is convenient and profitable to use them in trade. You can earn on MasterCard shares as well as on any other financial instruments. Fundamental and technical analysis is required. Be sure to apply the rules of money management. You should not risk in one transaction the amount that exceeds 5% of your deposit. Pending orders are also recommended. They will allow you to make your trading automated. Take-profit order will help to fix profit on time, and stop-loss order will not allow the occurrence of excessive losses.

Something went wrong