Recently, card processing giant
) unveiled an upgraded data security service - Visa Merchant Data
Secure. This security service will be knotted with point-to-point
encryption (P2PE) technology.
Visa Merchant Data Secure will help the company to deliver a
higher level of card data security to acquirers and merchants. The
latest service is expected to be launched beginning in 2013.
P2PE technology highly complements the EMV technology and
likewise aims to reduce card data fraud as far as possible. This is
also a critical requirement at this moment since the card industry
solely operates on chip cards that hold all the customer
information, while interchanging various hands, such as retailer,
merchant and acquirer, before reaching the end source.
Hence, the latest P2PE technology will enhance security by
encoding sensitive cardholder information, which can only be
decoded and deciphered by Visa as the end acquirer. Moreover, P2PE
allows for encryption and decryption at multiple points to ensure a
security check wherever required. The new technology will also help
the company maintain a strict security protocol, thereby adding an
easy and reliant defense mechanism into the payment system.
The Visa Merchant Data Secure initiative is in sync with the
company's strategy of driving growth through increased payment
volumes along with a consistent increase in processed transactions.
Visa's innovative payment solutions are also aimed at increasing
the company's brand loyalty while adding an incremental revenue
stream. The company is also generating strong cash flow and
maintains a healthy capital position.
Overall, Visa is making vigorous attempts to augment its core
processing capabilities and maintain its competitive position,
primarily against its arch rivals,
American Express Co.
), in an increasingly complex payments environment, primarily
through strategic technology acquisitions and product
Visa currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating, while the long-term recommendation remains
AMER EXPRESS CO (AXP): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
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