{"id":27787,"date":"2025-11-27T13:28:00","date_gmt":"2025-11-27T18:28:00","guid":{"rendered":"https:\/\/sharewatch.com\/wp\/2025\/11\/27\/mastercard\/"},"modified":"2025-11-27T13:28:00","modified_gmt":"2025-11-27T18:28:00","slug":"mastercard","status":"publish","type":"post","link":"https:\/\/sharewatch.com\/wp\/2025\/11\/27\/mastercard\/","title":{"rendered":"Mastercard"},"content":{"rendered":"<div class=\"layout__region nsdq-l-grid__item syndicated-article-body\">\n<section class=\"jupiter22-c-article-body\">\n<div class=\"body\">\n<div class=\"body__content\">\n<p>The payments landscape is experiencing a significant transformation as Buy Now, Pay Later (BNPL) emerges as a popular financing choice. What used to be a niche choice at checkout is now challenging decades of credit-card dominance. In this evolving landscape, <strong>Mastercard Incorporated <\/strong>MA and <strong>Affirm Holdings, Inc. <\/strong>AFRM are now in a race to shape the future of short-term credit in the digital economy.<\/p>\n<p>Despite their distinct backgrounds, both companies share a common goal: to make credit more flexible, predictable and seamlessly available across both digital and physical commerce, while enhancing consumer experience. The BNPL trend is no longer limited to online checkouts; it is expanding into cards, in-store purchases and everyday spending. As consumers seek alternatives to traditional credit, BNPL is becoming a key area for growth.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-ZOs\"  class=\"btf-bodymidpagetwothirdswidth-1\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-ZOs')) {             googletag.display('js-dfp-tag-ZOs');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>Let\u2019s dive deep and closely compare the fundamentals of the two stocks to determine which stock is more attractive now.<\/p>\n<h2>The Case for Mastercard<\/h2>\n<p>Mastercard, with a market cap $489.4 billion, brings together consumers, financial institutions, digital partners, businesses, merchants and various organizations around the globe by facilitating electronic payments and ensuring these transactions are secure, straightforward, smart and accessible for everyone. Rather than competing directly with BNPL companies, MA leverages its position as a global network to help banks, fintechs, lenders, merchants and wallets to provide installment solutions through Mastercard Installments.<\/p>\n<p>The company\u2019s net revenues rose 17% year over year in the third quarter of 2025, along with 12% growth in Payment network net revenue. The top line benefited from increased gross dollar volume, cross-border volumes, strong demand for value-added services and growth in switched transactions due to robust consumer spending. It beat earnings estimates in each of the past four quarters, with an average surprise of 3.1%.<\/p>\n<h2>Mastercard Incorporated Price, Consensus and EPS Surprise<\/h2>\n<p> <img decoding=\"async\" alt=\"Mastercard Incorporated Price, Consensus and EPS Surprise\" src=\"https:\/\/staticx-tuner.zacks.com\/images\/charts\/af\/1764256904.png\" style=\"width: 600px; height: 310px;\" title> <\/p>\n<p>Mastercard Incorporated price-consensus-eps-surprise-chart | Mastercard Incorporated Quote<\/p>\n<p>Moreover, innovation goes way beyond just BNPL. The company is continuously focusing on and investing in areas like tokenization, cybersecurity, stablecoins, digital identity, open banking and real-time payments that strengthen its position in a landscape where alternatives are rapidly scaling. It is also focusing on AI-powered solutions. MA\u2019s series of fresh and renewal partnerships strengthens its long-term relationships, and also helps solidify its global network and support consistent growth in transactions. However, the upside was partly offset by escalating operating expenses and higher rebates and incentives. In the third quarter, adjusted operating expenses rose 15% year over year; we expect them to rise 15.8% in 2025. Its long-term debt-to-capital ratio of 70.6% is higher than the industry\u2019s average of 37.9% but marginally below AFRM\u2019s average.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-Ebs\"  class=\"btf-bodymidpagetwothirdswidth-2\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-Ebs')) {             googletag.display('js-dfp-tag-Ebs');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p>MA\u2019s strong cash position enables substantial share buybacks and dividend payouts and supports inorganic growth and financial stability. With $10.4 billion in cash and no short-term debt, Mastercard maintains a solid capital position.