Credit: Shutterstock photoVisa Inc.V has inked a deal with YellowPepper, a mobile payments pioneer in Latin America. The agreement aims at accelerating the adoption of new payment solutions in Latin America and the Caribbean (LAC).
Per the terms of this alliance, YellowPepper will help Visa issuers, acquirers and merchants implement solutions in order to offer customers new payment experiences. Notably, YellowPepper is also expected to provide assistance in project management services, UX design and services for the development and delivery of mobile applications.
Visa has always made strategic partnerships in order to maintain its competitive edge. It makes up for almost half of credit card payments and three-fourth of debit card payments, thereby dominating the global electronic payments market.
Previously, the company had partnered with PayPal in Jul 2016 to deliver significant benefits for Visa's issuing financial institutions. These included a significantly better experience for customers, more spending volume on their credit and debit cards, lower operational costs and improved security.
Visa's shareholders have viewed these moves favorably, which is evident from its stock's performance. Year to date, the stock has gained 24.2%, whereas the Zacks categorized Financial Transaction Services industry rallied 20%. This new partnership is likely to result in further improved trading experience for this Zacks Rank #2 (Buy) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Per the deal, YellowPepper's digital payment platform will be clubbed with Visa Token Service to build digital payment experiences while protecting sensitive information. It will be combined with Visa Checkout to make online payment easier through mobile devices. It will also be integrated with Visa Direct, allowing consumers to transfer funds more conveniently.
As the payments industry shifts from plastic to digital, along with other big players like MasterCard Inc MA , Discover Financial Services DFS , Total System Services, Inc TSS , Visa seeks to provide simple, convenient and secure payment solutions, regardless of the device being used.
YellowPepper has the skill set and existing footprint in the region which would not only help Visa to further penetrate in new use cases and segments but also stay focused on its aim to collaborate with new technologies to deliver new user experiences. So the partnership is expected to provide a truly powerful hassle-free digital experience to consumers and businesses in LAC.
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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.
