Is Visa Direct the Catalyst for a Cashless Tipping Revolution?

In a bold move toward reshaping how tipped employees are paid, Visa Inc. V has teamed up with StopOn, along with Astra, which provides the payment technology infrastructure to power real-time, cashless payouts. By integrating Visa Direct into SpotOn Teamwork and DayCheck, the system allows employers to send tip earnings straight to employees’ bank accounts instantly and securely.This collaboration aims to tackle a persistent challenge in the service industry — the delayed and manual process of distributing tips. By introducing real-time, cashless payouts, the system eliminates cash-handling hassle and ensures that employees can access their hard-earned money immediately, which can help boost employee satisfaction, gain better financial control and improve retention.For restaurant owners, this innovation brings greater efficiency, enhanced payroll accuracy and reduced administrative tasks. Additionally, DayCheck’s no-prefunding requirement for qualified merchants not only boosts cash flow but also speeds up tip distribution, making it more straightforward and transparent.By bringing together V’s extensive global payment network, SpotOn’s deep understanding of the service industry and Astra’s cutting-edge technology, this partnership sets an example for the future of digital tipping, making it faster, smarter and more empowering for today’s workforce. For Visa, this move expands the adoption of Visa Direct and also reinforces its position as a crucial player in facilitating real-time payments within the ever-changing economy, which in turn improves payment volume. In the third quarter of fiscal 2025, the company’s payment volume rose 8% year over year.How Are Competitors Faring?Some of V’s competitors in the payments space include Mastercard Incorporated MA and American Express Company AXP.Mastercard is stepping up its game in the world of instant tip payments by teaming up with various platforms to provide real-time, digital payouts. Mastercard’s payment network net revenues increased 13% year over year in the first half of 2025, along with 16% growth in net revenues.By collaborating with various platforms, such as eTip, American Express offers digital tipping and reviews for hospitality businesses. Its total revenues (net of interest expense) rose 8% year over year in the first half of 2025. American Express reported 6% year-over-year growth in its network volumes in the same period.Visa’s Price Performance, Valuation & EstimatesOver the past year, shares of Visa have jumped 19% against the 0.4% fall of the industry.Image Source: Zacks Investment ResearchFrom a valuation standpoint, V trades at a forward price-to-earnings ratio of 26.76, above the industry average of 21.52. V carries a Value Score of D.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 13.7% jump from the year-ago period.Image Source: Zacks Investment ResearchVisa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks