Mastercard Incorporated (NYSE:MA) has joined forces with Loop, a digital payments technology company based in Saudi Arabia, to introduce a range of credit card offerings and payment solutions throughout the Kingdom. This collaboration includes an exclusive issuing deal, leading to a 0.4% increase in Mastercard’s shares on Mar 1.
Under this partnership, Mastercard’s advanced technology and expertise will facilitate the issuance of Bank Identification Number (“BIN”) ranges. BINs play a crucial role in identifying the issuing financial institution of a credit card, facilitating faster financial transactions, and providing cardholders with protection against identity theft and fraud.
These innovative payment solutions are expected to empower consumers, merchants, and fintechs across Saudi Arabia to engage in seamless and secure digital payments, promoting digitization in everyday life. This initiative comes at an opportune time, given the thriving small and medium-sized enterprises and fintech community in the Kingdom.
The collaboration benefits both Mastercard and Loop, with MA poised to expand its presence in Saudi Arabia and capture a significant share of the country’s digital payments market. Meanwhile, Loop stands to enhance its product and services suite through this partnership.
Mastercard’s commitment to digital transformation in Saudi Arabia is underscored by its introduction of new payment flows in 2023, leveraging its Mastercard Payment Gateway Services technology to enhance online payment solutions in the Kingdom. This technology enables businesses to adopt modern digital payment methods seamlessly.
Moreover, Mastercard’s partnerships and investments in Saudi Arabia reflect its broader goal of establishing a strong presence across the Middle East region, which is experiencing significant digital growth driven by factors such as increased Internet penetration and smartphone usage.
Mastercard’s shares have gained 29.9% in the past year, outperforming the industry’s growth of 21.1%. This collaboration with Loop reaffirms Mastercard’s commitment to advancing digital payments and strengthening its position in Saudi Arabia’s evolving digital economy.
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