Mastercard Incorporated (MA)

Mastercard is the second global payment network, structured like Visa but smaller in volume and more active in value-added services.

As with its rival, income comes from processing operations and from network access, while credit risk stays with the banks. The duopoly makes competition between the two a contest for contracts with issuing banks and merchants rather than a price war.

Mastercard's distinguishing feature is a heavier emphasis on value-added services: analytics, consulting for banks, fraud prevention and open-banking processing. That part grows faster than payments and is gradually reshaping the revenue mix, reducing dependence on transaction volume.

The risk factors are the same: interchange regulation, national payment schemes, instant transfers. Cross-border volume matters separately — it earns a higher fee and therefore swings results when international travel changes. The company pays a small dividend and buys back stock.