Is Mastercard Stock Halal? The Islamic Finance Verdict

Quick Verdict

Mastercard (MA) receives the same verdict as Visa — NOT COMPLIANT according to most Islamic screening agencies. The business model is nearly identical: a payment network infrastructure company that earns fees on transactions, the majority of which involve interest-bearing credit cards.

Mastercard vs Visa: Same Business, Same Problem

Mastercard and Visa are structural twins. Both operate payment networks. Neither issues credit cards directly. Both earn "assessment fees" and "network fees" on every transaction processed. Both earn more money when consumers spend on credit (larger transactions) versus debit.

The Islamic finance analysis of Mastercard follows the same logic as Visa — the question is whether facilitating credit card transactions constitutes participation in the riba system.

Mastercard's Additional Services

Mastercard has diversified somewhat beyond pure card processing:

• Cyber and intelligence solutions: Fraud detection, data analytics
• Open banking: Account-to-account payment infrastructure
• Fintech partnerships: Digital payment solutions

These services are neutral and potentially halal. However, they represent a small minority of total revenue — perhaps 15-20%. The core business remains credit card network operation.

Financial Screening

• Debt / Market Cap: ~8% ✅
• Interest Income / Total Revenue: Minimal ✅
• Business Activity: Payment processing for credit — ⚠️ fails most screens

Screening Agencies' Verdict

• Zoya App — Not Compliant ❌
• MSCI Islamic Index — Excluded ❌
• SPUS and HLAL ETFs — Not held ❌

Bottom Line

Mastercard and Visa are two of the most profitable businesses in the world, which is why Muslim investors often wish they could invest in them. Unfortunately, the mainstream Islamic finance consensus excludes both due to their role as infrastructure for the credit/riba system. If this is disappointing, consider focusing on payment companies that serve debit-first or crypto-native ecosystems.