) announced a strategic partnership with
JPMorgan Chase & Co.
) for a period of ten years. The partnership is renewable and
aims at promoting electronic mode of payments thereby supporting
merchants to provide convenient shopping experience for
As per the agreement, JPMorgan Chase will initiate a Visa
enabled payment service, named Chase Merchant Services for
distinguished payment options for traders and cardholders. The
new service will be an amalgamation of JPMorgan's widespread card
portfolio and VisaNet, the extensive network of Visa.
Only those merchants who enroll in the Chase Merchant Services
will be able to receive the service offered by the Visa cards
issued by JPMorgan Chase. This service is expected to commence by
the end of 2013.
The deal will also accentuate Visa's financials by bolstering
the number of transactions on its network as JPMorgan will shift
the additional credit and debit card volume to the former.
Visa, through this collaboration aims to augment its present
endeavor of providing customized and value-added solutions to its
clients. On the other hand, JPMorgan aspires to build direct
relationships with merchants so as to offer superior deals like
targeted offers and discounts to the Chase-issued Visa
We expect the deal to enable both the companies to improve
their clientele base and thereby enhance their sales
In order to expand its operations, the company engages in a
number of select mergers and acquisitions. Last week, Visa inked
a deal with global electronic device leader Samsung Electronics
Co. Ltd. to expand its mobile commerce (mCommerce) initiatives.
The parties will jointly support mobile payments by functioning
on near field communication (NFC) technology.
Recently, another payment processor,
) also announced that it has joined hands with Dittman Incentive
Marketing, a company focused on providing marketing solutions to
others to improve their sales figures. The partnership is aimed
at improving the functionality of Vantiv's prepaid processing
platform and expansion of its sales channel.
Visa carries Zacks Rank #2 (Buy). Vantiv carries a favorable
Zacks Rank #1 (Strong Buy) while another payment processor
Global Payments Inc.
) shares the same Zacks Rank as Visa and is worth noting.
GLOBAL PAYMENTS (GPN): Free Stock Analysis
JPMORGAN CHASE (JPM): Free Stock Analysis
VISA INC-A (V): Free Stock Analysis Report
VANTIV INC-A (VNTV): Free Stock Analysis
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