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Why Visa Is Expected to Show Positive Momentum

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e-Commerce and Visa

Visa (V), a giant in the payments industry, has reached an inflection point, according to Vasant Prabhu, the company’s CFO (chief financial officer). Management believes that e-commerce is growing at a rapid pace compared to face-to-face transactions.

The company also believes that opportunities still prevail in regard to digitizing payments, which could benefit the company in the long term. A high estimate and low estimate for Visa’s fiscal 1Q18 revenues by Wall Street analysts are $5.3 billion and $4.7 billion, respectively. The average estimate is $4.8 billion.

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Lower cost of acceptance

On the back of QR (quick response) code-based payments, the cost of acceptance has reached almost zero. It’s also an easy way for customers to make payments and for merchants to accept them. Another positive point regarding the QR code is that even small merchants can install this technology, and smaller transactions can be executed.

Amid all these developments going on in the digital world, Visa is targeting to make payments easier for customers and merchants. Its performance in fiscal 2017 could make investors optimistic about its performance moving forward. Visa works in an environment that is changing toward digitization at a very rapid pace, and the company has indicated that it is all set to adopt this change.

Visa’s market capitalization is $258.3 billion. Its peers (XLF) Total System Services (TSS), Fiserv (FISV), and Vantiv (VNTV) have market capitalizations of $14.5 billion, $27.4 billion, and $13.1 billion, respectively.

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