Mastercard Bets on India's SMEs With One Credential Pilot

Mastercard is piloting a product in India that lets small and medium-sized enterprises tie multiple payment relationships to a single tokenized credential. The company is running the pilot, called One Credential, in partnership with City Union Bank. For eligible SME customers juggling business and personal spending, the solution could simplify payment management and give them greater control over how transactions are funded.

The timing reflects a shift in what Indian small businesses want from payments. Mastercard's latest Dreamonomics report found that 63% of Indian SMEs are interested in real-time payments, compared with 51% across Asia-Pacific. Another 45% are open to flexible digital payment solutions, and 39% want a combined credit/debit business card with controls. Those figures point to demand moving beyond basic payment acceptance toward flexibility and control over funding sources.

The commercial logic

For Mastercard, deeper SME engagement could create demand for a broader set of products: commercial cards, cybersecurity, data services and other value-added offerings, alongside higher transaction volumes. One Credential also gives issuing banks a cross-sell tool. Banks could push additional products to business customers without issuing separate cards, potentially strengthening Mastercard's position across a larger share of a business customer's financial activity.

India therefore offers Mastercard more than a payments growth story. As SMEs adopt more digital tools and seek integrated financial solutions, the company has an opportunity to embed itself in everyday business workflows. Execution will determine the outcome, but stronger SME adoption could broaden Mastercard's payment reach while supporting longer-term growth in value-added services.

Competitors are circling the same market

Visa is positioned in India's SME payments market through its broad card network, merchant partnerships and security tools. Its push into passkey authentication and digital acceptance can help smaller businesses transact efficiently, strengthening its role across India's expanding digital ecosystem.

American Express serves SMEs through merchant acceptance and business-payment solutions, with offerings spanning expense management, purchasing and travel spending. Its closed-loop model provides merchants with customer-spending insights, while broader acceptance can help smaller businesses reach AmEx's customer base.

Shares already reward the story

Over the past six months, Mastercard's shares have risen 14.9%, against industry growth of 3.2%. The market is paying up for that performance. Mastercard trades at a forward price-to-earnings ratio of 25.63, well above the industry average of 17.38, and carries a Value Score of D.

Analysts still see room for earnings expansion. The Zacks Consensus Estimate for Mastercard's 2026 earnings implies 17% growth from the year-ago period. The stock currently carries a Zacks Rank #3 (Hold), suggesting the valuation already reflects much of the expected growth.

The pilot's progress with City Union Bank will show whether One Credential can convert India's SME payment preferences into durable revenue across cards, cybersecurity and data services, or whether Visa and American Express capture that spending first.