Please ensure Javascript is enabled for purposes of website accessibility

Visa Strikes a Deal With a Fintech for Digital Wallet Rollout in Europe

By Eric Volkman - Updated Sep 7, 2020 at 9:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The payment card giant is hooking into the Norwegian company Vipps' contactless payment system.

Visa (V -1.13%) continues to push more deeply into the jungle that is fintech. The world's dominant payment card processor has signed a deal with a Scandinavian company in the digital wallet sphere. 

Through the arrangement, Visa said in a press release last week, "Visa's clients and partners will now be able to take advantage of the Vipps platform to create their own digital wallets and offer customers new ways to pay, be paid and manage their money."

This will apply to its cardholders in Europe; the company did not mention when and if the arrangement would be expanded to other parts of the world.

Neither the terms nor the price of the deal were made public.

Woman using a smartphone.

Image source: Getty Images.

Its timing seems appropriate. Contactless commerce -- either via online purchasing or with specialty cards that don't need to be swiped or read -- has surged during the coronavirus pandemic. This has added momentum to an existing global migration to digital means of payment. In its press release, Visa said that more than 75% of payments made through its branded cards are contactless these days.

Vipps' core product is an app that facilitates consumer payments; users can send and receive money to and from various sources. It launched in 2015, and according to Visa, currently has 85% market penetration. In its native Norway, it has 3.7 million users out of a total population of roughly 5.4 million.

"Today, the ability to pay digitally and make cashless payments in-stores, online, in-app, is no longer just a convenience but a necessity," Visa quoted Antony Cahill, its managing director for European regions, as saying. "As the leading payment brand, we are keen to make sure consumers and businesses have access to secure, digital commerce, regardless of where they live or what mobile device they have."

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Visa. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Visa Inc. Stock Quote
Visa Inc.
V
$212.82 (-1.13%) $-2.43

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.