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Visa Ties Up With Sirius XM Arm for Technological Upgrade

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Visa Inc. (V - Free Report) has collaborated with Sirius XM Holdings Inc.’s unit SiriusXM Connected Vehicles Services Inc. to revolutionize the driving experience with in-vehicle payment option.

With this deal, both companies are putting in efforts to enhance the way people spend their time in the vehicle. Visa and SiriusXM plan to provide SiriusXM e-wallet to manufacturers, who avail SiriusXM's connected vehicle services, which is a popular vehicle platform in North America.

The SiriusXM e-wallet is being created in a way that would integrate into the dashboard and will let drivers and passengers to conveniently purchase certain articles of daily use while travelling to places. People can complete transactions like paying for coffee, gas or locate and make payments for parking or buying movie tickets, etc. Users would be able to authenticate payments with respective Visa accounts via biometric identification to eradicate driver distractions.

The company and SiriusXM application programming interfaces would ensure that the solution resorts to an array of technologies like Visa Token Service for safer and better commerce.

This step reflects Visa’s efforts to expand its presence in connected commerce in the automotive ecosystem. The deal is expected to fast-track various opportunities for drivers so that they can easily complete their everyday chores in a safe and secure manner.

 Visa’s expertise in digital payments complements SiriusXM’s deep reach in the auto industry. For implementing these services, Visa is constantly focusing on establishing virtual payment relationships and providing secure authentication capabilities for extra layer of security. Notably, SiriusXM is working on its advanced protocols for real-time connectivity and in-vehicle interfaces.

These services will be shown to automobile manufacturers in 2019.

Investing in technology has always been Visa’s core growth strategy. It consistently invests in further growing its already leading position in the payments markets and minimizing the impact of fraud and protecting consumer and merchant information. One of the main purviews of Visa is to ensure payment security, which moves from physical to digital environments. VisaNet, Visa Token Service, Visa Direct, Visa Checkout are some of the platforms, developed by the company in recent years to advance its digital platform.  The company is also pushing technological boundaries with inclusion of contactless and scan-to-pay that should be one of the main modes of payment in the near future.

Shares of this Zacks Rank #3 (Hold) company have rallied 14% in a year’s time, outperforming its industry’s rise of 6.1%.

Stocks to Consider

Investors interested in the finance sector may take a look at some better-ranked stocks like On Deck Capital, Inc. (ONDK - Free Report) , Cardtronics plc (CATM - Free Report) and Virtu Financial, Inc. (VIRT - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.

On Deck Capital operates as an online platform for small business lending in the United States, Canada and Australia. It managed to deliver positive results in three of the trailing four reported quarters, the average beat being 109.47%. The company currently carries a Zacks Rank #2 (Buy). stocks here.

Cardtronics provides automated consumer financial services through its network of automated teller machines and multi-purpose financial services kiosks. The company pulled off average four-quarter positive surprise of 50.24%. It sports a Zacks Rank #1 (Strong Buy).

Virtu Financial provides market making and liquidity services to the financial markets worldwide. The company came up with average four-quarter beat of 17.56%. It has a Zacks Rank of 2.

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