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Visa Expands Virtual Card Capabilities With Extend Partnership

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Visa Inc. (V - Free Report) recently entered into a referral agreement with Extend in a bid to strengthen its virtual card offerings. This collaboration is poised to deliver substantial benefits to V and its network of issuing banks, particularly in the rapidly growing middle-market segment.

The demand for more secure, flexible and efficient B2B payment solutions continues to rise. With virtual card spending projected to soar from $3.1 trillion in 2023 to nearly $14 trillion by 2028, Visa’s partnership with Extend positions it at the forefront of this transformation. By leveraging Extend’s user-friendly web and mobile applications, V will enable its issuing banks to offer powerful spend management tools to businesses without requiring them to switch banks or card providers.

This move aligns with Visa’s mission to modernize B2B payments, providing companies with the same level of control and security that consumers enjoy. Through Extend’s platform, V cardholders can pay via unique virtual cards to vendors, manage employee spending more efficiently, automate bill-back reconciliation and enhance fraud prevention measures.

The partnership is expected to drive increased adoption of Visa’s virtual card solutions, enhance customer retention for Visa-issuing banks and generate additional transaction volume. By simplifying B2B payments while enhancing security and control, the company is further cementing its leadership in the digital payments ecosystem, ensuring its solutions remain indispensable for businesses navigating an increasingly cashless world.

Moves like these should aid Visa to achieve its fiscal 2025 revenue growth outlook of low double-digits on an adjusted constant-dollar basis. V expects earnings per share will witness growth in the low teens in fiscal 2025.

Shares of Visa have gained 23.4% in the past year compared with the industry’s 18% growth.

Zacks Investment Research
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Visa’s Zacks Rank & Key Picks

Visa currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Business Services space are Remitly Global, Inc. (RELY - Free Report) , PAR Technology Corporation (PAR - Free Report) and Huron Consulting Group Inc. (HURN - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Remitly Global’s current-year earnings indicates a 110.5% improvement from the year-ago level. RELY beat earnings estimates in each of the trailing four quarters, with the average surprise being 58.8%. The consensus estimate for current-year revenues is pegged at $1.57 billion, implying 24% year-over-year growth.

The consensus estimate for PAR Technology’s current-year earnings indicates a 115.1% year-over-year improvement. PAR beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 18.6%. The consensus estimate for current-year revenues implies a 16.9% year-over-year increase.

Huron Consulting’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 21.54%. The Zacks Consensus Estimate for HURN’s 2025 earnings indicates an improvement of 10.5% from the 2024 figure. The consensus mark for revenues implies growth of 8.9% from the 2024 figure. The consensus mark for HURN’s earnings has moved 3.5% north in the past 30 days.


 

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