Yahoo Finance Visa (V) & Amazon Offer Flexible Payments for Canadian Consumers
Visa Inc. V recently announced that it has partnered with Amazon to offer Canadian consumers the option to pay for purchases in installments using Royal Bank of Canada and Scotiabank credit cards. This new payment option aims to provide greater financial flexibility and control for online shoppers.
This new service from Visa is expected to meet the growing demand for flexible payment options among consumers. The company’s research revealed that 58% of Canadians are interested in using installment payments. Additionally, it is projected that by the next year, nearly 25% of all global e-commerce transactions will be made using this method.
This buy now, pay later (BNPL) solution is expected to benefit Visa by increasing transaction volumes and enhancing customer satisfaction, which can attract more users to their platform. It also strengthens the company’s position as a leader in meeting the growing demand for flexible payment options.
By partnering with Amazon, Visa leverages the massive online retail platform to reach a wider audience, ensuring the service's immediate adoption. As such, more issuers are expected to join the platform in the coming days. Also, the success of this partnership in Canada will position Visa to expand this service in other regions. With a presence in more than 200 countries and territories, it is well-positioned for the global expansion of this service.
This installment service is somewhat distinct from other BNPL solutions in the sense that it is integrated directly with credit cards issued by banks. This will allow cardholders to use their existing credit lines for installment payments. This integration can provide a more seamless and secure experience compared to standalone BNPL services.
Price Performance
Shares of Visa have gained 16.9% in the past year compared with the industry’s 15.7% jump.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Visa currently has a Zacks Rank #3 (Hold).
Investors interested in the broader Business Services space can look at some better-ranked stocks like Envestnet, Inc. ENV, Paysafe Limited PSFE and Fiserv, Inc. FI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Envestnet’s 2024 earnings is currently pegged at $2.62 per share, indicating 23.6% year-over-year growth. It beat earnings estimates in three of the past four quarters and met once, with an average surprise of 9.4%. The consensus mark for ENV’s revenues of almost $1.4 billion suggests a 9.6% increase from the year-ago level.
The Zacks Consensus Estimate for Paysafe’s current-year earnings is now pegged at $2.47 per share, indicating 6% year-over-year growth. It beat earnings estimates thrice in the past four quarters and missed once, with an average surprise of 18.3%. The consensus mark for PSFE’s revenues of $1.7 billion suggests a 6.5% increase from the year-ago level.
The Zacks Consensus Estimate for Fiserv’s 2024 earnings of $8.69 per share suggests 15.6% year-over-year growth. It beat earnings estimates thrice in the past four quarters and met once, with an average surprise of 2.3%. The consensus estimate for FI’s current year revenues is pegged at $19.3 billion, indicating a 7.2% increase from a year ago.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Visa Inc. (V) : Free Stock Analysis Report
Envestnet, Inc (ENV) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
Paysafe Limited (PSFE) : Free Stock Analysis Report
