It seems that the entire market is in love with everything related to artificial intelligence. While AI has been the key factor affecting stocks in recent years, investors should not lose sight of other long-lasting secular trends that remain promising.
The current rise of the cashless economy is one such area, boosted by the convenience and security of conducting transactions without physical money or paper-based methods. There are many companies that have taken advantage of this opportunity, from traditional banks to fintech startups.
Did Nvidia miss out in 2009? This rare signal flashes again. In 2009, a “double down” signal appeared for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company that is 1/100th the size of Nvidia. Continue “
But the card payment giant Visa (NYSE: V) stands out, mainly because it dominates the way commerce is conducted. is this financial stocks A smart way to invest in the cashless economy?
Visa is a critical part of the economic system.
During the first three months of 2026, which is the second quarter of Visa’s fiscal 2026, the company handled a whopping $4.4 trillion in total payment volume. That’s an absurd dollar figure that highlights just how massive the company’s payments platform is. There are also 5.1 billion Visa cards in use worldwide.
There may be no purer way to go cashless. In fact, it’s easy to argue that Visa promotes the obsolescence of cash and paper transaction methods. It has adoption in more than 200 countries and territories, with 175 million commercial acceptance locations.
Investors might believe that the rise of new payments innovations, such as those coming from fintech companies and stablecoins, represents a better way to invest in this secular trend. But I think a valid argument can be made that they actually encourage cashless transactions simply by providing different avenues of access. And, consequently, they benefit Visa, which has a powerful network effect that is almost impossible to alter.
For what it’s worth, Visa is working on different stablecoin initiatives. But it’s hard to believe that this cryptocurrency innovation is a major threat, since most consumers are unlikely to stop using their credit cards that come with the benefits and rewards they love.
Investment returns depend on valuation and earnings growth
Between fiscal 2022 and fiscal 2025, Visa’s adjusted earnings per share grew at a compound annual rate of 15.2%. Over the next three years, analysts have a consensus view that this earnings metric will increase at an annual rate of 13.5%. This tailwind helps the stock price.