Visa's Strong Performance in the Payments Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy V?
Source: Fool
- Market Scale: In Q3 2025, Visa processed a staggering $4.5 trillion in total payment volume, with 5 billion cards in circulation globally, highlighting its critical role and influence in global commerce.
- Revenue and Profitability: In fiscal 2025, Visa generated $9.7 billion in revenue from payment activities, and with its low marginal cost scalable platform, it achieved an average quarterly net profit margin of 47.6% over the past decade, showcasing exceptional profitability.
- Market Value and Returns: With a market capitalization nearing $600 billion, Visa's total return of 45% over the past five years lags behind the S&P 500; however, its current P/E ratio of 29.5 is close to the lowest valuation in five years, making it an attractive option for investors.
- Future Growth Expectations: Analysts project that Visa's adjusted earnings per share will grow at an annual rate of 43% from 2025 to 2028, and if the P/E ratio remains constant by 2031, Visa's stock price performance could align with its profit growth, indicating strong investment potential.
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Analyst Views on V
Wall Street analysts forecast V stock price to rise
25 Analyst Rating
23 Buy
2 Hold
0 Sell
Strong Buy
Current: 315.100
Low
330.00
Averages
406.59
High
450.00
Current: 315.100
Low
330.00
Averages
406.59
High
450.00
About V
Visa Inc. is a global payments technology company. It facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through technologies. It operates through the Payment Services segment. It provides transaction processing services (primarily authorization, clearing and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network. It offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid and cash access programs for individual, business and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions and advisory services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Netflix's Pricing Power: Despite a recent price hike, Netflix continues to see growth in paid subscribers and revenue, leveraging its strong pricing power and content strategy to maintain its leading position in a competitive streaming market.
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- Walmart's Price Advantage: Despite inflationary pressures, Walmart is expected to maintain its 'Everyday Low Price' guarantee, which should help sustain consistent store traffic and revenue growth, thereby enhancing its competitive edge in the retail market.
- Visa's Revenue Growth: Visa benefits from inflation as it charges fees per transaction, leading to increased revenue; although transaction volumes may decline, its vast addressable market and strong network effects will continue to support profitability.
- Netflix's Pricing Power: Netflix has successfully raised subscription prices while maintaining growth in paid subscribers and revenue, demonstrating its leadership in the streaming market and significant pricing power despite increasing competition.
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- Market Scale: In Q3 2025, Visa processed a staggering $4.5 trillion in total payment volume, with 5 billion cards in circulation globally, highlighting its critical role and influence in global commerce.
- Revenue and Profitability: In fiscal 2025, Visa generated $9.7 billion in revenue from payment activities, and with its low marginal cost scalable platform, it achieved an average quarterly net profit margin of 47.6% over the past decade, showcasing exceptional profitability.
- Market Value and Returns: With a market capitalization nearing $600 billion, Visa's total return of 45% over the past five years lags behind the S&P 500; however, its current P/E ratio of 29.5 is close to the lowest valuation in five years, making it an attractive option for investors.
- Future Growth Expectations: Analysts project that Visa's adjusted earnings per share will grow at an annual rate of 43% from 2025 to 2028, and if the P/E ratio remains constant by 2031, Visa's stock price performance could align with its profit growth, indicating strong investment potential.
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- Convenient Payment Experience: The service utilizes a token-based checkout experience, allowing consumers to complete future transactions quickly without entering card numbers at the point of purchase, thereby improving user experience and reducing cart abandonment rates.
- Sales Uplift Potential: According to European VisaNet data, Visa Click to Pay may lead to a 4.5% increase in merchant sales, potentially resulting in an annual increase of €51 billion in SMB eCommerce sales in the UK and EU, showcasing significant market potential.
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Marriott and Visa Launch Exclusive Ticket Access for World Cup
- Exclusive Ticket Launch: Marriott Bonvoy and Visa have unveiled exclusive ticket access for FIFA World Cup 2026™, offering over 600 experiences including fixed-price options and nearly 100 1-Point Drops, significantly enhancing member engagement and value.
- Star Endorsements: The campaign 'For Fans, Everywhere', featuring football icons Erling Haaland and Vinicius Júnior, aims to captivate global fans through rich content and social videos, thereby strengthening brand influence.
- Luxury Experience Sweepstakes: Marriott Bonvoy members and Visa cardholders can enter to win a unique 'Sleepover Suite' experience at New York New Jersey Stadium, providing an extraordinary overnight stay before the final match, enhancing the brand's luxury image and customer loyalty.
- Market Potential: With sports tourism accounting for 10% of global tourism spending and projected to reach $1.3 trillion by 2032, Marriott Bonvoy is well-positioned to meet the growing demand for experience-driven travel due to its strong market presence and member base.
