This Warren Buffett Value Play Has a Hidden Growth Opportunity in Crypto
Most investors think of Mastercard (NYSE: MA) primarily as a high-margin, low-risk credit card processing network that is worthy of a premium valuation due to its commanding market position. After all, Mastercard controls 21.6% of all credit card transaction volume in the U.S. and 38.82% of American adults had a Mastercard credit card in 2020. That makes for a strong investment thesis all by itself and explains why Warren Buffett has been so bullish on this value stock.
But Mastercard is also quietly building out its crypto business, recognizing that the future of crypto payments has the potential to disrupt the entire industry. Mastercard is starting to consider how credit cards will evolve in the era of crypto, blockchain, and digital assets like non-fungible tokens (NFTs). The good news for investors is that Mastercard has already figured out the hidden growth opportunity in crypto.
Most notably, Mastercard is at the forefront of making it easier for people to purchase NFTs. The idea of paying for an NFT with a credit card might seem simple, but it is actually quite innovative. Until recently, if you wanted to purchase an NFT, you had to set up a digital crypto wallet, purchase some cryptocurrency, and then connect your digital crypto wallet to an NFT marketplace. But what if you don't want to buy crypto? Or what if the idea of setting up a digital crypto wallet is too intimidating?
Source Fool.com
