2 Reasons Why Mastercard Is Becoming a Solid Buy
Despite U.S. consumer confidence declining in October, suggesting slowing economic growth, and the Eurozone heading into a recession at the end of 2022, Mastercard (NYSE: MA) surpassed analysts' revenue and earnings expectations for the third quarter. In addition, management highlighted several reasons why it should outperform moving forward.
Here are two reasons Mastercard is a buy.
Payment networks like Mastercard charge a "cross border fee" on all business transactions in one country involving a credit card issued outside that country. The fee amounts to 0.6% of the purchase price, and the payment network charges the cost to the merchant's bank accepting the foreign card. Revenue from these fees rises as more people travel outside their home country and use their credit cards.
Source Fool.com
