Visa Inc. V has partnered with Vipps, the leading digital wallet provider in Norway. Per this pact, Visa will be able to delve deep into mobile payments service in Europe.

Visa’s clients and partners will be able to create their own digital wallets via Vipps digital platform. This will allow them to meet the growing demand for contactless, online and mobile payments.

This deal to enhance mobile payments comes at an opportune time when e-commerce is booming amid a pandemic situation. This, in turn, also fuelled demand for mobile payments, given its flexibility, all-round availability and ease of use. Also, mobile payments transcended from being a convenience to a necessity as customers look for a seamless option to pay in-stores, online or through an app.

Europe has always been on the forefront in the adoption and usage of digital payments. In Europe, more than 75% of Visa payments is presently contactless. Notably, in June 2020, e-commerce transactions saw a year-over-year jump above 25% year-on-year across 20 European countries.

The partnership with Vipps is a perfect fit for Visa, given the huge reach of the former in Norway, which will allow the company to get a ready customer base. Since Vipps was launched in 2015, it has achieved 85% market penetration over time and services 3.7 million users in Norway. Over the last year, Vipps has registered a skyrocketing 145% increase in transactions in said country.

According to ResearchAndMarkets.com, the mobile payments market was valued at $113.9 trillion in 2019. Stores and services across the globe are rapidly adopting and integrating mobile payment applications. Owing to changing lifestyles, daily commerce and accelerated growth in online retailing, this trend is expected to continue for the long haul. Increased mobile ownership along with widespread percolation of internet drove mobile payments.

Some of the top mobile payment brands are Apple Pay from Apple Inc. AAPL, Google Pay from Alphabet Inc. GOOGL, Samsung Pay, Chase Pay and Masterpass from Mastercard Inc. MA. With frequency in mobile usage and rising consumer comfort, mobile payments will see substantial flourish over the next few years.

Visa currently carries a Zacks Rank #3 (Hold). The stock has gained 11.9% compared with its industry’s growth of 7.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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