Visa Inc. V recently introduced two new elements to its fintech Fast Track program, which was primarily launched to accelerate the usage of digital solutions across fintechs globally.
The program has been helping several fintech partners by providing access to Visa’s technology, network partners and necessary resources of online licensing and card design. This empowers the fintechs to devise enhanced solutions in close association with Visa for capitalizing on growth potential of digital wallets, digital banking, business-to-business (B2B) payments and cross-border remittance, among others.
In a bid to help fintechs further, the company added two new components to the Fast Track program — the Partner Toolkit and a certification program named Visa Ready for Fintech Enablers. Notably, the Partner Toolkit enables fintech partners to gain an in-depth understanding of the industry by working closely with Visa’s experts. This in turn, is likely to accelerate the fintech’s growth prospects as they can even roll out a card in the market.
Meanwhile, the second component includes the certification program, which encompasses a certified ecosystem of partners. These partners usually excel in providing the much-needed solutions and expertise based on which fintechs can introduce products in accordance with Visa's global standards of security and functionality.
Notably, the credibility of the Fast Track program is evident from increased participation, which skyrocketed 360% year over year in 2019. The notable fintechs that have worked closely with Visa include PayPal Holdings, Inc. PYPL, Affirm, BillGO, Finix, and others.
Shares of Visa have gained 13.7% in a year compared with the industry’s growth of 9.5%. Another company in the same space, American Express Company AXP, has lost 4.8% in the same time frame.
The latest move of Visa seems to be time opportune since the global Fintech market remains well-poised for growth and hence, providing necessary assistance to them, ranging from technological assistance to empowering them with enhanced payments solutions, is of utmost importance. Per a report by The Business Research Company, the global Fintech market is expected to witness a CAGR of 9.2% and 11.1% by 2023 and 2030, respectively.
The company’s peer, Mastercard Incorporated MA, has also been expanding its Start Path program in a bid to support growth of fintechs so that they can innovate new solutions and add scalability to their business.
Coming back, Visa has always emphasized on increasing usage of digital transactions, which was steadily gaining popularity but the COVID-19 pandemic accelerated the same. The trend is likely to sustain even beyond the pandemic.
The Fast Track program seems suitable to bank on the present scenario based on which fintech partners can opt for real-time and secured payment facilities, thereby strengthening their market position. They can also serve underserved communities and even bring about enhanced payments solutions to tap the growing potential of the B2B space. With Visa being the preferred partner of choice for fintechs, the emergence of a cashless economy amid the rising adoption of digital transactions worldwide are likely to position the company well for long-term growth. Notably, it currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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