Mastercard (MA): Still a Buy Despite Stablecoins Disruption Fears

When it comes to payments, few companies are as entrenched as Mastercard (NYSE: MA). It’s B rated in our Zen Ratings system, a Buy, and remains one half of the global payments duopoly alongside Visa (NYSE: V). But with the rise of stablecoins, real-time payment networks, and crypto rails, investors are asking: is this fortress at risk of disruption? Here’s why I think that’s unlikely.

The Bear Case: Stablecoins & Real-Time Payments

Critics argue that stablecoins and central bank digital currencies (CBDCs) could bypass card networks entirely. Similarly, real-time payment networks (RTPNs), often backed by governments or large banks, promise to move money instantly at lower costs than traditional credit card rails.

It’s a fair concern. Mastercard earns fees on every transaction that flows across its network. If merchants or banks can route payments cheaper, why keep paying Mastercard?

A note from our sponsors...

Why I Think Mastercard Still Wins

1. Network Effects Are Nearly Impossible to Replicate

Mastercard connects consumers, merchants, banks, and corporations across the globe. With over $8 trillion in annual purchase transactions, switching away isn’t just a matter of technology … you would have to re-plumb the entire global economy. Even disruptive technologies struggle to match that scale.

2. Crypto Isn’t Competition, It’s Integration

Rather than fighting crypto, Mastercard has been integrating it. The company has partnered with exchanges and wallets to let users spend digital assets using Mastercard rails. Stablecoins don’t replace Mastercard; they often rely on its infrastructure to reach merchants. It’s more likely Mastercard absorbs crypto and stables into its system than gets disrupted by them.

3. Secular Tailwinds Are Still Huge

Did you know cash is still 77% of transactions globally? The shift to digital payments is far from over, especially in emerging markets. E-commerce, cross-border travel, and Buy Now Pay Later (BNPL) all expand Mastercard’s take per transaction.

4. Value-Added Services Deepen the Moat

Mastercard isn’t just about swipe fees. Its cybersecurity, analytics, loyalty, and fraud prevention tools have become embedded with banks and merchants. It’s the “safe choice,” and that raises switching costs and builds resilience against pricing pressure.

5. High-Margin, Asset-Light Business Model

With operating margins above 50% and little reinvestment needed to grow, Mastercard throws off enormous free cash flow. That efficiency means it can outspend rivals on tech, partnerships, and acquisitions to stay ahead.

6. Top Wall Street Analysts and Our Quant Model Both Say “Buy”

Currently, of the 9 top Wall Street analysts we track, 8 rate Mastercard a Strong Buy, 1 rate it a Buy, and none of them rate it a Hold, Sell, or Strong Sell: 

Click here to see analyst price targets for MA stock.

In our own model, MA is scoring A ratings for its Artificial Intelligence and Financials Component Grades. The strong Financials rating means MA achieves stellar gross profit to assets, long-term debt to assets,

cost reductions, and return on equity (ROE). This is one of our favorite indicators for forecasting exciting stock gains in the future. 

A note from our sponsors...

The Bottom Line

Payments are evolving. But the idea that stablecoins or real-time networks will suddenly make Mastercard obsolete misunderstands the moat. Payments aren’t just about moving money … they’re also about trust, compliance, fraud protection, and a global web of relationships. Mastercard owns that web.

For investors, I think MA offers exposure to one of the strongest (and easiest to understand) secular growth stories in finance: the long, steady death of cash and transition to digital payments. At a B rating in our system, Mastercard looks like a durable compounder with decades of runway ahead.

Click here to add MA stock to your watchlist. 

What to Do Next?

• 77 Best Stocks NOW! >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.