20 Fintech Stocks Riding the AI Wave Higher

02. Mastercard Incorporated (NYSE:MA)

Number of Hedge Fund Holders: 142

Mastercard Incorporated (NYSE:MA) is a global leader in transaction processing and digital payment solutions, making it a key player in the fintech sector. The company provides a wide range of payment-related products and services, including credit, debit, and prepaid solutions, serving both consumers and businesses across the world. Its involvement in the fintech space is underscored by its commitment to enhancing digital payment systems through partnerships, acquisitions, and innovative technologies, particularly in the realm of AI.

Mastercard Incorporated (NYSE:MA) has integrated AI into several facets of its operations, which is propelling the company into the next phase of fintech innovation. During its Q2 2024 earnings call, Mastercard highlighted how AI plays a critical role in enhancing fraud detection, cybersecurity, and data analytics. By embedding AI into its services, Mastercard has been able to provide more secure and efficient transaction solutions. This AI integration extends to Mastercard’s strategic focus on value-added services, such as fraud detection tools, which are increasingly in demand as digital transactions grow globally.

On October 8, 2024, Citi updated its price target for Mastercard Incorporated (NYSE:MA) shares, raising it to $566 from the previous $538, while maintaining a Buy rating. This revision reflects Mastercard’s robust fundamentals, including its strategic acquisitions and partnerships. Citi analysts noted the inclusion of AI-driven services as a critical growth driver, though the acquisition of Recorded Future, a threat intelligence company, has not yet been factored into revenue estimates. Citi’s projections also took into account currency fluctuations and recent debt issuance, though there was only a slight moderation in earnings per share estimates for the coming years.

Mastercard Incorporated (NYSE:MA) continued expansion into emerging markets, particularly through partnerships with companies like Amazon in the Middle East and Africa, and Safaricom in Kenya, showcases its drive to extend digital payment solutions globally. AI plays a pivotal role in these endeavors, enabling the company to streamline payment processing and cross-border transactions, further solidifying Mastercard Incorporated (NYSE:MA) position as a fintech leader.