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Mastercard Strengthens Digital Push With GCash 'Tap to Pay' Launch
ZACKS· 2025-09-04 16:21
Core Insights - Mastercard is expanding its global digital payments presence through the launch of GCash's 'Tap to Pay' services in partnership with Alipay+ and GCash, enabling contactless payments at over 150 million Mastercard acceptance locations worldwide [1][9] - The rise of digital wallets is enhancing financial inclusion, with Mastercard's involvement providing trust, security, and global acceptance as mobile payments grow beyond local markets [2] - This collaboration strengthens Mastercard's position in digital commerce, broadening its transaction network to meet the increasing demand for seamless payment solutions in emerging markets [3] Financial Performance - In Q2 2025, Mastercard's cross-border transaction volume increased by 15% year over year, with net revenues growing by 17% in the same period [4][9] - The company's payment network net revenues also saw a year-over-year growth of 13% [4] - Year-to-date, Mastercard's shares have risen by 12.6%, outperforming the industry average increase of 4.4% [7] Competitor Analysis - Visa has been proactive in its digital evolution, with a 12% year-over-year increase in cross-border volume in Q3 of fiscal 2025 [5] - PayPal's total payment volume grew by 6% year over year in Q2 2025, with its digital wallet features directly connecting with users [6] Valuation Metrics - Mastercard trades at a forward price-to-earnings ratio of 32.73, which is above the industry average of 22.11, and carries a Value Score of D [10] - The Zacks Consensus Estimate for Mastercard's 2025 earnings suggests an 11.7% growth compared to the previous year [12]
BILL vs. Intuit: Which Fintech Powerhouse Stock Is the Smarter Buy?
ZACKS· 2025-07-23 18:26
Core Insights - BILL Holdings (BILL) and Intuit (INTU) are significant players in the SMB-focused fintech market, providing digital tools for financial operations like accounting, billing, and payments [1] - The global fintech market is projected to grow from $340.10 billion in 2024 to $1,126.64 billion by 2032, with a CAGR of 16.2% from 2025 to 2032, presenting growth opportunities for both companies [2] Summary of BILL - BILL is enhancing its position in the fintech sector with an expanding portfolio, focusing on automating financial operations for small and mid-sized businesses [3] - In Q3 2025, BILL processed nearly $79 billion in payment volume across 30 million transactions, aiding over 488,600 businesses in automating their financial operations [4] - The company introduced new procurement and financial automation innovations in April 2025, adding 4,200 net new customers, bringing the total to 164,800 customers using BILL's services as of March 31, 2025 [5] - BILL has established partnerships with over 85 of the top 100 accounting firms and six of the top 10 largest financial institutions for SMBs in the U.S., including JPMorgan Chase and Bank of America [6] Summary of Intuit - Intuit continues to expand its offerings in AP/AR automation with products like QuickBooks and TurboTax, leveraging its brand strength and investments in AI [7] - The launch of QuickBooks Bill Pay enhances the platform's capabilities, providing built-in bill payment and cash flow tools, which increases user engagement [8] - QuickBooks Online Accounting revenues increased by 21% year over year to $1.04 billion, driven by customer growth and effective pricing strategies [9] - Intuit's earnings for 2025 are projected to grow by 18.42%, while BILL's earnings are expected to decline by 1.89% [10] Market Performance - BILL's shares have decreased by 45.4% year-to-date, while Intuit's shares have increased by 22.3%, attributed to macroeconomic challenges affecting SMB spending [12] - BILL and INTU shares are currently considered overvalued, with BILL trading at a forward Price/Sales ratio of 2.86X and Intuit at 10.24X [15] Earnings Estimates - The Zacks Consensus Estimate for BILL's 2025 earnings is $2.08 per share, indicating a 1.89% decline year over year [17] - The Zacks Consensus Estimate for Intuit's 2025 earnings is $20.06 per share, reflecting an 18.42% increase year over year [17] Conclusion - Both BILL and Intuit are positioned to benefit from the growing fintech sector, but Intuit's broader ecosystem and consistent earnings growth make it a more attractive long-term investment option [20]
Should You Buy, Sell or Hold Shopify Stock Before Q1 Earnings?
