Can Visa Deepen Its Remittance Business Through ACE Partnership?

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Can Visa Deepen Its Remittance Business Through ACE Partnership?

Visa Inc. V is strengthening its cross-border payments business through a strategic collaboration with ACE Money Transfer. The partnership will support V's Account Funding Transactions (AFTs), enabling customers to fund international money transfers using eligible payment cards more efficiently. By simplifying the funding process, the collaboration aims to deliver faster, more secure and reliable remittance services while enhancing the overall customer experience.

The agreement expands Visa's footprint in the growing digital remittance market, where consumers increasingly prefer quick and seamless international money transfers. ACE Money Transfer operates across multiple sending countries and more than 100 receiving destinations, giving Visa greater exposure to key remittance corridors. As digital payment adoption accelerates worldwide, the partnership could help drive higher transaction volumes across V's global network.

The collaboration also aligns with Visa's long-term strategy of expanding Visa Direct and strengthening its money movement capabilities. The company continues to invest in real-time payments, cross-border infrastructure and digital payment innovation to support consumers, businesses and financial institutions. Adding AFT capabilities to ACE's platform reinforces V's role in facilitating efficient account-to-account and person-to-person payments beyond traditional card transactions.

The latest collaboration reflects V's continued focus on expanding its payments ecosystem through partnerships that improve speed, security and convenience. In the second quarter of fiscal 2026, the company’s total cross-border volume rose 12% year over year. As demand for digital remittances continues to rise globally, strengthening payment infrastructure and broadening access to trusted money movement solutions could support Visa’s long-term growth across the cross-border payments market.

How Are Competitors Faring?

Some of V’s competitors in the payments space include Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL.

Mastercard continues to expand its cross-border payments capabilities through Mastercard Move, enabling faster and more transparent domestic and international money transfers. MA is also strengthening its remittance ecosystem by partnering with financial institutions, fintechs and digital wallet providers to simplify global money movement.

PayPal is broadening its cross-border payments business by enhancing Xoom and its global wallet ecosystem, making international transfers faster and more accessible. PYPL is also integrating blockchain and stablecoin capabilities to improve settlement efficiency and support the evolving digital payments landscape.

Visa’s Price Performance, Valuation & Estimates

Over the past year, shares of Visa have risen 3% against the industry’s 15.9% fall.

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From a valuation standpoint, V trades at a forward price-to-earnings ratio of 24.74, well above the industry average of 17.09. V carries a Value Score of C.

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The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.2% jump from the year-ago period.

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Visa stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Visa Inc. (V): Free Stock Analysis Report
 
Mastercard Incorporated (MA): Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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