The factors in favour of a rise in the Visa share price:
Taking a position on the long term and when it is going upwards on the value of visa shares with CDFs or the integration of some of its shares in your stock portfolio requires the possibility that this title is likely to earn points in the months and years to come. But for that, you must of course be aware about the advantages of this asset for investors and the strengths of this company. This is what we propose you to find out here more in detail thanks to some information about the advantages of Visa.
One of Visa’s greatest strengths is of course its very strong popularity in the whole world. In fact, when we think about credit cards, the three big names that automatically come to mind are Visa, Mastercard and American Express and not the names of the banks that provides the credit card. This notoriety is in fact a pledge of trust by users and future clients.
Visa also has a very interesting positioning on the market of credit cards with extremely low competition. In fact, the current situation is that of a duopoly and two main players in this market remains Visa and Mastercard which are the only ones targeting the mass market at the moment. The operation of their branch of credit cards makes them particularly attractive to customers who carry out small repetitive transactions. One might think that the group American Express is also a direct competitor of Visa but in reality, Visa’s positioning is much more selective and sharp than that of the other two groups. Visa targets the mass market with a very large volume of transactions every second, which offers potential recurring and repetitive sales potential which is the major strength of this company. The use of a credit card on a daily basis has in fact become a real reflex for consumers.
On the other hand, Visa focuses its activities first of all on debit cards rather than on credit cards. The group has thus successfully reduced the risk connected to credit cards.
We should also mention, the quality and selective acquisitions made by Visa which perfectly keep up with its core activities. This avoids a certain dispersion that could be perceive as dangerous or risky.
Finally, one of the main qualities of Visa concerns the quality of its marketing relations and communication with the general public. We notice in particular the efforts made in the sponsoring of big sportive events such as the Olympic Games which allowed it to reach a very large audience despite an important investment. Thus, Visa has succeeded in increasing the power of its brand and its notoriety this way it can face its competence more serenely.