5. Visa Inc. (NYSE:V)
10-Year Revenue CAGR: 10.87%
Number of Hedge Fund Holders: 163
Visa Inc. (NYSE:V) provides payment solutions and operates a global payment network that connects consumers, merchants, and financial institutions. It offers credit cards, debit cards, prepaid cards, and mobile payments. among other products and services. It also provides services to financial institutions, such as payment processing, data analytics, and risk management.
This is the largest payment platform provider in the US, controlling 52% of the market by purchase volume and 47% by outstanding balances. The health of the credit card market is crucial to Visa Inc.’s (NYSE:V) success. It powers the global economy, connecting 4 billion account holders to over 130 million merchants, 14,500 financial institutions, and governments across its markets.
In FQ3 2024, the company’s revenue improved 9.57% year-over-year. Global payments volume grew by 7%. It saw strong payment volume growth rates in most major regions including Latin America, CEMEA, and Europe ex UK. The company’s acquisition of Featurespace strengthens its fraud detection and risk-scoring capabilities. Recent expansions into Peru and Vietnam have added millions of new users. The new Commercial Solutions Hub aims to revolutionize the $145 trillion commercial payments market by providing a unified platform for businesses and financial institutions.
Its VTAP platform, launched in October, enables banks to issue tokenized fiat currencies on blockchain networks. This aims to bridge the gap between traditional finance and blockchain technology. Later, in the same month, it partnered with Analytics Partners to help retailers optimize their marketing budgets using AI-driven insights. This collaboration aims to improve retailers’ return on advertising spending through data-driven solutions.
The company’s strong position in the global payments market, combined with its impressive financial performance and growth potential, makes it a compelling investment opportunity. Its resilience, high-profit margins, and expansion into emerging markets position it well for continued success.
Aoris International Fund stated the following regarding Visa Inc. (NYSE:V) in its Q2 2024 investor letter:
“Visa Inc. (NYSE:V) operates the world’s largest payments network, which facilitates the movement of money between merchants, financial institutions, consumers, businesses, and governments.
The company is best known for enabling consumers to make debit and credit card payments. In the year to September 2023, 4.3 billion Visa cardholders made 213 billion transactions on its network, to a total value of US$12.1 trillion.
Compared to cash and cheques, which are still widely used around the world, Visa’s network is a more convenient, secure, and ubiquitous way for consumers to pay. Visa has invested to reduce friction and fraud in the payments experience, to the benefit of both merchants and consumers…” (Click here to read the full text)
