Mastercard is expected to report strong revenue growth in its second-quarter earnings, thanks to a continued increase in retail spending and digital transactions, according to analysts.
Revenue growth will mirror its first-quarter earnings, in which Mastercard beat expectations, citing increased transactions and progress in real-time and cross-border payments, as well as merchant engagement.
In July, Mastercard announced its acquisition of cross-border payments company Transfast to help improve services for small and medium-size businesses, which drive growth in the global economy, especially through cross-border payments.
Mastercard has expanded its services for SMBs in several ways over the quarter, launching new SMB card rewards that operate like a “toolbox” for fulfilling recurring needs, such as Mastercard ID Theft Protection.
Many of the company’s SMB projects are overseas. Mastercard partnered with Nationwide to support small businesses in Britain with debit cards, while in Turkey, it has implemented Masterpass to facilitate B2B payments in conjunction with Coca Cola Icecek.
The company also announced the launch of the UOB Regal Business Metal Card in collaboration with the United Overseas Banks in Singapore, which offers travel-centric features, targeting SMB owners with largely travel-related expenses.
Mastercard announced its new initiative to use Mastercard Send, its push payment product, to provide early wage access for gig workers, who normally may wait days or weeks before receiving pay from one transaction, creating serious cash flow issues.
On the consumer-focused side, Mastercard acquired Transactis, a bill payments platform, to implement accessible digital services and enhance the bill payments experience. The company also teamed up with Hertz to allow for car rentals using debit cards in locations across Europe, making them more accessible to those who do not have credit cards.
Mastercard is also working to improve its financial services by expanding open banking and digital banking services. The company introduced a new open banking platform in June that supports connectivity, security and compliance, dispute resolution and consulting services.
The company is expanding its technology for commuters as well, partnering with Apple to offer the digital Hop Fastpass card in Portland, Oregon and Vancouver, Washington, which allows commuters to merely tap their iPhone or Apple Watch to pay. Mastercard also announced that in June and July, it will refund MTA fares to riders who tap to pay with their Mastercard or phone, a promotion to help riders adjust to the new pay method.
In addition, the company is supporting global economic development in several new partnerships. On July 3, Mastercard announced a partnership with Airfox to expand digital banking in Brazil, offering low-cost banking solutions to the underbanked in the country. And on June 4, the company announced an expansion to its partnership with the United States Agency for International Development to support women’s economic initiatives in developing countries.
Mastercard will host a conference call at 9:00 a.m. on Tuesday (July 30) to discuss its second-quarter earnings report.