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Visa Invests in Paidy to Expand in Digital Payments Space
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Visa Inc. (V - Free Report) recently made investment in Paidy, a fintech startup in the payments space, via Series C funding. It is to be noted that a company opts for Series C round of funding when it looks for greater market share, acquisitions, or to develop more products and services.
Visa, one of the world’s leading companies in the payments space, finds attractive the payment mechanics deployed by Paidy, which currently serves more than 1,500,000 users. These users can shop online without creating an account or using their credit cards. Customers can make payments by entering their mobile phone numbers and email addresses. The payment is authenticated via a four-digit code sent through SMS or voice. Every month, customers settle their bills, which include all transactions made by them using Paidy, at a convenience store or through bank transfers or auto-debits.
Per Visa, these payment methods hold tremendous growth opportunities among the Japanese, who still make notable cash transactions. In this vein, the two companies are partnering on new digital payment experiences that will give Japanese consumers enhanced buying options, both on-line and in-store. Also, diverse financial services will be offered to the customers apart from new payment functions.
Visa is trying to stay ahead in the payment industry, which is experiencing rapid growth. From cash to plastic and now to digital modes, the payments industry has come a long way but still has miles to go. To this end, the company is working across the industry to develop and support new payment methods.
Visa is optimistic about the payments market in Japan, which is underpenetrated and is growing fast. In 2017, the scale of the domestic ecommerce market in Japan expanded 9.1% to 16.5 trillion yen. Japan is among the world's fastest growing e-commerce markets, but is heavily reliant on cash.
Visa has been consistently making investments in fintech companies to develop new payments solution and make the best use of technology. In this regard, it has made investments in Behalf, Marqeta, Payworks, Klarna, LoopPay, Square and Stripe, among others.
Shares of the company have gained 37% in a year’s time, outperforming the industry’s growth of 34%.
Currently, Visa carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are On Deck Capital, Inc. , Euronet Worldwide, Inc. (EEFT - Free Report) and Total System Services, Inc. .
On Deck operates as an online platform for small business lending in the United States, Canada and Australia. It sports a Zacks Rank #1 (Strong Buy). The company pulled off an average four-quarter positive surprise of 58.3%, beating estimates in three of the trailing four quarters.
Euronet provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers worldwide. Carrying a Zacks Rank #2 (Buy), the stock delivered an average beat of nearly 0.38% in the last four quarters.
Total System provides payment processing, merchant and related payment services to financial and non-financial institutions globally. The company carries a Zacks #2 and came up with an impressive earnings surprise of 7.67% over the last four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Visa Invests in Paidy to Expand in Digital Payments Space
Visa Inc. (V - Free Report) recently made investment in Paidy, a fintech startup in the payments space, via Series C funding. It is to be noted that a company opts for Series C round of funding when it looks for greater market share, acquisitions, or to develop more products and services.
Visa, one of the world’s leading companies in the payments space, finds attractive the payment mechanics deployed by Paidy, which currently serves more than 1,500,000 users. These users can shop online without creating an account or using their credit cards. Customers can make payments by entering their mobile phone numbers and email addresses. The payment is authenticated via a four-digit code sent through SMS or voice. Every month, customers settle their bills, which include all transactions made by them using Paidy, at a convenience store or through bank transfers or auto-debits.
Per Visa, these payment methods hold tremendous growth opportunities among the Japanese, who still make notable cash transactions. In this vein, the two companies are partnering on new digital payment experiences that will give Japanese consumers enhanced buying options, both on-line and in-store. Also, diverse financial services will be offered to the customers apart from new payment functions.
Visa is trying to stay ahead in the payment industry, which is experiencing rapid growth. From cash to plastic and now to digital modes, the payments industry has come a long way but still has miles to go. To this end, the company is working across the industry to develop and support new payment methods.
Visa is optimistic about the payments market in Japan, which is underpenetrated and is growing fast. In 2017, the scale of the domestic ecommerce market in Japan expanded 9.1% to 16.5 trillion yen. Japan is among the world's fastest growing e-commerce markets, but is heavily reliant on cash.
Visa has been consistently making investments in fintech companies to develop new payments solution and make the best use of technology. In this regard, it has made investments in Behalf, Marqeta, Payworks, Klarna, LoopPay, Square and Stripe, among others.
Shares of the company have gained 37% in a year’s time, outperforming the industry’s growth of 34%.
Currently, Visa carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are On Deck Capital, Inc. , Euronet Worldwide, Inc. (EEFT - Free Report) and Total System Services, Inc. .
On Deck operates as an online platform for small business lending in the United States, Canada and Australia. It sports a Zacks Rank #1 (Strong Buy). The company pulled off an average four-quarter positive surprise of 58.3%, beating estimates in three of the trailing four quarters.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Euronet provides payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individual consumers worldwide. Carrying a Zacks Rank #2 (Buy), the stock delivered an average beat of nearly 0.38% in the last four quarters.
Total System provides payment processing, merchant and related payment services to financial and non-financial institutions globally. The company carries a Zacks #2 and came up with an impressive earnings surprise of 7.67% over the last four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>