Group 1 - Visa has expanded its board of directors from 11 to 12 members by appointing Pinterest CEO Bill Ready as an independent director effective September 29 [7] - Bill Ready brings extensive experience in the payments industry, having held significant positions at Google, PayPal, and Braintree, which includes expertise in digital payments [4][5] - The expansion of the board is part of Visa's strategy to adapt to the rapidly evolving payments landscape, which includes digital wallets, cryptocurrencies, and AI-driven shopping [6] Group 2 - Visa's CEO Ryan McInerney highlighted Ready's transformative leadership in digital payments and emphasized the value of his vision and expertise for Visa's future [7]

Market Overview - International equities showed mixed results in Q3 2025, with the MSCI EAFE Index rising 4.8%, driven by Asian markets and Canada, while Europe Ex U.K. underperformed [3] - The MSCI Emerging Markets Index advanced 10.6%, supported by a 20.7% rally in China, which constitutes 30% of that benchmark [3] - European markets experienced a slowdown in momentum due to inflation remaining above the European Central Bank's target, with a September reading of 2.2% [4] Economic Conditions - Japan's GDP grew modestly in Q2, aided by tourism, while manufacturing activity remained restrained [5] - The People's Bank of China cut key lending rates in July to address weaknesses in the real estate sector and sluggish consumer demand, with Q2 GDP growth at 5.2% year over year [5] Investment Strategy - The MSCI EAFE Value Index outperformed the MSCI EAFE Growth Index by over 500 basis points in Q3, with value stocks leading growth by more than 1,300 basis points year to date [6] - The ClearBridge International Growth Strategy maintained pace with its core MSCI EAFE benchmark, with sector positioning in IT and financials creating headwinds [12] Company Performance - London Stock Exchange faced a decline due to AI concerns impacting its desktop and data business, while Adyen's revenue missed expectations [13] - Banco Santander was acquired for its streamlined operations and cost-cutting measures, expected to improve profitability [14] - HSBC is well-positioned for growth in Asian wealth management, benefiting from inflows of mainland Chinese money [15] - KBC Group's strong capital position allows for capital distributions or acquisitions, with growing assets under management [16] Sector Contributions - Health care sector saw solid contributions, particularly from European biotechs Argenx and UCB, driven by strong sales and positive clinical trial results [20] - The strategy expanded into the Chinese biotechnology sector with the purchase of WuXi AppTec, known for efficient drug development [21] Portfolio Adjustments - The strategy added 10 positions while exiting 13, with significant purchases in financials and health care, including Prysmian, which is poised for growth in the power cables industry [22] - Softbank trades at a discount to its NAV, holding stakes in key technology companies [23] - Celestica is positioned for growth in AI infrastructure, with expected annual revenue growth of over 20% [24] Outlook - The regions of investment are making progress on growth and equity-friendly policies, with forecasts for double-digit EPS growth in the pan-European Stoxx 600 [27] - Emerging markets are outperforming developed markets, with a focus on China’s growth potential in AI and biotechnology [28][32]

Core Insights - Visa has initiated a pilot program through its Visa Direct platform to allow businesses to preload accounts with stablecoins for international transfers, aiming to enhance liquidity access and adaptability in global disbursements [1] - The initiative, launched at SIBOS 2025, seeks to modernize cross-border payment systems by reducing capital tied up in advance and enabling near-instant settlements, thereby improving remittance efficiency [2] - The stablecoin sector has experienced significant growth, with its market capitalization exceeding $300 billion, indicating increased adoption in financial operations [2] Visa's Pilot Program - Visa plans to expand participation in the pilot program in 2026, collaborating with qualified entities to refine the process [3] - Stablecoins, which are cryptocurrencies pegged to fiat currencies, are becoming mainstream and are reshaping global payments and finance [3] Market Projections - A report by Citigroup projects stablecoins could become a $1.9 trillion market by the end of the decade, revising earlier estimates upward [4] - The supply of stablecoins has increased from $200 billion at the beginning of 2025 to over $300 billion by September 2025, driven by crypto ecosystems, e-commerce, and demand for USD exposure [4] Brex's Initiative - Brex has announced the upcoming launch of native stablecoin payments, allowing customers to accept stablecoins with automatic conversion into USD [5] - This development positions Brex as a global corporate card provider facilitating instant balance payments with stablecoins [5]

Core Insights - MasterCard is a global leader in the payments industry, offering a variety of financial services and products, including credit, debit, and prepaid cards, as well as payment processing solutions [1] - The company competes with major players in the fintech space, such as Visa and Block [1] Stock Performance - As of the latest data, MasterCard's stock is priced at $580.45, with a recent change of $3.12, marking a 0.54% increase [3] - The stock's daily trading range was between $576.43 and $583.21, with a yearly high of $601.77 and a low of $465.59, indicating volatility [3] - Robert W. Baird has set a price target of $660 for MasterCard, suggesting a potential increase of about 13.7% from the current stock price [2][5] Market Capitalization and Trading Activity - MasterCard's market capitalization is approximately $520.82 billion, reflecting its significant presence in the financial sector [4][5] - The trading volume for the day was 1,857,598 shares, indicating active investor interest [4]

