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Mastercard Incorporated (MA) Considering Real Payment Unit Divestment amid Stablecoin & Blockchain Infrastructure Focus

Mastercard Incorporated (NYSE:MA) is one of the Motley Fool’s high-growth stock picks. On March 26, Financial Times reported that Mastercard Incorporated (NYSE:MA) is exploring selling a real payment unit it purchased in 2019.

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The unit offers payments between accounts in Europe and generates $370 million in annual revenue and $100 million in earnings. Mastercard acquired the unit from Denmark’s Nets Group as it sought to shift from a card payments company to a multi-rail payments group.

The company has reportedly hired investment bankers as the unit could draw interest from private equity groups. While Mastercard acquired the unit for $3.2 billion in 2019, it could fetch a lower valuation on a potential sale.

The divestment would affirm the company’s push into stablecoin infrastructure and stablecoin-based transfers. The company is increasingly pivoting into the emerging crypto and blockchain sector, driven by improving regulatory clarity and surging adoption. Mastercard has already begun refocusing its investment priorities, having announced plans to lay off 4% of its workforce earlier this year.

Mastercard Incorporated (NYSE:MA) is a global technology company in the payments industry that acts as a fast, secure network connecting consumers, financial institutions (banks), merchants, governments, and businesses. It does not issue cards, extend credit, or set rates for consumers; instead, it processes transactions and provides value-added services.

While we acknowledge the risk and potential of MA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 8 Best Potash Stocks to Invest in Right Now and 9 Most Undervalued Growth Stocks to Buy According to Analysts.

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