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Visa (V) Adds 13 Partners to Token Service Provider Program

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In order to cash in on the growing trend of payments moving to the Internet of Things (IoT), Visa Inc. (V - Free Report) has signed 13 new partners to participate in its token service provider (TSP) program.

This program provides technology companies a standardized approach and access to Visa’s broad network of tools and services, including the Visa Token Service, as well as integration, development and marketing support. Visa token service is a technology that provides an additional layer of security to the whole process of payment mechanism by replacing the credentials of card holders with a unique digital token. The code or the token hides personal information of cardholders thus reducing the chances of cyber theft.

Visa sees huge growth opportunity in the expanding IoT space. The IoT has taken the payment process to the next level where payments can be made via a broad and diverse ecosystem of Internet-connected devices, such as wearables, connected cars, and smart home devices from the current focus on mobile phones, cards, and point-of-sale devices. The need of the hour is seamless payments through a number of touchpoints. Visa seeks to increase its IoT partnerships by which it can grow its business volume and strengthen its brand name. It is estimated that more than 20.4 billion devices will be connected to the Internet by 2020. The Visa Ready Program enhances the secure payment functionality for next generation payment experiences.

Visa has been on the forefront with respect to technological investments and enhancements. It is a leader in its market and investors have high confidence in the company given its robust operating fundamentals and future growth. This is also evident from its share price which has added 41% over the past two years, outperforming the 33% gain by the Zacks categorized Financial Transaction Services industry.

Coming back, the recently signed partners representing major regions across the globe are FitPay, Infosys, Rambus, Mahindra Comviva, PayCraft, Digiseq, FOO, Pri-Num, Seglan, HST, Prosa, VeriTran and YellowPepper.

The initial partners participating in Visa’s token service provider program were Giesecke and Devrient, Gemalto and Inside Secure.

Another player in the same space Mastercard Inc. (MA - Free Report) signed a partnership with Samsung to bring payments to IoT.

Visa carries a Zacks Rank #2 (Buy). Other players in the same space with the same Zacks Rank as Visa are Total System Services, Inc. and Vantiv, Inc. . You can see the complete list of today’s Zacks #1 Rank stocks here.

Vantiv beat estimates in three of the last four reported quarters, with an average positive surprise of 3.51%.

Total System beat estimates in three of the last four reported quarters, with an average positive surprise of 3.59%.

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