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Visa (V), Finastra BaaS Team Up to Enable Cross-Border Payments

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Visa Inc. (V - Free Report) recently partnered with British financial software applications provider, Finastra, to offer global businesses access to cross-border services in multiple currencies. The Banking-as-a-Service (BaaS) collaboration is expected to enable Finastra’s bank customers to add value to their clients’ operations.

Finastra’s Payments Hub will likely have new functionality and implement Visa Direct, which offers access to over two billion accounts via push-to-account features. The move is expected to enable Finastra’s clients to provide their customers with a cost-effective and transparent digital payments solution.

As developing a custom-built cross-border payment option from scratch can exhaust resources, opting for Finastra's Payments Hub solutions, supported by Visa Direct, will improve efficiency and bypass several complexities. This is expected to provide clients with a competitive edge over their peers.

Given the growing demand for digital payment capabilities, the new collaboration can drive growth for both Finastra and Visa. The move further expands Visa’s massive global network and is likely to boost transaction volumes. Partnerships and technological innovations are some of the ways that have helped V to maintain its leading position in the payment network space, with 50% more payment volume than its closest competitor, Mastercard Incorporated (MA - Free Report) .

Price Performance

Shares of Visa have declined 19.9% in the past year compared with the industry’s 35.6% fall.

Zacks Investment Research
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Zacks Rank & Key Picks

Visa currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are PaySign, Inc. (PAYS - Free Report) and International Money Express, Inc. (IMXI - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Headquartered in Henderson, NV, PaySign offers prepaid card products and processing services. The Zacks Consensus Estimate for PAYS’s 2022 earnings indicates 280% year-over-year growth.

Based in Miami, International Money Express works as a money remittance services company globally. The Zacks Consensus Estimate for IMXI’s 2022 bottom line indicates 18.4% year-over-year growth.

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