News analysis
MasterCard’s sales and profits increased in the last quarter of 2024.
MasterCard CEO’s Michael Miebach emphasized the company’s strengths, saying the fourth quarter financial performance.
“The diverse abilities of payment, services and solutions, including the future acquisition recorded this year, are releases us and arranged us in line with long -term growth, as we have overvised. I will do it in a statement after the release. Company financial report. “Its value is in our newly expanded victory continuous momentum.”
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Georgios Koimisis, the University of Manhattan University, is regarded as a clear sign of stable consumer spending in a relatively stable economy, with the major fourth quarter of MasterCard’s fourth quarter.
“As many people and companies continue to leave cash, the increase in digital payments will increase around the world,” he said in Epock Times by e -mail. “MasterCard’s wide -ranging global network supports the results and emphasizes the appeal of a wide range of markets.”
Koimisis praise the MasterCard network. This is far beyond conventional card trading by investing a lot in cyber security and analysis. “This approach is working on new payment trends and potential risks,” he said.
In addition to the powerful economy of the US economy, the transaction processing industry faces several tailwinds. One of them is the government around the world to support credit card transactions and promote tax revenues rather than cash transactions.
Another tailwind is a rapid increase in transaction processing technology and devices, making it easier to pay credit cards in small transactions.
The industry, on the other hand, is operated in the Oligopoly market environment, thanks to the networking economy and the advantage of the widespread networks of users, customers, and merchants. It is almost impossible for new companies to enter the market by the economy of the networking, and we provide a great deal of price setting for existing companies, as they are proved by stable transaction fees.
In order, the price setting force leads to a sustainable high profit margin. Stock analysts continue to determine the soundness of various investments. MasterCard’s operating margin has recently dropped more than 50 %.
However, the US Congress has taken up the issue of credit card transaction fees and is considering various proposals to open the industry to competition.
“There are various quotes, but recent data suggests that the swipe fee of about $ 160 billion in 2022 is about $ 160 billion, which accounts for most of the cost of credit card transactions. The recent proposal is to create a barrier to competition, especially in the same routing rules that have been applied to debit cards since 2010. The purpose is to remove the restrictions on transactions that are prohibited from issuing a card.
Jason Delorenzo, a major specialist in optional transactions and market dynamics, is concerned about the future performance of the Master Card.
“Master cards and visas are being scrutinized by regulatory authorities because they are monopolized in the credit processing network,” he said to the epoch Times by e -mail.
“The profits are strongly rising, but the basic headwinds are on the horizon, but in the short term, they enjoy recordable revenue.”
