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What Strategic Actions Visa Is Taking for Future Growth

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E-commerce

Visa (V) is thriving in the e-commerce space. Its growth continues to be in the mid-teens compared to single-digit growth in the physical world.

The company saw 25% of spending occur through online transactions in November and December 2015. It’s investing more resources in technology upgrades to cater to increased spending through online transactions.

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China

Visa signed two memorandums of understanding, including a joint operation with two Chinese groups, on driving financial inclusion as a means to support poverty alleviation in China. Visa is collaborating with government institutions, industry organizations, and non-governmental organizations to support the global goals of alleviating poverty, promoting transparency, and fostering inclusive social and economic development in the country.

US partnerships

In the United States, Visa has expanded its relationship with Fidelity and U.S. Bank. The company is now the exclusive payment network for the companies’ co-brand cards. Card members can earn cash back with the Fidelity Rewards Visa Signature Card and the Fidelity Investments 529 College Rewards Visa Signature Card. The new cards in the program will be issued with chip technology for security and give access to the payment industry’s leading digital wallets, including Apple Pay, Samsung Pay, and Android Pay.

Visa and Walmart (WMT) have announced an acceptance agreement with Sam’s Club. According to the agreement, more than 650 Sam’s Clubs across the United States and Puerto Rico will begin accepting Visa credit cards in-store. Walmart.com and SamsClub.com will also begin supporting Visa Checkout this year.

Among Visa’s competitors, American Express (AXP) and Mastercard (MA) are vying for more partnerships in order to achieve higher revenues and visibility. Together, these companies account for 2.0% of the SPDR Dow Jones Industrial Average ETF (DIA).

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