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Visa's (V) Solutions to Minimize Fraud, Enhance Payment Security
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Visa Inc. (V - Free Report) recently unveiled three AI-powered risk and fraud prevention solutions, which are expected to be launched in the first half of 2024 and will form part of the end-to-end Visa Protect portfolio. Visa Protect comes under the extensive value-added services suite of Visa, through which it offers issuing solutions, acceptance solutions, risk and identity solutions, and open banking solutions as well as advisory services.
The three newly announced solutions have been built leveraging V’s profound expertise in AI. The first one, named Visa Deep Authorization, is a transaction risk scoring solution that provides better management of card-not-present (CNP) payments and relieves issuers of headwinds related to continuously evolving digital fraud. All this is done without causing any disturbance to a digital transaction.
Visa has broadened the scope of its AI-powered fraud risk management tools, Visa Advanced Authorization and Visa Risk Manager, in a bid to support non-Visa card transactions. This expansion enables issuers to consolidate their fraud detection efforts into one solution, thus enhancing fraud defense mechanisms and lowering operational costs, regardless of the network scheme used.
The third solution is a pioneering fraud prevention solution, customized for instant payment processes, such as peer-to-peer digital wallets, account-to-account transfers, and instant payment systems managed by central banks. The solution has been devised by V using advanced deep learning AI and produces a real-time risk score that enables the timely identification and automatic termination of fraudulent transactions, before their occurrence, by financial institutions.
Therefore, the ulterior motive behind the recent move remains to minimize fraud in case of immediate account-to-account and CNP payments, and also extend a shield to transactions taking place both within and outside Visa’s network. Additionally, the latest announcement also reflects Visa’s sincere efforts to bolster its risk and fraud solutions suite, and subsequently, upgrade its global value-added services portfolio, which has eventually grown to include around 200 products.
Portfolio upgradation often results in new customers and the likewise may happen with Visa, thereby fetching it higher data processing revenues in the days ahead. This revenue component is derived from the utilization of value-added services linked with issuing, acceptance, and risk and identity solutions. Data processing revenues improved 14% year over year in the first quarter of fiscal 2024.
Also, demand for the new solutions is likely to remain solid in the days ahead, considering a rapidly expanding digital era. While digitization does provide comfort and ease, the trend to go digital also invites sophisticated forms of digital fraud that can result in the compromise of payments received by organizations and the breach of customers’ confidential data. Thus, there is an alarming concern for businesses of all sizes and Visa can prudently capitalize on the dire need to create a safe payment ecosystem with the new additions to the Visa Protect suite.
Visa has always remained active in the pursuit of substantial investments to enhance its AI and fraud prevention capabilities. Investments worth $10 billion have been made by the company over the past five years in technology and innovation to promote higher security in its payment network. In 2023, V teamed up with the well-established security operations provider, Expel, in a bid to equip its global clients to seamlessly detect and alleviate a varied array of cyber threats and therefore, ensure safe money movement across the world.
Shares of Visa have gained 24.9% in the past year compared with the industry’s 24.4% growth. V currently carries a Zacks Rank #3 (Hold).
The bottom line of AppLovin outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 26.53%. The Zacks Consensus Estimate for APP’s 2024 earnings is pegged at $2.48 per share, which has nearly doubled from the year-ago reported figure. The consensus estimate for revenues suggests growth of 23.2% from the year-ago reported number. The consensus mark for APP’s 2024 earnings has moved 59% north in the past 60 days.
Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 25.91%. The Zacks Consensus Estimate for HURN’s 2024 earnings indicates an improvement of 14.9% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 9.9% from the year-ago reported number. The consensus mark for HURN’s 2024 earnings has moved 1.8% north in the past 30 days.
The bottom line of APi Group outpaced estimates in each of the last four quarters, the average surprise being 5.05%. The Zacks Consensus Estimate for APG’s 2024 earnings indicates an improvement of 17.7% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 2.9% from the year-ago actual. The consensus mark for APG’s 2024 earnings has moved 3.3% north in the past 30 days.
Shares of AppLovin, Huron Consulting and APi Group have gained 364.7%, 21.2% and 80.4%, respectively, in the past year.
