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Visa (V), Skipify Unite to Simplify Online Checkout Experience

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Visa Inc. (V - Free Report) recently teamed up with the California-based renowned financial technology company, Skipify, through the Visa Digital Commerce Program. This move aims to streamline the online checkout experience for V’s cardholders and reinvent the way users transact. Visa’s digital payments expertise, coupled with Skipify’s advanced wallet, is expected to deliver greater convenience and security to customers at checkout.

As part of the partnership, Visa’s Click to Pay cards will be added to the digital wallet of Skipify Connected Wallet. The embedded digital wallet boasts the capability of automatic identification of Visa cardholders on the website of a merchant through their email address. Following this, the payment details are immediately filled and the available cards appear, which get immediate access to points and rewards.

This move bodes well for Visa as the payment infrastructure of Skipify will be used to offer an improved shopping experience for its cardholders. Moreover, increased authorization and conversion rates and improved security will enhance Visa’s offerings to its merchants. Per Skipify, its payment interface results in a 99% authorization rate and a 9% increase in conversion rates.

With the growing digitalization of economies and financial tools, demand for products and services that simplify consumer choices is rising. Visa’s focus on providing consumers with a better experience will bring more people to its expanding network. Merchants can drive their revenues and earn more shopper lifetime value by embedding Skipify.

Visa's dedication to technological innovation, highlighted by offerings such as Visa Token Service, Visa Click to Pay, Visa Checkout, and Visa In-App Provisioning, underscores its leadership in the evolving payments industry. Prioritizing security and enhancing cardholder experience remains an important factor driving its growth.

Moves like these should help V drive its transaction volumes and bring consumers and merchants closer to each other. It expects fiscal 2024 net revenues to grow in low double digits on an adjusted constant-dollar basis.

Price Performance

Shares of Visa have gained 21.2% in the past year compared with the industry’s 25.7% rise.

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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 MoneyLion Inc. (ML - Free Report) , Flywire Corporation (FLYW - Free Report) and Cantaloupe, Inc. (CTLP - Free Report) , 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 MoneyLion’s current-year bottom line indicates a 98.7% year-over-year improvement. The consensus estimate for ML’s current-year top line is pegged at $518.9 million, suggesting 22.6% year-over-year growth.

The Zacks Consensus Estimate for Flywire’s current-year earnings is pegged at 5 cents per share, which indicates a 171.4% year-over-year improvement. FLYW beat earnings estimates in two of the past four quarters, met once and missed on the other occasion, with an average surprise of 33.1%. The consensus estimate for current-year revenues suggests 30.1% year-over-year growth.

The Zacks Consensus Estimate for Cantaloupe’s current-year earnings is pegged at 17 cents per share, which indicates significant growth from breakeven earnings in the year-ago period. CTLP beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 61.7%. The consensus mark for current-year revenues suggests a 13.2% year-over-year increase.


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