Visa's Fintech Expansion: A New Era of Scalable Digital Payments?
Visa Inc. V focuses on sharpening its edge in the digital payments space through robust and growing fintech partnerships, acquisitions and platform building. It is redefining its role from a card network to a vital technology partner in the ever-changing payments landscape. The company saw impressive growth in payment volume during the second quarter of fiscal 2025, resulting from its partnerships with fintech companies and the increase in consumer spending on its app-based platforms.
In fiscal 2023, Visa's payment volume rose 9% year over year on a constant-dollar basis, which grew 8% year over year in fiscal 2024, followed by an 8% increase in the second quarter of fiscal 2025. In the same quarter, processed transactions grew 9% year over year. Our model suggests a 9.9% year-over-year increase in processed transactions in fiscal 2025.
Visa extended its partnership with TabaPay, which is serving over 6,500 fintechs and businesses. With Visa Direct, the company introduced push-to-account and wallet features alongside the existing push-to-card option. It also launched a new program, Visa Commercial Integrated Partners, designed to improve connectivity between fintechs and Visa Commercial products.
Visa's proactive strategies reflect its active move to shape the new era of payments. As the demand for digital payment rises globally, the company's position as a flexible infrastructure partner might be its valuable long-term advantage.
How Are Competitors Faring?
Some of V's competitors in the fintech payments space are Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL.
Mastercard reported a 15% Y/Y increase in cross-border volumes in the first quarter of 2025. In the same quarter, its payment network net revenues grew 13% year over year. Mastercard projects adjusted net revenues to witness low-teens growth in 2025.
PayPal Holdings' total payment volume increased 3% year over year in the first quarter of 2025. The company's payment transactions decreased 7% year over year in the same quarter. PayPal Holdings anticipates the transaction margin to be in the range of $15.2-$15.4 billion in 2025.
Visa's Price Performance, Valuation & Estimates
Shares of Visa have jumped 12.3% in the year-to-date period, outperforming the 8.5% growth of the industry.
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 30.1, above the industry average of 23.7. V carries a Value Score of D.
The Zacks Consensus Estimate for Visa's fiscal 2025 earnings implies a 12.9% jump from the year-ago period. It witnessed 11 upward estimate revisions in the past 60 days against one downward movement.
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Mastercard Incorporated (MA): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
20 minutes ago
- Globe and Mail
1 Magnificent High-Yield Stock Down 55% to Buy and Hold Forever
Headline-grabbing news events often push investors into emotional investing decisions. That's exactly what is taking place today with regard to tariffs. The investor reaction to tariffs has pushed industry-leading industrial real estate investment trust (REIT) Prologis (NYSE: PLD) down 35% from its 2022 highs and led to an attractive yield of 3.7%. You can do even better, collecting a 4.7% yield, with this well-positioned industrial REIT that is down 55%. Here's what you need to know. Why are investors downbeat on Prologis? Prologis is an industrial REIT giant, with operations across North America, South America, Europe, and Asia. It owns 5,900 buildings containing 1.3 billion square feet of space. But the key part of the story is where its buildings are located. Prologis has assets in just about every major transportation hub in the world, serving 6,500 customers looking to import and export goods. This is a huge business strength, but right now it is seen as a huge negative. That's because U.S. tariffs have upended international trade norms. That's pushed Prologis' stock price down and its yield up. This is definitely a short-term disruption, but it seems unlikely to become a permanent negative. The world is so interconnected today that the more likely outcome is that trade patterns shift and Prologis' diverse portfolio of assets is still highly valuable. Prologis is, indeed, an attractive dividend investment opportunity today. And yet there's an even more interesting story to be told with Rexford Industrial Realty (NYSE: REXR). Highly focused Rexford is deeply out of favor Like Prologis, Rexford owns industrial assets that are vital to international trade. The most important difference between the two REITs is that Rexford is focused on just one single market, Southern California. It owns 424 properties with 51 million square feet of space in them. The key here is that Southern California is the major gateway for Asian goods entering the U.S. market (and vice versa). That, of course, is the problem, given the high-profile tariff fight between the United States and China. The near-term uncertainty has led investors to abandon Rexford. But, like Prologis, it seems more likely that international trade will adjust to a new normal than stop entirely. That alone makes Rexford's lofty 4.7% dividend yield attractive, but there's more. Southern California is a supply-constrained market. That gives Rexford a strong negotiating position when signing leases. Rexford is also a skilled redeveloper, frequently buying older assets and upgrading them so that they are more modern and desirable. That also helps its ability to raise rents. To be fair, the highly concentrated nature of Rexford's business does make it riskier than more diversified Prologis. But unless you believe international trade is going to stop, Rexford should come out the other side of the current uncertainty in a strong position. The opportunity to buy Rexford Industrial is in the here and now Oftentimes the best opportunities to buy a well-run company arise when Wall Street is overly pessimistic. The key is to figure out if the worry is about something that will linger or something that is likely to be temporary. The upheaval in international trade seems like a temporary issue, given how interconnected the world is today. For more conservative investors that could make Prologis an attractive option, while more aggressive investors will probably prefer higher-yielding Rexford industrial. And if you do buy one of these high-yield industrial REITs you'll probably end up owning it for the long term. Should you invest $1,000 in Prologis right now? Before you buy stock in Prologis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Prologis wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
35 minutes ago
- Globe and Mail
Can Nvidia Stock Double in 5 Years?
