) recently entered into an agreement with disbursement and bulk
payment solutions provider, Obopay Disbursements to pay out
electronic funds to a prepaid card. As per the deal, Obopay will
facilitate real-time payments through the corporate account against
a Visa prepaid card provided to the payee.
This collaboration will aid bulk payments or transfer of large
funds swiftly. Even consumers who do not have an access to
traditional bank accounts can receive funds from businesses by
using Visa prepaid cards. Moreover, Obopay will benefit from the
deal as all consumers with a Visa debit card can have a timely
access to funds wherever these cards are accepted.
Visa has increasingly invested in the emerging prepaid market
with specific emphasis on the US market. The company has left no
stone unturned to simplify the process of electronic payment and
establishing prepaid programs across 110 countries.
This initiative by Visa is in sync with its 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, including mobile,
eCommerce and money transfer services
Expansion into emerging international markets will also support
growth. The company is also generating strong cash flow and
maintains a healthy capital position.
), an arch rival of Visa, is also treading the growth path through
newer initiatives, including the expansion of prepaid cards, mobile
banking and eCommerce. Recently, the company announced the launch
of PayPass Wallet Services, the next-generation digital payment
service that will facilitate quicker, secured and relaxed mode of
payments for purchases.
This service can be accessed even by customers holding different
card processors. The service will be functional from the third
quarter of 2012.
The company currently retains a Zacks #3 Rank, which translates
into a short-term Hold rating.
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
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