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Visa (V) and HSBC Collaborate to Transform Global Payments

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Visa Inc. (V - Free Report) recently announced that it has partnered with HSBC Holdings plc (HSBC - Free Report) to develop its new international payments app —Zing. The app enables users to hold funds in 10 different currencies, send money in 30 plus currencies, and transact across 200 countries and territories globally. This is made possible through a smart multi-currency card and a single app developed by Visa.

This move bodes well for Visa as the adoption of technologies like Currencycloud and Tink to enhance the Zing platform will improve revenues of its cross-border solutions and value-added services. Currencycloud will equip Zing with a multi-currency wallet feature, and Tink, an open banking solution of Visa, will empower several methods to top-up accounts inclusive of quick bank transfers. Currencyloud and Tink’s ready-made solutions sped up the integration process and enabled the launch of the app in the U.K. in January 2024.

This is an opportune time to enhance Zing’s capabilities as, in many instances, customers rely on paper-based, manual processes to send money, which also weighs heavy on their pockets with high fees. Customers, through Zing, can access transparent and very low-cost currency exchange, instant collections, person-to-person payments, financial management, and real-time exchange rates. Moreover, all these services will be linked to a Visa card, enabling Visa to witness improved transaction volumes as more cross-border transactions are processed through its network.

This partnership showcases Visa’s capability to collaborate with large financial institutions to deliver unique solutions. This also opens doors for more such partnerships of Visa with other banks and fintech companies. The collaboration with HSBC also enables Zing to support additional currencies, launch new features and expand to more markets in the future.

Price Performance

Shares of Visa have gained 11.5% in the past year compared with the industry’s 9.8% growth.

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Zacks Rank & Key Picks

Visa currently has a Zacks Rank #4 (Sell).

Investors interested in the broader Business Services space can look at some better-ranked stocks like Global Payments Inc. (GPN - Free Report) and Fiserv, Inc. (FI - Free Report) . Each stock presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Global Payments’ 2024 earnings is currently pegged at $11.64 per share, indicating 11.7% year-over-year growth. It beat earnings estimates in each of the past four quarters, with an average surprise of 1.1%. The consensus mark for GPN’s revenues of almost $9.2 billion suggests a 6.4% increase from the year-ago level.

The Zacks Consensus Estimate for Fiserv’s 2024 earnings of $8.69 per share suggests 15.6% year-over-year growth. It beat earnings estimates thrice in the past four quarters and met once, with an average surprise of 2.3%. The consensus estimate for FI’s current-year revenues is pegged at $19.3 billion, indicating a 7.2% increase from a year ago.


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