Core Viewpoint - Visa and Mastercard have agreed to a combined payment of $167.5 million to resolve a class action lawsuit regarding ATM access fees, pending judicial approval [1][2]. Group 1: Settlement Details - Visa will contribute approximately $88.8 million, while Mastercard will provide nearly $78.7 million to a fund for eligible users with qualifying ATM transactions dating back to October 2007 [2]. - The settlement aims to benefit potentially millions of individuals who incurred unreimbursed access fees for cash withdrawals at independent, non-bank ATMs [1]. Group 2: Legal Context - The lawsuit was filed in 2011 and is one of three related lawsuits in the D.C. federal court [2]. - Consumers challenged the industry rules of Visa and Mastercard, which allegedly hindered independent ATM operators from offering lower prices [3]. - Both companies have denied any wrongdoing in relation to the lawsuit [3]. Group 3: Related Legal Matters - In 2024, Visa and Mastercard agreed to pay $197.5 million to settle claims from another group of ATM users who claimed they were overcharged at bank-operated ATMs [3]. - A third related lawsuit involving independent ATM owners and operators remains unresolved in the same court [4]. - Visa is also facing other antitrust actions, including a case from the US Justice Department accusing it of monopolizing the US debit card market [5].

Core Insights - Visa and Mastercard will pay $167.5 million to settle a lawsuit regarding ATM fees, which accused them of conspiring to inflate access fees for ATM users [1][2][3] Settlement Details - The settlement will provide compensation to millions of ATM users who incurred unreimbursed access fees at independent, non-bank ATMs since October 2007, with Visa contributing approximately $88.8 million and Mastercard around $78.7 million [3][4] - The lawsuit was initiated in 2011, challenging the companies' rules that allegedly restricted independent ATM operators from offering lower fees [4] Legal Context - The companies have denied any wrongdoing, and previously settled related claims for $197.5 million concerning overcharges at bank-operated ATMs [4] - Plaintiffs' attorneys described the settlement as a favorable outcome given the risks of ongoing litigation and plan to request up to 30% of the fund, approximately $50 million, for legal fees [5] Industry Outlook - Visa's 2026 outlook indicates that approximately $11 trillion in cash remains in circulation globally, suggesting that cash will continue to play a significant role in economies for the foreseeable future [5][6] - The company anticipates that 2026 will mark the first year when half of the world's consumer payments will be made using card credentials, indicating a shift towards digital payments [6] Cash Usage Trends - Cash remains integral to informal economies and small-value transactions, particularly in regions with limited banking access, while also being used for budgeting and privacy in advanced economies [7]

Group 1 - Mastercard Incorporated (NYSE:MA) is recognized as one of the 14 Best S&P 500 Stocks to Buy Now, with a consensus Strong Buy rating from Wall Street analysts and a one-year average share price target of $685.25, indicating a potential upside of 20% [1] - Recent analyst updates include Oppenheimer's Rayna Kumar maintaining a Buy rating with a price target of $683, and Evercore ISI raising its target to $610 from $600 while keeping an In Line rating [2] - HSBC upgraded Mastercard's rating to Buy from Hold on December 8, increasing its price target to $633 from $598, citing the company's strong financial position and valuation [3] Group 2 - On December 9, Mastercard declared a quarterly cash dividend of $0.87, which is a 14% increase from the previous dividend, scheduled for payment on February 9, 2026 [4] - Mastercard provides financial services through electronic funds transfers to individual consumers, merchants, businesses, and governments [4]

Core Insights - Mastercard is advancing partnerships to enhance merchant access to mobile wallets globally, aligning with Visa's efforts as consumer behavior shifts towards smartphones [1] - The collaboration with TerraPay allows mobile wallet users to access over 150 million Mastercard acceptance points for NFC payments [2] - Mastercard's partnership with Telefonica aims to launch a mobile wallet in Brazil, targeting an addressable market of up to 87 million consumers [4] Industry Trends - NFC technology is becoming crucial for smartphone payments, with Apple easing access to it, which is expected to increase the number of mobile wallets in the market [3] - The trend of contactless payments is growing, with 70% of in-person Mastercard transactions now being contactless, indicating a shift from e-commerce to physical retail [7] - More than half of banks are adopting a "mobile first" strategy for their payment initiatives, reflecting the industry's embrace of mobile wallets [7] Strategic Collaborations - Mastercard's partnership with Alipay aims to facilitate cashless payments for international travelers in China [5] - Collaborations with ecosystem players like TerraPay are essential for scaling mobile wallet adoption and simplifying implementation processes [6] - Both Visa and Mastercard are actively building mobile wallet scale through various partnerships, with internal research tracking the popularity of these wallets [8]

