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Mastercard Partners with Dream Payments

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New partnership

On February 27, 2018, Mastercard (MA) announced a partnership with Dream Payments to facilitate payments to insurance customers. Initially, Northbridge Financial, an insurance company in Canada, will utilize the Mastercard Send platform. However, later on, the company plans to extend this initiative to other markets.

The Canadian insurance industry makes payments worth billions of Canadian dollars per year. With the help of this partnership, the insurance companies could make payments digitally, thus eliminating the hurdles present in the physical processes. Customers also benefit, as they can receive payments quickly.

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What management is saying

According to Mastercard, the company is pursuing many ways to make the payment process as easy as possible, which could help the company increase its reach.

According to Dream Payments, both the companies are helping insurance companies streamline the process of making payments. The company believes that policyholders have the right to receive payments as soon as possible and in their preferred account.

Mastercard has a net income margin of 37.6% on an LTM (last-12-month) basis, and competitors (XLF) Total System Services (TSS), Fitbit (FIT), and First Data Corporation (FDC) have margins of 9.1%, -16.4%, and 9.0%, respectively, on and an LTM basis.

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