Yesterday,
Visa Inc.
(
V
) came out with another innovative online payment management tool
for small businesses as it unveiled Visa Payment Controls.
The new service is aimed at replacing old and inefficient modes
of payments, which include checks, ACH and international wire, with
the transactions made on employee's business cards, thereby helping
effective cash flow management in small businesses.
Accordingly, this service will not only offer flexibility to the
employees of these businesses but will also aid the management in
keeping a check on excess cash outflow. These checks and controls
range from travel blocking, purchase limits and ATM withdrawal or
excess-cash limits to restrictions on merchant category or
transaction form.
Such a control tool will help small business owners, for
instance, to restrict their drivers or managers to use only their
business cards to purchase fuel or raw materials, respectively.
Hence, through such transparent, secure, reliable and convenient
employee cards, business owners can spontaneously have better
control over the business operation and help reduce wastage of
resources since the employees will now be accountable for every
penny spent from the firm's account.
Acing Growth Through Diversified Dynamics
Visa's innovative payment solutions are also aimed at increasing
the company's brand loyalty while adding an incremental revenue
stream, particularly, given the regulatory cloud that burst over
Visa's primary debit interchange fee in mid-2011.
The regulatory challenges has diverted Visa's synergies to the
rapidly growing prepaid cards, money transfer services, eCommerce
and mobile banking so as to reach out even to the small businesses,
thereby helping them in increasing profitability and cash flow by
initiating controlled spending with convenience.
The Visa Payment Controls initiative is also in sync with the
company's strategy of driving growth through increased payment
volumes along with consistent increase in processed transactions.
The company aims to retain its strength by exploring newer growth
avenues, besides expanding into emerging international markets to
support growth. 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,
MasterCard Inc.
(
MA
) and
American Express Co.
(
AXP
), in an increasingly complex payments environment, primarily
through the strategic technology acquisitions and product
innovations.
Earlier this week, American Express also launched a new
corporate payment solution - PAYVE - for the middle- and
high-dimensional companies in order to assimilate different modes
of payment in one digital platform.
Visa currently retains a Zacks #2 Rank, which translates into a
short-term Buy rating, while the long-term recommendation remains
Neutral.
AMER EXPRESS CO (AXP): Free Stock Analysis
Report
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
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