"So far 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 announced a $30 billion share buyback plan. Fiscal fourth-quarter results exceeded Wall Street estimates, showing that consumer spending remains resilient. All this has helped buoy the stock despite economic uncertainty."
"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 rolled out multiple initiatives this year, including a scam disruption program, rapid Tap to Phone adoption, an AI commerce strategy, and expanded digital-currency capabilities. The company announced a $30 billion share buyback and reported fiscal fourth-quarter results that beat Wall Street estimates, indicating resilient consumer spending. The share price reached an all-time high above $375 in June but is now 1.5% lower than six months ago and has underperformed the S&P 500. Since the IPO, the stock has risen about 2,080%, with roughly half of that gain occurring in the past five years. Visa links about 100 million merchants and 15,000 banks and issues over 4.5 billion cards, giving it a wide competitive moat. Bipartisan congressional scrutiny threatens the credit-card duopoly and could increase competition and reduce fees.
Read at 24/7 Wall St.
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