Visa Inc., or Visa, is offering 406,000,000 shares of class A common stock.

Business :- Electronic payments network.

Listing :- NYSE

Symbol:- "V"

Business Overview

IPO Report

Offer/Objects of issue

Electronic payments industry

Industry, Growth and Outlook  

Global payments industry, consists of various type of payment mediums like

• Paper-based payments: cash, personal checks, money orders, government checks, travelers cheques, official checks and other paper-based means of transferring value;

• Card-based payments: credit cards, charge cards, debit cards, deferred debit cards, ATM cards, prepaid cards, private label cards and other types of general-purpose and limited-use cards; and

• Other electronic payments: wire transfers, electronic benefits transfers, automated clearing house payments and other forms of electronic payment not typically tied to a payment card or similar access device.

Electronic form of payment is gaining popularity over traditional paper based form of payment due to various reason like:

• Security: Accepting payment through card is considered as much safer option due to instant authentication, validation of buyer which almost eliminate any possibility of non payment or fraud.

• Safety: Carrying a PIN based card is consider as much safe option than carrying cash.

• Easy to carry: Cards takes much less space than cash

• More acceptability at merchant establishments: World over more and more merchant embellishments are accepting cards as payment option which further helps in promoting cards a preferred payment option as compare to cash.

• Cross-border utilization: Most cards are internationally acceptable with automatic currency conversion.

• Rising popularity and use of internet: Rising popularity and use of internet is prompting e-shopping and e-commerce where electronic and card based payment is preferred and most accepted form of payment.

Electronic payments industry is mature industry in regions like US and Europe. But in electronic form of payment still is a uprising industry in fast growing Asia and Africa regions which hold significant part of world population. Data shows that Debit Card market is still in a early stage of evolution in regions outside US and Europe. With rising number of card holders and rising number of merchant establishment accepting cards, electronic payment industry is expected to give Ample growth opportunity to companies like Visa, etc. 

Over all industry outlook is very positive with expected long term moderate growth in regions like US and Europe and expected long term high growth in regions like Asia and Africa.

This article reflects personal view of the author about the company and one must read offer prospectus and consult its financial adviser before making any investment decision