Visa Inc. (V - Free Report) along with PayActiv recently announced an agreement that allows real-time access to earned salaries doled out by PayActiv. With the rise in demand for a quick access to earned funds and evolving customer expectations, this has now advanced to traditional batch payroll.
Now PayActiv partner businesses can offer real-time deposit facilities of earned funds by using Visa Direct’s real-time push payments platform. Gig economy workers, who expect fast payment are gaining from this transaction.
Employers now have access to PayActiv’s on-demand payroll program, which allows them to implement solutions at meager costs. Moreover, they can retain and engage their staff by offering them various benefits.
The money is available in real time via a Visa debit or reloadable prepaid card, which also includes the new PayActiv Visa Prepaid Card.
With this deal, Visa Direct is supporting a fundamental shift in how employees access the remuneration they have already earned by offering a wide array of choices to employers and workers.
Visa should gain from this deal as the growing gig economy would drive demand for this newly launched service. The company constantly makes efforts to come up with new solutions and products. Apart from collaborations, the company acquires to expand its business portfolio.
All this have led to stable top-line growth, evident from its 2008-2018 CAGR of 12.5%. We strongly believe, the company will retain its revenue momentum in the coming quarters on the back of a strong market position and attractive core business that continues to be driven by new deals, renewed agreements, accretive
acquisitions, increasing spending via cards, shift to digital form of payments and expansion of service offerings.
Shares of this Zacks Rank #3 (Hold) company have rallied 17.9% in a year’s time, outperforming its industry’s growth of 11%.
Stocks to Consider
Investors looking for some better-ranked stocks in the same sector might take a look at Global Payments Inc. (GPN - Free Report) , Fidelity National Information Services, Inc. (FIS - Free Report) and Euronet Worldwide, Inc. (EEFT - Free Report) .
Global Payments offers payment technology and software solutions. It holds a Zacks Rank #2 (Buy). In the last four reported quarters, the company delivered average earnings surprise of 3.34%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fidelity National works as a financial services technology company internationally. It sports a Zacks Rank #1 (Strong Buy). The company pulled off average positive surprise of 2.72% in the preceding four reported quarters.
Euronet provides payment and transaction processing and distribution solutions worldwide. It carries a Zacks Rank of 2. The stock came up with average four-quarter beat of 2.68%.
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