ZACKS· 2025-05-06 19:31
Core Viewpoint - Shopify is expected to report strong revenue and earnings growth in its first-quarter 2025 results, driven by an expanding merchant base and international growth. Group 1: Financial Expectations - Shopify anticipates revenue growth at a mid-twenties percentage rate year-over-year, with the Zacks Consensus Estimate for revenues at $2.33 billion, indicating a 25.24% increase from the previous year [1] - The consensus estimate for earnings is set at 26 cents per share, reflecting a 30% growth compared to the same quarter last year [2] - The Zacks Consensus Estimate for first-quarter GMV is pegged at $75 billion, suggesting a 23% year-over-year growth [4] Group 2: Growth Drivers - Shopify's growth is attributed to a strong increase in its merchant base, with a cumulative GMV of $1 trillion processed in Q4 2024, marking a 25.7% year-over-year increase [3] - The growing usage of Shop Pay and new product launches, such as Shopify Balance for Plus and next-day payouts, are expected to enhance cash flow management and merchant adoption [4] - Subscription solutions revenues are estimated at $621 million, indicating a 21.5% year-over-year growth, while Merchant Solutions revenues are expected to reach $1.71 billion, suggesting a 26.7% increase [5] Group 3: Market Position and Valuation - Shopify shares have declined 7.5% year-to-date, outperforming the Zacks Computer & Technology sector's decline of 7.6% and the Internet Services industry's drop of 11.3% [6] - Despite the decline, Shopify's stock is trading at a premium with a forward Price/Sales ratio of 11.1X, compared to the industry average of 4.88X [10] - Shopify commands 12% of the U.S. ecommerce market and is experiencing rapid growth in Europe and Japan, indicating a strong long-term outlook [13] Group 4: Strategic Partnerships - Shopify's partnerships with major companies like Amazon and Roblox are expected to enhance its merchant base and provide access to extensive fulfillment networks [15] - The expansion of Shopify Tax in the UK and EU, along with the introduction of Tap to Pay in multiple countries, is seen as a positive development for growth [14] - Collaborations with platforms such as TikTok, Snap, and YouTube are anticipated to further expand Shopify's reach and capabilities [14]
Visa: Tap to Pay Tops 76% of Face-to-Face Transactions Globally
PYMNTS.com· 2025-04-30 00:21
Core Insights - Consumer spending remains resilient and strong, with no signs of weakening observed in the U.S. during fiscal Q2 through April 21 [1][3][8] - Visa continues to experience growth in digital payments technologies, with nearly 50% of global eCommerce transactions now tokenized and tap to pay penetration reaching 76% globally [1][5][4] Financial Performance - U.S. payments volume grew by 6%, while international payments volume increased by 9%. Cross-border volume, excluding intra-Europe, rose by 13% in constant dollars [4] - Debit volumes in the U.S. were up 9% in constant dollar terms, outpacing credit volumes which grew by 4% [4] - Total credentials increased by 7%, with Visa adding 1 billion tokens to reach 13.7 billion [4] Business Model and Strategy - Visa's diverse business model, including growth in commercial payments, debit and credit, and stablecoins, has shown resilience despite macroeconomic uncertainty [2][11] - The "tap to everything" strategy has led to the addition of 2 million transacting device terminals since the last quarter [5] - Stablecoins are identified as a promising area, with cumulative stablecoin settlement volume surpassing $200 million [6] Consumer Behavior - Consumer spending growth varies among different spend bands, with the most affluent growing the fastest, but all bands remain resilient [8] - eCommerce spending in the U.S. grew faster than face-to-face spending, with travel spending increasing by 12% and eCommerce spending up 14% in cross-border volumes [9][10] Future Outlook - Despite potential impacts from tariffs leading to economic uncertainty, consumer spending has shown relative resilience [10] - Overall net revenues are projected to be in the low double digits, consistent with fiscal second quarter results [10]