Visa Partners JPMorgan - Analyst Blog

Recently, Visa Inc. ( V ) announced a strategic partnership with JPMorgan Chase & Co. ( JPM ) 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 cardholders.

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 cardholders.

We expect the deal to enable both the companies to improve their clientele base and thereby enhance their sales structure.

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, Vantiv Inc. ( VNTV ) 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. ( GPN ) shares the same Zacks Rank as Visa and is worth noting.

GLOBAL PAYMENTS (GPN): Free Stock Analysis Report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

VISA INC-A (V): Free Stock Analysis Report

VANTIV INC-A (VNTV): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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