Visa Renews ICBA Deal to Strengthen Its Hold on Community Banks

Core Insights - Visa Inc. has renewed its 40-year partnership with ICBA Payments to support U.S. community banks, enhancing their payment solutions and customer service [1][9] - The partnership will continue to feature Visa-backed card programs with advanced technologies and will expand access to Visa Direct for more flexible payments [2][9] - ICBA Payments has a strong track record, issuing 10 million cards and managing $913.4 million in balances, processing over $43 billion in card sales [3][4] Financial Implications - The partnership provides Visa with steady fee income from community bank card usage and access to underserved markets, enhancing its revenue potential [4][9] - Visa's shares have gained 10.7% over the past year, outperforming the industry and the Zacks S&P 500 Composite [7] - Visa trades at a forward price-to-earnings ratio of 28.1, above the industry average of 21.8, with a Zacks Consensus Estimate for fiscal 2025 earnings implying 12.9% growth year over year [11][12] Earnings Estimates - The Zacks Consensus Estimate for Visa's earnings for the current year is $11.35 per share, with a year-over-year growth estimate of 12.94% [13] - For the next year, the estimate is $12.77 per share, indicating a 12.49% increase [13]