Group 1 - Visa and Mastercard have agreed to pay $167.5 million to settle a class action lawsuit that accused them of conspiring to keep ATM fees artificially high [1][2] - If approved, Visa will pay 53% of the settlement amounting to $88.8 million, while Mastercard will contribute 47% totaling $78.7 million [2] - The settlement aims to compensate ATM users who were charged unreimbursed access fees for withdrawing cash from independent non-bank ATMs [2][3] Group 2 - Last year, Visa and Mastercard settled another lawsuit for $197.5 million related to overcharges at bank-operated ATMs, following a previous settlement of $66 million involving major banks [4] - A third lawsuit is still pending against Visa and Mastercard, initiated by independent ATM owners and operators [5] - The ongoing litigation highlights rules that prevent ATM operators from passing savings to cardholders when transactions are processed by networks other than Visa or Mastercard [6]

Core Viewpoint - Evertec (EVTC) is currently viewed as a better value opportunity compared to MasterCard (MA) in the Financial Transaction Services sector [1]. Group 1: Zacks Rank and Earnings Outlook - Evertec has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while MasterCard has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for Evertec suggests a favorable position for value investors [3]. Group 2: Valuation Metrics - Evertec has a forward P/E ratio of 8.14, significantly lower than MasterCard's forward P/E of 34.46 [5]. - The PEG ratio for Evertec is 1.02, while MasterCard's PEG ratio is 2.22, indicating that Evertec is more reasonably priced relative to its expected earnings growth [5]. - Evertec's P/B ratio stands at 2.8, compared to MasterCard's P/B of 64.21, further highlighting Evertec's more attractive valuation [6]. Group 3: Value Grades - Evertec has received a Value grade of A, while MasterCard has a Value grade of D, reflecting the stronger valuation metrics of Evertec [6]. - The combination of stronger estimate revision activity and more attractive valuation metrics positions Evertec as the superior option for value investors [7].

Core Viewpoint - Visa and Mastercard have agreed to a $167.5 million settlement to resolve a class-action lawsuit alleging they conspired to maintain high ATM access fees [1][2]. Group 1: Settlement Details - The settlement will compensate ATM users who incurred unreimbursed access fees for cash withdrawals from independent, non-bank ATMs, with Visa contributing approximately $88.8 million and Mastercard about $78.7 million to the fund [2]. - The funds will be distributed to eligible customers who made qualifying ATM transactions since October 2007 [2]. Group 2: Legal Background - The lawsuit, filed in 2011, is one of three related cases in the DC federal court, challenging Visa and Mastercard's industry rules that allegedly prevented independent ATM operators from offering lower fees [3]. - Visa and Mastercard have denied any wrongdoing in this case [4]. Group 3: Previous Settlements and Ongoing Litigation - Last year, Visa and Mastercard agreed to pay $197.5 million to resolve claims from another group of ATM users who alleged overcharging at bank-operated ATMs [4]. - A third lawsuit involving independent ATM owners and operators is still pending in the same court [5]. - Visa is also facing other antitrust lawsuits, including one from the US Justice Department regarding alleged monopolization of the US debit card market [5].

Core Insights - Visa and Mastercard have agreed to a settlement of $167.5 million in a class action lawsuit that accused them of colluding to maintain artificially high ATM access fees [1] Company Summary - The settlement amount of $167.5 million reflects the financial implications of the lawsuit for both Visa and Mastercard [1]

Interchecks and Mastercard have formed a collaboration to advance account-to-account (A2A) payments, combining the former’s Pay by Bank solution with the Open Finance capabilities of Mastercard. The partnership will see Interchecks utilise Mastercard's Open Finance verification and network reach to increase the Pay by Bank accessibility in new markets and for various use cases. It is said to target key payment challenges such as decreasing failed subscription transactions, offering quicker and more adap ...

Core Insights - US core inflation unexpectedly eased to a four-year low, raising questions among economists about the reliability of the data due to a prior government shutdown [8][14] - ByteDance has signed an agreement to establish a joint venture in the US with majority ownership by American investors [8][14] Market Performance - The A-share market opened lower but closed higher, with the Shanghai Composite Index up 0.16% at 3876.37 points, while the Shenzhen Component fell 1.29% and the ChiNext Index dropped 2.17% [1] - The Hong Kong market also saw fluctuations, with the Hang Seng Index closing up 0.12% at 25498.13 points, while the Hang Seng Tech Index fell 0.73% [1][5] Economic Indicators - The US core Consumer Price Index (CPI) rose by 2.6% year-on-year in November, while the overall CPI increased by 2.7% [14] - The report indicated that core CPI only increased by 0.2% over the last two months, with declines in hotel, leisure, and clothing prices limiting the overall increase [14] Corporate Developments - TikTok announced the establishment of a joint venture with US investors, which will operate independently and manage US data protection and algorithm security [8][14] - China has reportedly ordered 7 million tons of US soybeans, achieving over half of the procurement target set during the Trump administration [8][14]