Visa Inc. V expanded its relationship with PayPal and Venmo to pilot Visa+ in their respective digital payment apps. Visa+ is an innovative service enabling users to send and receive money securely and fast between different person-to-person (P2P) digital payment apps.
This new launch of Visa+ will boost growth in the future and act as a moat for Visa. The company’s continued innovations will help solidify its existing position as a leader in the payments space with more than 50% payments volume than its closest competitor, Mastercard.
Visa+ is also integrated within different payment apps, helping the company gain from its success. When more users prefer a particular payment app over another, due to Visa+ being piloted in the same, Visa’s brand value will increase.
The launch of Visa+ bodes well for Visa’s growth due to continued investments in technology. Visa’s goal of enabling seamless payments and ensuring the security of transactions is no longer a far-fetched goal with Visa+.
In traditional payment methods, the sender and receiver of funds had to have the same application; otherwise, the money would not go through. With Visa+ piloted in digital payment apps, one can send money to a different payment app without sharing valuable data, like phone numbers and other details.
The main advantage of Visa+ is that one does not need a Visa card to use this service. This expands the company’s reach to a broader audience. A user of a payment app with Visa+ integrated with it will have to create a personalized payment address to send money. The users can share the payment address with others and receive money from any other party’s payment applications. This will tend to reduce friction in the payments process.
Visa’s partnership with DailyPay, i2c, TabaPay and Western Union reflects Visa’s unwavering focus to expand and enable more use cases, like creator, gig and marketplace payouts. Visa+ will be functional for U.S. consumers with the above-mentioned platforms in late 2023.
Shares of Visa have gained 9.9% year to date compared with the industry’s growth of 5.5%.
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Zacks Rank & Key Picks
Visa currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Financial Transaction Services industry are International Money Express, Inc. IMXI, Expensify, Inc. EXFY and Remitly Global, Inc. RELY. International Money Express sports a Zacks Rank #1 (Strong Buy), while Expensify and Remitly Global carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of International Money Express outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.1%.
The Zacks Consensus Estimate for IMXI’s 2023 earnings indicates a 24.3% rise, while the same for revenues suggests 24% growth from the respective prior-year reported figures.
The bottom line of Expensify outpaced estimates in two of the trailing four quarters, while it missed the other two, the average surprise being 18.5%.
The Zacks Consensus Estimate for EXFY’s 2023 earnings suggests an improvement of 28.1%, while the same for revenues indicates growth of 8.8% from the corresponding year-ago reported figures. The consensus mark for EXFY’s 2023 earnings has moved 5.1% north in the past 30 days.
Remitly Global’s bottom line outpaced estimates in two of the trailing four quarters while it missed the other two, the average surprise being 10.9%.
The Zacks Consensus Estimate for RELY’s 2023 sales indicates a 34% rise from the prior-year reported figures.
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