Visa Inc. V recently enhanced its transaction data service for Amazon Business customers. Visa is the first card network to provide a comprehensive view of Amazon Business purchases made by U.S. commercial accountholders using Visa commercial cards.
Visa constantly undertakes digital initiatives to accelerate growth. In order to keep pace with the shift from paper-based payment to electronic modes of payment, the company launches innovative products and services. Such efforts also help it to remain competitive in the market and keep up with other transaction service providers like MasterCard Inc. MA, American Express Company AXP, Discover Financial Services DFS.
Visa’s efforts to innovate seem to have found favor with investors. This is evidence by the company’s impressive share price chart. Year to date, the stock has gained 14%, outpacing the Zacks categorized Financial Transaction Services industry’s increase of only 7%. We expect Visa’s product upgrades to further drive growth.
The latest service expansion will help to track and reconcile details of online purchases made with commercial cards, facilitating an otherwise complicated and time-consuming task. This new service aims to simplify the whole process in the most innovative manner. The partnership between Visa and Amazon Business and their bank partners should enable commercial accountholders in the U.S. keep track of their purchases better and in a more organized way.
Under the terms of the alliance, Amazon Business would allow registered businesses and commercial accountholders registered with Visa to easily make business purchases. Visa card users will be able to search, compare and buy products from a variety of suppliers, including business-only selections and pricings. The buyers will also be able to avail a free two-day shipping on orders of $49 or more. Furthermore, Amazon Business would enable Visa members to track multiple shipments and purchases made on one account to ensure hassle free deals with multiple suppliers and better record of the invoices. Visa users can also access full line-item detail on Amazon Business purchases for better visibility and analytics. More importantly, customized account-management tools will help in setting up multi-user accounts and spending limits.
The aforesaid service will initially be available to Bank of America Merrill Lynch, Citi and PNC Bank, N.A. While Bank of America Merrill Lynch expects to receive more valuable service from this partnership, Citi Bank anticipates better audit, reporting and purchasing control on Business-to-Business transactions. PNC, on the other hand, is optimistic about a more efficient processing and a better understanding of purchasing activity of customers.
Visa presently has Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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