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Visa (V) Partners With Billtrust to Expand in B2B Payments

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Visa Inc. (V - Free Report) and Billtrust have entered into a strategic partnership to automate B2B payments. The deal will work on improving payment mechanism in the B2B space which is presently riddled with complex and time-consuming process, high levels of bureaucracy and manual reporting, which makes its payment system outdated.

The process involves increased automation of virtual card payments for financial institutions and their corporate customers. These cards provide a unique 16-digit virtual account number for each payment continues, which offers a secure and safe way of making transactions, thereby reducing chances of cyber theft.

However, a pitfall for this increased automation is increased manual data entry and reconciliation challenges for accounts receivable departments. In order to tackle this issue, Visa and Billtrust are partnering to integrate Visa's Straight Through Processing capabilities with Billtrust's Virtual Card Capture solution. This amalgamation of two processes will simplify receipt and reconciliation of B2B payments and bring automation to the accounts receivable function.

Both companies are aiming for frictionless payments for B2B. The business payments sector is expected to have the best profit potential.

Visa perceives this huge growth potential and is making concerted efforts in this direction. Recently, it partnered with Viewpost to expand the availability of virtual credit cards, allowing businesses to make payments with a secure single-use account number rather, which provides relief about risks associated with a physical card.

Year to date shares of Visa have returned 38%, surpassing the industry’s growth of 32%

Additionally, Visa has made a strategic investment in Billtrust, with an intention to speed up the latter’s growth strategy.

Some other stocks from the space with the same Zacks Rank as Visa are Global Payments Inc. (GPN - Free Report) , MasterCard Inc. (MA - Free Report) and Total System Services, Inc. .  You can see the complete list of today’s Zacks #1 Rank stocks here.

Total System Services provides global commerce solutions. The company facilitates payment exchange between buyers and sellers.  It beat earnings estimates in three of the last four quarters, with an average positive earnings surprise of 3.5%.

MasterCard beat earnings estimates in each of the last four quarters, with an average positive earnings surprise of 6.2%.

Global Payments earnings beat estimates last quarter by 8% and grew 24% year over year.

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Mastercard Incorporated (MA) - free report >>

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