Visa’s AI-Powered Trusted Agent Protocol Could Be a Game Changer for Visa (V)

• Visa has launched the Trusted Agent Protocol to enhance secure AI-driven transactions in partnership with Cloudflare and Nuvei, while also implementing significant changes to its credit card fee discount program that leverage artificial intelligence for transaction data monitoring.
• These innovations not only advance Visa's position in agent-driven payment technology but could also materially impact industry practices and the operational costs for merchants using its network.
• We'll examine how Visa's focus on secure AI commerce could affect the company's growth outlook and investment narrative moving forward.

Find companies with promising cash flow potential yet trading below their fair value.

Visa Investment Narrative Recap

Visa's long-term investment case is built on expanding global digital payments and rising demand for secure, real-time transactions. While innovations like the Trusted Agent Protocol and enhanced merchant data rules aim to strengthen Visa's leadership in secure, AI-powered commerce, these recent moves are not expected to materially shift the near-term catalysts or alter the main industry risks facing the company right now.

Among several recent partnerships, Visa's collaboration with Pool United and First Internet Bank stands out for its relevance to evolving payment behaviors. By enabling multi-user, permission-based accounts tied directly to the Visa network, this product directly addresses shifts in consumer and small business money management, an area Visa continues to innovate in to support future transaction growth.

On the other hand, investors should be aware that the rapid growth of alternative real-time payment systems could...

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

Visa's projections anticipate $51.9 billion in revenue and $27.5 billion in earnings by 2028. Achieving this requires annual revenue growth of 10.1% and an earnings increase of $7.4 billion from the current $20.1 billion.

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

Exploring Other Perspectives

Fair value estimates from 54 members of the Simply Wall St Community range from US$243.09 to US$420.54 per share. As you weigh these varied views, keep in mind how Visa’s efforts to grow non-card payment volumes could affect its long-term earnings potential, there are many perspectives to explore.

Explore 54 other fair value estimates on Visa - why the stock might be worth 30% less 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.

Ready For A Different Approach?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• The end of cancer? These 28 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com