See More
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- Walmart's Price Advantage: As one of the largest retailers globally, Walmart is expected to maintain its 'Everyday Low Price' promise despite inflationary pressures, which should help sustain consistent store traffic and revenue growth, leading to strong returns in the coming years.
- Visa's Profit Potential: Visa benefits from inflation as it charges fees on transactions, leading to higher revenue despite potential declines in transaction volume; its vast market potential and deep network effects provide a strong competitive edge during inflationary periods.
- Netflix's Pricing Power: Despite a recent price hike, Netflix continues to see growth in paid subscribers and revenue, leveraging its strong pricing power and content strategy to maintain its leading position in a competitive streaming market.
- Growth in Digital Commerce: Walmart's push into digital commerce is expected to boost revenue and reduce operating costs while enhancing its high-margin advertising business, highlighting its strategic importance in the retail industry's transformation.
See More
Investment Opportunities Amid Inflation
- Walmart's Price Advantage: Despite inflationary pressures, Walmart is expected to maintain its 'Everyday Low Price' guarantee, which should help sustain consistent store traffic and revenue growth, thereby enhancing its competitive edge in the retail market.
- Visa's Revenue Growth: Visa benefits from inflation as it charges fees per transaction, leading to increased revenue; although transaction volumes may decline, its vast addressable market and strong network effects will continue to support profitability.
- Netflix's Pricing Power: Netflix has successfully raised subscription prices while maintaining growth in paid subscribers and revenue, demonstrating its leadership in the streaming market and significant pricing power despite increasing competition.
- Long-Term Investment Potential: Walmart, Visa, and Netflix all exhibit strong long-term growth potential, particularly in an inflationary environment, making them attractive options for risk-averse investors seeking stable dividends and market performance.
See More
Visa's Strong Performance in the Payments Market
- Market Scale: In Q3 2025, Visa processed a staggering $4.5 trillion in total payment volume, with 5 billion cards in circulation globally, highlighting its critical role and influence in global commerce.
- Revenue and Profitability: In fiscal 2025, Visa generated $9.7 billion in revenue from payment activities, and with its low marginal cost scalable platform, it achieved an average quarterly net profit margin of 47.6% over the past decade, showcasing exceptional profitability.
- Market Value and Returns: With a market capitalization nearing $600 billion, Visa's total return of 45% over the past five years lags behind the S&P 500; however, its current P/E ratio of 29.5 is close to the lowest valuation in five years, making it an attractive option for investors.
- Future Growth Expectations: Analysts project that Visa's adjusted earnings per share will grow at an annual rate of 43% from 2025 to 2028, and if the P/E ratio remains constant by 2031, Visa's stock price performance could align with its profit growth, indicating strong investment potential.
See More
payabl. Launches Visa Click to Pay Service to Streamline Online Checkout
- Service Launch: payabl. has launched Visa Click to Pay across Europe, aimed at reducing checkout friction for online merchants, enhancing authorization rates, and speeding up the checkout process to meet the current demand for convenient payment solutions in eCommerce.
- Convenient Payment Experience: The service utilizes a token-based checkout experience, allowing consumers to complete future transactions quickly without entering card numbers at the point of purchase, thereby improving user experience and reducing cart abandonment rates.
- Sales Uplift Potential: According to European VisaNet data, Visa Click to Pay may lead to a 4.5% increase in merchant sales, potentially resulting in an annual increase of €51 billion in SMB eCommerce sales in the UK and EU, showcasing significant market potential.
- Enhanced Security: The service supports existing security flows, including 3D Secure where necessary, leveraging network tokenization technology to reduce fraud risk, thus providing a safer transaction environment for both merchants and consumers.
See More
SpaceX Plans 2026 IPO, Potentially Largest in History
- Massive IPO Potential: SpaceX is planning an IPO in 2026 with a target valuation of $1.75 trillion and a capital raise of $75 billion, which, if successful, would make it the largest IPO in history, surpassing Tesla and becoming the eighth-largest publicly traded company in the U.S.
- Strong Financial Performance: Last year, SpaceX generated up to $16 billion in revenue and $8 billion in profit, indicating its profitability has surpassed that of Tesla, thereby attracting investor interest in its future growth potential.
- Vast Market Opportunities: McKinsey estimates that the global space economy could reach $1.8 trillion by 2035, while PwC analysts predict that AI will create over $15 trillion in global economic value by 2030, highlighting SpaceX's strategic significance in these sectors.
- Historical Lessons Caution: Despite SpaceX's bright prospects, historical data shows that large IPOs typically lose an average of 10% of their value six months post-IPO; if SpaceX follows this trend, it could face a market value loss of up to $175 billion, necessitating careful risk assessment by investors.
See More
