Bank of America Rates Mastercard Buy; Evercore Cites Stablecoin Shift Risk
Evercore analysts caution that AI shopping agents could reroute purchases toward lower-cost rails through stablecoin or direct-party transactions, potentially diluting Mastercard's pricing power over a gradual transition requiring merchant, consumer, and legal shifts. Bank of America rated Mastercard as Buy, citing durable fee structures, cash flow and expanding digital commerce.
1. AI-Driven Commerce Could Challenge Card Fees
Evercore highlights that agentic commerce could redirect transactions via stablecoins or alternative rails, requiring merchant approval for automated purchases, changes in consumer funding behavior, new liability frameworks and wider acceptance of non-card payment methods before Mastercard's pricing power could be materially eroded.
2. BofA Reinforces Mastercard Buy Rating
Bank of America reinstated Mastercard as a Buy, pointing to durable earnings, resilient fee structures and strong cash flow, with global electronic payments and expanding cross-border spending creating a favorable backdrop and recent valuation pressure offering a potential entry opportunity.