Latest news with #paymentprocessing
Globe and Mail
8 hours ago
- Business
- Globe and Mail
Visa Stock Up 16% YTD & Counting: Buy Now or Wait for a Dip?
Visa Inc. V, a global leader in payment processing, continues to impress with strong financials, rising cross-border volumes, and the growing adoption of digital payments. Resilient consumer spending, across both discretionary and essential categories, alongside increased demand for Visa's value-added services, is helping fuel its momentum. So far in 2025, Visa's stock is up 15.7%, outperforming the broader industry, the S&P 500, and key rivals like Mastercard Incorporated MA and American Express Company AXP. Visa YTD Price Performance Comparison As macroeconomic uncertainty looms and questions arise over the durability of certain fintech business models, Visa continues to showcase the strength of its robust network. With pricing power, stable revenue growth, strong cash flows, and high profitability, its fundamentals remain solid. Let's dive into the key drivers and assess whether Visa still has room to run, or if a pullback is due. Visa's Growth Catalysts Visa is benefiting from steady spending trends among affluent consumers, modest gains in retail, and stable demand in sectors like travel and dining. In fiscal 2024, processed transactions rose 10%, followed by another 10.2% gain in the first half of fiscal 2025. Payments volume climbed 6.7% in fiscal 2024 and 6.3% in 1H FY25, continuing to be a major revenue driver. Emerging markets, where a large portion of the population remains underbanked, present further expansion opportunities. In the first half of fiscal 2025, payments volume grew 6.1% year over year in Latin America and 14.2% in CEMEA. However, the same witnessed a 1.2% decline in Asia Pacific during this time. Nevertheless, we expect total payments volume to grow 6.5% in fiscal 2025. Strong operating cash flow — up 26.4% in the first half of fiscal 2025 — enables Visa to reinvest in technology and strategic partnerships. These investments continue to drive cross-border transaction growth and reinforce its competitive edge. Its trailing 12-month return on capital stands at 35.7%, well above the industry average of 26.4%. Visa also continues to innovate. It is advancing contactless, tap-to-pay, and scan-to-pay technologies while exploring crypto payment solutions. In April 2025, it launched 'Visa Intelligent Commerce,' a new initiative to integrate AI into payments. This enables AI agents to securely search, compare and purchase items on behalf of users — yet another step toward building a smarter payments ecosystem. These initiatives, along with its value-added services, will help Visa diversify revenue sources. Visa's Fiscal 2025 Outlook & Zacks Estimates Visa projects high single-digit to low double-digit revenue growth in fiscal 2025 (adjusted for nominal dollars), with operating expenses expected to grow at a similar pace. EPS is projected to grow at the high end of the low double-digit range. The Zacks Consensus Estimate for Visa's fiscal 2025 and fiscal 2026 EPS implies a 12.9% and 12.6% uptick, respectively, on a year-over-year basis. The earnings estimates remained stable over the past week. Also, the consensus mark for fiscal 2025 and fiscal 2026 revenues suggests a 10.3% and 10.5% increase, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 3%. Visa Inc. Price and EPS Surprise Visa Inc. price-eps-surprise | Visa Inc. Quote Visa Valuation: A Bit Rich? From a valuation perspective, Visa is trading higher than the industry. Going by its price/earnings (P/E) ratio, the company is trading at a forward earnings multiple of 29.67X, higher than its five-year median of 26.92X and the industry average of 23.38X. By comparison, Mastercard trades at 33.98X and American Express at 18.36X, placing Visa somewhere in the middle. Visa's Risks to Watch Visa's business faces challenges from rising expenses and potential regulatory hurdles that could impact its growth in the short term. Adjusted operating expenses jumped 10.8% and 9.2% in fiscal 2024 and the first half of fiscal 2025, respectively. Also, client incentives (a contra-revenue item) grew 11.9% and 14% year over year during those periods. Legal and regulatory challenges are also mounting. In the United States, the Department of Justice has accused Visa and Mastercard of leveraging their market dominance to impose high fees on merchants. The Credit Card Competition Act of 2023 could increase competition and cap fee structures, potentially weighing on future growth. In Europe, regulators are ramping up scrutiny as well. The European Commission and the U.K.'s Payment Systems Regulator are investigating the sharp rise in fees charged by Visa and Mastercard, which could result in new regulations or fee caps. Bottom Line: What Should Investors Do? Visa remains a fundamentally strong company with a wide moat, impressive cash flows, and long-term growth potential. As such, for existing shareholders, holding the stock makes sense. However, new investors may want to exercise caution. With shares trading near their 52-week high of $369.15 and valuation on the higher side, the short-term upside appears limited, especially amid regulatory uncertainty. Visa currently has a Zacks Rank #3 (Hold), signaling a neutral outlook. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report
