J.P. Morgan and Visa have teamed to offer faster domestic payments via Visa Direct.The collaboration, announced Monday (May 6) is designed to improve merchant experiences and empower cardholders for customers of J.P. Morgan Payments.“With Visa Direct’s extensive reach in the U.S., J.P. Morgan Payments will empower merchants, businesses and FinTechs to embed faster domestic payments into their solutions,” the companies said in a news release provided to PYMNTS.This includes its Push to Card payment rail, whi ...

Core Insights - Wex (WEX) is currently positioned as a more attractive investment compared to Visa (V) based on earnings outlook and valuation metrics [1][3] Valuation Metrics - WEX has a forward P/E ratio of 12.87, significantly lower than Visa's forward P/E of 26.92, indicating WEX may be undervalued [2] - The PEG ratio for WEX is 1.04, while Visa's PEG ratio stands at 1.83, suggesting WEX has a better balance between price and expected earnings growth [2] - WEX's P/B ratio is 4.94 compared to Visa's P/B of 12.63, further highlighting WEX's relative valuation advantage [2] Earnings Outlook - WEX holds a Zacks Rank of 2 (Buy), indicating a stronger improvement in earnings outlook compared to Visa, which has a Zacks Rank of 3 (Hold) [1][3] - The solid earnings outlook for WEX contributes to its superior value grade of A, while Visa has a value grade of C [3]

Learn how Visa makes its money -- and why it's such a solid investment.Some things in life are underrated: Mint chocolate chip ice cream, for example. Sure, regular old chocolate is great, but give me the choice and I'll take the light green ice cream every time.Stocks are no different. Nvidia, Microsoft, and Tesla garner plenty of attention, but there are other stocks out there -- stocks that often outperform the biggest names.Today I want to give one of those stocks its due: Visa (V -0.48%). Let's have a ...

Visa's competitive advantage should keep it in a leadership position for quite some time.Warren Buffett is one of the most accomplished investors in modern history, with a net worth of over $130 billion. Buffett and his partners have made Berkshire Hathaway a symbol of investing success and one of the top companies in the world.Berkshire Hathaway's stock portfolio consists of over 50 stocks covering many sectors. However, one of the companies that I'm all in on is Visa (V -0.80%). Visa accounts for less tha ...

Visa has a solid history of rewarding investors with dividend increases, but that doesn't mean it will be a good fit for all income portfolios.If you're a dividend investor, it makes logical sense to focus on companies with strong dividend-paying histories. After you've created a list of businesses with good dividend track records -- say, 10 or more years of annual payout increases -- you can start to examine each stock to see if it suits your portfolio. And that's when the question of whether Visa (V -0.23 ...

Might a 2.4 PEG ratio be too much to pay for Visa stock?Shares of credit card giant Visa (V 0.91%) jumped more than 3% in early trading this morning after reporting (apparently) stronger than expected fiscal Q2 2024 earnings -- and much better than expected revenue.Heading into the quarter, analysts forecast Visa would earn $2.29 per share on $8.1 billion in revenue. In fact, Visa earned $2.51 per share on $8.8 billion in sales. Investors' enthusiasm for the news is, however, moderating as the day wears on. ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Visa Inc. (V) reported strong second-quarter fiscal 2024 results, which benefited from expanding payments volume, cross-border volume and processed transactions.Despite challenges, such as a high interest rate environment, more than average inflation level and concerns about the economic slowdown, resilient consumer spending and strong e-commerce trends supported Visa's performance. However, higher operating expenses and client incentives partially tempered the upside.Its earnings per share (EPS) of $2.51 o ...

Visa is seeing continued momentum in Tap to Pay and digital credential issuance, as consumers continue to spend on their debit and credit cards.CEO Ryan McInerney said on the call that overall payments volume in the second fiscal quarter was up 8% year over year (YoY), while U.S. payments volume was 6% higher YoY. International payment volume grew 11%, while cross-order volume was 16% higher YoY. Processed transactions grew 11%.The consumer payments opportunity is “enormous,” said the CEO, with an estimated ...

