We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Visa Direct the Catalyst for a Cashless Tipping Revolution?
Read MoreHide Full Article
Key Takeaways
Visa joins forces with SpotOn and Astra to power real-time digital tip payments via Visa Direct.
The move eliminates cash handling, improving payout speed, accuracy and worker satisfaction.
Visa expands Visa Direct adoption as its Q3 FY25 payment volume rises 8% year over year.
In a bold move toward reshaping how tipped employees are paid, Visa Inc. (V - Free Report) has teamed up with StopOn, along with Astra, which provides the payment technology infrastructure to power real-time, cashless payouts. By integrating Visa Direct into SpotOn Teamwork and DayCheck, the system allows employers to send tip earnings straight to employees’ bank accounts instantly and securely.
This collaboration aims to tackle a persistent challenge in the service industry — the delayed and manual process of distributing tips. By introducing real-time, cashless payouts, the system eliminates cash-handling hassle and ensures that employees can access their hard-earned money immediately, which can help boost employee satisfaction, gain better financial control and improve retention.
For restaurant owners, this innovation brings greater efficiency, enhanced payroll accuracy and reduced administrative tasks. Additionally, DayCheck’s no-prefunding requirement for qualified merchants not only boosts cash flow but also speeds up tip distribution, making it more straightforward and transparent.
By bringing together V’s extensive global payment network, SpotOn’s deep understanding of the service industry and Astra’s cutting-edge technology, this partnership sets an example for the future of digital tipping, making it faster, smarter and more empowering for today’s workforce. For Visa, this move expands the adoption of Visa Direct and also reinforces its position as a crucial player in facilitating real-time payments within the ever-changing economy, which in turn improves payment volume. In the third quarter of fiscal 2025, the company’s payment volume rose 8% year over year.
How Are Competitors Faring?
Some of V’s competitors in the payments space include Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) .
Mastercard is stepping up its game in the world of instant tip payments by teaming up with various platforms to provide real-time, digital payouts. Mastercard’s payment network net revenues increased 13% year over year in the first half of 2025, along with 16% growth in net revenues.
By collaborating with various platforms, such as eTip, American Express offers digital tipping and reviews for hospitality businesses. Its total revenues (net of interest expense) rose 8% year over year in the first half of 2025. American Express reported 6% year-over-year growth in its network volumes in the same period.
Visa’s Price Performance, Valuation & Estimates
Over the past year, shares of Visa have jumped 19% against the 0.4% fall of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 26.76, above the industry average of 21.52. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 13.7% jump from the year-ago period.
Image: Bigstock
Is Visa Direct the Catalyst for a Cashless Tipping Revolution?
Key Takeaways
In a bold move toward reshaping how tipped employees are paid, Visa Inc. (V - Free Report) has teamed up with StopOn, along with Astra, which provides the payment technology infrastructure to power real-time, cashless payouts. By integrating Visa Direct into SpotOn Teamwork and DayCheck, the system allows employers to send tip earnings straight to employees’ bank accounts instantly and securely.
This collaboration aims to tackle a persistent challenge in the service industry — the delayed and manual process of distributing tips. By introducing real-time, cashless payouts, the system eliminates cash-handling hassle and ensures that employees can access their hard-earned money immediately, which can help boost employee satisfaction, gain better financial control and improve retention.
For restaurant owners, this innovation brings greater efficiency, enhanced payroll accuracy and reduced administrative tasks. Additionally, DayCheck’s no-prefunding requirement for qualified merchants not only boosts cash flow but also speeds up tip distribution, making it more straightforward and transparent.
By bringing together V’s extensive global payment network, SpotOn’s deep understanding of the service industry and Astra’s cutting-edge technology, this partnership sets an example for the future of digital tipping, making it faster, smarter and more empowering for today’s workforce. For Visa, this move expands the adoption of Visa Direct and also reinforces its position as a crucial player in facilitating real-time payments within the ever-changing economy, which in turn improves payment volume. In the third quarter of fiscal 2025, the company’s payment volume rose 8% year over year.
How Are Competitors Faring?
Some of V’s competitors in the payments space include Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) .
Mastercard is stepping up its game in the world of instant tip payments by teaming up with various platforms to provide real-time, digital payouts. Mastercard’s payment network net revenues increased 13% year over year in the first half of 2025, along with 16% growth in net revenues.
By collaborating with various platforms, such as eTip, American Express offers digital tipping and reviews for hospitality businesses. Its total revenues (net of interest expense) rose 8% year over year in the first half of 2025. American Express reported 6% year-over-year growth in its network volumes in the same period.
Visa’s Price Performance, Valuation & Estimates
Over the past year, shares of Visa have jumped 19% against the 0.4% fall of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 26.76, above the industry average of 21.52. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 13.7% jump from the year-ago period.
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.