Core Insights - Mastercard is transforming from a traditional card network into a predictive intelligence powerhouse by leveraging AI and analytics to derive insights from transaction data [1][9] - The company is utilizing AI to analyze transaction data, detect anomalies, and predict consumer trends, enhancing fraud prevention and personalization [2][9] AI and Predictive Intelligence - Mastercard's AI systems process millions of data points daily to improve decision-making for merchants and financial institutions, marking a significant shift towards intelligent payments [2] - The company is integrating predictive models into risk management, credit evaluations, and digital identity systems to enhance global commerce's speed, safety, and adaptability [3][4] Competitive Landscape - Competitors like Visa and PayPal are also adopting AI to enhance their operations, with Visa focusing on fraud detection and tailored financial solutions, while PayPal improves security and personalization through real-time data analysis [5][6][7] Financial Performance - Year-to-date, Mastercard's shares have increased by 10.2%, contrasting with a 3.8% decline in the industry [8] - The Zacks Consensus Estimate predicts an 11.8% growth in Mastercard's earnings for 2025 compared to the previous year [11] Valuation Metrics - Mastercard trades at a forward price-to-earnings ratio of 31.6, which is above the industry average of 20.2, and holds a Value Score of D [13]

Group 1 - Shift4 Payments, Inc. is positioned as a software-led commerce platform with a market cap of $7.5 billion and is growing at approximately 30% annually [2] - The company aims to achieve around $1 billion in free cash flow by 2027, supported by operating leverage and a high-return-on-invested-capital model [2] - The stock is currently mispriced as investors view it as a hyper-competitive vertical payments processor, overlooking its unique value proposition [3][5] Group 2 - Shift4 processes payments for about one-third of U.S. sit-down restaurants, 40% of hotels, and nearly three-quarters of professional sports stadiums, highlighting its critical infrastructure role [4] - The company operates both front-end software for merchants and back-end payment processing, ensuring multiple monetization points across the value chain [4] - There is a strong alignment with the founder, who remains actively involved and has been purchasing shares in the open market [2][5] Group 3 - Investors may not fully recognize Shift4's evolution into a global commerce platform, which presents an attractive investment opportunity with significant rerating potential [5] - The stock price has depreciated approximately 2.8% since previous bullish coverage, but the underlying thesis remains valid, focusing on embedded infrastructure and free cash flow trajectory [6]

Core Insights - Remitee, an international direct-payments infrastructure provider, has raised $20 million in a funding round led by Krealo, with participation from several strategic and institutional investors [1] - The company aims to expand its services across all Latin American corridors and strengthen its presence in the US-Europe-LatAm triangle [1] Company Overview - Established in 2017, Remitee's operating system enables banks, fintech companies, and retailers to offer cross-border payment services [1] - The company currently serves over 40 institutions, including Santander, Banco Galicia, and MoneyGram [4] Market Opportunity - The embedded remittance infrastructure provider aims to grow its enterprise customer base tenfold by 2027 and will continue investing in its technology [2] - According to the Inter-American Development Bank, remittances to Latin America and the Caribbean exceeded $150 billion last year, driven by migrants sending money home [2] Service Features - Remitee's mission is to embed cross-border payments directly into trusted platforms, allowing customers instant access to international transfers without leaving their ecosystem [3] - The infrastructure supports various services, including direct payments for utilities, education, and healthcare [3] Performance Metrics - In 2024, Remitee recorded a fourfold increase in transaction volume year-on-year and achieved sustained profitability [4]

Group 1 - PayPal is focusing on expanding its omnichannel sales strategy by encouraging consumers to use its payment service for everyday purchases both online and in physical stores [3][7] - The company is enhancing its installment lending offerings, including a new push into physical retail environments, as part of its omnichannel strategy [4][7] - In 2022, PayPal reported approximately $33 billion in buy now, pay later (BNPL) payment volume, reflecting a 21% increase compared to 2021 [5] Group 2 - The BNPL service is still in its early stages for physical stores, but it is a key focus area for many players in the industry [5] - PayPal is targeting younger consumers who prefer debit cards and are focused on cash flow management, promoting BNPL as a tool for effective cash flow planning [6] - The company is offering a 5% cash credit on BNPL purchases through the end of the year to attract more shoppers and reduce cart abandonment during the holiday season [7]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Dive Brief: Former Fiserv Chief Executive Frank Bisignano, who left the payments processor earlier this year after President Donald Trump tapped him to lead the Social Security Administration, has been appointed as CEO of the Internal Revenue Service as well. Treasury Secretary Scott Bessent, who is acting commissioner for the IRS, announced Bisignano’s appoin ...

Group 1 - Payments giants are expanding into commerce media, with American Express and Mastercard launching competing ad networks within a week [3][6] - American Express reported that its offers segment generated $15 billion in spending last year, primarily from the U.S. market, providing a strong foundation for Amex Ads [4][6] - Early pilots by brands like Marriott and Tumi showed positive results, with Marriott achieving a 300% return on investment and Tumi generating a return on ad spend 30% higher than benchmarks [5][6] Group 2 - Amex Ads leverages first-party data from 34 million U.S. cardholders and includes measurement and brand-safety features [6] - The launch of these ad networks reflects the growing trend of commerce media, where companies utilize first-party customer data to enhance digital advertising monetization [6]