Investing in Visa
Companies such as Visa provide excellent benefits when purchasing securities, and as a prestigious financial institution, shareholders undoubtedly prefer to invest in Visa.
But… So is it a good idea to buy Visa shares? It may or may not be a good alternative, and to be sure it is necessary to know in detail all the information about this company, advantages, disadvantages, stock market data and much more. That is why we recommend that you continue reading below.
What is Visa?
Visa Inc. is a multinational company that offers financial services worldwide. It was created in 1970 in Foster City, California in the United States. At the moment its products are commercialized in numerous countries with great volume of market. It guarantees its activity in two groups:
- Sale of credit and debit cards to be able to make payments with them in any commerce. They also offer online payment methods.
- Advice and management of services with other associated networks.
Visa has been known to partner with companies for a specific purpose. So far it has had alliances with Paypal, Orange, Honda and the Publicis group. With its partners it has been able to increase in payment gateways, applications and have visibility in sporting events.
In addition, the company is considered to be the second largest payment methods company in the world. It is present in more than 190 countries around the world and has around 17,000 employees spread across its sites.
The Visa group has been listed on the New York Stock Exchange for 20 years or slightly less. It uses the symbol ’V’ for NYSE, but Visa also trades on Nasdaq under the same acronym.
Its business model has been reinvented using technology to facilitate payment methods such as online transactions. It also facilitates the use of credit, debit and prepaid cards from different institutions.
Visa’s earnings are eye-catching for those who choose to invest in the company. For 2019 Visa’s share price was 3.4 billion card with transactions of $11.5 billion in movements from different merchants with more than 160 currencies. In net income for that year, they obtained a total of $12.08 billion in their fiscal closing.
However, despite the COVID-19 crisis, the fiscal year-end of 2020 was $10.866 billion, representing a drop of at least 10% in earnings compared to the previous year. Nevertheless, the company is working to improve and upgrade its earnings so that the Visa shares remain stable and profitable.
Buying Visa shares: Advantages
- Excellent reputation. In addition, the company has the recognition of its millions of users for the purchase of its cards in different modalities. This guarantees future stability for both Visa and its stock.
- Growth through innovation. Thanks to the company’s implementation of electronic payment methods, Visa’s share is expected to boost growth in the coming years.
Buying Visa Shares: Disadvantages
- COVID-19 effect. Due to the crisis that the financial company went through because of the coronavirus, the price of each Visa stock is gradually being affected by the decline in its sales revenue. This could affect the future if the economic crisis is not repaired now.
- Competition. The company is up against the likes of MasterCard, Union Pay and American Express. This could hurt Visa’s profitability and share value.
How to buy Visa shares
To buy Visa shares safely and reliably, the best thing to do is to carry out this operation from a broker. This is a platform that acts as an intermediary between the investor and the company offering its shares. Although there are a variety of brokers, we recommend using eToro to buy a Visa share.
Here’s how to buy on Visa through eToro:
- Create a profile with your personal details from the eToro platform.
- Verify your account by depositing the minimum amount to invest ($200) or the amount you are willing to use for this transaction.
- Log in and search for Visa.
- You will be presented with an information box showing the real-time price of Visa shares and other stock market data which may be of interest to you. Click on the ’Buy’ option.
- Add the number of Visa shares you wish to purchase and click ’invest’.
- Now choose the type of quotation you will pay, the length of the order and the investor of the Visa stock exchange of your choice.
- Finally, wait a few minutes and you’re done – your Visa shares are now in your portfolio!
- To know how to invest in Visa successfully, you need to consult with an expert in the business of the stock exchange and the stock market, so that he or she can explain to you the best way to invest your capital wisely.
- Check the price of a Visa share on a daily basis, so you can choose the right time to buy or sell shares without taking risks.
- When you know how much a Visa share is worth, check that it matches your investment capital, and don’t spend more than you have. Remember that stock market investments are not entirely safe and you can generate profits and dividends, as well as risk losing your money.
- Read all the information about the company, its advantages and disadvantages and corroborate its revenues and earnings in shares from previous years and the present. This way you will know whether or not to invest in Visa.