Visa Inc. V recently collaborated with SAP SE SAP to integrate its business payments solution in the SAP ecosystem. This will enable enterprises to digitize their payment processes without having to navigate payment methods provided by their vendors. As 99% of the world’s largest companies use SAP, integrating B2B payments solution within SAP will enable payments to go through in a seamless way, gaining a wider reach.
Benefiting Visa’s Net Flows
This move bodes well with Visa’s aim to drive revenue growth through net flows. While Visa direct is an established business, B2B is the most significant component of net flows. With this collaboration Visa’s B2B Connect, a solution for cross-border money movement, will gain traction.
V aims to simplify B2B payments for small and big businesses, non-profit as well as government agencies. V estimates B2B payment flows market to be worth $50 trillion in current times. Hence, this partnership should prove to be opportune for the company’s growing ambitions in the B2B space.
Enhancing The Last Mile of Procurement
This collaboration will inject automation in payments, making the last mile of procurement more efficient than before. Automation in payments would enhance the working capital cycle of companies as payment is received within a few clicks. With the help of digital payment methods, organizations can focus their resources and time on other areas of business. V and SAP’s partnership will help satisfy customers’ unmet needs along with transforming the digital payments space in business-to-business transactions.
Integrating with SAP’s Business Technology Platform (BTP)
V will offer its payment solutions within SAP’s BTP which consists of other applications in the cloud such as data and analytics, automation and app development etc. Offered through SAP’s suite of Commercial and Money Movement Solutions, Visa will enable payments through cards irrespective of supplier capabilities of accepting the same. Domestic as well as cross border payments should help enhance Visa’s B2B Connect’s value proposition.
Zacks Rank and Price Performance
Visa currently carries a Zacks Rank #2 (Buy).
The stock has gained 9.3% in the past six months compared with the industry’s 5.9% growth.
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Stocks to Consider
Some other top-ranked stocks in the Financial Transaction Services space are Usio, Inc. USIO and Remitly Global, Inc. RELY. Each of these companies currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Usio’s 2023 earnings indicates a 140.7% surge from the prior-year reported number. The earnings estimate witnessed one upward revision over the past 60 days against none in the opposite direction.The consensus estimate for revenues for the year indicates 19.1% growth.
The Zacks Consensus Estimate for Remitly Global’s 2023 earnings implies a 7.4% increase from the prior-year reported number. The consensus estimate for revenues for the year indicates 36.8% rise.
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