<\/p>\n<h2>The Case for Affirm<\/h2>\n<p>Affirm has established itself as a key player in the BNPL space, aiming to transform short-term borrowing by focusing on transparency and using data-driven underwriting. It offers payment plans with clear schedules, no late fees, no compounding interest and no hidden costs. These features are especially appealing to younger users who value cost certainty over revolving balances.<\/p>\n<p>One of the key drivers behind the company\u2019s impressive growth has been its partnerships with merchants and platforms. By teaming up with giants like Amazon, Shopify, Apple Pay and Williams-Sonoma, AFRM is seamlessly integrated into the checkout process for millions of shoppers. These integrations not only enhance gross merchandise volume (GMV) but also allow merchants to offer 0% APR promotions. The company boasts a growing base of 24.1 million active consumers and 419,000 active merchants as of Sept. 30, 2025, a clear indication of its expanding ecosystem. The firm also uses AI to enhance internal productivity and customer support, including a chatbot that automates thousands of daily interactions.<\/p>\n<p>AFRM\u2019s AI-powered underwriting tools and real-time risk assessments allow it to approve users with greater accuracy and grow profitably. It is also broadening its relationship with blue-chip forward flow buyers while scaling its ABS program. In the first quarter of fiscal 2026, the company posted $933 million in revenues, up 34% year over year, along with 38% growth in network revenues. Its GMV rose 42% year over year in the same period, benefiting from solid direct merchant point-of-sale integrations, direct-to-consumer business led by Affirm Card and wallet partnerships.<\/p>\n<p>However, it continues to face a rise in total expenses. Total operating expenses rose 4.6% year over year in the first quarter. The metric is rising mainly due to higher funding costs, provision for credit losses and processing and servicing expenses. It beat earnings estimates in each of the past four quarters with an average surprise of 129.3%.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-8no\"  class=\"btf-bodymidpagetwothirdswidth-3\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-8no')) {             googletag.display('js-dfp-tag-8no');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<h2>Affirm Holdings, Inc. Price, Consensus and EPS Surprise<\/h2>\n<p> <img decoding=\"async\" alt=\"Affirm Holdings, Inc. Price, Consensus and EPS Surprise\" src=\"https:\/\/staticx-tuner.zacks.com\/images\/charts\/db\/1764257376.png\" style=\"width: 600px; height: 310px;\" title> <\/p>\n<p>Affirm Holdings, Inc. price-consensus-eps-surprise-chart | Affirm Holdings, Inc. Quote<\/p>\n<h2>How Do Zacks Estimates Compare for MA & AFRM?<\/h2>\n<p>Estimates are in favor of AFRM at this stage. The Zacks Consensus Estimate expects MA\u2019s 2025 sales and earnings per share (EPS) to grow 15.8% and 12.6% year over year, respectively. For 2026, EPS is expected to climb another 15.8%. Meanwhile, AFRM\u2019s fiscal 2026 sales and EPS estimates point to 26% and 566.7% year-over-year increases, followed by a 56.4% EPS rise in fiscal 2027. Notably, both companies have seen multiple upward estimate revisions in the past 30 days.<\/p>\n<h2>Price Performance Comparison<\/h2>\n<p>Over the year-to-date period, Mastercard stock delivered a respectable 3.5% return while the S&P 500 grew 17.6%. Affirm, despite a dramatic ride, as u can see in the figure below, delivering a 13% increase, outperformed MA.<\/p>\n<p><img decoding=\"async\" alt=\"Zacks Investment Research\" src=\"https:\/\/staticx-tuner.zacks.com\/images\/articles\/charts\/99\/134174.jpg?v=2061665388\" style=\"width: 600px; height: 310px;\"><br \/><span style=\"width:100%; display: inline-block; font-size: 8pt;\">Image Source: Zacks Investment Research<\/span><\/p>\n<h2>Valuation: MA vs. AFRM<\/h2>\n<p>On a price-to-sales basis, MA sits at 13.46X forward revenues, significantly above Affirm\u2019s multiple of 5.11X. AFRM\u2019s cheaper P\/S multiple leaves room for significant growth as business expansion accelerates.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-5nU\"  class=\"btf-bodymidpagetwothirdswidth-4\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-5nU')) {             googletag.display('js-dfp-tag-5nU');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<p><img decoding=\"async\" alt=\"Zacks Investment Research\" src=\"https:\/\/staticx-tuner.zacks.com\/images\/articles\/charts\/98\/134175.jpg?v=1533724251\" style=\"width: 600px; height: 310px;\"><br \/><span style=\"width:100%; display: inline-block; font-size: 8pt;\">Image Source: Zacks Investment Research<\/span><\/p>\n<p>Mastercard currently trades below its average analyst price target of $659.38, implying a 21% potential upside from current levels. Meanwhile, Affirm currently trades below its average analyst price target of $94.73, implying an attractive 37.7% potential upside from current levels.