Monday, May 9, 2011

Investopedia: Can Visa Keep Pace In A Mobile Payment World?

It probably seems ludicrous to even challenge the idea that Visa (NYSE:V) is going to face any sort of relevant existential threat. After all, about 60% of the credit cards in this country have Visa's name on them and the cost of building up a rival network of thousands of banks and thousands more merchants is prohibitive.

And yet, maybe there are still threats investors should consider. Dinosaurs once ruled the world, too, but circumstances changed and they were not able to keep up with that change. The question for Visa is whether it can embrace and embed itself into the next generation of payment technologies.

A Second Quarter That Fits the Profile 
Visa has generally been a dependable grower and this fiscal second quarter was no exception. Net operating revenue rose almost 15% from the year-ago level, as card servicing fees climbed nearly 24%. Sequential revenue growth was less impressive (just 0.3%), though, as data processing and international transaction fees skidded on a sequential basis.

To read the full piece, please follow the link:
http://stocks.investopedia.com/stock-analysis/2011/Can-Visa-Keep-Pace-In-A-Mobile-Payment-World-V-MA-VZ-AAPL-GOOG-EBAY-PAY0509.aspx

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