Visa Checkout Provides It a Toehold in a Crowded Digital Payments Market

Electronic Payments Company looking to make big presence in 2016 Olympics, as it raises the bar for its second phase of Visa Checkout

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  1. Visa Inc. (NYSE:V) has said that it has started its second wave of its Visa Checkout, an initiative that has proven to be a success in its early stages. In an already crowded online payments market, Visa has managed to create itself a niche in the face of growing competition from the likes of MasterCard or Google. The online payments market size is estimated at between $ 350-400 billion.

    Visa Checkout is currently available in US, Australian, and Chinese markets, with plans to expand to other markets in the near future. Its main function is to store credit card and shipping information so that customers are able to checkout from less than 130,000 retailers around the globe with just a few clicks of a button.

    As of now, around 4 million users have registered for the web/mobile payment solution since it was introduced last summer, and partners with less than 150 major retailers along with more than 250 financial groups.

    Data released by ComScore reveals that Visa Checkout saw a large traffic with shoppers completing less than 70% of their shopping transactions, while PayPal Express follows suit with 62% of customer checkout transactions – suggesting that shoppers are lured by the convenience in which shoppers actually shop.

    The initiative was commenced last year in North America, and given the success so far, the market will again remain a priority this year too. Visa spent more than $4 million to advertise the program in 2014.

    Meanwhile, in the sporting front, Visa is gearing up for next year’s Olympics in Rio de Janeiro, as it starts its sponsoring program along with its brand partners, but will also feature in this summer’s National Football League as well. It will kick-off its marketing campaign for its Visa Checkout starting in the summer before it hits full speed in the fall and winter as well, in a bid to speed up the registration of more existing Visa account holders and potential new ones.

    In addition to the Rio Olympics, Visa is also focusing on NFL and FIFA’s Women’s World Cup, which will be held in Canada this year, providing it a lucrative opportunity for the payment technology company to serve as a ground up for next year’s Olympics and reap the maximum benefit during the key selling periods of ‘back-to-school’ and holidays.

    Visa stock price ended the day at $69.62, almost flat from the previous day.

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