I’m on the phone I’ll add the on ft emoji later on
I made a review of the electronic payment market and analysed Visa and Mastercard with a look at the DCF of both and assessed my own target price for buying these stocks. If you are interested, the article is below (not investment advice):
One of the reasons Mastercard is growing so fast is because they jumped on the Fintech bandwagon much faster then Visa.
When Tom at Monzo was asked why they picked Mastercard over Visa the answer was simple. Visa just weren’t as interested.
I can believe that. Thanks for note.
You can see this in MasterCard’s investment in new technology and development as a percentage of revenue. It seems the newer the market for e-payments whether that’s jurisdiction or new platform, MasterCard have the edge. Visa already got a massive advantage to begin with so it’s not clear cut they won’t respond at a certain point. I also see the change in MasterCard CEO last week as a potential risk.
Hi FT Community
There seems to be lots of hype about Visa’s growth potential, but not a lot about MasterCard. I see both companies as very similar so am surprised by this.
If you could only invest in one company, which would you choose and why?
As I put in my video posted earlier, I like them both. If I had a edge it would be towards Visa as they’re market leader, slightly better margins and at the end I think the network effect is slightly better. MasterCard seem better positioned for emerging markets so maybe can grow a touch faster. Tried to lay out all strengths and weaknesses alongside valuation of both.