Zawya
21-05-2025
- Business
- Zawya
Zoho and areeba announce $5mln strategic partnership to empower businesses across the Middle East
Collaboration to provide seamless digital transformation through an investment of USD 5 million in wallet credit for areeba customers to access Zoho's solutions Dubai, UAE – Zoho, a leading global technology company, and areeba, a leading payment processing service provider in the Middle East, today announced a strategic partnership agreement aimed at fast-tracking digital transformation of businesses across the region. The MoU was signed in a ceremony at Seamless Dubai 2025 by Prem Anand Velumani, Associate Director, Strategic Alliances, Zoho Middle East and Africa (MEA) and Maher Mikati, CEO, areeba. Through this collaboration, Zoho will invest up to USD 5 million worth of wallet credits to enable areeba's business customers across UAE, Qatar, Iraq, Jordan, Egypt and Lebanon to access Zoho's expansive suite of over 55 cloud-based applications. These tools offer businesses a unified, secure platform to streamline all their business functions such as invoicing, payments, customer engagement, and workforce management. By combining areeba's payment expertise with Zoho's robust digital ecosystem, the partnership empowers businesses with enterprise-grade technology that enhances efficiency, improves operations, and supports long-term growth. 'Through areeba's reach, we're bringing Zoho closer to the heart of business communities across the region. This collaboration breaks down barriers to technology and empowers more organisations to modernise with confidence. It's a powerful step in our mission to grow sustainably by staying locally rooted and globally connected, ' said Velumani. 'We are excited to partner with Zoho to bring added value to our customers by combining robust financial technology with world-class business software,' said Mikati. 'This partnership is a major step forward in our mission to empower businesses with innovative, localised solutions,' he added. Set to go live in the coming months, the partnership will provide joint onboarding support, educational webinars, and tailored packages for all business types. Zoho has experienced a notable surge in demand for its product suite in Middle East and Africa since 2020, making it one of the company's fastest-growing regions globally. Its top-selling products, including Zoho CRM, Zoho Desk, Zoho People, Zoho Books, and Zoho Creator, are available in multiple languages, such as Arabic and English. Additionally, these Zoho products support Right-to-Left (RTL) functionality and integrate with both global and local payment gateway solutions including Telr and Tap Payments. About zoho With 55+ apps in nearly every major business category, including sales, marketing, customer support, accounting and back-office operations, and an array of productivity and collaboration tools, Zoho Corporation is one of the world's most prolific technology companies. With 100 million users around the world, across hundreds of thousands of companies, rely on Zoho every day to run their businesses. Zoho respects user privacy and does not have an ad-revenue model in any part of its business, including its free products. The company is privately held and is headquartered in Chennai, India. Additional offices are in the United States, India, Japan, China, Canada, Singapore, Mexico, Australia, the Netherlands, Brazil, Saudi Arabia, and the United Arab Emirates. For more information, please visit About areeba areeba is a global leader in payment infrastructure, empowering banks, non-banks, and fintechs with innovative, scalable, and secure payment solutions. Its comprehensive platform simplifies how individuals and businesses make and accept payments, offering seamless services across the entire payment value chain. A fully integrated ecosystem ensures flexibility and agility in a rapidly changing market, delivering accessible and efficient payment options to individuals, SMEs, and enterprises. Trusted by industry leaders, areeba's technology adapts to any geography, keeping businesses at the forefront of the digital payments landscape.
