European integration, Visa Direct, and contactless payments
At the J.P. Morgan Global Technology, Media and Communications Conference, Visa (V) shared positive views on its European integration, which it stated has been proceeding rapidly. The company has also been focusing on its push payment facility, Visa Direct. Visa’s payment volume rose substantially YoY (year-over-year) in fiscal Q2 2018, by 11% on a constant-dollar basis, which could boost its service revenue in fiscal Q3 2018.
Visa also has a favorable outlook on contactless payments, which have risen thanks to increased government support and technology companies ensuring these types of transactions are safe and secure. People now prefer to make payments digitally rather than using cash.
Globally, Visa’s contactless payments have grown globally, like those of peers (XLF) Mastercard (MA), Discover Financial Services (DFS), and American Express (AXP). The company aims to focus on US markets, where growth opportunities exist as certain transactions are still made using cash.