Visa Wants to Eliminate Cash and Have the United States Become a Cashless Country

There was an article posted by Visa and it stated that the company wants to eliminate cash. Eliminating cash for a procession company is the dream because it would force people to use cards or applications that transfer money electronically. Visa is a transaction processing company that is in the top group in the United States and the world. With the rise of Bitcoin and electronic payment systems, this may not be a far-fetched idea.

Published over a year ago
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Reviewed by Raphi Shpitalnik

Thinking about this critically, there are several ways or possibilities that would allow for this to occur. Most obviously is the rise in cryptocurrrencies, which are the Bitcoins of the world. People are not necessarily excited about the product but rather the technology behind it. This new currency allows people to send money, purchase items, or buy more without having a middleman. If you were looking to invest in Visa, you would need to see how the company could incorporate the technology into their current operations.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Visa income statement, its balance sheet, and the statement of cash flows. Potential Visa investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Visa investors may use each financial statement separately, they are all related. The changes in Visa's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Visa's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Visa fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Visa performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Visa shares is the value that is considered the true value of the share. If the intrinsic value of Visa is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Visa. Please read more on our fundamental analysis page.

How effective is Visa in utilizing its assets?

Visa Class A reports assets on its Balance Sheet. It represents the amount of Visa resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Visa aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Transaction & Payment Processing Services space. To get a better handle on how balance sheet or income statements item affect Visa volatility, please check the breakdown of all its fundamentals.

Are Visa Earnings Expected to grow?

The future earnings power of Visa involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Visa factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Visa stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Visa expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Visa earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Visa dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Visa one year expected dividend income is about USD1.33 per share.
At this time, Visa's Dividends Paid is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to climb to 14.32 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
Last ReportedProjected for 2024
Dividends Paid4.3 B4.5 B
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.20  0.15 
Dividend Paid And Capex Coverage Ratio 8.87  14.32 
Investing in dividend-paying stocks, such as Visa Class A is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Visa must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Visa. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

Visa Gross Profit

Visa Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Visa previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Visa Gross Profit growth over the last 10 years. Please check Visa's gross profit and other fundamental indicators for more details.

Another angle On Visa

Switching over to the updated debit and credit cards that use chip technology, this was a large win for Visa because it boosted the security of card use. This gave the consumer confidence to use the card more freely rather than worrying about how their information could be stolen. Although for those who have been using the chip technology, it is not as quick as other transactions and this could make people go to other means of spending.

Lastly, Apple Pay and other similar services could begin to allow visa entry into other areas of financial technology. Something as simple as putting a phone next to the scanner could enable people to continue with a cashless society.

Obviously this is going to take quite some time before people move to a cashless financial life, but you have to anticipate this kind of change. Also think about generations because most grandparents are never going to use this technology and continue to use cash. However, once people who have grown up with this technology take majority, these companies can continue to make the necessary changes to make this happen. Visa is a very sound company and has a firm grasp on the market. As long as people continue using debit and credit cards then they will be around. Just be sure to keep an eye out with the evolving technology and begin to analyze how Visa could incorporate it into their current business model.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Visa Class A. Please refer to our Terms of Use for any information regarding our disclosure principles.

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