LONDON – Visa Inc . (NYSE: NYSE:) and HSBC Holdings (NYSE:) plc (LON: HSBA) have unveiled a collaboration on HSBC’s new international payments application, Zing. The app, launched in the UK in January 2024, allows users to manage multiple currencies, offering the capacity to hold funds in over 10 currencies, send more than 30, and transact across over 200 countries and territories.
Zing integrates Visa’s technology, including Currencycloud’s multi-currency wallet and Tink’s quick bank transfer feature, to offer services such as low-cost currency exchange and real-time rates. The app aims to provide an intuitive and transparent financial experience, combining fintech innovation with HSBC’s extensive finance expertise.
According to James Allan, CEO and Founder of Zing, the collaboration with Visa reflects a shared vision of providing secure, user-friendly financial products for an international lifestyle. Serge Elkiner, Global Head of Product, Money Movement Solutions at Visa, emphasized the need for simplicity in money movement, akin to sending a text message.
The partnership between Visa and HSBC is set to introduce new features and expand Zing’s reach to more markets in the future. This press release statement indicates a strategic move to enhance global financial mobility and accessibility.
Zing represents a step towards modernizing international finance, leveraging established banking experience and cutting-edge technology to meet the demands of today’s global consumers.
In other recent news, Singapore’s state investor Temasek Holdings revealed a 1.8% increase in its net portfolio value, reaching $288.5 billion, with profitable investments in the United States and India offsetting weaker performance in China.
Temasek’s investment in the Americas now represents 22% of its portfolio, surpassing its China holdings, which account for 19%. The company is planning to increase investments in Japan, Southeast Asia, and the Middle East.
In the payments industry, Visa and Mastercard (NYSE:) have voluntarily extended their agreement to cap fees on tourist card payments in the European Union until 2029. This decision maintains the fee limits of 0.2% on non-EU debit card payments and 0.3% on credit card payments in physical stores, with online transactions capped at 1.15% for debit cards and 1.5% for credit cards.
In the United States, the Supreme Court is set to rule on a case involving a North Dakota convenience store’s challenge against a Federal Reserve regulation regarding debit card “swipe fees”. The outcome could potentially reshape the landscape for businesses seeking to challenge federal regulations.
Meanwhile, a U.S. District Judge in Brooklyn has indicated that Visa and Mastercard could potentially handle a larger financial settlement than the $30 billion one she dismissed, as part of an antitrust litigation initiated in 2005 by merchants claiming they overpaid on swipe fees.
The case, known formally as In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation, could potentially go to trial if a new settlement is not reached.
InvestingPro Insights
Visa Inc., a key partner in the launch of HSBC’s Zing app, stands out as a prominent player in the Financial Services industry. With a substantial market capitalization of $533.07 billion USD and a commanding presence in the payments technology space, Visa’s collaboration with HSBC could further solidify its market position. The company has demonstrated a strong financial performance, boasting a high gross profit margin of 97.81% over the last twelve months as of Q2 2024, which indicates efficient operations and a robust business model.
InvestingPro Tips reveal that Visa has a consistent track record of rewarding its shareholders, having raised its dividend for 16 consecutive years. This, coupled with a dividend growth of 15.56% in the last twelve months as of Q2 2024, underscores the company’s commitment to delivering shareholder value. Moreover, Visa is trading at a high Price / Book multiple of 13.71, which could suggest that investors are willing to pay a premium for its shares, reflecting the company’s established brand and perceived growth prospects.
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