<\/p>\n<h2>Conclusion<\/h2>\n<p>Both Mastercard and Affirm are standout payment facilitators with strong growth narratives, but Affirm currently has more room to run. Its rapid user adoption, keen focus on BNPL innovation and strong merchant integrations put it in a prime position to take advantage of the changing ways consumers borrow and shop. In a market that increasingly values flexible and transparent credit options, AFRM\u2019s momentum and disruptive approach offer a more compelling long-term growth story than MA.<\/p>\n<p>For investors seeking rapid future gains rather than stability, Affirm has the edge at the moment, even though the companies currently carry a Zacks Rank #3 (Hold) each.<\/p>\n<p>You can see <strong>the complete list of today\u2019s Zacks #1 Rank (Strong Buy) stocks here<\/strong>.<\/p>\n<div class=\"ads__inline\">\n<div id=\"js-dfp-tag-ZYE\"  class=\"btf-bodymidpagetwothirdswidth-5\">          <script type=\"text\/javascript\">         googletag.cmd.push(function() {             \/\/ Check if ID matches ID in the window.adsList array before calling googletag.display             function isAdInAdsList(id) {             for (var i = 0; i < window.adsList.length; i++) {                 if (window.adsList[i].id === id) {                     return true;                 }             }             return false;         }         if (isAdInAdsList('js-dfp-tag-ZYE')) {             googletag.display('js-dfp-tag-ZYE');         }         });     <\/script> <\/div>\n<\/p><\/div>\n<\/p>\n<h2> \tQuantum Computing Stocks Set To Soar<\/h2>\n<p> \tArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.<\/p>\n<p> \tToday, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, <em>Beyond AI: The Quantum Leap in Computing Power<\/em>, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.<\/p>\n<p>Access the Report Free Now >><\/p>\n<p>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/p>\n<p>Mastercard Incorporated (MA) : Free Stock Analysis Report<\/p>\n<p>Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report<\/p>\n<p>This article originally published on Zacks Investment Research (zacks.com).<\/p>\n<p>Zacks Investment Research<\/p>\n<\/p>\n<p class=\"body__disclaimer\">The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/section>\n<p>        <script type=\"text\/javascript\">   \/\/ add oddAd class to every odd instance of body .ads__inline for different placeholder styles   let articleAds = document.querySelectorAll('.ads__inline');   for (let i = 0, len = articleAds.length; i < len; i++) {     \/\/ Do the below only if the curent count is less than 12     if ((i < 12) &#038;&#038; (i % 2 === 0)) {       articleAds[i].className += ' oddAd';     }   } <\/script>                                               <\/p>\n<div class=\"jupiter22-c-tags jupiter22-c-tags-default\">\n<h3 class=\"jupiter22-c-tags-title\">         Tags       <\/h3>\n<div class=\"jupiter22-c-tags-container\">StocksInvesting<\/div>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The payments landscape is experiencing a significant transformation as Buy Now, Pay Later (BNPL) emerges as a popular financing choice. What used to be a niche choice at checkout is now challenging decades of credit-card dominance. In this evolving landscape, Mastercard Incorporated MA and Affirm Holdings, Inc. AFRM are now in a race to shape [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":27788,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"","ocean_second_sidebar":"","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"","ocean_custom_header_template":"","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"","ocean_menu_typo_font_family":"","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"on","ocean_gallery_id":[],"footnotes":""},"categories":[18],"tags":[],"class_list":["post-27787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock","entry","has-media"],"_links":{"self":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/27787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/comments?post=27787"}],"version-history":[{"count":0,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/posts\/27787\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media\/27788"}],"wp:attachment":[{"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/media?parent=27787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/categories?post=27787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sharewatch.com\/wp\/wp-json\/wp\/v2\/tags?post=27787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}