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Visa's Fintech Expansion: A New Era of Scalable Digital Payments?
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Key Takeaways
Visa saw 8% Y/Y growth in Q2 fiscal 2025 payments volume and 9% growth in processed transactions.
V is deepening fintech ties via an extended TabaPay deal and new Visa Direct account and wallet features.
Visa launched a Commercial Integrated Partners program to enhance fintech connectivity and services.
Visa Inc. (V - Free Report) focuses on sharpening its edge in the digital payments space through robust and growing fintech partnerships, acquisitions and platform building. It is redefining its role from a card network to a vital technology partner in the ever-changing payments landscape. The company saw impressive growth in payment volume during the second quarter of fiscal 2025, resulting from its partnerships with fintech companies and the increase in consumer spending on its app-based platforms.
In fiscal 2023, Visa’s payment volume rose 9% year over year on a constant-dollar basis, which grew 8% year over year in fiscal 2024, followed by an 8% increase in the second quarter of fiscal 2025. In the same quarter, processed transactions grew 9% year over year. Our model suggests a 9.9% year-over-year increase in processed transactions in fiscal 2025.
Visa extended its partnership with TabaPay, which is serving over 6,500 fintechs and businesses. With Visa Direct, the company introduced push-to-account and wallet features alongside the existing push-to-card option. It also launched a new program, Visa Commercial Integrated Partners, designed to improve connectivity between fintechs and Visa Commercial products.
Visa’s proactive strategies reflect its active move to shape the new era of payments. As the demand for digital payment rises globally, the company’s position as a flexible infrastructure partner might be its valuable long-term advantage.
How Are Competitors Faring?
Some of V’s competitors in the fintech payments space are Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Mastercard reported a 15% Y/Y increase in cross-border volumes in the first quarter of 2025. In the same quarter, its payment network net revenues grew 13% year over year. Mastercard projects adjusted net revenues to witness low-teens growth in 2025.
PayPal Holdings’ total payment volume increased 3% year over year in the first quarter of 2025. The company’s payment transactions decreased 7% year over year in the same quarter. PayPal Holdings anticipates the transaction margin to be in the range of $15.2-$15.4 billion in 2025.
Visa’s Price Performance, Valuation & Estimates
Shares of Visa have jumped 12.3% in the year-to-date period, outperforming the 8.5% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 30.1, above the industry average of 23.7. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 12.9% jump from the year-ago period. It witnessed 11 upward estimate revisions in the past 60 days against one downward movement.
Image: Bigstock
Visa's Fintech Expansion: A New Era of Scalable Digital Payments?
Key Takeaways
Visa Inc. (V - Free Report) focuses on sharpening its edge in the digital payments space through robust and growing fintech partnerships, acquisitions and platform building. It is redefining its role from a card network to a vital technology partner in the ever-changing payments landscape. The company saw impressive growth in payment volume during the second quarter of fiscal 2025, resulting from its partnerships with fintech companies and the increase in consumer spending on its app-based platforms.
In fiscal 2023, Visa’s payment volume rose 9% year over year on a constant-dollar basis, which grew 8% year over year in fiscal 2024, followed by an 8% increase in the second quarter of fiscal 2025. In the same quarter, processed transactions grew 9% year over year. Our model suggests a 9.9% year-over-year increase in processed transactions in fiscal 2025.
Visa extended its partnership with TabaPay, which is serving over 6,500 fintechs and businesses. With Visa Direct, the company introduced push-to-account and wallet features alongside the existing push-to-card option. It also launched a new program, Visa Commercial Integrated Partners, designed to improve connectivity between fintechs and Visa Commercial products.
Visa’s proactive strategies reflect its active move to shape the new era of payments. As the demand for digital payment rises globally, the company’s position as a flexible infrastructure partner might be its valuable long-term advantage.
How Are Competitors Faring?
Some of V’s competitors in the fintech payments space are Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) .
Mastercard reported a 15% Y/Y increase in cross-border volumes in the first quarter of 2025. In the same quarter, its payment network net revenues grew 13% year over year. Mastercard projects adjusted net revenues to witness low-teens growth in 2025.
PayPal Holdings’ total payment volume increased 3% year over year in the first quarter of 2025. The company’s payment transactions decreased 7% year over year in the same quarter. PayPal Holdings anticipates the transaction margin to be in the range of $15.2-$15.4 billion in 2025.
Visa’s Price Performance, Valuation & Estimates
Shares of Visa have jumped 12.3% in the year-to-date period, outperforming the 8.5% growth of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 30.1, above the industry average of 23.7. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 12.9% jump from the year-ago period. It witnessed 11 upward estimate revisions in the past 60 days against one downward movement.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.