Mastercard Targets Gig Workers with Lyft Partnership

Partnership with Lyft

Continuing with its innovative ways to expand its customer base, Mastercard (MA) is now targeting the “gig economy.” In a gig economy, a substantial portion of the workforce is engaged in temporary or flexible jobs instead of traditional full-time jobs. With its partnership with Lyft (LYFT), Mastercard is looking to tap the opportunity that this growing segment offers with a new co-branded debit card for Lyft drivers, Lyft Direct Debit.

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One-third of the US workforce is estimated to earn a portion of its income through the gig economy, according to Mastercard. “The growing gig economy creates an exciting opportunity for us to leverage our tech infrastructure, digital payments expertise and data-backed insights to help gig workers achieve better and more secure financial futures,” said Mastercard Digital Partnerships executive vice president Sherri Haymond.

Stock performance

Mastercard stock has risen ~32% this year. The stock is trading above its 50-day and 200-day moving averages, and its RSI (relative strength index) score is ~60.

Around 95% of Reuters-surveyed analysts rate Mastercard as a “buy.” Their mean price target of ~$279 implies a ~10% upside from its current price. Mastercard’s forward PE multiple of ~30x is a bit higher than its two-year average PE multiple of ~28x.