"This year, Visa Inc. ( NYSE: V) has unveiled a scam disruption initiative, adoption of its "Tap to Phone" technology has soared, it unveiled its vision for artificial intelligence (AI) in commerce, and it expanded its capabilities in the digital currency space. The company also has launched a pilot program enabling businesses and platforms to send payouts directly to stablecoin wallets. All this has helped buoy the stock despite economic uncertainty."
"Why Invest in Visa? Despite the rapidly evolving landscape of the payments industry, Visa retains its preeminent dominance. The transaction processing behemoth was founded in 1958, but it did not go public until 50 years later when it issued 408 million shares at $44 each and raised $17.9 billion. It was the largest public offering in history at that time. Since then, Visa's dominance has only grown."
"Linking 100 million merchants and 15,000 banks worldwide, Visa possesses an extremely wide moat with over 4.5 billion cards issued. In comparison, rival Mastercard Inc. ( NYSE: MA) has some 3.4 billion cards in circulation. While its business has enjoyed exceptional growth and profitability over the decades, clouds are forming on the horizon. Congressional hearings found surprising bipartisan support for breaking the credit card duopoly, increasing industry competition, and reducing the cost of fees Visa and Mastercard impose."
Visa launched several initiatives this year, including a scam disruption program, broader Tap to Phone adoption, an AI commerce vision, and digital-currency expansions with a stablecoin payout pilot. These developments helped lift the share price to an all-time high above $375 in June before a 5.6% retreat, leaving the stock underperforming the S&P 500. Since the IPO, the stock has gained about 2,170%, with roughly half of that rise in the past five years. Visa connects 100 million merchants and 15,000 banks and issues over 4.5 billion cards, but regulatory and competitive pressures threaten the duopoly and fee structures.
Read at 24/7 Wall St.
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