How Visa and Mastercard Make Money Might Surprise You

Thanks to their incredible profitability, powerful network effects, and growth potential, (NYSE: V) and Mastercard (NYSE: MA) are two of the most outstanding businesses around. Their stocks have been huge winners in the past, both significantly outpacing the S 500 in the last 10 years.

The companies might be on your investing radar, so it's important to understand how these two credit card giants make money. Here's a closer look at the businesses of Visa and Mastercard.

Besides the customer and merchant, there are typically three other key parties involved in a card transaction. These are the customer's financial institution (issuing bank), the merchant's financial institution (merchant acquirer), and the payment network. All collect revenue in some form.

Source Fool.com

Visa Inc. A Stock

There is an upward development for Visa Inc. A compared to yesterday, with an increase of €4.60 (1.820%).
With 42 Buy predictions and not a single Sell prediction Visa Inc. A is an absolute favorite of our community.
As a result the target price of 279 € shows a slightly positive potential of 8.5% compared to the current price of 257.15 € for Visa Inc. A.

Like: 0

Share