Daily Mail
21-05-2025
- Business
- Daily Mail
Why a major change at US's biggest credit card provider could make it harder to use your plastic abroad
Capital One has acquired its rival Discover after final approval from regulators — but experts warn the merger could cause headaches for customers traveling abroad. The $35.3 billion takeover — which will create the US's biggest card issuer — was initially under scrutiny from the US Department of Justice over antitrust concerns. However, the DOJ said it would not challenge the deal, and both the Federal Reserve and the Office of the Comptroller of the Currency, a banking regulator, signed off on the merger. While the merger will be a major boost to Capital One's customer numbers it also gives the bank control of Discover's payment processing network — a rival to services offered by Visa, Mastercard and American Express. Payment processors serve as intermediaries between merchants and card issuers — and take a small cut of every purchase. Until now, Capital One has relied on Visa and MasterCard networks, which are widely accepted worldwide. One major drawback for consumers is that once Capital One cards shift to Discover's network — less common outside the US — travelers could face limited payment options, according to experts. 'In most cases in the US, Discover is more or less accepted everywhere that Visa, MasterCard, and American Express are,' Matt Schulz, chief credit analyst at LendingTree, told Fortune. 'Where you may run into more issues is with international travel because Discover may not be as widely accepted.' Although most Capital One cardholders will be moved over to the Discover network over time customers' cards and accounts remain the same as they were before the deal, a joint statement said on Monday. The firms reassured consumers that any future changes would be communicated to them clearly. 'Capital One intends to continue to offer Discover credit card products as Discover-branded cards alongside the other consumer cards currently offered by Capital One,' the statement added. Capital One CEO Richard Fairbank previously said he expected to move over 25 million Capital One cardholders and over $175 billion in Capital One purchase volume on to the Discover network by 2027. 'This injection and volume in the network will help Discover be competitive with the leading network.' Capital One is the nation's ninth-largest bank by total assets, with 259 physical branch locations, 55 'Capital One Cafes' across the country and a major online banking operation. Discover Financial, meanwhile, is a mostly online bank with a single physical branch in Delaware. If the merger goes through, Capital One would be the largest card issuer in the country based on outstanding credit card loans, becoming even larger than JPMorgan Chase Another key element of the merger is how it could affect competition within the payments network space. There is a possibility the merger reduces competition among issuers, and progressive Democratic lawmakers have long fought against bank consolidation, arguing it increases systemic risk and hurts consumers by reducing lending. New research from the Consumer Financial Protection Bureau (CFPB) found that larger credit card issuers charged higher interest rates and annual fees than smaller banks, due to a lack of competition. 'Anytime there's more consolidation and less competition, there's always the possibility for rates and fees to increase, but I don't see it being a huge issue,' Schulz said. He argues, however, that the deal could in fact make the payment processing space more competitive, challenging the dominance of MasterCard and Visa. This could lead to better rewards on credit cards for consumers as issuers compete for customers. 'One thing that will be interesting to watch is how the credit card rewards programs are blended together,' Schulz added. 'Capital One will have to decide how they handle Discover miles and if they keep those two rewards programs separate or if they bring them together, and that decision will impact consumers.'
National Post
14-05-2025
- Business
- National Post
BlocPal and Mobilum Announce Strategic Partnership to Expand Global Payment and Digital Asset Capabilities
Article content Integration Enhances Crypto Onramp/Offramp, Payment Processing, and Compliance Infrastructure, Preparing BlocPal for Upcoming Launch of Tokenized Assets and BlocPalX Exchange Article content Article content VANCOUVER, British Columbia — BlocPal, a leading digital wealth and banking ecosystem provider, and Mobilum, an innovative payment infrastructure and compliance solutions company, today announced a strategic partnership to integrate Mobilum's global payment processing and compliance solutions into BlocPal's ecosystem. This collaboration will significantly enhance BlocPal's capabilities in facilitating seamless crypto transactions, robust payment processing across global banking rails, Visa and Mastercard networks, and regulatory compliance across Europe and North America. Article content The integration is an essential step in BlocPal's strategy to provide comprehensive, compliant, and user-friendly decentralized financial (DeFi) services, promoting financial inclusion and paving the way for the imminent rollout of its innovative tokenized asset offerings and decentralized BlocPalX Exchange. Article content Nick Mellios, CEO of BlocPal, emphasized the strategic value of the collaboration: 'Integrating Mobilum's sophisticated payment and compliance infrastructure enables BlocPal to deliver superior financial services globally, streamlining fiat and crypto transactions. This foundational partnership also strengthens our readiness for the upcoming launch of our tokenized assets and BlocPalX Exchange where robust compliance and frictionless payment solutions are key.' Article content Wojtek Kaszycki, Founder and