Global payment network Visa Inc. (V) launched the Visa Acceptance Cloud (VAC) platform, which enables point of sale (POS) payments on the cloud.
The service will allow small businesses, retailers, fintech, and the businesses that support them to experience smooth and affordable POS opportunities. Shares of Visa closed at $215 on January 13.
Benefits of Visa Acceptance Cloud
Visa has already seen huge success with its “Tap to Phone” platform, which transformed hardware such as Android smartphones and tablets into contactless POS terminals.
Similarly, the VAC platform transforms payment processing software to the cloud, aiding small businesses to accept digital payments without having the necessary expensive hardware.
With VAC, businesses can use simple hardware that supports Visa’s cloud technology. Moreover, the solution will be updated automatically on the cloud, unlike hardware-based solutions where manual updates are needed.
The platform will enable the POS to offer other services such as fraud management, Rapid Seller Onboarding, and buy now, pay later. Additionally, VAC will also offer robust data analytics, network services from Visa, and data security capabilities.
The VAC pilot service is live across six geographies including North America, South America, Europe, Africa, Asia, and Australia.
Mary Kay Bowman, Senior VP and Global Head of payment and Platform Products, said, “Cloud-connected POS lets sellers accept payments across a range of devices quickly, simply, and safely, whether at an unattended kiosk in a hotel, a mirror in a high-end retail store or virtual in-home gym, or a smartphone in the hands of a small seller with a roadside newsstand.”
Bowman added, “On one end of the spectrum, cloud acceptance helps drive inclusion for more small sellers who want to offer digital payments. On the other end, Visa Acceptance Cloud enables advanced shopping and buying experiences that will be central to the future of retail for businesses of all shapes and sizes.”
Recently, Raymond James analyst John Davis reiterated a Buy rating on the stock with a price target of $265, which implies 23.3% upside potential to current levels.
Overall, the stock commands a Strong Buy consensus rating based on 12 Buys and 2 Holds. The average Visa price target of $266.57 implies 24% upside potential to current levels. Meanwhile, Visa shares have gained 7.3% over the past year.
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