Lawrence McOchillo Posted January 31, 2020 Share Posted January 31, 2020 Why has Visa been acquiring companies that offer different financial products in the recent past? Quote Link to comment Share on other sites More sharing options...
0 Simon Mugo Posted January 31, 2020 Share Posted January 31, 2020 Visa Inc. (NYSE:V) is acquiring other companies in order to diversify its revenue streams from the traditional transaction fees charged for using Visa-branded credit and debit cards. The company recently released its earnings report for Q1 fiscal 2020 where revenues came in at $6.05 billion missing consensus estimates set at $6.08 billion. The report further revealed that payment transactions using Visa-branded cards grew 8%, but revenues from the same were lagging given the large number of dual-branded cards in China. Most analysts expect revenue margins from card transactions to fall further as Visa faces stiff competition from MasterCard and other new entrants such as Square Inc. The company is currently in the process of acquiring Plaid Financial for about $5.3 billion as it looks to diversify its revenue sources and compete with popular fintech companies. The strategy is likely to pay off over the long-term, especially if Visa finds a way to invest in, and monetize blockchain payment services. Quote Link to comment Share on other sites More sharing options...
0 dara eramana Posted October 3, 2021 Share Posted October 3, 2021 Now the company is going to diversify the sources of all income in order to compete with other companies and acquire billions of dollars, this is why.. Quote Link to comment Share on other sites More sharing options...
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Lawrence McOchillo
Why has Visa been acquiring companies that offer different financial products in the recent past?
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