Visa: Charging Ahead with IoT

06/27/2017 2:56 am EST

Focus: FINANCIALS

Todd Shaver

Founder and Editor-in-Chief, BullMarket.com

Visa (V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments, says Todd Shaver, editor of BullMarket.com.

Visa operates one of the world’s most advanced processing networks — VisaNet — that is capable of handling more than 65,000 transaction messages a second, while offering fraud protection for consumers and assured payment for merchants.

What’s new at this blue chip? Visa recently added 13 new token service providers to broaden global access to Visa Token Service. What? Let us tell you why this is so cool and important.

Visa announced it has signed 13 new partners to participate in its token service provider (TSP) program, as the payments industry shifts from plastic to digital and broader access to new standards are needed.

Internet-of-Things (IoT) is a monster trend. Billions of devices in the next several decades are going to end up being connected to the internet. Your refrigerator. Cars. Tractors. And anything you can think of.

With demand expected to increase for payments to be embedded into a growing number of devices, services and experiences, Visa has built out a global network of partners to ensure that an Internet-of-Things (IoT) device, appliance, wearable or beyond, can become a more secure place for commerce.

By Visa getting in now with tokenization, the company will be able to process payments on all these devices. Money, money, money! The growth we see at Visa is going to continue.

Visa defines the word blue chip. The company is now worth $220 billion, and getting bigger. The stock trades at 24x next year’s consensus EPS estimate of $3.94 with EPS growth running at 15-20%.

And it will stay that way for a long time with the IoT mega-trend coming online in the next few years. I see plenty of growth ahead for this cash machine.

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