Can Visa's Cross-Border Engine Still Deliver Double-Digit Growth?

Visa Inc.’s V cross-border business continues to be one of its biggest growth drivers, benefiting from strong demand for international travel and a surge in global e-commerce. As more people resume overseas trips and businesses look to broaden their global presence, V’s high-yield cross-border transactions continue to play a vital role in boosting its overall performance. In the fourth quarter of fiscal 2025, cross-border volume excluding transactions within Europe rose 11% year over year, along with 13% growth in e-commerce and 10% growth in travel.

Visa is sharpening its focus on boosting the performance of its cross-border portfolios while expanding into high-potential verticals with a significant mix of cross-border payments. It is also making strides in product capabilities, like multi-currency payment credentials that allow travelers to easily store and spend in multiple currencies. This strategy aims to make things smoother for users, enhance transaction efficiency and solidify its role in the global commerce landscape.

The company is also integrating stablecoin functionality into Visa Direct through new pilot initiatives, aiming to make cross-border money movement faster and more efficient. Visa Direct allows businesses, fintech companies and various platforms to make real-time payments across borders. International transaction revenues increased 10% year over year in the fourth quarter.

By incorporating multi-currency features and stablecoin options, the company is paving the way for exciting new cross-border opportunities while strengthening its long-term growth strategy. Its future momentum will depend on its ability to adapt to evolving travel trends, remain competitive in the digital commerce landscape and uphold trust through enhanced security measures.

How Are Competitors Faring?

Some of Visa’s competitors with a strong cross-border business include Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL.

Mastercard's cross-border platform, Mastercard Move, is designed to empower banks, non-bank financial institutions and their customers — including those who disburse funds directly — by offering secure and nearly instant money transfer solutions, both domestically and internationally. MA's cross-border volumes improved 15% on a local currency basis in the third quarter of 2025.

In the third quarter of 2025, PayPal’s cross-border total payment volume improved 8% year over year. Its net revenues increased 7% year over year to $8.4 billion in the same quarter. Additionally, PayPal’s total payment volume increased 8% year over year in the third quarter of 2025.

Visa’s Price Performance, Valuation & Estimates

Over the past year, shares of Visa have jumped 4.5% against the 13% fall of the industry.

From a valuation standpoint, V trades at a forward price-to-earnings ratio of 24.89, above the industry average of 19.97. V carries a Value Score of D.

The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies an 11.7% jump from the year-ago period.

Visa stock currently carries a Zacks Rank #3 (Hold). 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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