Visa Expands Paysend Alliance for 5 Years: Here's Why

Investing

Published: September 15, 2023 11:05 pm

Last Updated: September 18, 2023 12:10 pm

Visa Inc. V recently expanded its partnership with U.K. Fin-Tech innovator, Paysend. The move is expected to help Paysend’s clients globally to send payments to eligible Visa cards in real-time across 170 countries and territories, which will make end-to-end money movement faster.

Visa’s real-time money movement network, Visa Direct, will likely be utilized to improve international money transfers, thanks to the new five-year collaboration. This builds on the companies’ initial partnership of February 2022 that provides services to Paysend’s U.S. and U.K. customers.

The latest deal is also expected to enhance the existing relationship between Visa Cross-Border Solutions’ part Currencycloud and Paysend. The collaborations are expected to enable Paysend to help countries with legacy banking infrastructures utilize card networks as an alternative to traditional money transfer channels. This will likely boost service speed and reduce costs while increasing efficiency levels and transparency.

The collaboration is expected to be a game changer in the remittance service space. The companies are expected to engage in joint marketing efforts, which will accelerate the growth of seamless payments to Visa cards in vital corridors, which incorporate the USA-Latin America corridor. The joint marketing initiative expands on Paysend’s collaboration with Televisa-Univision.

The latest deal will likely help Visa boost its transaction volumes. It is in line with the company’s strategy of forging partnerships to expand its network, which helps the company maintain its leading position in the payment network space. It leverages numerous crucial products like Visa Direct to expand its global footprint.

Price Performance

Shares of Visa have gained 23.6% in the past year compared with the industry’s 15.9% jump.

Zacks Rank & Key Picks

Visa currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services sector are Paysafe Limited PSFE, PagSeguro Digital Ltd. PAGS and FirstCash Holdings, Inc. FCFS. While Paysafe currently sports a Zacks Rank #1 (Strong Buy), PagSeguro and FirstCash carry a Zacks Rank #2 (Buy) each at present.

The Zacks Consensus Estimate for Paysafe’s current year bottom line suggests 5.8% year-over-year growth. Headquartered in London, PSFE beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 154%.

The Zacks Consensus Estimate for PagSeguro’s current year bottom line suggests 13% year-over-year growth. Based in Sao Paulo, Brazil, PAGS beat earnings estimates in all the past four quarters, with an average surprise of 9.3%.

The Zacks Consensus Estimate for FirstCash’s current year earnings indicates a 6.7% year-over-year increase. Fort Worth, TX-based FCFS beat earnings estimates in all the past four quarters, with an average surprise of 7.3%.
Visa Inc. (V): Free Stock Analysis Report

FirstCash Holdings, Inc. (FCFS): Free Stock Analysis Report

PagSeguro Digital Ltd. (PAGS): Free Stock Analysis Report

Paysafe Limited (PSFE): Free Stock Analysis Report

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