Chairman of Mobilum, highlighted the synergy between both companies: 'BlocPal's innovative approach to blending traditional financial channels with decentralized financial services aligns perfectly with Mobilum's vision for secure, compliant, and efficient payment solutions. This partnership extends Mobilum's reach and demonstrates our joint commitment to innovation in digital assets.' Article content Together, BlocPal and Mobilum are uniquely positioned to transform how consumers and businesses worldwide interact with digital payments, cryptocurrencies, and soon, tokenized investments, setting a new standard for secure and accessible financial services. Article content BlocPal is soon launching its decentralized BlocPalX Exchange, an advanced digital asset trading platform specifically designed to promote BlocPal's proven B2B2C distribution strategy. With a Binance-compatible API architecture, BlocPalX Exchange ensures effortless integration for advanced traders, market-makers, DeFi wallets, regulated exchanges, marketplaces, and B2B payment networks. This seamless integration enables partners to quickly adopt the platform, enhance their trading capabilities, and participate in BlocPal's incentive program. BlocPal's sophisticated tokenization framework will introduce a variety of RWAs (real-world assets), across leading blockchain networks such as Ethereum and Solana, providing compliant, secure, and scalable digital investment opportunities for a broad range of investors. Article content About BlocPal Article content BlocPal is building a next-generation digital wealth and banking ecosystem that empowers customers to easily access financial services and grow their assets. Utilizing advanced technologies including AI, cloud computing, and blockchain, BlocPal delivers integrated traditional (TradFi) and decentralized financial (DeFi) solutions through innovative Business-to-Business-to-Consumer (B2B2C) channels. With over $25 billion in transactions processed, BlocPal's collaborative and scalable model ensures rapid global adoption and robust growth. Visit Article content Mobilum provides comprehensive payment infrastructure and regulatory compliance solutions designed for digital asset platforms and fintech companies worldwide. Offering seamless integration across bank-to-bank payment rails, Visa/Mastercard networks, and compliant crypto onramp/offramp services, Mobilum ensures secure, efficient, and compliant financial transactions across Europe and North America. Visit Article content This press release is for informational purposes only and is not an offer or solicitation to buy or sell securities or investment interests. Certain statements in this press release constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities laws. Forward-looking statements are based upon assumptions considered reasonable by BlocPal and Mobilum as of the date of such statements, but are inherently subject to significant business, economic, and competitive uncertainties and contingencies. These statements can be identified by words such as 'may', 'would', 'could', 'will', 'intend', 'expect', 'believe', 'plan', 'anticipate', 'estimate', 'forecast', 'predict', and similar terminology, or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' occur or be achieved. These statements reflect BlocPal and Mobilum's current expectations regarding future events and speak only as of the date specified in such statements, and are expressly qualified by this cautionary statement. BlocPal and Mobilum disclaim any obligation to update or revise any forward-looking statements, except as required by applicable law. Article content Article content Article content Article content Article content
Finextra
07-05-2025
- Business
- Finextra
dLocal and PayPal to expand access to local payments across emerging markets
dLocal (NASDAQ: DLO), a leading cross-border payment platform for emerging markets, announces today an expanded relationship with PayPal to offer businesses access to payment processing and local payment methods in more than 40 new untapped emerging markets. 0 By leveraging dLocal's platform, global customers of PayPal Enterprise Payments, previously known as Braintree, can now easily accept cards and process local and alternative payment methods across Latin America, EMEA, and APAC markets without needing to establish local entities. dLocal's platform will handle both B2B and B2C payment flows, making it easy for businesses to connect with local customers and suppliers. As a result, merchants will gain access to a number of potential benefits including: • Access to new, global customers: Integration will provide businesses with quick access to new global customers without having to establish a local entity or pay cross-border fees. • Lessen tech debt and complexity: Businesses looking to process in these new markets can leverage their existing PayPal Braintree's integration - and their stored cards - to process locally with minimal engineering and integration resources required. Making complex and global, simple and local. • Increased authorization rates: By enabling local processing, businesses can increase the number of transactions approved because domestic cards are more likely to be accepted by local acquirers. • One source of truth: Businesses will have access to one single platform to manage local and international payments. 'Partnering with industry leaders like PayPal reflects dLocal's commitment to helping global businesses succeed in high-potential, emerging markets,' said John O'Brien, CRO at dLocal. 'We are proud to integrate with PayPal's Enterprise Payments solution, enabling their customers to tap into the full potential of these markets and access to over 40 untapped countries. Together, we are solving the challenges of moving money across borders and unlocking new opportunities for global growth.'
