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Visa & FIS Expand Ties to Provide Small Banks With Enhanced Payments

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Key Takeaways

  • Visa expands its alliance with FIS to offer enhanced payment tech to small and regional banks.
  • V's tools will integrate into FIS to enable fraud control, digital wallets and stop payment services.
  • V saw 8% growth in payment volume and 9% in processed transactions in Q2 of fiscal 2025.

A global leader in the digital payments space, Visa Inc. (V - Free Report) recently extended its partnership with FIS, a financial technology company, aiming to deliver new value-added payment capabilities to regional and community banks. This collaboration is all about empowering small and midsize financial institutions with access to advanced payment technologies that are usually enjoyed by larger issuers. This will help them boost their competitiveness, keep their customers happy and cut down on fraud-related losses.

Visa’s issuing solutions will seamlessly blend into the FIS ecosystem. This integration will allow smaller banks to provide features such as digital wallet linking, stop payment services, fraud prevention and engaging digital campaigns. These solutions allow banks to give tailored, secure and smooth digital experiences without the hefty costs of infrastructure investments. It will also help them boost revenues and retain customers.

As competition in the global payment space heats up, V is stepping up its position with proactive infrastructure initiatives. This can position the company as a key player in driving long-term growth while supporting financial inclusion and innovations.

This strengthened partnership with FIS gives Visa a significant advantage in expanding its reach beyond the large banking players. By integrating its solutions into platforms that regional banks already trust, V is effectively boosting its transaction volume and card presence without incurring direct distribution costs.

Visa is actively involved in mergers, acquisitions and innovations that boost its revenue growth. In the second quarter of fiscal 2025, the company’s payment volume increased 8% year over year. Processed transactions rose 9% year over year in the same quarter.

V’s Price Performance

Year to date, V shares have gained 9.5% compared with the industry’s growth of 2.6%.

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V’s Zacks Rank & Key Picks

V currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the business services space are OppFi Inc. (OPFI - Free Report) , Green Dot Corporation (GDOT - Free Report) and Sezzle Inc. (SEZL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for OppFi’s current-year earnings of $1.23 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. OppFi beat earnings estimates in each of the trailing four quarters, with the average surprise being 59.5%. The consensus estimate for current-year revenues is pegged at $578.4 million, implying 10% year-over-year growth.

The Zacks Consensus Estimate for Green Dot’s current-year earnings of $1.22 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Green Dot beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 5.6%. The consensus estimate for current-year revenues is pegged at $2.1 billion, calling for a 20.2% year-over-year increase.

The Zacks Consensus Estimate for Sezzle’s current-year earnings of $3.26 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 159.9%. The consensus estimate for current-year revenues is pegged at $441.8 million, suggesting 62.9% year-over-year growth.


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