Is Visa’s (V) Digital Asset and AI Expansion Altering Its Investment Case?

• Visa Inc. recently announced several product innovations, including integrating stablecoins into its Visa Direct network and launching the AI-powered Visa Commercial Solutions Hub for issuers and fintechs globally.
• These advancements highlight Visa’s push to create seamless, digital-first payment experiences by blending digital assets and artificial intelligence to address evolving commercial and consumer needs.
• Next, we’ll examine how Visa’s expansion of digital asset integration enhances its investment narrative amid rapid changes in global payments.

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Visa Investment Narrative Recap

For investors to remain confident in Visa, they need to believe that the company can sustain its leadership in digital payments despite major shifts in technology and competitive threats. The recent announcement of the DeCard Luminaries premium Visa card, which lets users convert stablecoins for everyday purchases and lifestyle benefits, reinforces Visa’s attempts to integrate digital assets. This move underscores Visa's ability to adapt to rapidly changing payment trends, but it does not materially lessen the main near-term risk: that alternative real-time payment systems or decentralized rails could erode reliance on Visa’s network and pressure transaction revenues. One particularly relevant development is Visa’s pilot program to integrate pre-funded stablecoins as part of their real-time cross-border payment offering, Visa Direct. As cross-border payments become the most attractive use case for stablecoins, this initiative could support Visa's bid to remain central to global remittance flows, directly linking the catalyst of rising value-added services and payment volumes to digital asset integration. However, investors should remain alert, alternatives to card-based payments are accelerating, and the threat to Visa's core transaction fee structure is one that...

Read the full narrative on Visa (it's free!)

Visa's outlook anticipates $51.9 billion in revenue and $27.5 billion in earnings by 2028. This scenario reflects a 10.1% annual revenue growth and a $7.4 billion increase in earnings from the current level of $20.1 billion.

Uncover how Visa's forecasts yield a $391.46 fair value, a 12% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community contributed 55 fair value estimates on Visa that range from US$243.09 to US$422.81. While some participants see significant upside, competing real-time payments could create margin pressure for Visa, explore these viewpoints to see how they could impact your view of the stock.

Explore 55 other fair value estimates on Visa - why the stock might be worth as much as 21% more than the current price!

Build Your Own Visa Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Visa research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Visa research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Visa's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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