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Visa Favors Smartphone Technology, QR Code

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Mobile point of sale

Since e-commerce is making its space in the global economy, all the issues that were there in physical transactions are being eliminated. Lower cost could be considered the major driver for the increasing demand for e-commerce. Visa’s (V) partnership with Square (SQ) is being looked on positively.

In a conference call, Visa’s management highlighted Square’s contribution to the digital world. With mPOS (mobile point of sale), Square has shown that a smartphone can also be a mode for accepting payments. mPOS is helpful for smaller merchants since there are no installation costs.

The markets in which the demand for smartphones is higher are thus benefiting the most from mPOS with easier, hassle-free transactions.

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Quick response code

Emerging markets were facing hurdles in accepting payments since smaller merchants had no other option but to install devices that were expensive and time-consuming. With mVisa, its QR[1. quick response]-based payment service, merchants can accept payments in an easier, more efficient manner by scanning the QR code.

Visa also has plans to make a strong presence in the digital world with the help of governments. Digital transactions are gaining popularity due to lower cost and faster execution.

On an LTM (last 12-month) basis, Visa generated net income of $6.6 billion. Its peers (XLF) Vantiv (VNTV), Total System Services (TSS), and Fiserv (FISV) generated net income of $0.2 billion, $0.4 billion, and $0.9 billion, respectively.

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