What Visa (V)'s Stablecoin Payout Pilot Means for Shareholders

• In recent days, Visa Inc. launched a breakthrough pilot allowing businesses to send payouts directly to recipients' stablecoin wallets, expanding access for gig workers and creators globally through near-instant stablecoin payments.
• This move not only highlights Visa’s continued innovation in digital asset integration, but also addresses efficiency needs in underbanked, cross-border markets where rapid fund access is especially critical.
• We'll explore how Visa's progress in stablecoin-powered payouts and global payment accessibility influences the company's investment narrative.

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Visa Investment Narrative Recap

Being a Visa shareholder means believing in the ongoing global transition from cash to digital payments and Visa’s ability to monetize this shift through its vast transaction network. The new stablecoin payout pilot expands Visa’s role in digital payments, but it does not fundamentally change the main catalyst, sustained growth in global payment volumes due to wider e-commerce and digital adoption. Near term, the biggest risk remains regulatory pressure on interchange fees, which could impact Visa’s profitability, though this innovation itself may not materially affect that risk for now.

Visa’s recently announced pilot for stablecoin payouts is closely relevant here, as it illustrates the company’s push to integrate new technologies for instant, cross-border payments. This directly relates to Visa’s drive to capture more of the growing remittance and B2B payments markets, acting as a potential catalyst for expanding addressable revenue streams, especially in regions underserved by traditional banking.

However, in contrast to Visa’s consistent history of innovation, investors should not overlook the risk of regulatory interventions in card fees that could...

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 is based on a 10.1% annual revenue growth rate and a $7.4 billion increase in earnings from the current $20.1 billion.

Uncover how Visa's forecasts yield a $391.46 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Thirty perspectives from the Simply Wall St Community put Visa’s fair value between US$322.30 and US$420.54 per share. Against this backdrop of differing views, debate remains active on the impact of regulatory changes to interchange fees and how they may affect future earnings.

Explore 30 other fair value estimates on Visa - why the stock might be worth as much as 27% 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 3 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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