Visa Inc.’s V business Visa Canada recently teamed up with the country’s multinational financial services provider Royal Bank of Canada (RBC) to make Installments enabled by Visa available to the latter’s personal credit cardholders. The solution was already launched across the country last year and RBC emerges as the latest issuer to integrate V’s installment offering with its credit card product.
Following this latest tie-up, eligible RBC personal credit cardholders can benefit from the exclusive opportunity to break their purchases into small and equal payments scattered over a specific time period. The cardholders can avail the Visa solution while shopping in-store or online via the participating merchants in Canada.
Usage of Installments enabled by Visa eliminates the need for eligible RBC personal Visa credit cardholders to submit new loan applications, undergo credit checks or download an app to utilize their existing credit.
Visa’s continuous efforts to meet consumer demand for an increased number of flexible and affordable payment options are clearly reflected in its latest move. Thus, V aims to harness prospects prevailing amid the booming installment payments and Buy Now Pay Later (BNPL) markets. The BNPL space continues to witness widespread popularity, grabbing a bigger slice of the global payments market.
Going by Visa research, up to 50% of global consumers are keen to avail installment financing from their existing credit card issuer. This shows that Visa’s collaboration with RBC is aptly timed. Consumers are enticed to tap installment payment options as these relieve them from the obligation to cough up the entire amount due at the time of checkout.
Installments enabled by Visa continue to gain momentum in Canada. In October 2022, V announced that it will extend the same solution across some of Canada’s largest retailers, namely Simons, Canada Computers, Soft Moc and Trevi in the days ahead.
Shares of Visa have lost 3.8% in a year compared with the industry’s decline of 22.3%.
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Zacks Rank & Key Picks
Visa currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Business Services space are Barrett Business Services, Inc. BBSI, Clean Harbors, Inc. CLH and Insperity, Inc. NSP. While Barrett Business Services currently flaunts a Zacks Rank #1 (Strong Buy), Clean Harbors and Insperity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Barrett Business Services outpaced estimates in each of the last four quarters, the average beat being 49.05%. The Zacks Consensus Estimate for BBSI’s 2022 earnings suggests an improvement of 31% from the year-ago reported figure. The same for revenues suggests growth of 12.5% from the prior-year tally. The consensus mark for BBSI’s 2022 earnings has moved 4% north in the past 30 days.
Clean Harbors’ earnings outpaced estimates in each of the trailing four quarters, the average surprise being 38.20%. The Zacks Consensus Estimate for CLH’s 2022 earnings suggests an improvement of 99.5% from the year-ago reported figure. The same for revenues suggests growth of 35% from the year-ago actual. The consensus mark for CLH’s 2022 earnings has moved 7.1% north in the past 30 days.
The bottom line of Insperity outpaced estimates in three of the last four quarters and missed the mark once, the average being 0.64%. The Zacks Consensus Estimate for NSP’s 2022 earnings suggests an improvement of 34.2% from the year-ago reported figure. The same for revenues suggests growth of 19.8% from the year-ago actual. The consensus mark for NSP’s 2022 earnings has moved 7.1% north in the past 30 days.
Shares of Barrett Business Services and Clean Harbors have gained 24.9% and 4.6%, respectively, in a year. However, the Insperity stock has lost 2.6% in the same time frame.
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Visa Inc. (V): Free Stock Analysis Report
Insperity, Inc. (NSP): Free Stock Analysis Report
Clean Harbors, Inc. (CLH): Free Stock Analysis Report
Barrett Business Services, Inc. (BBSI): Free Stock Analysis Report
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