A global leader in digital payments, Visa Inc. V recently unveiled an innovative debit card with Klarna designed to give customers greater payment flexibility. They launched their next-generation debit card in Money 20/20 Europe. The Klarna Card, which is powered by Visa Flexible Credential and issued by WebBank, is a blend of features that allows consumers immediate debit payment, Pay in 4 or Pay Later options. It also allows users to store their money in an FDIC-insured wallet.
This card is undergoing trial in the United States, collecting user feedback to enhance the product before its wider launch in the United States and Europe later this year. The card will give users a unique spending experience that works seamlessly both online and in-store at more than 150 million merchants worldwide that accept Visa.
This partnership marks a strategic move toward connecting the traditional banking system with cutting-edge fintech solutions. Klarna’s aim is to provide responsible financial options as an alternative to traditional credit, while Visa’s extensive global network will help make this hybrid product widely accessible.
Trending among Gen Z and millennials, buy now pay later (BNPL) is gaining popularity worldwide. As per Research and Markets, the BNPL payment market in Europe is expected to grow by 12.4% on an annual basis to reach $191.3 billion in 2025.
By integrating BNPL directly into a Visa-powered debit card, Visa could tap into new volumes and attract a fresh wave of customers. V's payments volume increased 8% year over year on a constant-dollar basis in the fiscal second quarter due to expanding operations across the United States, Europe, CEMEA and LAC regions. In the same quarter, on a constant-dollar basis, the cross-border volume of Visa rose 13% year over year.
V Stock Price Performance
Over the past year, V shares have rallied 33.2% compared with the industry’s growth of 27.1%.
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Visa’s Zacks Rank & Key Picks
V currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the business services space are OppFi Inc. OPFI, Green Dot Corporation GDOT and Sezzle Inc. SEZL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for OppFi’s current-year earnings of $1.23 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. OppFi beat earnings estimates in each of the trailing four quarters, with the average surprise being 59.5%. The consensus estimate for current-year revenues is pegged at $578.4 million, implying 10% year-over-year growth.
The Zacks Consensus Estimate for Green Dot’s current-year earnings of $1.22 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Green Dot beat earnings estimates in two of the trailing four quarters and missed twice, with the average surprise being 5.6%. The consensus estimate for current-year revenues is pegged at $2.1 billion, calling for a 20.2% year-over-year increase.
The Zacks Consensus Estimate for Sezzle’s current-year earnings of $3.24 per share has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. Sezzle beat earnings estimates in each of the trailing four quarters, with the average surprise being 159.9%. The consensus estimate for current-year revenues is pegged at $438.4 million, suggesting 61.7% year-over-year growth.
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Today, See These 5 Potential Home Runs >>Visa Inc. (V) : Free Stock Analysis Report
Green Dot Corporation (GDOT) : Free Stock Analysis Report
OppFi Inc. (OPFI) : Free Stock Analysis Report
Sezzle Inc. (SEZL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
