Visa Renews ICBA Deal to Strengthen Its Hold on Community Banks

Visa Inc. V, a global leader in digital payments, announced the renewal of its 40-year partnership with ICBA Payments, a fully owned subsidiary of the Independent Community Bankers of America (“ICBA”). By providing secure, modern payment solutions and dedicated support, the partnership helps community banks grow, enhance customer service, and strengthen the communities they serve.

As part of the renewed partnership, ICBA Payments will continue its Visa-backed card programs featuring contactless technology, digital wallet tokenization, and global network access, along with full support in marketing, communications, and operations. Looking ahead, the partnership will expand access to Visa Direct, enabling more flexible payments for consumers, businesses, and commercial clients.

With a strong track record as one of the top card issuers in the United States, issuing 10 million cards, managing $913.4 million in balances, and processing over $43 billion in card sales, ICBA Payments has earned Visa’s trust as a reliable partner in delivering secure, flexible payment solutions that support community banks.

Apart from deepening its presence in the U.S. financial system, this partnership with ICBA Payments offers Visa steady fee income from community bank card usage and broader access to underserved markets. It strengthens long-term issuer relationships and creates cross-selling opportunities for Visa to offer services like tokenization, fraud protection, and data analytics. These offerings enhance Visa’s revenue potential while solidifying its position as a preferred provider of modern payment infrastructure.

Can Mastercard and AmEx Catch Up to Visa in Community Banking?

Mastercard Incorporated MA had also expanded its presence in community banking through a partnership with ICBA Payments. The primary objective of Mastercard is to enhance payment experiences by equipping community banks with advanced technology, enabling them to offer more modern, secure, and convenient options to their customers.

Meanwhile,American Express Company AXPpartners with regional and community banks, such as First National Bank of Omaha and US Bank, to issue American Express-branded credit cards. These collaborations enable banks to expand their offerings and offer customers premium features, valuable rewards, and enhanced financial flexibility.

Visa’s Price Performance, Valuation and Estimates

Over the past year, Visa’s shares have gained 10.7% outperforming the industry and the Zacks S&P 500 Composite.

Visa YTD Price Performance

From a valuation standpoint, V trades at a forward price-to-earnings ratio of 28.1, up from the industry average of 21.8. Visa carries a Value Score of D.

The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies 12.9% growth year over year, followed by a 12.5% increase next year.

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

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