Mastercard Incorporated MA recently undertook measures to promote digitization and accelerate the use of artificial intelligence (AI) in the United Arab Emirates (UAE). The first such measure pertains to awarding Bahrain Commercial Facilities Company (“BCFC”), Mastercard Digital First program certificate. Furthermore, Mastercard also partnered with UAE’s Artificial Intelligence Digital Economy and Remote Work Applications Office to promote the adoption of AI to reduce financial crimes.
With BCFC attaining MA’s distinguished recognition, it has improved its position as a trusted partner in digital payments. MA’s digital-first program is aimed at assisting financial institutions to serve customers with a secure and seamless digital experience and improve the standard of their digital lending solutions. MA’s program also allows financial institutions to provide access to instant digital card issuance, view digital card information, and many other perks.
This initiative empowers consumers by granting them greater control over their finances while ensuring enhanced security. Mastercard aims to leverage its Digital First program to expand its influence and cater to the evolving demands of customers in Bahrain. This program is also expected to result in cost savings, new customer sales, an increase in transaction volume and a reduction in digital frauds, benefiting consumers and financial institutions and boosting MA’s business.
Mastercard signed a memorandum of understanding with the UAE to improve AI capabilities in the region. This move bodes well for UAE’s ambitions to accelerate the adoption of AI to further advance its digital ecosystem by partnering with private sector and international companies. This collaboration builds on the UAE Strategy for Artificial Intelligence 2031 and is expected to improve UAE’s position as an AI-leading hub. AI is expected to provide a technology-driven framework for priority sectors, ultimately reducing financial crimes and improving performance.
Partnerships similar to the latest one bear testament to Mastercard’s digital transformation efforts across the UAE. A booming digital economy, spurred by increased Internet penetration and usage of smartphones, might have prompted MA to expand its reach to the UAE. Per PWC, AI is expected to contribute $320 billion to UAE and $15 trillion to the global economy by 2030. MA aims to strengthen its foothold in the UAE to gain from its booming digital economy.
Shares of Mastercard have gained 19.8% in a year compared with the industry’s 8.6% growth. MA currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
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Mastercard Incorporated (MA) : Free Stock Analysis Report
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