Consumers may benefit from the stimulus measures taken by the United States Senate last week. With the rapid rise in transactions, the largest payment services like Visa Inc. (V) and MasterCard Incorporated (MA) are poised to profit.
President Joe Biden’s historic $1.9 trillion stimulus bill was passed by the US Senate last weekend. Consequently, it is anticipated that the law will take effect shortly and, as a result, additional money will be injected into the national economy. As a result, more consumer activity is expected.
The economy’s growth rate, along with an increase in the number of transactions, has contributed to the creditability of the world’s two largest payment systems, Visa and MasterCard, which had some difficulties during the COVID-19 pandemic. More specifically, worldwide payments have declined.
The US Centers for Disease Control and Prevention has released further positive news relating to payment systems. As part of the guidelines, the regulator considers concessions allowing for vaccinated citizens (and possibly some unvaccinated ones) to meet in public areas without wearing masks.
For Visa and MasterCard, both of which rely on transaction processing for revenue, this is good news. Payment services generate a higher income as more people use their services and make more payments. Additional financial aid for US citizens is likely to boost the country’s economy by purchasing additional goods and services.
Despite their recent investment in digital payments, both Visa and MasterCard provide an insignificant share of their combined company’s income. , the e-payments market is one of the most obvious and perhaps most competitive since all kinds of retailers and service sellers compete with each other for the same type of payment systems.
Over the past week, the stock of Visa Inc. (V) has gained 2.13%, and over the past month, it has increased by 5.55%. Its year-to-date price is 0.75% and 28.77% up over the last 12 months.
Moreover, MasterCard Incorporated (NYSE: MA) has recently experienced a rebound in value, and the stock price has moved from a low of $199.99 to a high of $382.46 within its 52-week trading range. At its last trading session, the MA stock traded at around $376.52, a 1.40% gain, compared to its average median price target of $385.00 for the next 12 months.