Financial Data and Key Metrics - Net revenue for Q2 2024 was $8.8 billion, up 10% YoY, with GAAP EPS up 12% and non-GAAP EPS up 20% [6] - Global payments volume grew 8% YoY in constant dollars, with US payments volume up 6% and international payments volume up 11% [6] - Cross-border volume excluding Intra-Europe rose 16% YoY, and processed transactions grew 11% [6] - Value-added services revenue grew 23% in constant dollars to $2.1 billion, driven by issuing and acceptance solutions and advisory services [31] Business Line Performance - Consumer payments growth was driven by stable payments volume, process transactions, and cross-border volume [31] - New flows revenue improved to 14% YoY growth in constant dollars, with Visa Direct transactions growing 31% YoY [31] - Tap-to-pay grew to 79% of face-to-face transactions globally, excluding the US, up five percentage points YoY [13] - E-commerce payments volume in the US grew several points faster YoY than face-to-face spend, with similar trends in Canada, Brazil, Australia, and India [14] Market Performance - US payments volume grew 6% YoY, with credit and debit both up 6% [26] - International payments volume grew 11% in constant dollars, with strong growth in Latin America, CEMEA, and Europe ex-UK, each growing more than 19% [27] - Cross-border travel volume was up 17% YoY, with strong recovery in LAC, Europe, and CEMEA, but slower recovery in Asia-Pacific [28] Company Strategy and Industry Competition - The company is focused on digitizing cash and check, enhancing e-commerce capabilities, and building new solutions for its network of networks [24] - Visa is expanding its presence in open banking through Tink, with recent agreements in the US including Capital One, Fiserv, and Jack Henry [19] - The company is leveraging its Visa Direct platform to enable faster push payments, with agreements like Thunes expanding its reach to 108 countries [16] Management Commentary on Operating Environment and Future Outlook - The company expects adjusted net revenue growth in the low-double-digits for the full year, with total payments volume growth adjusted to high-single-digits due to trends in Asia [34] - Management remains optimistic about the growth opportunities in consumer payments, new flows, and value-added services, despite macroeconomic challenges [24] - The company has agreed to a landmark settlement with US merchants, lowering credit interchange rates and capping them until 2030, providing clarity and stability to the market [23] Other Important Information - The company has commenced an exchange offer for Visa's Class B1 common stock, set to expire at the end of the following week [22] - Visa has over 9.5 billion tokens globally, with 1 billion tokens in Asia-Pacific, enhancing security and authorization rates in e-commerce [15] Q&A Session Summary Question: Impact of Easter on Q2 trends and tax refund timing [37] - Answer: Easter timing affected April volumes, but growth rates adjusted for the holiday are not meaningful. Tax refund timing has been consistent year-to-date [38] Question: Sizing of faster-growing cross-border segments like remittances and marketplace payouts [39] - Answer: The company does not provide specific breakouts but notes strong e-commerce growth and positive yields across cross-border business [40] Question: US debit trends and guidance for Q3 and full year [41] - Answer: US debit and credit volumes remain stable, with no significant changes in consumer behavior or Reg II impacts [42] Question: Recovery in new flows growth and key drivers [43] - Answer: New flows revenue grew 14% YoY, driven by Visa Direct transactions (up 31%) and stable commercial volumes (up 8%) [44] Question: Incentives and ticket size trends in the US and globally [46] - Answer: Incentive growth is expected to slow in H2, with Q4 being the lowest growth quarter. US ticket sizes are expected to turn positive in H2, while global ATS will remain slightly negative due to Asia [47] Question: Uptick in value-added services growth [48] - Answer: Growth in value-added services is driven by deepening product penetration with existing clients, new product launches, and geographic expansion [50] Question: Open banking opportunity in the US vs Europe [52] - Answer: The US market is less developed than Europe, but Visa is leveraging its Tink platform to expand open banking solutions in the US [53] Question: Visa Deep Authorization and its impact on e-commerce [55] - Answer: Visa Deep Authorization is a transaction risk scoring solution tailored for the US e-commerce market, aimed at reducing fraud and improving authorization rates [57] Question: Middle East deal activity and growth opportunities [59] - Answer: The company is seeing strong execution in the Middle East, with recent deals like Emirates Skywards and Qatar Airways co-brand cards [60] Question: Impact of US merchant settlement on Visa and issuing banks [61] - Answer: The settlement provides clarity and stability, with reduced interchange rates and no increases for five years, allowing the market to focus on growth [62] Question: Evolution of value-added services penetration and pricing [65] - Answer: The company is focused on deepening penetration of value-added services with existing clients, with pricing models varying by product and market [66] Question: Strategies for taking share from domestic card networks [67] - Answer: The company focuses on demonstrating the value of Visa cards over domestic schemes, particularly in e-commerce, cross-border travel, and fraud prevention [68] Question: Prosa's performance and opportunities in Mexico [71] - Answer: Prosa is a strong asset in Mexico, and Visa is leveraging its capabilities to bring value-added services to the market, with significant growth potential [72] Question: Cross-border revenue and volume trends, including FX volatility [74] - Answer: Cross-border revenue growth is impacted by low FX volatility, but the underlying business remains strong, with expectations for mid-teens growth in H2 [75] Question: Expectations for new flows, VAS revenue, and cross-border travel in H2 [77] - Answer: New flows and VAS revenue are expected to grow strongly in H2, with cross-border travel volumes moderated due to slower recovery in Asia-Pacific [78] Question: Service yields and client incentives trends [80] - Answer: Service yields remained stable in Q2, with client incentives lower than expected due to deal timing and performance [81] Question: Quantifying ACH vs domestic network conversion opportunities [84] - Answer: The company is seeing success in converting ACH and domestic network transactions, with significant opportunities in all three areas (cash/check, ACH, domestic networks) [85]