• In the past week, Mastercard announced a suite of AI-powered payment products and developer tools, expanded consulting services, and new collaborations with global technology leaders such as Stripe, Google, and Ant International, supporting a rollout of its Agent Pay program to all U.S. cardholders by the end of the holiday season.

• This initiative positions Mastercard at the forefront of advancing secure, intelligent commerce by making AI-enabled payments and agentic capabilities accessible and scalable for digital merchants and platforms worldwide.

• We’ll now examine how Mastercard’s push into AI-powered payments and its collaborations with technology partners could reshape its investment narrative.

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If you’re a Mastercard shareholder, you likely believe in the ongoing digital shift in payments, the company’s powerful network effects, and its ability to grow by expanding into new revenue streams like AI-powered services. The recent launch of AI tools and expanded partnerships has the potential to support growth drivers, especially deeper collaboration with tech partners for value-added services, but the most important short-term catalyst remains increasing digital and e-commerce transaction volume. For now, these AI announcements don’t fundamentally alter the biggest risk: faster adoption of alternative payment rails in key emerging markets.

Among the recent announcements, the release of Mastercard’s On-Demand Decisioning (ODD) stands out. This solution offers financial institutions more direct control and flexibility over transaction approvals, supporting the broader catalyst of helping partners automate, personalize and scale digital payments. As Mastercard continues to expand its value-added services beyond core payments, such tools could help reinforce its differentiated service offering.

However, investors should be aware that while Mastercard accelerates innovation, an even faster shift by consumers and merchants to alternative payment options could…

Read the full narrative on Mastercard (it’s free!)

Mastercard’s outlook anticipates $42.6 billion in revenue and $19.9 billion in earnings by 2028. This requires a 12.1% annual revenue growth rate and a $6.3 billion increase in earnings from the current $13.6 billion.

Uncover how Mastercard’s forecasts yield a $644.55 fair value, a 11% upside to its current price.