Mastercard Incorporated
Mastercard Incorporated

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company offers integrated products and services for account holders, merchants, financial institutions, businesses, gove...
Founded: 1966
Full Time Employees: 2,021
CEO: Ajaypal Singh Banga  (July 2010~)
Sector: Financial Services
Industry: Credit Services
Next Earnings Date: 2023-01-26
Stock price: $355.86 (-0.15%)
BNPL is going to disrupt credit card businesses hard
By: ssmlee04 Community Lead :))   💬 97   
   on Sep 19, 2021

I'd be cautious if I am investing in those traditional credit card companies. Affirm (and Peloton) has proved to us that people are willing to pay a bit more for payment installments and then they do not need to worry too much about late payment fees and all kinds of hidden fees in those fine prints. Think about all those times where you call credit card companies and ask them about something that shows up on the statements? Those are awful experiences that I do not think deserve to exist in 2021.

For those BNPL services, they're mostly modern tech companies with machine learning capabilities. They can say no to you in the first place so that you don't need to be in those kinds of awkward situations where you need to call them and then argue with them. And if you can have almost the same shopping experience on, say Amazon or Peloton, with two payment methods that one is less of a problem to you and it's likely you'd choose one over another. Besides, with BNPL you can leverage more efficiently to achieve your financial goals.

$axp is probably ok because axp is not really a card company but more like a service company in my opinion. Visa and MasterCard probably not so much.

short / neutral $V $MA $AXP. long $AFRM $SQ