Visa (V) & Amazon Offer Flexible Payments for Canadian Consumers

Core Insights - Visa Inc. has partnered with Amazon to introduce a buy now, pay later (BNPL) option for Canadian consumers, allowing payments in installments using credit cards from Royal Bank of Canada and Scotiabank [1][2] - The service aims to address the increasing consumer demand for flexible payment options, with 58% of Canadians expressing interest in installment payments [1] - It is projected that by next year, nearly 25% of all global e-commerce transactions will utilize installment payment methods [1] Company Strategy - The partnership with Amazon enables Visa to leverage a large online retail platform, facilitating immediate adoption of the new service [2] - Visa's integration of the BNPL service with existing credit cards offers a seamless and secure experience, differentiating it from standalone BNPL solutions [2] - The success of this initiative in Canada may lead to expansion opportunities in other regions, supported by Visa's presence in over 200 countries [2] Market Performance - Visa's shares have increased by 16.9% over the past year, outperforming the industry average increase of 15.7% [3] Zacks Rank - Visa currently holds a Zacks Rank of 3 (Hold) [4] Competitor Analysis - Other companies in the Business Services sector with better rankings include Envestnet, Inc. (Zacks Rank 2), Paysafe Limited (Zacks Rank 2), and Fiserv, Inc. (Zacks Rank 2) [5][6] - Envestnet's 2024 earnings estimate is $2.62 per share, reflecting a 23.6% year-over-year growth [5] - Paysafe's current-year earnings estimate is $2.47 per share, indicating a 6% year-over-year growth [6] - Fiserv's 2024 earnings estimate is $8.69 per share, suggesting a 15.6% year-over-year growth [6]