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PURCHASE, N.Y. - Mastercard (NYSE:MA) is expanding its partnership with Fiserv, Inc. (NYSE:FI), a prominent financial services player with $20.7 billion in annual revenue, to integrate Fiserv’s FIUSD stablecoin token across Mastercard’s global payments network, potentially enabling the blockchain-based token to be used at more than 150 million merchants worldwide. According to InvestingPro analysis, Fiserv is currently trading slightly below its Fair Value, suggesting potential upside opportunity.
The collaboration aims to address several key areas for stablecoin adoption, including seamless conversion between traditional currency and FIUSD, enabling merchants to accept payment in FIUSD, connectivity to Mastercard’s Multi-Token Network, and the issuance of stablecoin-linked payment cards. Despite recent market volatility, with Fiserv’s stock showing a 18.58% decline over the past six months, the company maintains a strong financial health score according to InvestingPro metrics.
"This work with Fiserv is setting the stage for a new era, where stablecoins are as ubiquitous and trusted as fiat currencies, driving choice and innovation for all," said Chiro Aikat, co-president, Americas at Mastercard.
Takis Georgakopoulos, Chief Operating Officer at Fiserv, noted that stablecoins have primarily been used as a store of value until now. "Our work with Mastercard is promoting greater reach and utility of stablecoins by helping our financial institutions and merchants enable greater payments choice to their customers," he said.
The partnership will explore how Mastercard’s global network of financial institutions can enable FIUSD across their solutions for various use cases. Through Mastercard’s One Credential feature, consumers would be able to choose their preferred payment type, including stablecoin balances.
This announcement represents a significant step toward mainstream adoption of blockchain-based payment tokens in everyday commerce, according to the companies’ press release statement. For deeper insights into Fiserv’s financial performance and growth potential, InvestingPro subscribers can access comprehensive research reports, including detailed analysis of the company’s competitive position and future outlook, along with 8 additional ProTips and over 30 key financial metrics.
In other recent news, Fiserv has announced plans to launch a digital asset platform, including a stablecoin named FIUSD, by the end of 2025. This platform aims to assist regional and community banks in implementing stablecoin technology, with Fiserv charging transaction fees and earning a portion of yield on reserves like Treasuries. The company also revealed an expanded partnership with PayPal to integrate FIUSD and PayPal’s PYUSD into cross-border transactions and merchant solutions. BofA Securities reiterated a Buy rating on Fiserv, highlighting the company’s attractive price-to-earnings ratio and profit algorithm. Meanwhile, William Blair maintains an Outperform rating on Fiserv, noting the company’s strategic steps to address potential risks from stablecoins. Additionally, Fiserv has partnered with Early Warning Services to offer the Paze digital wallet, enhancing secure online checkout experiences through tokenization. This collaboration allows financial institutions to provide a streamlined checkout process, building on Fiserv’s existing relationship with Early Warning Services, which includes offering Zelle services.
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