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Visa's (V) Solutions to Minimize Fraud, Enhance Payment Security
Visa Inc. (V - Free Report) recently unveiled three AI-powered risk and fraud prevention solutions, which are expected to be launched in the first half of 2024 and will form part of the end-to-end Visa Protect portfolio. Visa Protect comes under the extensive value-added services suite of Visa, through which it offers issuing solutions, acceptance solutions, risk and identity solutions, and open banking solutions as well as advisory services.
The three newly announced solutions have been built leveraging V’s profound expertise in AI. The first one, named Visa Deep Authorization, is a transaction risk scoring solution that provides better management of card-not-present (CNP) payments and relieves issuers of headwinds related to continuously evolving digital fraud. All this is done without causing any disturbance to a digital transaction.
Visa has broadened the scope of its AI-powered fraud risk management tools, Visa Advanced Authorization and Visa Risk Manager, in a bid to support non-Visa card transactions. This expansion enables issuers to consolidate their fraud detection efforts into one solution, thus enhancing fraud defense mechanisms and lowering operational costs, regardless of the network scheme used.
The third solution is a pioneering fraud prevention solution, customized for instant payment processes, such as peer-to-peer digital wallets, account-to-account transfers, and instant payment systems managed by central banks. The solution has been devised by V using advanced deep learning AI and produces a real-time risk score that enables the timely identification and automatic termination of fraudulent transactions, before their occurrence, by financial institutions.
Therefore, the ulterior motive behind the recent move remains to minimize fraud in case of immediate account-to-account and CNP payments, and also extend a shield to transactions taking place both within and outside Visa’s network. Additionally, the latest announcement also reflects Visa’s sincere efforts to bolster its risk and fraud solutions suite, and subsequently, upgrade its global value-added services portfolio, which has eventually grown to include around 200 products.
Portfolio upgradation often results in new customers and the likewise may happen with Visa, thereby fetching it higher data processing revenues in the days ahead. This revenue component is derived from the utilization of value-added services linked with issuing, acceptance, and risk and identity solutions. Data processing revenues improved 14% year over year in the first quarter of fiscal 2024.
Also, demand for the new solutions is likely to remain solid in the days ahead, considering a rapidly expanding digital era. While digitization does provide comfort and ease, the trend to go digital also invites sophisticated forms of digital fraud that can result in the compromise of payments received by organizations and the breach of customers’ confidential data. Thus, there is an alarming concern for businesses of all sizes and Visa can prudently capitalize on the dire need to create a safe payment ecosystem with the new additions to the Visa Protect suite.
Visa has always remained active in the pursuit of substantial investments to enhance its AI and fraud prevention capabilities. Investments worth $10 billion have been made by the company over the past five years in technology and innovation to promote higher security in its payment network. In 2023, V teamed up with the well-established security operations provider, Expel, in a bid to equip its global clients to seamlessly detect and alleviate a varied array of cyber threats and therefore, ensure safe money movement across the world.
Shares of Visa have gained 24.9% in the past year compared with the industry’s 24.4% growth. V currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the Business Services space are AppLovin Corporation (APP - Free Report) , Huron Consulting Group Inc. (HURN - Free Report) and APi Group Corporation (APG - Free Report) . While AppLovin currently sports a Zacks Rank #1 (Strong Buy), Huron Consulting and APi Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of AppLovin outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 26.53%. The Zacks Consensus Estimate for APP’s 2024 earnings is pegged at $2.48 per share, which has nearly doubled from the year-ago reported figure. The consensus estimate for revenues suggests growth of 23.2% from the year-ago reported number. The consensus mark for APP’s 2024 earnings has moved 59% north in the past 60 days.
Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 25.91%. The Zacks Consensus Estimate for HURN’s 2024 earnings indicates an improvement of 14.9% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 9.9% from the year-ago reported number. The consensus mark for HURN’s 2024 earnings has moved 1.8% north in the past 30 days.
The bottom line of APi Group outpaced estimates in each of the last four quarters, the average surprise being 5.05%. The Zacks Consensus Estimate for APG’s 2024 earnings indicates an improvement of 17.7% from the year-ago reported figure. The consensus estimate for revenues suggests growth of 2.9% from the year-ago actual. The consensus mark for APG’s 2024 earnings has moved 3.3% north in the past 30 days.
Shares of AppLovin, Huron Consulting and APi Group have gained 364.7%, 21.2% and 80.4%, respectively, in the past year.