Financial Sector Ideas

[gfp927z]

Visa - >>> Don't miss this explosive secular trend


https://www.fool.com/investing/2020/10/24/5-great-stocks-you-can-buy-and-hold-forever/


Like NextEra, Visa (NYSE:V) is riding a mega-growth secular trend: As the war on fossil fuels is propelling NextEra, the war on cash is lifting Visa.

The e-commerce boom and the digitization of major service industries like banking have triggered a major shift from cash to cashless modes of payments like debit and credit cards, online payments, and mobile wallets. Visa is already the world's largest payments processor, facilitating transactions between consumers, merchants, and financial institutions. In 2019, it had 3.4 billion cards in circulation across 200 countries, processed 553 million transactions per day, and generated $23 billion in revenue.

That's an enormous business, and this could be just the beginning. Visa is extensively using technologies like blockchain, and expanding into newer areas such as business-to-business and person-to-person payments, both of which are multitrillion-dollar addressable markets. Its value-added services like analytics and fraud management also provide it with tremendous growth opportunities.

With Visa's operating margins already north of 60% and with management targeting a dividend payout of 20% to 25%, patient investors could reap multibagger returns from this fintech stock.

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