Stock Update (NYSE:MA): MasterCard Inc Powers Android Pay, Bringing Mobile Payments to Android Device Owners

Today, Google unveiled Android Pay, which will enable Mastercard Inc (NYSE:MA) credit, debit, prepaid and small business cardholders to use their Android phones for everyday purchases in-store and within Android apps. This news provides MasterCard cardholders with even more options for paying on the go using their choice of mobile device.

The ubiquity of mobile phones is changing the way consumers pay. According to a recent Federal Reserve report[1], 39 percent of all mobile payment users with smartphones have made a point-of-sale payment demonstrating the increased demand for simple and secure ways to make device-based payments. MasterCard built the foundation for secure mobile transactions, having introduced contactless payments more than a decade ago and delivering a complementary digital enablement platform in 2013 that is driving today’s mobile payment solutions.

Today, MasterCard contactless is accepted at more than three million merchants in 68 countries around the world, and our MasterCard Digital Enablement Service enables Android Pay to deliver a simple and secure payment experience so that consumers can use their cards when, where and how they want.

Starting this summer, owners of eligible Android devices will be able to use their MasterCard credit, debit, prepaid and small business cards directly through Android Pay. For consumers and merchants alike, every purchase made with a tokenized MasterCard credit, debit, prepaid or small business card will offer the same security, benefits and guarantees as any MasterCard transaction. And because Android Pay never shares the actual card number with merchants, consumers are provided with an extra layer of security.

“Mobile payments are here today, and are now an essential part of the core value proposition for new devices,” said Ed McLaughlin, Chief Emerging Payments Officer, MasterCard. “With the MasterCard Digital Enablement Service (MDES) and Android Pay, we can now use secure tokens to easily enable payments from a consumer’s connected device. Today’s news extends consumer choice and drives further ubiquity of payments on devices.”

“Mobile payments is big a priority for Google, so we’ve been working with major networks like MasterCard to help provide a seamless experience across a wide range of phones and stores. Android Pay will offer people further simplicity, security and choice when paying for things with their Android phones,” said Pali Bhat, Director, Product Management, Google.

Android Pay will be made available for U.S. Android users (running KitKat or higher) in the upcoming months. Contactless payments are currently accepted at major U.S. stores, restaurants, fuel and convenience stores who will now also accept MasterCard transactions made using Android Pay. To find a listing of contactless-enabled merchant locations, download the MasterCard Nearby app or go to Source)

Shares of Mastercard opened today at $92.6 and are currently trading up at $92.77. MA has a 1-year high of $94.50 and a 1-year low of $69.64. The stock’s 50-day moving average is $90.90 and its 200-day moving average is $87.50.

On the ratings front, Mastercard has been the subject of a number of recent research reports. In a report issued on May 19, Pacific Crest analyst Josh Beck upgraded MA to Buy, with a price target of $110, which represents a potential upside of 18.8% from where the stock is currently trading. Separately, on the same day, Wedbush’s Gil Luria maintained a Hold rating on the stock and has a price target of $90.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Josh Beck and Gil Luria have a total average return of 7.2% and 9.0% respectively. Beck has a success rate of 72.2% and is ranked #1385 out of 3610 analysts, while Luria has a success rate of 77.4% and is ranked #588.

The street is mostly Bullish on MA stock. Out of 7 analysts who cover the stock, 6 suggest a Buy rating and one recommend to Hold the stock. The 12-month average price target assigned to the stock is $100.17, which implies an upside of 8.2% from current levels.

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