Nvidia (NASDAQ: NVDA) has delivered extreme wealth for early investors, but it's also rewarded investors who bought shares fairly recently. Although it's been under pressure this year, it's up more than 740% over the past three years. That's far more than double. Buying Nvidia stock today would be a no-brainer for anyone who thinks it can replicate that success. But it wouldn't even have to achieve such a rare feat to be valuable to investors. If it doubles five years from now, it would likely beat the market and be a very valuable addition to almost any portfolio. Let's see if that might be in the cards. Enviable performance Nvidia has had an unbelievable run over the past few years since generative artificial intelligence (AI) became the hottest thing since sliced bread. Tech companies are racing to develop the most competitive AI platform or integrate some aspect of AI into their user interfaces. Companies now offer AI-generated content, images, summaries, and more, and they're using agentic AI to get more stuff done with less human intervention. What's common to all of these applications is that they need powerful chips to make the magic happen. There are two basic parts of bringing generative AI to life. One is training, or the input stage, where large language models (LLM) scan tons of data to build their knowledge base. The other is inference, where the LLMs "infer" what's being asked or prompted to deliver the required output. Nvidia also services other industries with its powerful platform, including gaming, which is what drove higher sales before generative AI heated up. Nvidia has been unstoppable. In the fiscal 2026 first quarter (ended April 27), sales increased 69% over last year. Earnings per share (EPS) were $0.81, including a charge it took for shipments it couldn't send to China because of U.S. policy. Even with the $0.15-per-share impact, Nvidia's EPS were well above last year's figure. Unusual opportunities As LLMs become more stable and effective, they're now going past inference to reasoning, which is a more developed stage of inference that takes a bit longer, but produces better results. Instead of popping out instant answers, LLMs that use reasoning might take a few seconds to "think" and then respond. To keep up with the ever-increasing demands for powerhouse chips, Nvidia continues to develop more powerful technology. The Blackwell model has given way to Blackwell Ultra, and Nvidia is planning on launching new technology, called Rubin, in 2026. "AI inference token generation has surged tenfold in just one year," CEO Jensen Huang said, "and as AI agents become mainstream, the demand for AI computing will accelerate." Clients use these chips to power huge data centers where all of this is taking place, and big AI-using companies like Amazon, Microsoft, and Meta Platforms are building data centers. Nvidia's data center revenue outpaced total revenue in the first quarter, up 73% from last year. Nvidia has the best and most powerful chips, and it has the lead in this market by a wide margin. Estimates put it somewhere between 70% and 95% of the AI chip market, and as the opportunity grows, it's easy to see how much it could benefit Nvidia. Priced to buy Despite its lofty ambitions and premier performance, Nvidia stock isn't very expensive. At the current price, it trades at only 25 of next year's earnings estimates. That gives the stock extra room to increase without becoming unreasonably expensive, making it easier to imagine scenarios where it can double your money. From a sales perspective, it's fairly expensive, trading at 23 times trailing-12-month sales. That's a premium valuation for the growth that it has reported. To imagine doubling your money, you'd have to keep that ratio constant, because it isn't likely to rise. Keeping it constant, Nvidia would have to report a compound annual growth rate of 15% to double over five years. That seems very doable, considering its current performance and future opportunities. And even if it can't sustain such a high price-to-sales ratio, it can probably achieve higher than 15% growth over the next five years, which means it can double even at a lower ratio. All this means Nvidia stock is likely to double over the next five years -- and it's very possible that it could do it even sooner. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
CBC
an hour ago
- CBC
Bike Share Toronto says it's a victim of its own success. It's looking to NYC for help
In the latest part of our series 'Toronto Explained,' CBC's Chris Glover breaks down flaws within Bike Share Toronto's program amid high demand — and how New York City's popular bike sharing program might pave the way for solutions.
